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Mealey's Mortgage Lending

  • February 25, 2020

    Judge Transfers Suit Accusing Equifax Of Selling Data After Refinancing Home

    PHILADELPHIA — A federal judge in Pennsylvania on Feb. 21 transferred a lawsuit accusing Equifax Inc. and its affiliates of violating the Fair Credit Reporting Act (FCRA) of illegally selling information to mortgage brokers who made phone calls to plaintiffs’ Florida home after they began refinancing the loan on a home they own in Delaware, finding that litigating the suit in the U.S. District Court for the Northern District of Georgia would enhance judicial efficiency (Harold Berk v. Equifax Inc., et al., No. 19-4629, E.D. Pa., 2020 U.S. Dist. LEXIS 29714).

  • February 24, 2020

    Judge Trims Some Claims From Couple’s Suit Over Adjustable-Rate Mortgage

    NASHVILLE, Tenn. — A federal judge in Tennessee granted in part a loan servicer’s motion for judgment on the pleadings in a couple’s lawsuit over an adjustable-rate mortgage they obtained in 2002 on Feb. 19, finding that while they could proceed with their claim under the Truth in Lending Act (TILA), their claims for misappropriation and fraud failed (Tony U. Odigie, et al. v. Nationstar Mortgage LLC, No. 18-cv-00675, M.D. Tenn., 2020 U.S. Dist. LEXIS 28130).

  • February 10, 2020

    Magistrate Recommends Denying Dismissal Of Class Action Over Reverse Mortgages

    NEW YORK — A federal magistrate judge on Feb. 5 recommended denying dismissal of a class action suit brought by an elderly woman who claims that the holder of a reverse mortgage prematurely paid property taxes on her home, finding that she sufficiently alleged that she suffered an injury as a result of the defendants’ conduct (Margaret Shakespeare v. Live Well Financial Inc., et al., No. CV 18-7299, E.D. N.Y., 2020 U.S. 21714).

  • February 10, 2020

    Judge Finds Man Fails To State Claims Over Denied Loan Modification

    BALTIMORE — A federal judge in Maryland on Feb. 7 dismissed a man’s lawsuit accusing Bank of America N.A. (BANA) of violating the Home Affordable Modification Program (HAMP) by failing to approve his request for a loan modification, holding that that the program does not provide a private cause of action to borrowers (Vasilios Fotopoulos v. Bank of America N.A., No. 19-cv-02178, D. Md., 2020 U.S. Dist. LEXIS 21499).

  • February 10, 2020

    Loan Servicer Employee’s Affidavit Was Properly Admitted, Appeals Panel Says

    ATLANTA — An 11th Circuit U.S. Court of Appeals panel on Feb. 6 upheld a ruling awarding summary judgment to a loan servicer, finding that a judge in Georgia did not abuse her discretion when relying on documents submitted along with an affidavit of an employee of the company (Lela I. Lewis v. Residential Mortgage Solutions, et al., No. 18-14738, 11th Cir., 2020 U.S. App. LEXIS 3587).

  • February 10, 2020

    Judge Says Man’s Claims Against Loan Servicer Over Additional Payments Inadequate

    WICHITA, Kan. — A federal judge in Kansas on Feb. 5 dismissed without prejudice a man’s lawsuit accusing his loan servicer of violating the Fair Debt Collection Practices Act (FDCPA), Real Estate Settlement Procedures Act (RESPA) and Kansas Consumer Protection Act (KCPA) for misapplying additional payments he made on his mortgage, holding that the allegations failed to sufficiently state claims under the statutes (Roger N. Jones v. Fay Servicing LLC, No. 19-01124, D. Kan., 2020 U.S. Dist. LEXIS 19176).

  • February 06, 2020

    Judge Allows Man To Pursue Punitive Damages Over Denied Loan Modification

    PHILADELPHIA — A federal judge in Pennsylvania on Jan. 29 denied a loan servicer’s motion to partially dismiss a man’s lawsuit over a denied loan modification, finding that he could pursue claims for punitive damages, negligent misrepresentation and breach of contract (Vernon Welch v. Nationstar Mortgage LLC, No. 19-2023, E.D. Pa., 2020 U.S. Dist. LEXIS 14374).

