NEW YORK — A federal judge in New York on Oct. 7 dismissed a woman’s class action lawsuit accusing Wells Fargo N.A. of violating the Real Estate Settlement Procedures Act (RESPA) when attempting to purchase her home through a short sale after finding that the allegations in the suit did not sufficiently allege how the loan servicer violated the statute (Faigie Ehrenfeld v. Wells Fargo N.A., No. 19-cv-2314, E.D. N.Y., 2019 U.S. Dist. LEXIS 174000).
SAN FRANCISCO — A Ninth Circuit U.S. Court of Appeals panel on Oct. 8 voted 2-1 in favor of denying a couple’s request for rehearing of their argument that the Federal National Mortgage Association (Fannie Mae) is a credit reporting agency that is subject to liability under the Fair Credit Reporting Act (FCRA) after issuing a ruling in January that reversed a federal judge in Arizona’s ruling in favor of the plaintiffs (Richard Zabriskie, et al. v. Federal National Mortgage Association, Nos. 17-15807, 17-16000, 9th Cir., 2019 U.S. App. LEXIS 30147).
RICHMOND, Va. — Freedom Mortgage Corp. on Oct. 10 told the Fourth Circuit U.S. Court of Appeals that a ruling dismissing a borrower’s lawsuit accusing it of violating the Real Estate Settlement Procedures Act (RESPA) for failing to pay his property tax should be affirmed because his previous loan servicer was still required to make the necessary payment at the time it was due (Rodney Harrell, et al. v. Freedom Mortgage Corp., No. 19-1379, 4th Cir.).
WASHINGTON, D.C. — The U.S. Supreme Court on Oct. 7 denied a woman’s petition for review of a Ninth Circuit U.S. Court of Appeals ruling that affirmed dismissal of her Truth in Lending Act (TILA) lawsuit seeking rescission of her mortgage loan (Kimberly Cox v. Old Republic National Title Insurance Co., et al., No. 18-1536, U.S. Sup.).
WASHINGTON, D.C. — The U.S. Supreme Court on Oct. 7 denied a man’s petition for a writ of certiorari seeking review of a Ninth Circuit U.S. Court of Appeals’ panel’s ruling affirming summary judgment in favor of Mortgage Electronic Registration Systems Inc. (MERS) and others in a suit they brought to vacate a state court default judgment entered in his favor on a quiet title claim (Timothy Johnston v. Mortgage Electronic Registration Systems Inc., No. 18-1532, U.S. Sup.).
ATLANTA — A woman’s third lawsuit against her mortgage lenders and loan servicers over the reassignment of the loan was barred by collateral estoppel, an 11th Circuit U.S. Court of Appeals panel ruled Sept. 30 in affirming a federal judge in Georgia’s ruling adopting a recommendation to dismiss the suit, finding that the dispute was addressed in the woman’s first lawsuit (Kimelyn A. Minnifield v. Wells Fargo Bank N.A., et al., No. 18-13662, 11th Cir., 2019 U.S. App. LEXIS 29373).
PASADENA, Calif. — A Ninth Circuit U.S. Court of Appeals panel on Sept. 24 upheld the dismissal of a woman’s lawsuit accusing her mortgage lender of violating California’s unfair competition law (UCL) when providing her with an adjustable-rate loan in 2006, finding that she knew when the lender made allegedly misleading statements during the four-year statute of limitations (Kathleen Angel Eisenberg v. Citibank N.A., No. 17-56233, 9th Cir., 2019 U.S. App. LEXIS 28851).
SEATTLE — A borrower who claims that a Ninth Circuit U.S. Court of Appeals panel erred when upholding a ruling that he could not rescind a loan under the Truth in Lending Act (TILA) because it was a residential mortgage transaction asked for a full panel rehearing on Oct. 2 (Timothy Barnes v. Chase Home Finance LLC, et al., No. 18-35616, 9th Cir.).
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).
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).
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).
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).
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).
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).
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).
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).
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).
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).
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).
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).