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Mealey's Mortgage Lending

  • December 12, 2019

    4th Circuit Affirms Ruling Finding Couple’s Mortgage Lending Suit Untimely

    RICHMOND, Va. — A Fourth Circuit U.S. Court of Appeals panel on Dec. 9 upheld a ruling dismissing as untimely a couple’s lawsuit against their mortgage lender and loan servicer, finding that the plaintiffs’ declaratory judgment and breach of contract claims are both subject to the state’s five-year statute of limitations (Carlos Manotas, et al. v. Ocwen Loan Servicing LLC, et al., No. 18-2026, 4th Cir., 2019 U.S. App. LEXIS 36394).

  • December 09, 2019

    Borrower Tells 4th Circuit Split Servicing Duties Inconsistent With RESPA

    RICHMOND, Va. — A borrower seeking reversal of a decision dismissing his class action lawsuit against a loan servicer accused of violating the Real Estate Settlement Procedures Act (RESPA) when failing to make a property tax payment tells the Fourth Circuit U.S. Court of Appeals in an Oct. 31 reply brief that the statute does not support the idea of bifurcated servicing of a loan (Rodney Harrell, et al. v. Freedom Mortgage Corp., No. 19-1379, 4th Cir.).

  • December 09, 2019

    Federal Judge Dismisses UCL, HBOR, Negligence Claims In Mortgage Loan Dispute

    FRESNO, Calif. — A federal judge in California on Dec. 4 dismissed California unfair competition law (UCL) and other claims in a lawsuit alleging that a mortgage lender attempted to foreclose on a personal residence despite the plaintiff’s efforts to seek a loan modification, allowing the plaintiff leave to amend the fraudulent and unfair business practices prongs of his UCL claims (Darryl Banton v. Wells Fargo Bank, N.A, et al., No. 19-00928, E.D. Calif., 2019 U.S. Dist. LEXIS 210909).

  • December 09, 2019

    6th Circuit Upholds Ruling Refusing To Vacate Dismissal Of Couple’s TILA Suit

    CINCINNATI — A Sixth Circuit U.S. Court of Appeals panel on Dec. 6 upheld a ruling denying a couple’s motion to vacate dismissal of their Truth in Lending Act (TILA) lawsuit under Federal Rule of Civil Procedure 60(b)(6), finding that a federal judge in Tennessee did not err when refusing to apply a decision from the Ninth Circuit about the statute of limitations for damages under the statute (Tobin Segrist, et al. v. Bank of New York Mellon, No. 19-5153, 6th Cir., 2019 U.S. App. LEXIS 36232).

  • December 06, 2019

    Judge Denies Parties’ Summary Judgment Motions In Debt Collections Suit

    WORCESTER, Mass. — A federal judge in Massachusetts on Dec. 5 denied motions for summary judgment filed by parties in a Fair Debt Collections Act (FDCPA) lawsuit, finding that there is no dispute that a loan servicer is a debt collector under the statute and that questions exist as to whether a June 2017 letter offering a loan modification to the borrower was an attempt to collect on the defaulted loan (Eugene Weiner v. Rushmore Loan Management Services LLC, et al., No. 17-401440-TSH, D. Mass., 2019 U.S. Dist. LEXIS 209534).

  • December 04, 2019

    Judge Remands Foreclosure Action, Refuses To Exercise Supplemental Jurisdiction

    DENVER — A federal judge in Colorado on Dec. 2 remanded a consolidated lawsuit challenging U.S. Bank N.A.’s foreclosure of a couple’s home after declining to exercise supplemental jurisdiction over the plaintiffs’ claims (Farlan A. Robertson, et al. v. U.S. Bank N.A., et al., No. 19cv2909, D. Colo., U.S. Dist. LEXIS 207121).

  • December 03, 2019

    9th Circuit Upholds Dismissal Of Man’s TILA, Unfair Competition Claims

    SAN FRANCISCO — A Ninth Circuit U.S. Court of Appeals panel on Dec. 2 upheld the dismissal of a man’s lawsuit accusing Wells Fargo Bank N.A. and U.S. Bank N.A. of violating the Truth in Lending Act (TILA) and California’s unfair competition law (UCL), finding that the causes of action were barred by claim preclusion because they could have been raised in an earlier lawsuit (Vahe Aftandilian v. Wells Fargo Bank N.A., et al., No. 18-56666, 9th Cir., 2019 U.S. App. LEXIS 35768).

