Magistrate Judge Says RESPA Class Action Suit Should Survive Dismissal

Mealey's (June 27, 2020, 8:51 AM EDT) -- PHOENIX — A federal magistrate judge in Arizona on June 16 recommended denying a loan servicer’s motion to dismiss a class action suit accusing it of violating the Real Estate Settlement Procedures Act (RESPA) by failing to timely pay property taxes and using a borrower’s escrow funds to pay the penalty, finding that the suit sufficiently states claims for relief and that striking the class allegations would be premature (Richard J. Labrecque v. NewRez LLC, No. CV-19-00465-TUC-RCC, D. Ariz., 2020 U.S. Dist. LEXIS 105623)....