Mealey's Mortgage Lending

  • September 16, 2021

    Trial Period Plan Not A Loan Modification Agreement, Judge Rules

    PROVIDENCE, R.I. — A federal judge in Rhode Island on Sept. 15 ruled that a mortgage lender did not breach the terms of a mortgage loan agreement by entering into a loan modification agreement with a borrower who fell behind on his loan payments because the lender had agreed only to a trial period plan (TPP) with the borrower before determining that the borrower did not qualify for loan modification.

  • September 16, 2021

    Filed-Rate Doctrine Applies To Intermediaries, Washington High Court Rules

    OLYMPIA, Wash. — The filed-rate doctrine applies not only to insurers but also to intermediaries, such as mortgage loan brokers and servicers who participate “in the procurement of the policy from insurers,” the Washington Supreme Court ruled Sept. 2 in answering a question in a force-placed insurance dispute certified to it by the Ninth Circuit U.S. Court of Appeals.

  • September 14, 2021

    Filed-Rate Doctrine Applies To Intermediaries, Washington High Court Rules

    OLYMPIA, Wash. — The filed-rate doctrine applies not only to insurers but also to intermediaries, such as mortgage loan brokers and servicers who participate “in the procurement of the policy from insurers,” the Washington Supreme Court ruled Sept. 2 in answering a question in a force-placed insurance dispute certified to it by the Ninth Circuit U.S. Court of Appeals.

  • September 07, 2021

    Borrower Seeks Utah High Court Guidance In Convenience Fee Suit

    SALT LAKE CITY — A borrower asked a federal judge in Utah on Sept. 3 to certify two questions to the state’s highest court seeking a determination as to whether her state consumer sales practices law claim against her mortgage servicer for its charging of pay-to-pay convenience fees for making her mortgage payments is preempted by Utah’s Mortgage Lending and Servicing Act (MLSA).

  • September 02, 2021

    Claims In RESPA Suit Over Loan Modification Notification Error Dismissed

    SAN FRANCISCO — A federal judge in California on Aug. 23 dismissed a borrower’s state and federal law claims against his mortgage lender and loan servicer stemming from their alleged failure to provide him with the required notice of certain loss mitigation options they would offer him in an effort to stave off a foreclosure sale on his property, ruling that the defendants complied with the notification provisions of the Real Estate Settlement Procedure Act (RESPA) as required.

  • August 31, 2021

    Forfeiture Of Interests Of Group Connected To Fraud Scheme Sought

    LOS ANGELES — Government prosecutors filed a complaint in California federal court on Aug. 26, seeking forfeiture of interests of general partnership with ties to a real estate fraud scheme in which a group of individuals targeted homeowners, many of whom were elderly, in an attempt to take the homeowners’ property through foreclosure.

  • August 30, 2021

    Loan Servicers Score Summary Judgment Win In Loan Modification Suit

    BALTIMORE — Current and former note holders and servicers of a mortgage loan are entitled to summary judgment on a borrower’s claim seeking declaratory judgment that his deed of trust expired and is no longer enforceable because the borrower erroneously argues that a loan modification agreement into which he entered modified the deed of trust’s maturity date, a federal judge in Maryland ruled Aug. 26 in denying the borrower’s summary judgment motion and granting in part the defendants’ motion.

  • August 27, 2021

    Borrower Claims In Quiet Title Suit Fail To Support Overturning Foreclosure

    BIRMINGHAM, Ala. — A federal judge in Alabama on Aug. 25 dismissed a borrower’s claims against parties in a lawsuit stemming from the foreclosure sale of property the borrower owned, holding that the borrower failed to sufficiently state any claim that would entitle him to the relief he sought.

  • August 20, 2021

    Texas Panel Affirms That Borrower’s Claims Are Barred By Res Judicata

    DALLAS — A Texas trial court did not err in granting a mortgage servicer’s motion for summary judgment on claims that it failed to provide a borrower with necessary documents prior to initiating foreclosure proceedings because the borrower’s claims were barred by the doctrine of res judicata, a Texas appellate panel ruled Aug. 17 in affirming.

  • August 20, 2021

    Plaintiffs Denied Class Certification In TILA, HOEPA Scheme Suit

    DETROIT — A federal judge in Michigan on Aug. 17 declined to certify a class of real estate property purchasers in a lawsuit alleging that a real estate broker, several companies he owns and a real estate agent violated provisions of the Truth In Lending Act (TILA) and the Home Ownership Equity Protection Act (HOEPA) by engaging in a scheme to elicit home purchasers to enter into residential mortgage transactions that would circumvent certain provisions of the statutes.

