Mealey's Mortgage Lending

  • June 22, 2017

    8th Circuit Affirms Decision, Finds No Challenge To Foreclosure Of Property

    ST LOUIS — The Eighth Circuit U.S. Court of Appeals on June 20 affirmed a trial court's decision to grant judgment in favor of lenders and loan servicers on claims for tortious interference and violation of Missouri law, finding that a former property owner failed to make any argument that a foreclosure was unlawful (Dale E. Wheatley, et al. v. JPMorgan Chase Bank, N.A., et al., No. 16-2649, 8th Cir., 2017 U.S. App. LEXIS 10819).

  • June 20, 2017

    California Court Finds Borrower Lacked Standing To Assert UCL Claim

    RIVERSIDE, Calif. — A California appeals court on June 16 affirmed a trial court's dismissal of a borrower's claims for violation of California's unfair competition law (UCL), breach of contract and negligent misrepresentation, finding that he lacked standing and that he was not a party to any contract with the lender (Ronald Ferguson v. Bank of America, N.A., No. E064100, Calif. App., 4th Dist., Div. 2, 2017 Cal. App. Unpub. LEXIS 4124).

  • June 20, 2017

    10th Circuit Finds TILA Claims Are Precluded By Previous Lawsuit

    DENVER — After finding that former property owners were aware of the facts underlying their claim for violation of the Truth in Lending Act (TILA) as early as 2011, the 10th Circuit U.S. Court of Appeals on June 16 affirmed a decision that their claims were precluded by a previous state court lawsuit (Stanley M. Pohl, et al. v. U.S. Bank, et al., No. 16-1144, 10th Cir., 2017 U.S. App. LEXIS 10687).

  • June 16, 2017

    Panel Affirms Bankruptcy Court Ruling Dismissing UCL Claims Against Lenders

    SAN FRANCISCO — The Ninth Circuit U.S. Court of Appeals on June 15 affirmed a bankruptcy court's ruling in favor of various lenders, finding that borrowers lacked standing to assert claims for violation of California's unfair competition law (UCL) and that their breach of contract claims failed (In re Rosanna Mac Turner, No. 15-60046, 9th Cir., 2017 U.S. App. LEXIS 10622).

  • June 16, 2017

    8th Circuit Affirms Decision Finding Loan Was Not Dischargeable Due To Fraud

    ST. LOUIS — The Eighth Circuit U.S. Court of Appeals on June 14 affirmed a bankruptcy court's ruling in favor of a credit union, finding that a mortgage loan was not dischargeable due to fraud committed by the borrower (In re:  Michael John Hernandez, debtor, Michael John Hernandez v. General Mills Federal Credit Union, No. 16-3111, 8th Cir., 2017 U.S. App. LEXIS 10533).

  • June 14, 2017

    Judge Dismisses RESPA Claim Against Wells Fargo For Failure To Respond

    MIAMI — After a former property owner failed to respond to a bank's motion for summary judgment on his claim for violation of the Real Estate Settlement Procedures Act (RESPA), a Florida federal judge on June 12 entered a default ruling against him and entered judgment in favor of the bank (Francisco Urdaneta v. Wells Fargo Bank, N.A., No. 1:16-cv-22987, S.D. Fla., 2017 U.S. Dist. LEXIS 90693).

  • June 9, 2017

    9th Circuit Refuses To Vacate Ruling Dismissing TILA Rescission Claim

    PASADENA, Calif. — The Ninth Circuit U.S. Court of Appeals on June 6 affirmed a trial court's decision not to vacate a ruling that granted dismissal in favor of a lender on a borrower's claims for violation of the Truth in Lending Act (TILA), finding that a borrower failed to show that the judgment was void (April E. Diggs v. Greenpoint Mortgage Funding Inc., 16-55709, 9th Cir., 2017 U.S. App. LEXIS 10046).

  • June 8, 2017

    Judge Finds Wells Fargo Did Not Refuse Loan Assumption Based On Age

    PITTSBURGH — A Pennsylvania federal judge on June 7 granted a motion filed by a bank to dismiss claims for discrimination and violation of housing law in relation to its refusal to approve an assumption agreement, finding that a resident of the property, who was attempting to assume the obligations of the loan, failed to show that she was a qualified borrower (Rosanne Russick v. Wells Fargo, Inc., d/b/a Wells Fargo Home Mortgage, No. 2:17-cv-00149, W.D. Pa., 2017 U.S. Dist. LEXIS 87191).

  • June 8, 2017

    Judge Grants Dismissal, Finds 25-Acre Property Was Exempt From RESPA

    DAYTON, Ohio — An Ohio federal judge on June 5 dismissed a former property owner's claims against loan servicers for violation of the Real Estate Settlement Procedures Act (RESPA), finding that the property was exempt from RESPA requirements because it was more than 25 acres and that the court lacked jurisdiction over his breach of contract claims (Michael Hoy v. Aurora Loan Services LLC, et al., No. 3:16-cv-502, S.D. Ohio, 2017 U.S. Dist. LEXIS 85999).

  • June 7, 2017

    8th Circuit Finds Borrowers' Right To Rescind Under TILA Expired

    ST LOUIS — The Eighth Circuit U.S. Court of Appeals on June 2 affirmed a trial court's ruling dismissing a claim for violation of the Truth in Lending Act (TILA) asserted by borrowers against lenders, finding that their notice of rescission of the loan was untimely (Alan G. Keiran, et al. v. Home Capital Inc., et al., No. 15-3437, 8th Cir., 2017 U.S. App. LEXIS 9767).