  • February 06, 2020

    Judge Refuses To Dismiss Woman’s Debt Collection Claim Against Loan Servicer

    BIRMINGHAM, Ala. — A federal judge in Alabama on Jan. 22 denied in part a loan servicer’s motion to dismiss a woman’s class action suit, finding that she sufficiently stated a claim that the loan servicer violated the Fair Debt Collection Practices Act by sending letters that contained “empty threats” about accelerating on her loan if a payment on the full amount of default was not paid by a certain date (Patricia Williams v. Seterus Inc., et al., No. 19-cv-00693, N.D. Ala., 2020 U.S. Dist. LEXIS 10408).

  • February 06, 2020

    10th Circuit Panel Finds Man Did Not Preserve Quiet Title Argument

    DENVER — A 10th Circuit U.S. Court of Appeals panel on Jan. 28 upheld a ruling awarding summary judgment to a loan servicer, holding that a man did not preserve his argument in Utah federal court that his lawsuit is not time-barred because his claim for quiet title is not subject to the statute of limitations (Jason Lunt v. Nationstar Mortgage, et al., No. 18-4093, 10th Cir., 2020 U.S. App. LEXIS 2706).

  • February 06, 2020

    2nd Circuit Certifies Questions To State Appeals Court Over Foreclosure Notices

    NEW YORK — A Second Circuit U.S. Court of Appeals panel on Jan. 28 certified two questions to the New York Court of Appeals as to whether a lender’s preforeclosure notices satisfied the requirements of two sections of the New York Real Property Actions and Proceedings Law (RPAPL), finding that the questions turn on New York law and that there are no controlling decisions by the state’s appeals court (CIT Bank N.A. v. Pamela Schiffman, et al., No. 18-3287, 2nd Cir., 2020 U.S. App. LEXIS 3090).

  • February 05, 2020

    Judge Reinstates Woman’s Claim For Emotional Damages From RESPA Violations

    COLUMBUS, Ohio — A federal judge in Ohio on Jan. 17 reinstated a woman’s request for emotional damages stemming from a loan servicer’s alleged violations of the Real Estate Settlement Procedures Act (RESPA), holding that the plaintiff’s evidence was not properly considered (Elizabeth Cameron v. Ocwen Loan Servicing LLC, et al., No. 18-cv-428, S.D. Ohio, 2020 U.S. Dist. LEXIS 14595).

  • February 03, 2020

    Judge Certifies Class In Loan Modification Suit As To Breach Of Contract Claim Only

    SAN FRANCISCO — A federal judge in California on Jan. 29 granted borrowers’ motion for class certification only as to their breach of contract claim in their lawsuit alleging that a mortgage servicer failed to provide them with loan modifications, finding that denial of certification of the state subclasses based on violations of state consumer protection laws is warranted because the state consumer laws are materially different and common issues would not predominate (Alicia Hernandez, et al. v. Wells Fargo & Company, et al., No. 18-07354, N.D. Calif., 2020 U.S. Dist. LEXIS 15844).

  • February 01, 2020

    Judge Denies Lender’s Request To Reconsider Ruling Allowing FCA Suit To Proceed

    SHERMAN, Texas — A federal judge in Texas on Jan. 21 refused to reconsider a Sept. 9 ruling denying JPMorgan Chase Bank N.A.’s motion for summary judgment in a False Claims Act (FCA) lawsuit accusing it of submitting false information about loan modifications it provided to borrowers under the Home Affordable Modification Program (HAMP) after overruling the bank’s argument that the decision was made sua sponte and that it prevents the bank from attempting to conduct discovery on whether the relators are original sources of information (United States, ex rel. Michael J. Fisher, et al. v. JPMorgan Chase Bank N.A., No. 16-CV-00395, E.D. Texas, 2020 U.S. Dist. LEXIS 9400).

  • February 01, 2020

    Judge Denies Loan Servicer’s Summary Judgment Motion In Insurance Proceeds Dispute

    LEXINGTON, Ky. — A federal judge in Kentucky on Jan. 21 denied in part Fifth Third Bank N.A.’s motion for summary judgment, holding that triable issues exist as to whether the loan servicer breached the terms of a mortgage agreement when releasing only $16,048.21 of the $82,732.89 in insurance proceeds a woman was awarded to repair vandalism on a property she leased (Beverly Chesser v. Fifth Third Bank N.A., No. 19-081-DCR, E.D. Ky., 2020 U.S. Dist. LEXIS 9701).

