Mealey's Mortgage Lending

  • October 06, 2019

    Couple Can Pursue Quiet Title Claim Against Mortgage Lender, Judge Says

    SEATTLE — A couple can pursue their quiet title claim against a mortgage lender, a federal judge in Washington ruled Sept. 26 in denying the defendant’s motion to dismiss, ruling that the lender took no action against the couple for their failure to make monthly installment payments on a home equity line of credit loan (HELOC loan) within six years after their bankruptcy was discharged (Rhett E. Taylor, et al. v. PNC Bank N.A., No. C19-1142-JC, W.D. Wash., 2019 U.S. Dist. LEXIS 165678).

  • October 03, 2019

    2nd Circuit Upholds Man’s Conviction For Mortgage Fraud Scheme

    NEW YORK — A Second Circuit U.S. Court of Appeals panel on Sept. 23 upheld a man’s conviction and 150-month sentence for his role in a scheme that involved lying on loan applications by falsely inflating the price of a property and then selling the properties to other financial institutions, holding that the evidence presented at trial supported the jury’s finding and that he received effective assistance of counsel (United States v. Aaron Wider, No. 17-997, 2nd Cir., 2019 U.S. App. LEXIS 28605).

  • October 02, 2019

    Judge: Foreclosure Suit On FHA Loan Does Not Raise Federal Jurisdiction

    TAMPA, Fla. — A federal judge in Florida on Sept. 25 remanded a foreclosure action brought by Wells Fargo Bank N.A. after finding that the fact that the defendant’s loan was provided by the Federal Housing Authority (FHA) does not raise federal question jurisdiction (Wells Fargo Bank N.A. v. Gregory R. Wilson, No. 19-cv-1877-T-02AAS, M.D. Fla., 2019 U.S. Dist. LEXIS 163821).

  • September 30, 2019

    Judge Says Jury Should Decide If Mortgage Lender Breached Fiduciary Duty

    SPARTANBURG, S.C.  — A federal judge in South Carolina on Sept. 26 ruled that a jury should determine whether a mortgage lender breached its fiduciary duty by failing to guide a couple through the process of closing on a loan and whether they sustained damages as a result but that the plaintiffs did not have enough evidence to support their claims under the Real Estate Settlement Procedures Act (RESPA) and South Carolina Unfair Trade Practices Act (SCUTPA)  (Kevin Cantrell, et al. v. New Penn Financial LLC, et al., No. 17-cv-01078-DCC, D. S.C., 2019 U.S. Dist. LEXIS 164999).

  • September 30, 2019

    11th Circuit Upholds Denial Of Motion To Sanction Loan Originator Over Removal

    ATLANTA — An 11th Circuit U.S. Court of Appeals panel on Sept. 19 upheld a federal judge in Georgia’s decision to not impose Federal Rule of Civil Procedure 11 sanctions against a man’s loan originator, finding that its removal of lawsuit challenging its assignment of the loan to Wells Fargo after the plaintiff moved to vacate a default judgment was not frivolous (Pedro J. Burgos v. Option One Mortgage Corp., No. 19-10932, 11th Cir., 2019 U.S. App. LEXIS 28338).

  • September 27, 2019

    Man Cannot Pursue Claims Against Mortgage Lender Over Inaccurate Appraisal

    WORCESTER, Mass. — A federal judge in Massachusetts on Sept. 24 dismissed a man’s lawsuit seeking rescission from a National Housing Act (NHA) loan from a mortgage lender after the property he purchased was condemned, holding that the loan was not entered into as a result of mutual mistake and that man failed to adequately allege that the lender improperly influenced the appraiser (Samuel Ahsan v. HomeBridge Financial Services Inc., No. 18-cv-40213, D. Mass., 2019 U.S. Dist. LEXIS 162791).

  • September 26, 2019

    Government’s Suit Over Lender’s Underwriting Practices Survives Dismissal

    SAN DIEGO — A federal judge in California on Sept. 11 denied Guild Mortgage Co.’s motion to dismiss the government’s first amended intervenor complaint filed in support of a former employee’s False Claims Act (FCA) lawsuit accusing the lender of falsely certifying that loans were qualified for Federal Housing Administration (FHA) insurance, ruling that the government’s allegations were sufficient and not time-barred (United States ex rel. Kevin G. Dougherty v. Guild Mortgage Co., No. 16cv2909, S.D. Calif., 2019 U.S. Dist. LEXIS 155233).

