Mealey's Mortgage Lending

  • December 7, 2017

    2nd Circuit Vacates Ruling Denying Borrower Leave To Amend Complaint

    NEW YORK — The Second Circuit U.S. Court of Appeals on Dec. 5 affirmed a district court’s dismissal of a borrower’s claims asserted against a lender and loan servicer related to his default on a mortgage, but vacated the court’s denial of his request to amend his complaint and to add a new claim, finding that the court failed to give its reasons for denying leave (Robert Macias v. Ocwen Loan Servicing LLC, et al., No. 17-902, 2nd Cir., 2017 U.S. App. LEXIS 24488).

  • December 6, 2017

    California Court Affirms Dismissal Of Borrower’s UCL, Wrongful Foreclosure Claims

    LOS ANGELES — A California appeals court on Dec. 4 affirmed a court’s decision granting demurrers filed by mortgage-related entities on claims for violation of California’s unfair competition law (UCL) and wrongful foreclosure, affirming the dismissal of the case (Richard Traister v. Ocwen Loan Servicing LLC, et al., No. B269662, Calif. App., 2nd Dist., Div. 3, 2017 Cal. App. Unpub. LEXIS 8256).

  • December 4, 2017

    High Court Will Not Consider Scope Of FDCPA In Relation To Trustees

    WASHINGTON, D.C. — The U.S. Supreme Court on Dec. 4 denied certiorari to a borrower, refusing to review whether a trustee is considered a debt collector under the Fair Debt Collection Practices Act (FDCPA) (Vien-Phuong Thi Ho v. ReconTrust Company, NA, et al., No. 17-278, U.S. Sup.).

  • December 4, 2017

    5th Circuit Finds Loan Transaction Was Not Void, Affirms Dismissal

    NEW ORLEANS — After finding that a borrower failed to show that the sale of a mortgage between lenders was void, the Fifth Circuit U.S. Court of Appeals on Dec. 1 affirmed a district court’s summary judgment ruling for the lenders (David Johnson v. Real Estate Mortgage Network, et al., No. 17-20347, 5th Cir., 2017 U.S. App. LEXIS 24369).

  • December 1, 2017

    Judge Dismisses Seller’s Claim For Liquidated Damages For Breach Of Contract

    CHICAGO — An Illinois federal judge on Nov. 29 partially granted a motion filed by property investors who were unable to obtain a mortgage to dismiss a counterclaim by a seller for breach of contract for liquidated damages, finding that a liquidated damages provision in a modification to a purchase agreement was unenforceable (Randall Ewing, et al. v. 1645 W. Farragut LLC, No. 16-cv-9930, N.D. Ill., 2017 U.S. Dist. LEXIS 196197).

  • December 1, 2017

    Judge Finds Borrower’s Claims Are Not Capped By Homeowners Protection Act

    NEWARK, N.J. — A New Jersey federal judge on Nov. 30 granted a bank’s request to dismiss its parent company from a lawsuit filed by a borrower in relation to mortgage insurance premiums, but rejected its arguments that it was entitled to summary judgment because the Homeowners Protections Act (HPA) capped the borrower’s potential damages at $500,000 (Ginnie Fried v. JP Morgan Chase & Co., et al., No. 16-3069, D. N.J., 2017 U.S. Dist. LEXIS 196839).

  • December 1, 2017

    Judge Finds No Facts To Support Borrowers Claims Against Mortgage Trust

    SAN FRANCISCO — A California federal judge on Nov. 29 granted a trust’s motion to dismiss claims for violation of California’s unfair competition law UCL, wrongful foreclosure and other causes of action asserted by a borrower, finding that all of the claims were barred by a statute of limitations and that his allegations were conclusory (Lonnie Ratliff v. Mortgage Store Financial Inc., et al., No. 17-cv-02155, N.D. Calif., 2017 U.S. Dist. LEXIS 196372).

  • November 30, 2017

    Judge Finds Restraining Order Preventing Property Foreclosure Is Inappropriate

    DENVER — A Colorado federal judge did not reach the issue of whether a Colorado foreclosure law is unconstitutional, but denied a borrower’s request for an ex parte restraining order enjoining a bank from foreclosing on the property on Nov. 29 (Michael Smith v. PNC Bank National Association, et al., No. 17-cv-02767, D. Colo., 2017 U.S. Dist. LEXIS 195542).

  • November 29, 2017

    9th Circuit Affirms Dismissal Of Foreclosure Claims, Finds No Error

    PASADENA, Calif. — After finding that property owners failed to comply with Nevada housing law in relation to a quit claim deed for a foreclosed on property, the Ninth Circuit U.S. Court of Appeals on Nov. 22 affirmed the dismissal of their complaint for wrongful foreclosure (Wayne A. Seare, et al. v. Bank of New York Mellon, et al., No. 17-15916, 9th Cir., 2017 U.S. App. LEXIS 23722).

  • November 28, 2017

    9th Circuit Finds Lenders Had Authority To Foreclose, Affirms Dismissal

    PASADENA, Calif. — After finding that various mortgage-related entities had the authority to foreclose on a property, the Ninth Circuit U.S. Court of Appeals on Nov. 22 affirmed a trial court’s dismissal of a borrower’s claims for violation of California’s unfair competition law (UCL) and wrongful foreclosure (Alvin Abano v. Ocwen Loan Servicing LLC, et al., No. 16-55325, 9th Cir., 2017 U.S. App. LEXIS 23717).