  • January 31, 2020

    Judge Trims Couple’s Claims Over RESPA Violations, Consumer Fraud

    CHICAGO — A federal judge in Illinois on Jan. 29 granted in part Wells Fargo Bank N.A.’s motion to dismiss a couple’s lawsuit accusing it of violating the Real Estate Settlement Procedures Act (RESPA) and Illinois Consumer Fraud Act (ICFA), holding that some of the lender’s actions did not violate the acts (Andy Weiss, et al. v. Wells Fargo Bank N.A., No. 19 C 4947, N.D. Ill., 2020 U.S. Dist. LEXIS 14509).

  • January 30, 2020

    11th Circuit: No Error In Dismissal Of Widow’s Reverse Mortgage Suit

    ATLANTA — An 11th Circuit U.S. Court of Appeals panel on Jan. 22 affirmed a ruling dismissing a widow’s lawsuit against the originator of a reverse mortgage loan and the loan servicer, holding that a federal judge in Alabama did not err when finding that neither defendant owed her a duty under Alabama law to ensure that she was also a signatory to a loan obtained by her now-deceased husband and that the judge did not err when denying her request to file a fourth amended complaint (Shirley Ann Harris v. Reverse Mortgage Solutions Inc., et al., No. 18-14013, 11th Cir., 2020 U.S. App. LEXIS 1883).

  • January 27, 2020

    Panel: Woman Suffered No Damages From Enjoined Foreclosure, RESPA Violations

    NEW ORLEANS — A federal judge in Texas did not err when dismissing a woman’s lawsuit challenging the foreclosure of her home and accusing her mortgage lender and loan servicer of violating the Real Estate Settlement Procedures Act (RESPA), a Fifth Circuit U.S. Court of Appeals panel ruled Jan. 22, finding that the woman failed to allege that she suffered any damages as a result of the appellees’ conduct (Deborah Cross v. Bank of New York Mellon, et al., No. 19-20462, 5th Cir., 2020 U.S. App. 2058).

  • January 21, 2020

    1st Circuit Upholds Ruling Finding Woman’s Suit Over Predatory Loan Untimely

    BOSTON — A woman’s lawsuit accusing her current mortgage lender and loan servicer of violating the Massachusetts Consumer Protection Act and the Massachusetts Fair Debt Collection Practices Act was properly dismissed as untimely, a First Circuit U.S. Court of Appeals panel ruled Jan. 17, holding that her claims originated when the loan was consummated (Mary Kathryn O’Brien v. Deutsche Bank National Trust Co., et al., No. 19-1143, 1st Cir., 2020 U.S. App. LEXIS 14599).

  • January 15, 2020

    Panel: Plaintiff Failed To Assert Required Property Ownership Under HBOR

    SAN FRANCISCO — A California appeals panel on Dec. 16 affirmed a lower court’s judgment of dismissal of a lawsuit alleging wrongful disclosure and claims under California’s unfair competition law (UCL) and Homeowners Bill of Rights (HBOR), finding that the plaintiff failed to assert the property ownership required under the HBOR (Anthony A. Malfatti v. Specialized Loan Servicing, LLC, et al., No. A153821, Calif. App., 1st Dist., Div. 3, 2019 Cal. App. Unpub. LEXIS 8429).

  • January 13, 2020

    Panel Affirms Dismissal Of UCL, HBOR Claims In Foreclosure Dispute

    SAN JOSE, Calif. — A California appeals panel on Dec. 27 affirmed a lower court’s dismissal of a lawsuit alleging that a loan servicer violated California’s unfair competition law (UCL) and Homeowners Bill of Rights (HBOR), finding that the plaintiffs cannot establish a UCL claim by borrowing statutory violations from both HBOR and the federal Home Affordable Modification Program (HAMP) (Jeffrey E. Finsand, et al. v. Nationstar Mortgage, LLC, et al., No. H045052, Calif. App., 6th Dist., 2019 Cal. App. Unpub. LEXIS 8628).