Mealey's Mortgage Lending

  • 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).

  • May 19, 2017

    Judge Dismisses Foreclosure- Related Claims Against CitiMortgage, Allows Amendment

    SAN FRANCISCO — A California federal judge on May 17 partially granted a mortgage company's motion to dismiss claims including violation of California's unfair competition law (UCL), allowing part of a borrower's dual tracking claim to proceed and dismissing the remainder of the claims with leave to amend (Gilbert Chavez v. CitiMortgage Inc., No. 17-cv-01205, N.D. Calif., 2017 U.S. Dist. LEXIS 75430).

  • May 18, 2017

    11th Circuit Finds Florida Is Improper Venue For RESPA Claim

    ATLANTA — The 11th Circuit U.S. Court of Appeals on May 15 affirmed a district court's dismissal of a borrower's claim for violation of the Real Estate Settlement Procedures Act (RESPA) against a loan-servicing company, finding that Florida was the improper venue for the case (Robert Crenshaw v. Specialized Loan Servicing, LLC, No. 16-16201, 11th Cir., 2017 U.S. App. LEXIS 8502).

  • May 18, 2017

    Judge Finds Borrower Did Not Rescind Note, Dismisses TILA And UCL Claims

    RIVERSIDE, Calif. — A California federal judge on May 15 granted a motion filed by a lender and a loan servicer to dismiss a property owner's complaint, which asserted claims for violation of California's unfair competition law (UCL) and the Fair Debt Collection Practice Act (FDCPA), finding that his allegations were conclusory (Phillip D. Jackson v. Nationstar Mortgage LLC, et al., No. 5:17-cv-00044, C.D. Calif., 2017 U.S. Dist. LEXIS 73826).

  • May 18, 2017

    Financial Freedom To Pay $89M To Settle Reverse Mortgage Claims

    WASHINGTON, D.C. — The U.S. Department of Justice on May 16 announced that a lender has agreed to pay more than $89 million to settle claims that it violated federal housing law in relation to its participation in a reverse mortgage program.

  • May 12, 2017

    Trial Court Properly Rejected UCL Foreclosure Claims, Appeals Court Finds

    SAN JOSE, Calif. — A couple lacks the authority to challenge the assignment of the rights to the mortgage on their property in an effort to preempt foreclosure, a California appeals court held May 9 in affirming judgment on unfair competition law (UCL) claims (William E. Hellmuth, et al. v. Bank of America N.A., et al., No. H042544, Calif. App., 6th Dist., 2017 Cal. App. Unpub. LEXIS 3230).

  • May 12, 2017

    Homeowners Allege Captive Scheme By Banks, Reinsurer In First Amended Complaint

    PHILADELPHIA — Homeowners filed a first amended class action complaint on April 26 in a Pennsylvania federal court, alleging a captive reinsurance scheme between banks and an affiliated reinsurer in violation of the Real Estate Settlement Procedures Act (RESPA) (Christopher Blake and James Orkis v. JPMorgan Chase Bank, N.A., et al., No. 13-6433, E.D. Pa.).

  • May 10, 2017

    Insurers’ Rehabilitator Fails To Allege Breach Of Contract Claim, Reinsurer Asserts

    CHICAGO — A mortgage insurance reinsurer argues in a May 5 reply brief to an Illinois federal court that the rehabilitator of two insolvent insurers failed to assert sufficient allegations to support breach of contract and breach of the implied covenant of good faith and fair dealing claims (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.).

  • May 10, 2017

    Judge Finds Borrowers Cannot Invoke Constitutional Claim For Invasion Of Privacy

    MISSOULA, Mont. — A Montana federal judge on May 8 granted summary judgment for a bank, finding that it did not invade the privacy of property owners when its inspector took pictures of the property after a default on a loan and that the bank was permitted to inspect the property pursuant to the deed on the home (Carey and Ryan Prather v. Bank of America, N.A., No. 15-163. D. Mont., 2017 U.S. Dist. LEXIS 70781).

  • May 10, 2017

    Magistrate Finds Borrower Lacks Standing Under California High Court Ruling

    FRESNO, Calif. — After finding that a borrower lacked standing under a recently decided California Supreme Court ruling to challenge a foreclosure and that his claims were not cognizably pleaded, a California federal magistrate judge on May 8 recommended that a motion to amend the borrower’s complaint to add new defendants should be denied as futile (David Leroy Newman v. Bank of New York Mellon, et al., No. 1:12-cv-01629, E.D. Calif., 2017 U.S. Dist. LEXIS 70076).

