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).
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).
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).
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).
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).
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).
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.
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).
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.).
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.).
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).
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).
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).
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).
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).
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).
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).
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).
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).
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).