  • September 26, 2019

    Couple’s Suit Against Lender, Loan Servicer Attack State Court Ruling, Judge Rules

    HARRISBURG, Pa. — A federal judge in Pennsylvania on Sept. 13 dismissed with prejudice a couple’s lawsuit accusing their lender and loan servicer of violating the Fair Debt Collection Practices Act (FDCPA), Real Estate Settlement Procedures Act (RESPA) and the Pennsylvania Unfair Trade Practices and Unfair Competition Law (UTPCPL), ruling that their allegations attack the findings against them in a previous state court foreclosure action (Mike Meyers, et al. v. Caliber Home Loans, et al., No. 19-cv-596, M.D. Pa., 2019 U.S. Dist. LEXIS 156585).

  • September 23, 2019

    Couple’s ‘Last Minute’ Attempt To Enjoin Foreclosure Sale Denied By Judge

    SACRAMENTO, Calif. — A federal judge in California on Sept. 18 denied a couple’s ex parte request for a temporary restraining order (TRO) to enjoin a foreclosure sale on their home that was filed three days before the scheduled sale, finding that there is no evidence showing that they were not given proper notice of the date of the sale (Joseph Cunningham Jr., et al. v. Select Portfolio Servicing Inc., No. 19-cv-01096-TLN-DB, E.D. Calif., 2019 U.S. Dist. LEXIS 160055).

  • September 23, 2019

    Panel Affirms Ruling In Suit Alleging Predatory Mortgage Lending Practices

    SAN JOSE, Calif. — A California appeals panel on Sept. 17 affirmed a lower court’s summary judgment ruling in favor of mortgage lenders and their officers in the borrowers’ lawsuit alleging that the defendants conducted a deceptive marketing campaign to promote “teaser” interest rates for residential loans for unsophisticated borrowers and charged unreasonable fees in connection with the loans (Salma Merritt, et al. v. Countrywide Financial Corp., et al., No. H041560, Calif. App., 6th Dist., 2019 Cal. App. Unpub. LEXIS 6204).

  • September 18, 2019

    Judge: Public Disclosure Bar Does Not Apply To FCA Suit Against Lender

    SHERMAN, Texas — A federal judge in Texas on Sept. 9 denied JPMorgan Chase Bank N.A.’s motion for summary judgment in a False Claims Act (FCA) suit accusing the lender of submitting false information about loan modifications it provided to borrowers under the Home Affordable Modification Program (HAMP), holding that the relators are original sources of information and that their allegations are not based solely on public information (United States, ex rel. Michael J. Fisher, et al. v. JPMorgan Chase Bank N.A., No. 16-CV-00395, E.D. Texas, 2019 U.S. Dist. LEXIS 152655).

  • September 18, 2019

    Man Sufficiently Alleged Anxiety Resulted From Servicer’s Default Letters

    ST. LOUIS — A federal judge in Missouri on Sept. 6 denied in part a loan servicer’s motion to dismiss a man’s class action suit accusing it of violating the Fair Debt Collection Practices Act (FDCPA), ruling that he had standing to bring his action because he sufficiently alleged that he suffered anxiety as a result of a default letter that stated that the maturity date on his mortgage would be accelerated if he did not fully pay the amount he was behind on the loan by a certain date (Michael Spehr, et al. v. Seterus Inc., No. 18CV1922, E.D. Mo., 2019 U.S. Dist. LEXIS 152021).

  • September 18, 2019

    Judge Certifies Class For Borrowers Accusing Servicer Of RESPA Violations

    GREENBELT, Md. — A federal judge in Maryland on Sept. 9 granted in part a motion to certify a nationwide and statewide class for borrowers claiming that Nationstar Mortgage LLC violated Regulation X of the Real Estate Settlement Procedures Act (RESPA) when failing to acknowledge receipt of a borrower’s loan modification application within five days and limited the claims brought by the class based on his ruling on the loan servicer’s motion for summary judgment (Demetrius Robinson v. Nationstar Mortgage LLC, No. 14-cv-3667, D. Md., 2019 U.S. Dist. LEXIS 153526).