  • November 28, 2017

    Court Finds Bank’s Demurrer To UCL, TILA Claims Was Properly Sustained

    SAN JOSE, Calif. — A California appeals court on Nov. 21 found that a trial court properly sustained a bank’s demurrer as to numerous claims asserted by former property owners, including claims for violation of California’s unfair competition law (UCL) and the Truth in Lending Act (TILA), finding that the claims were properly dismissed without leave to amend (Dwayne Patrick Dumalanta, et al. v. OneWest Bank, N.A., No. H043002, Calif. App., 6th Dist., 2017 Cal. App. Unpub. LEXIS 7984).

  • November 28, 2017

    6th Circuit Finds Foreclosure-Related Claims Are Barred By Res Judicata

    CINCINNATI — The Sixth Circuit U.S. Court of Appeals on Nov. 22 affirmed a trial court’s dismissal of a borrower’s claims related to a property foreclosure, finding that the case was barred by an earlier case (Quannah L. Harris v. Ocwen Loan Servicing LLC, et al., No. 17-5399, 6th Cir., 2017 U.S. App. LEXIS 23818).

  • November 22, 2017

    9th Circuit Affirms Dismissal Of TILA, FDCPA Claims Against CitiMortgage

    PASADENA, Calif. — The Ninth Circuit U.S. Court of Appeals on Nov. 17 affirmed a district court’s decision granting summary judgment for a mortgage lender, finding that a claim for violation of the Truth in Lending Act (TILA) asserted by borrowers was time-barred and that the lender was not a debt collector within the meaning of the Fair Debt Collection Practices Act (FDCPA) (Bessie Lee-Freitas Pregana v. CitiMortgage Inc., et al., No. 15-15906, 9th Cir., 2017 U.S. App. LEXIS 23234).

  • November 21, 2017

    Judge Dismisses UCL, HBOR Foreclosure Claims For Failure To Oppose

    SAN DIEGO — After a borrower failed to respond to motions filed by lenders and loan servicers to dismiss claims related to an alleged wrongful foreclosure, a California federal judge on Nov. 20 dismissed his claims for violation of California’s unfair competition law, negligence and other claims (Mark Burchard v. Quality Loan Service Corporation, et al., No. 17cv1780, S.D. Calif., 2017 U.S. Dist. LEXIS 191737).

  • November 21, 2017

    Judge Finds Truth In Lending Act Section Applies To Untimely Claim For Relief

    SEATTLE — Although borrowers filed their notice of an intent to rescind their loan under the Truth in Lending Act (TILA) within the required three-year statute of limitations, a Washington federal judge on Nov. 16 found that their claims for declaratory and injunctive relief and damages were all time-barred (Jerry Hoang, et al. v. Bank of America, N.A., et al., No. 17-0874, W.D. Wash., 2017 U.S. Dist. LEXIS 190088, 2017 U.S. Dist. LEXIS 190088).

  • November 15, 2017

    Judge Remands UCL, HBOR Claims To California Court, Finds Trustee Is Not Immune

    LOS ANGELES — After finding that a trustee named in an action filed by a borrower was not a sham defendant, a California federal judge on Nov. 13 remanded her causes of action for violation of California’s unfair competition law (UCL), wrongful foreclosure and other claims to a state court (Nancy M. Horner v. The Bank of New York Mellon, et al., No. 17-1489, C.D. Calif., 2017 U.S. Dist. LEXIS 187362).

  • November 13, 2017

    Supreme Court Refuses To Consider Whether Rooker- Feldman Barred FDCPA Claim

    WASHINGTON, D.C. — The U.S. Supreme Court on Nov. 13 refused to grant certiorari in a case in which borrowers sought review of an appeals court’s ruling to affirm the dismissal of their claim for violation of the Fair Debt Collection Practices Act (FDCPA) as barred by a foreclosure case in a state court (Kathleen J. Todd, et al. v. U.S. Bank, N.A., et al., No. 17-348, U.S. Sup.).

  • November 9, 2017

    Federal Judge Finds TILA Claims Against Wells Fargo Time-Barred

    HOUSTON — A Texas federal judge on Nov. 8 granted judgment on the pleadings in favor of a bank, finding that a borrower’s claim for violation of the Truth-In-Lending Act (TILA) were untimely (George Adams v. Wells Fargo Bank, N.A., No. 17-0265, S.D. Texas, 2017 U.S. Dist. LEXIS 184800).

  • November 8, 2017

    6th Circuit Finds Fannie Mae, Others Were Not Debt Collectors Under FDCPA

    CHICAGO — A panel of the Sixth Circuit U.S. Court of Appeals on Nov. 6 found that a borrower failed to show that lenders lacked standing to foreclose or that they qualified as debt collectors under the Fair Debt Collection Practices Act (FDCPA), affirming the dismissal of his complaint for failure to state a claim (Steven Hawkins v. Everbank Mortgage, et al., No. 16-2677, 6th Cir., 2017 U.S. App. LEXIS 22252).

  • November 8, 2017

    Federal Judge Refuses To Grant Injunction Enjoining HSBC From Foreclosing

    BOSTON — A Massachusetts federal judge on Nov. 3 refused to grant a borrower’s request for an injunction enjoining a bank from foreclosing on his property pending his appeal of a ruling that dismissed his complaint, finding that it was unlikely that he would succeed on the merits (Harry M. Andrews v. HSBC Bank USA, N.A., No. 16-12621, D. Mass, 2017 U.S. Dist. LEXIS 182403).