Judge Agrees That Man Can Pursue RESPA Claim Over Late Tax Payment

(August 6, 2020, 4:56 PM EDT) -- PHOENIX — A federal judge in Arizona on July 28 adopted a magistrate judge's June 16 report and recommendation to deny a loan servicer's motion to dismiss a proposed class action suit over its use of a borrower's escrow funds to pay for penalties stemming from a late property tax payment, finding that the plaintiff sufficiently stated a claim for relief under the Real Estate Settlement Procedures Act (RESPA) and that it is premature to strike class allegations (Richard J. Labrecque v. NewRez LLC, No. CV-19-00465, D. Ariz.; 2020 U.S. Dist. LEXIS 133154)....