  • May 8, 2017

    9th Circuit Finds Former Homeowner Lacked Standing To Challenge Foreclosure

    SAN FRANCISCO — After finding that a borrower had no authority to challenge a foreclosure under California law, the Ninth Circuit U.S. Court of Appeals on April 27 affirmed summary judgment for various lenders on his wrongful foreclosure claim (Barry Halajian v. Deutsche Bank National Trust Co., et al., No. 15-15236, 9th Cir., 2017 U.S. App. LEXIS 7497).

  • May 8, 2017

    Judge Finds Heir Has No Interest In Reverse Mortgage, Dismisses Complaint

    BECKLEY, W.Va. — A West Virginia federal judge on April 10 granted a mortgage company's motion to dismiss claims for violation of the Fair Debt Collection Practices Act (FDCPA) and West Virginia law, finding that a plaintiff had no interest in a reverse mortgage that was issued to her deceased mother and that she lacked standing to sue (Dianna S. Morris v. Reverse Mortgage Solutions Inc., No. 5:16-cv-07899, S.D. W. Va., 2017 U.S. Dist. LEXIS 54392).

  • May 8, 2017

    10th Circuit Finds TILA Claims Are Exempt, Affirms Dismissal Of Rescission Case

    DENVER — After finding that a borrower's rescission claim was exempt under the Truth In Lending Act (TILA), the 10th Circuit U.S. Court of Appeals on May 1 affirmed dismissal of his claims against two banks  (Harjaspal Singh v. U.S. Bank National Association, et al., No. 16-2257, 10th Cir., 2017 U.S. App. LEXIS 7659).

  • May 8, 2017

    Institute Argues High Court Should Review Ruling On Nevada Housing Law

    WASHINGTON, D.C. — A national community associations institute on May 4 submitted an amicus curiae brief in the U.S. Supreme Court in support of a homeowner's association trust, arguing that the court should overturn an appeals court ruling that found that a Nevada housing statute was unconstitutional on its face (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 5, 2017

    6th Circuit Finds Wells Fargo Properly Responded To Modification Request

    CINCINNATI — After finding that a bank had no obligation to review or approve a borrower's loan modification request, the Sixth Circuit U.S. Court of Appeals on May 2 affirmed a district court's ruling dismissing his claims related to the foreclosure of his property (Robert T. Brimm v. Wells Fargo Bank, N.A., et al., No. 16-2070, 6th Cir., 2017 U.S. App. LEXIS 7968).

  • May 3, 2017

    Judge Dismisses RESPA Claim Against Ocwen Without Leave To Amend

    FORT LAUDERDALE, Fla. — A Florida federal judge on May 2 decided that claims for violation of the Real Estate Settlement Procedures Act (RESPA) against a loan servicer failed because a borrower failed to show that it did not respond to her request for information (Shelisa Todd v. Ocwen Loan Servicing LLC, No. 17-cv-60454, S.D. Fla., 2017 U.S. Dist. LEXIS 66541).

  • May 2, 2017

    High Court Holds Miami's Claims Against Banks Fall Within Scope Of FHA

    WASHINGTON, D.C.— In a majority ruling, the Supreme Court of the United States on May 1 reversed an appeals court decision that found that the City of Miami sufficiently asserted claims for proximate cause in relation to the alleged discriminatory lending practices of two banks, but affirmed a ruling that Miami's claims fell within the zone of interests of the Fair Housing Act (FHA) (Bank of American Corporation, et al. v. City of Miami, et al., Nos. 15-1111 and 15-1112., U.S. Sup., 2017 U.S. LEXIS 2801).

  • May 1, 2017

    2nd Circuit Vacates And Reduces Award For Unjust Enrichment

    NEW YORK — The Second Circuit U.S. Court of Appeals on April 28 vacated an award of $295,298 for a loan servicer, but replaced the amount of the award with $106,511, finding that former property owners were unjustly enriched when they took advantage of an unrecorded mortgage (Green Tree Servicing, LLC v. Nicholas Christodoulakis, et al., No. 16-1765, 2nd Cir., 2017 U.S. App. LEXIS 7644).