  • December 02, 2019

    Loan Servicer’s Conduct, Communications Did Not Violate FDCPA, Judge Rules

    MINNEAPOLIS — A federal judge in Minnesota on Nov. 19 awarded summary judgment to a loan servicer, holding that communications and conduct it engaged in with a man before and after a foreclosure sale was held on his home did not violate the Fair Debt Collection Practices Act (FDCPA) because the actions were not made in connection with the collection of a debt (David Heinz v. Carrington Mortgage Services LLC, No. 18-cv-1919, D. Minn., 2019 U.S. Dist. LEXIS 200500).

  • December 02, 2019

    7th Circuit Finds $3M Punitive Damages Against Loan Servicer Excessive

    CHICAGO — A Seventh Circuit U.S. Court of Appeals panel on Nov. 27 reduced a $3 million punitive damages award entered by a federal jury in Illinois against a loan servicer to $582,000, finding that while punitive damages are allowed by Illinois law for the loan servicer’s violations of the Illinois Consumer Fraud Act (ICFA), the amount of damages was excessive because it was not proportional to the amount of other damages awarded by the jury under the act (Monette Saccameno v. U.S. Bank N.A., et al., No. 19-1569, 7th Cir., 2019 U.S. App. LEXIS 35550).

  • December 02, 2019

    6th Circuit Reinstates Couple’s RESPA Claim, Upholds Dismissal Of FDCPA Claim

    CINCINNATI — A Sixth Circuit U.S. Court of Appeals panel on Nov. 26 reversed a federal judge in Ohio’s ruling awarding summary judgment to a loan servicer accused of violating the Real Estate Settlement Procedures Act (RESPA), finding that the judge erred when finding that a portion of a woman’s deposition testimony was sufficient to show that the only actual damages she and her husband are seeking as a result of the alleged violations of the statute are the denial of loans for her small business (Ronald Lanton, et al. v. Ocwen Loan Servicing LLC, et al., No. 18-3709, 6th Cir., 2019 U.S. App. LEXIS 35362).

  • November 27, 2019

    Disputes Exist On Whether Servicer Adequately Responded To Notice Of Error

    COLUMBUS, Ohio — A federal judge in Ohio on Nov. 14 denied in part a motion for summary judgment filed by a loan servicer, holding that genuine issues exist as to whether the servicer satisfied its requirements under the Real Estate Settlement Procedures Act (RESPA) when responding to a woman’s notice of error about a loan modification she entered into in December 2010 (Elizabeth Cameron v. Ocwen Loan Servicing LLC, et al., No. 18-cv-428, S.D. Ohio, 2019 U.S. Dist. LEXIS 197689).

  • November 27, 2019

    Judge: Requests Sent After Foreclosure Sale Cannot Support RESPA Claim

    ANNISTON, Ala. — A federal judge in Alabama on Nov. 25 granted a loan servicer’s motion for partial dismissal of a man’s lawsuit, finding that the defendant’s alleged failure to timely respond to his qualified written requests (QWRs) that were sent after a foreclosure sale cannot support a claim under the Real Estate Settlement Procedures Act (RESPA) (Vann Caldwell v. Nationstar Mortgage LLC, No. 19-CV-01182-KOB, N.D. Ala., 2019 U.S. Dist. LEXIS 203805).

  • November 26, 2019

    Judge Allows Only Woman’s Fair Credit Reporting Act Claim To Survive Dismissal

    TAMPA, Fla. — A federal judge in Florida on Nov. 12 dismissed a majority of a woman’s lawsuit accusing Wells Fargo Bank N.A. of providing her with a mortgage loan through the use of fraud and robo-signed documents, ruling that she could pursue a claim only under the Fair Credit Reporting Act (FCRA) because all of her other claims were barred by the state’s compulsory counterclaim rule (Neelam Uppal v. Wells Fargo Bank N.A., et al., No. 19-cv-1334-T-02JSS, M.D. Fla. 2019 U.S. Dist. LEXIS 195765).

