Mealey's Mortgage Lending

  • December 17, 2021

    Borrower’s Fraud, Contract, Debt Collection Claims Against Servicer Dismissed

    DALLAS — Without providing further detail in a one-page order, a federal judge in Texas on Nov. 29 accepted a federal magistrate judge’s recommendation to dismiss claims brought by a borrower against her mortgage loan servicer stemming from the servicer’s denial of a loan modification application and subsequent foreclosure on the borrower’s property.

  • December 16, 2021

    Proximate Cause Question In Predatory Lending Suit Certified For Appeal

    BALTIMORE — A federal judge in Maryland on Dec. 15 ruled that a recent en banc federal appellate court’s opinion in a substantially similar predatory lending lawsuit has provided necessary guidance warranting certification of a question posed by Wells Fargo & Co. and two of its related entities as to whether two Maryland counties sufficiently alleged a direct relationship between their alleged injuries stemming from the defendants’ alleged discriminatory lending practices as required to meet the proximate cause requirement of the Fair Housing Act (FHA).

  • December 16, 2021

    Borrower’s Claims In Predatory Lending Suit Not Untimely, Barred By Laches

    CHARLESTON, W.Va. — A federal judge in West Virginia on Dec. 14 denied a mortgage lender’s motion to dismiss a borrower’s claims against it in a predatory lending lawsuit stemming from an allegedly fraudulent appraisal the lender used as part of a mortgage refinance loan it provided to the borrower, ruling that the borrower is a consumer under West Virginia law and that her claims are neither untimely nor barred by laches.

  • December 16, 2021

    HOA Foreclosure Sale Preempted By Federal Foreclosure Bar

    SAN FRANCISCO — A federal district court did not err in determining that a party does not own certain property free and clear of the interest of lender Federal Home Loan Mortgage Corp. (Freddie Mac), which the party obtained through a homeowner association’s (HOA) foreclosure sale because although the HOA had “superpriority” status over certain liens on the property, the state law is preempted by the Federal Foreclosure Bar, a Ninth Circuit U.S. Court of Appeals panel ruled Dec. 8 in affirming.

  • December 15, 2021

    Panel: Lender Made Commercially Reasonable Efforts To Remove Lien

    CHICAGO — A federal district court did not err in ruling that a mortgage lender made commercially reasonable efforts to remove liens on a commercial property so that borrowers could refinance the property to pay $1.6 million toward a mortgage loan on another commercial property for which the lender also provided a mortgage loan because the lender complied with its obligation to fulfill this requirement, a Seventh Circuit U.S. Court of Appeals panel ruled Dec. 13 in affirming.

  • December 15, 2021

    Mortgagors Move To Strike Info In RESPA Claims Suit Over Captive Reinsurance

    FRESNO, Calif. — Arguing that the information should have been produced many years earlier and that prior orders have rendered it irrelevant, the plaintiffs in a long-running suit over captive reinsurance agreements on Dec. 12 moved in a California federal court to strike from the record and preclude from trial any information on individual class member payment histories.

  • December 14, 2021

    Loan Modification Agreement Shown To Be Unambiguous, Enforceable As Written

    MONTGOMERY, Ala. — A state trial court did not err in granting summary judgment in favor of a mortgage lender and loan servicer in a loan modification dispute because an executed modification agreement those parties entered into with a borrower was not ambiguous and should be enforced as written, the Alabama Supreme Court ruled Dec. 10 in affirming.

  • December 14, 2021

    Equifax Sued For FCRA Violations For Incorrectly Reporting Borrower As Deceased

    CHARLOTTESVILLE, Va. — Credit reporting agency Equifax Information Services LLC violated provisions of the Fair Credit Reporting Act (FCRA) by providing a credit report for a borrower seeking to obtain a mortgage loan that showed the borrower owing a debt that was actually incurred by his deceased father, the consumer argues in a complaint filed Dec. 10 in Virginia federal court.

  • December 14, 2021

    Borrower’s Loss Mitigation Letter Theory Rejected, Claims Dismissed

    SAN FRANCISCO — A federal judge in California on Dec. 7 dismissed a borrower’s claims against his mortgage lender and loan servicer in a lawsuit stemming from their alleged failure to provide him with the required notice of certain loss mitigation options he would be offered to stave off a foreclosure sale on his property, ruling that the borrower failed to show that he can sufficiently state any of his claims for relief.

  • December 13, 2021

    Borrower Sues Housing Authority Over Failure To Make Subsidized Loan Payments

    SELMA, Ala. — A low-income home buyer sued a municipal housing authority and her mortgage loan servicer in Alabama federal court on Dec. 9, alleging that the housing authority violated federal law and her constitutional rights by failing to make agreed upon subsidized mortgage loan payments under the U.S. Department of Housing and Urban Development’s Housing Choice Voucher (HCV) homeowners program.