  • June 7, 2017

    Judge Denies Amendment To Mortgage Insurance Reinsurance Scheme Suit

    PITTSBURGH — In a mortgage insurance reinsurance scheme case, a Pennsylvania federal judge on June 6 denied leave to a putative class of mortgagors to file a third amended complaint based on their new theory under the Real Estate Settlement Procedures Act (RESPA) because it is time-barred and reliance on any equitable tolling doctrine has been disavowed (Linda Menichino, et al. v. Citibank, N.A., et al., No. 12-00058, W.D. Pa., 2017 U.S. Dist. LEXIS 86380).

  • June 2, 2017

    2nd Circuit Finds Banks Have Standing To Enforce Mortgages

    NEW YORK — The Second Circuit U.S. Court of Appeals on May 31 affirmed a district court's decision that several banks had standing to enforce individual notes and mortgages under New York law, rejecting a bankruptcy trustee's appeal of a district court's summary judgment ruling in favor of the banks (Michael H. Arnold, as Chapter 11 Trustee v. First Citizens National Bank, et al., No. 16-4012, 2nd Cir., 2017 U.S. App. LEXIS 9499).

  • June 2, 2017

    Judge Dismisses Insolvent Insurers’ Breach Claims In Mortgage Reinsurance Suit

    CHICAGO — An Illinois federal judge on June 1 dismissed breach of contract and breach of the implied covenant of good faith and fair dealing claims brought by the rehabilitator of two insolvent insurers against a mortgage insurance reinsurer and a bank (People of the State of Illinois, ex rel., Anne Melissa Dowling, Acting Director of Insurance of the State of Illinois, as Rehabilitator for Triad Guaranty Insurance Corporation and Triad Guaranty Assurance Corp. v. AAMBG Reinsurance Inc., No. 16-cv-07477, N.D. Ill., 2017 U.S. Dist. LEXIS 84231).

  • June 2, 2017

    Judge Finds No Support For TILA Or HOEPA Claims Against U.S. Bank

    TOPEKA, Kan. — After borrowers, who alleged that they were subject to predatory lending practices, failed to assert facts to support their claims against a bank, a Kansas federal judge on May 31 granted the bank's motion to dismiss the case (Everett Bigler, et al. v. U.S. Bank Trust, No. 16-cv-4194, D. Kan., 2017 U.S. Dist. LEXIS 82778).

  • June 1, 2017

    Judge Refuses To Allow Amendment, Denies Reinstatement Of Fraud Claim

    SACRAMENTO, Calif. — A California federal judge on May 30 denied a borrower's motion to file an amended complaint to add a new lender as a defendant and to reinstate previously dismissed claims for fraud and misrepresentation, finding that he failed to submit any new information warranting amendment (Frank Malifrando v. Real Time Resolutions Inc., et al., No. 2:16-cv-0223, E.D. Calif.; 2016 U.S. Dist. LEXIS 91739).

  • May 31, 2017

    9th Circuit Affirms Dismissal Of Los Angeles' FHA Claims Against Lenders

    SEATTLE — The Ninth Circuit U.S. Court of Appeals on May 26 affirmed a decision to grant summary judgment to two lenders on claims for violation of the Fair Housing Act (FHA) and unjust enrichment asserted by the city of Los Angeles in relation to alleged predatory lending practices, finding a lack of connection between an established disparity and any facially neutral policy of the lenders (City of Los Angeles v. Bank of American Corporation, et al., No. 15-55897, 9th Cir., 2017 U.S. App. LEXIS 9265).

  • May 25, 2017

    3rd Circuit Finds Court Did Not Err In Dismissing Complaint Against CFPB

    PHILADELPHIA — The Third Circuit U.S. Court of Appeals on May 22 affirmed a district court's dismissal of a property owner's complaint in relation to the denial of his loan modification application, finding that he failed to plead any facts to support his claims against the Consumer Financial Protection Bureau (CFPB) (Scott E. Robinson v. Consumer Financial Protection Bureau, et al.,  No. 17-1458, 3rd Cir., 2017 U.S. App. LEXIS 8898).

  • May 24, 2017

    Bank Says High Court Should Affirm Ruling Finding Housing Law Unconstitutional

    WASHINGTON, D.C. — Although Wells Fargo Bank N.A. on May 16 said that it agrees that a homeowners’ association's petition for certiorari should be granted by the U.S. Supreme Court because the case presents an urgent question on the scope of the state action doctrine, it argues that an appeals court ruling finding that a Nevada housing statute was unconstitutional should be affirmed (Bourne Valley Court Trust v. Wells Fargo Bank, N.A., No. 16-1208, U.S. Sup.  2017 U.S. S. Ct. Briefs LEXIS 1270).

  • May 24, 2017

    9th Circuit Reverses Dismissal Of TILA Claim Against ReconTrust

    PASADENA, Calif. — In a majority ruling, the Ninth Circuit U.S. Court of Appeals on May 22 reversed a district court's dismissal of a borrower's claim for rescission of her loan under the Truth in Lending Act (TILA) but affirmed dismissal of her claim for violation of the Fair Debt Collection Practices Act (FDCPA), finding that a trustee was not a debt collector under the act (Vien-Phuong Thi Ho v. Recontrust Company, NA, et al., No. 10-56884, 9th Cir., 2017 U.S. App. LEXIS 8917).

  • May 22, 2017

    Judge Finds Borrower Did Not Allege New Facts To Support Amendment

    FRESNO, Calif. — A California federal judge on May 18 denied a borrower's motion to amend her complaint in which she alleges that a bank violated California's unfair competition law (UCL) and other laws related to a wrongful foreclosure, finding that she failed to allege any facts that would support new claims (Brenda D. Dowling v. Bank of America, et al., No. 1:14-cv-01041, E.D. Calif., 2017 U.S. Dist. LEXIS 76063).