  • September 16, 2019

    Panel Reverses Ruling As To HBOR Claim Only In Mortgage Lending Dispute

    SAN JOSE, Calif. — A California appeals panel on Sept. 10 reversed a lower court’s order that sustained a demurrer without leave to amend a borrower’s claim alleging violation of the California Homeowner Bill of Rights (HBOR) but affirmed the court’s order sustaining the demurrer as to the unfair competition law (UCL) claim and seven other causes of action (Ronell D. Elwin v. Bank Of America, N.A. et al., No. H044007, Calif. App., 6th Dist., 2019 Cal. App. Unpub. LEXIS 6031).

  • September 10, 2019

    Most Of Loan Servicer’s Summary Judgment Motion Over Calls To Borrower Denied

    TAMPA, Fla. — A federal judge in Florida on Sept. 4 denied the majority of Ocwen Loan Servicing LLC’s motion for summary judgment in a couple’s suit accusing the company of violating the Telephone Consumer Protection Act (TCPA) and Florida Consumer Collection Practices Act (FCCPA), finding only in favor of the loan servicer on its argument that its system for making calls to borrowers is not an automatic telephone dialing system (ATDS) under the TCPA (Bonnie Brown, et al. v. Ocwen Loan Servicing LLC, No. 18-cv-136-T-60AEP, M.D. Fla., 2019 U.S. Dist. LEXIS 151236).

  • September 09, 2019

    Majority Affirms Dismissal Of UCL Suit Alleging ‘Massive’ Foreclosure Scheme

    SAN DIEGO — A majority of a California appeals panel on Sept. 5 found that a lower court properly sustained without leave to amend a mortgage servicer and loan beneficiary’s demurrer to a plaintiff’s third amended complaint alleging that the defendants conducted a "massive scheme" of wrongful and fraudulent business practices in connection with foreclosure proceedings on a residential property (Angelica Perales v. Select Portfolio Servicing, N.A., et al., No. D075087, Calif. App., 4th Dist., Div. 1, 2019 Cal. App. Unpub. LEXIS 59190).

  • September 09, 2019

    Magistrate Dismisses UCL, Other Claims In Mortgage Lending Dispute With Wells Fargo

    SAN JOSE, Calif. — A federal magistrate judge in California on Aug. 30 dismissed without leave to amend borrowers’ third amended complaint alleging that Wells Fargo Bank violated the Truth in Lending Act (TILA), California's unfair competition law (UCL) and California Homeowner Bill of Rights (HBOR), finding that the borrower has failed to cure the second amended complaint's deficiencies (Ronnie L. Townsend, et al. v. Wells Fargo Bank, N.A., No. 18-07382, N.D. Calif., 2019 U.S. Dist. LEXIS 148821).

  • September 09, 2019

    Couple Sufficiently Alleged Reliance On Loan Servicer’s Debt Notices, Judge Says

    SEATTLE — A federal judge in Washington on Aug. 27 denied a loan servicer’s motion for judgment on the pleadings on a couple’s claim for negligent misrepresentation, finding that the couple sufficiently alleged that they were confused by statements made by the servicer debt validation notices about who held their loan (Larry Pifer, et al. v. Bank of America N.A., et al., No. 18-CV-606-RSL, W.D. Wash., 2019 U.S. Dist. LEXIS 145730).

  • September 05, 2019

    Virginia High Court Reinstates Woman’s Lawsuit Against Her Loan Servicer

    RICHMOND, Va. — The Virginia Supreme Court on Aug. 22 overturned a trial court judge’s decision dismissing a woman’s lawsuit against the servicer of her mortgage loan, a substitute trustee and a man who bought her home during a foreclosure sale based on the doctrine of res judicata, holding that an earlier lawsuit she filed against a law firm that handled the foreclosure did not involve the same issues (Gloria B. Lane v. Bayview Loan Servicing LLC, et al., No. 180979, Va. Sup., 2019 Va. 94).

  • September 05, 2019

    Estate Failed To State RESPA Violation Claim Against Credit Union, Judge Rules

    TACOMA, Wash. — A federal judge in Washington on Aug. 16 dismissed an estate’s claim that a credit union violated the Real Estate Settlement Procedures Act (RESPA) when allegedly reneging on a loan modification agreement offered by a sub-servicer to a mortgage loan, holding that the estate did not sufficiently show how the violations caused it to suffer damages (Estate of Carrie Andrea Coineandubh v. Boeing Employees Credit Union, No. 19-cv-05527-RBL, W.D. Wash., 2019 U.S. Dist. LEXIS 139154).

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