  • December 13, 2021

    Homeowners’ Privacy Claims Against Mortgage Servicer Survive Dismissal Motion

    CLEVELAND — An Ohio couple’s negligence and invasion of privacy putative class claims over the sharing of their personally identifiable information (PII) with a third party were sufficient to mostly withstand a motion to dismiss, an Ohio federal judge ruled Dec. 7, finding that the plaintiffs adequately alleged that their mortgage servicer had a duty to safeguard their data and that they sustained damages as a result of the breach of that duty.

  • December 10, 2021

    Mortgage Borrower Ordered To Show Cause Why Appeal Should Not Be Dismissed

    SAN FRANCISCO — In a one-paragraph order, a Ninth Circuit U.S. Court of Appeals panel on Dec. 8 ordered a borrower in a force-placed insurance dispute with his mortgage loan servicer that asked the panel to determine whether the filed-rate doctrine bars the borrower from suing the loan servicer for overcharging him for the insurance policy in question ordered the borrower to show cause why his appeal should not be dismissed.

  • December 09, 2021

    Defendants Challenge Evidence In Mortgagors’ Trial-Bound RESPA Claims Suit

    FRESNO, Calif. — Defendants in a long-running class suit over captive reinsurance agreements on Dec. 2 moved in a California federal court to strike allegedly untimely evidence that mortgagors included in opposition to a pending motion to decertify the class; on Dec. 3, the defendants repeated the argument in a reply supporting decertification.

  • December 07, 2021

    BANA To Pay $1.2M To Mortgage Loan Borrowers In RESPA Kickback Suit

    BALTIMORE — Bank of America NA (BANA) will pay $1.2 million to settle claims brought in a consumer class lawsuit alleging that BANA violated the Real Estate Settlement Procedures Act (RESPA) by engaging in an illegal kickback scheme with a settlement services provider, according to a motion for preliminary approval of settlement filed by lead plaintiffs on Dec. 2 in Maryland federal court.

  • December 06, 2021

    Mortgage Borrower’s TransUnion Credit Report Accurately Reported Late Payment

    DALLAS — A federal judge in Texas on Dec. 1 dismissed a borrower’s Fair Credit Reporting Act (FCRA) claims brought against credit reporting agency TransUnion LLC alleging that TransUnion provided a credit report that incorrectly showed that the borrower was late on his mortgage payments, ruling that the borrower failed to sufficiently plead that the credit report was inaccurate.

  • December 06, 2021

    Borrower Claims In Quiet Title Suit Barred By Res Judicata Doctrine

    NEW ORLEANS — A federal district court did not err in dismissing a borrower’s claims against his purported mortgage lender and the servicer of the loan in a quiet title action because the lower court correctly determined that the borrower’s claims were barred by the doctrine of res judicata, a Fifth Circuit U.S. Court of Appeals panel ruled Nov. 24 in affirming.

  • November 29, 2021

    HUD Foreclosure In Reverse Merger Suit Proper, 5th Circuit Panel Rules

    NEW ORLEANS — The U.S. Department of Housing and Urban Development properly foreclosed on a mortgage loan under a first deed of trust because a release recorded by HUD’s limited power of attorney extinguished only a second deed of trust, and not the first one, a Fifth Circuit U.S. Court of Appeals panel ruled Nov. 22 in affirming a federal district court’s grant of summary judgment in a quiet title dispute.

  • November 24, 2021

    TransUnion No Basis To Decertify Class In RESPA Claims Suit, Mortgagors Argue

    FRESNO, Calif. — The U.S. Supreme Court’s TransUnion LLC v. Ramirez decision “provides no basis for disturbing the Court’s prior class certification ruling,” mortgagors in a long-running suit over captive reinsurance agreements argued in a Nov. 17 opposition to decertification in a California federal court; on Nov. 17 and Nov. 19, the parties filed multiple motions in limine.

  • November 19, 2021

    Denial Of Request For Leave To Amend In Foreclosure Suit Upheld On Appeal

    NEW ORLEANS — In an unpublished opinion, a Fifth Circuit U.S. Court of Appeals panel on Nov. 3 affirmed a federal district court’s dismissal of a borrower’s complaint seeking to set aside a foreclosure sale with prejudice, ruling that the borrower failed to sufficiently show that good cause existed allowing him to seek leave to amend his complaint after the deadline to do so had passed.

  • November 19, 2021

    Panel: Borrower’s Claims In Foreclosure Action Barred By Res Judicata

    SAN FRANCISCO — A federal district court did not err in dismissing a borrower’s claims against several loan servicing companies, foreclosure trustees and other entities engaged in the transfer of rights to the borrower’s mortgaged property because the borrower had brought 14 previous lawsuits against the defendants, and the final judgments in those actions barred his claims in the instant action under the doctrine of res judicata, a Ninth Circuit U.S. Court of Appeals panel ruled Oct. 28 in affirming in an unpublished memorandum opinion.

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