  • November 26, 2019

    Couple’s Alleged Failure To Know Of Junior Mortgage Cannot Halt Foreclosure

    DALLAS — A federal judge in Texas on Nov. 12 awarded summary judgment to a mortgage lender after rejecting a couple’s argument that their failure to know about the existence of a junior mortgage that constituted 20 percent of the value of their home barred the lender from initiating foreclosure proceedings (Charles Constance, et al. v. Interstate Intrinsic Value Fund A LLC, No. 18-CV-3047-BK, N.D. Texas, 2019 U.S. Dist. LEXIS 195682).

  • November 25, 2019

    Class Certified In UCL Suit Claiming Bank Failed To Pay Interest On Escrow Accounts

    SAN FRANCISCO — A federal judge in California on Nov. 20 granted a plaintiff’s motion for class certification in a lawsuit brought under California’s unfair competition law (UCL) alleging that a bank failed to pay interest on escrow accounts on mortgage loans, noting that it “is hard to imagine a case more worthy of class treatment” (William Kivett v. Flagstar Bank, FSB, et al., No. 18-05131, N.D. Calif.. 2019 U.S. Dist. LEXIS 202448).

  • November 19, 2019

    9th Circuit Vacates Ruling Denying RESPA Plaintiffs’ Motion For Relief

    ANCHORAGE, Alaska — A Ninth Circuit U.S. Court of Appeals panel on Nov. 15 overturned a federal judge in California’s ruling denying motions for relief from judgment under Federal Rule of Civil Procedure 60(b) filed by leaders of a proposed class claiming that a lender violated the Real Estate Settlement Procedures Act (RESPA), holding that the judge did not properly interpret the U.S. Supreme Court’s ruling in Microsoft Corp. v. Baker, 137 S. Ct. 1702 (2017), when denying the motion (Melissa Henson, et al. v. Fidelity National Financial Inc., No. 18-56071, 9th Cir., 2019 U.S. App. LEXIS 34093).

  • November 18, 2019

    U.S. Supreme Court Refuses To Rehear Woman’s Arguments To Review TILA Ruling

    WASHINGTON, D.C. — The U.S. Supreme Court on Nov. 18 denied a woman’s request to rehear arguments on her request for review of a Ninth Circuit U.S. Court of Appeals’ ruling that affirmed dismissal of her Truth in Lending Act (TILA) lawsuit (Kimberly Cox v. Old Republic National Title Insurance Co., et al., No. 18-1536, U.S. Sup.).

  • November 18, 2019

    Federal Judge Refuses To Dismiss UCL Claim In Class Action Against Loan Servicer

    RIVERSIDE, Calif. — A federal judge in California on Nov. 12 denied a loan servicer’s motion to dismiss California unfair competition law (UCL) and other claims in a class action alleging that it conducted “fraudulent assessment and collection of unperformed, unfair, or unlawfully marked-up property valuation and inspection fees” (Mary A. Rhodeman, et al. v. Ocwen Loan Servicing, LLC, et al., No. 18-2363, C.D. Calif., 2019 U.S. Dist. LEXIS 197944).

  • November 14, 2019

    Judge Adopts Recommendation To Partially Dismiss Class Action Over Lender’s Letter

    MINNEAPOLIS — A federal judge in Minnesota on Nov. 7 adopted a magistrate judge’s Oct. 21 recommendation to partially dismiss a lawsuit brought by a proposed class of Minnesota borrowers who claim that a loan servicer violated the Fair Debt Collection Practices Act (FDCPA) when sending a letter informing them that their mortgage loans were in default, finding that the loan servicer did not say in the letter that it would immediately foreclose on the loan if a payment was not received by the expiration date (Anita Fisher v. Nationstar Mortgage LLC, et al., No. 19-cv-01382, D. Minn., 2019 U.S. Dist. LEXIS 194423).

  • November 13, 2019

    9th Circuit Agrees Res Judicata Bars Man’s Suit Over Assignment Of Loan

    PASADENA, Calif. — A Ninth Circuit U.S. Court of Appeals panel on Nov. 8 affirmed a federal judge in California’s ruling that a man’s second lawsuit accusing his loan servicer of illegally assigning his mortgage loan to a trust was barred by the doctrine of res judicata because the allegations stemmed from the same transaction or occurrence (Stephen Yagman v. Nationstar Mortgage LLC, No. 18-55693, 9th Cir., 2019 U.S. App. LEXIS 33495).