  • August 19, 2021

    HOA Seeks Remand Of Summary Judgment Ruling In Quiet Title Action

    SAN FRANCISCO — A federal judge erred in granting a mortgage lender’s motion for summary judgment on its quiet title claim against a homeowners association (HOA) stemming from a foreclosure sale because the judge erroneously assumed that the HOA failed to show how borrowers’ lien assessments were applied, the HOA argues in an appellant brief filed July 15 in the Ninth Circuit U.S. Court of Appeals.

  • August 19, 2021

    Judge Trims Borrower Claims In Convenience Fees Suit Against Mortgage Servicer

    SALT LAKE CITY — A federal judge in Utah on Aug. 6 dismissed several claims brought by a borrower who alleges that her mortgage servicer violated state and federal law by improperly charging borrowers pay-to-pay convenience fees for making their loan payments over the telephone, ruling that the borrower has failed to sufficiently state those claims.

  • August 16, 2021

    Mortgage Lender’s Reformation Claim Deemed Timely Under Statute Of Limitations

    RALEIGH, N.C. — A North Carolina appellate court erred in overturning a trial court’s grant of summary judgment in favor of a mortgage lender seeking reformation of a deed of trust and allowing foreclosure on real property because it applied the wrong statute in determining that the lender’s reformation claim was barred by the statute of limitations based on a mutual mistake, the state Supreme Court held in reversing Aug. 13.

  • August 12, 2021

    FCRA Claims Over Erroneous Mortgage Debt Reporting Allowed To Proceed

    TAMPA, Fla. — A federal judge in Florida on Aug. 10 denied a mortgage lender’s request to dismiss claims in a Fair Credit Reporting Act (FCRA) lawsuit alleging that the lender inaccurately reported borrowers’ missed payments as delinquent, ruling that the borrowers have sufficiently shown that the lender’s reporting was inaccurate and misleading.

  • August 10, 2021

    Borrower’s LPI Dispute Claims Barred By Washington’s Filed-Rate Doctrine

    SEATTLE — A borrower’s claims in a lawsuit against her mortgage loan servicer and lender-placed insurance (LPI) provider are barred by the filed-rate doctrine because each of her claims challenges the cost of her LPI premiums, a federal judge in Washington ruled July 29 in granting the defendants’ motions to dismiss.

  • August 10, 2021

    Deutsche Bank Waives Response In High Court Appeal Of Foreclosure Suit Ruling

    WASHINGTON, D.C. — Without providing further detail, an attorney representing respondents in an appeal of a federal appellate panel ruling upholding dismissal of a lawsuit filed by borrowers for lack of standing told the U.S. Supreme Court on June 10 that her clients would be waiving their response to the borrower’s petition for writ of certiorari.

  • August 09, 2021

    Wells Fargo Hit With Borrower Class Action Over Home Inspection Fees

    CAMDEN, N.J. — A borrower filed a class action lawsuit in New Jersey federal court on Aug. 5, alleging that Wells Fargo Bank NA violated the Racketeer Influenced and Corrupt Organizations Act (RICO) and New Jersey’s consumer fraud law by engaging in a scheme to charge borrowers who fell behind in their mortgage payments for improper property inspection fees.

  • August 04, 2021

    FCRA Suit Against Credit Reporting Agencies Dismissed For Lack Of Standing

    NEW YORK — A federal judge in New York on Aug. 2 entered a judgment dismissing a borrower’s amended complaint seeking damages under the Fair Credit Reporting Act (FCRA) against two credit reporting agencies (CRAs) and their joint venture and ordered the case closed after ruling that the borrower failed to sufficiently show any requisite injury that would entitle him to compensatory damages under the statute.

  • July 29, 2021

    Borrower’s Home-Equity Loan Dispute Claims Lack Merit, Magistrate Judge Says

    SAN ANTONIO — A federal magistrate judge in Texas on July 26 recommended that a mortgage servicer and note holder be granted summary judgment on claims brought by a borrower alleging that the defendants failed to originate a home-equity loan in compliance with provisions of the Texas Constitution, ruling that the borrower cannot bring a stand-alone claim under the state constitution.

  • July 29, 2021

    9th Circuit Panel:  Evidence Supported Convictions In Mortgage Fraud Lawsuit

    SAN FRANCISCO — A Ninth Circuit U.S. Court of Appeals panel on July 27 affirmed the conviction of two loan officers on wire fraud charges stemming from their involvement in a mortgage fraud scheme, holding that evidence presented at trial supported the convictions.