Mealey's Mortgage Lending

  • June 21, 2021

    Split Illinois High Court Finds Foreclosure Filing Fee To Be Unconstitutional

    SPRINGFIELD, Ill. — A divided Illinois Supreme Court on June 17 affirmed a state court’s grant of summary judgment in favor of borrowers in a class action challenging the constitutionality of a state law requirement that litigants pay a $50 “add on” filing fee prior to bringing their lawsuits in state court, ruling that the requirement violates the free access clause of the Illinois Constitution.

  • June 16, 2021

    Reconsideration Denied In Foreclosure Suit On Limitations Argument

    BROOKLYN, N.Y. — A federal judge in New York on June 11 denied a motion for reconsideration filed by borrowers in a foreclosure action, ruling that their arguments, which echo holdings made by the New York Court of Appeals in a similar action, fail to show that the court’s summary judgment ruling in favor of a lender was incorrect.

  • June 14, 2021

    Lack Of Likelihood Of Success On RESPA Claims Dooms Borrower’s TRO Bid

    OAKLAND, Calif. — A federal judge in California on June 10 denied a borrower’s request for a temporary restraining order (TRO) to enjoin his loan servicer from proceeding with a foreclosure sale of his property, ruling that the borrower has failed to demonstrate a substantial likelihood of success on the merits of his Real Estate Settlement Procedures Act (RESPA) claims against the loan servicer.

  • June 11, 2021

    9th Circuit Panel Rejects Trust’s Arguments On Appeal Of Quiet Title Suit Ruling

    SAN FRANCISCO — A Ninth Circuit U.S. Court of Appeals panel on June 10 affirmed a federal district court’s grant of summary judgment in a quiet title action stemming from a homeowners association’s (HOA) foreclosure proceedings on property after a borrower failed to make necessary assessment fees, ruling that none of a trust’s arguments on appeal supports overturning the lower court’s ruling.

  • June 10, 2021

    FHFA, GSEs Not Government Actors Subject To Due Process Claims, Panel Rules

    BOSTON — A federal district court did not err in dismissing borrowers’ class claims for violation of their constitutional right to due process against government-sponsored agencies (GSEs) Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corp. (Freddie Mac), as well as the Federal Housing Finance Agency (FHFA) over the defendants’ handling of nonjudicial foreclosures of the borrowers’ properties because those entities are not government actors subject to the borrowers’ due process claims, a First Circuit U.S. Court of Appeals panel ruled in affirming on June 8.

  • June 09, 2021

    Borrowers Sue Mortgage Loan Servicer Over Failure To Provide Billing Statements

    CLARKSBURG, W.Va. — Borrowers sued their mortgage loan servicer and the loan holder in West Virginia federal court on June 8, alleging that the defendants have engaged in “abusive and illegal mortgage loan servicing practice” by failing to provide the borrowers with their monthly mortgage statements since 2019.

  • June 09, 2021

    Magistrate Judge:  Borrowers Lack Standing To Bring Claims In HELOC Dispute

    OCALA, Fla. — A federal magistrate judge in Florida on June 4 recommended that borrowers’ claims against their mortgage lender stemming from its amendment of the maturity date of their home equity line of credit (HELOC) mortgage be dismissed, ruling that the borrowers lack standing to bring their claim for declaratory relief and have failed to sufficiently state a claim for relief in bringing their claim for quiet title.

  • June 08, 2021

    Wells Fargo’s Standing Argument In FHA Suit Over Lending Practices Rejected

    CHICAGO — A federal judge in Illinois on June 1 denied a motion to dismiss filed by Wells Fargo & Co. and several of its affiliates in a Fair Housing Act (FHA) discriminatory lending lawsuit for lack of subject matter jurisdiction, rejecting Wells Fargo’s argument that Cook County, Ill., lacks Article III standing to bring its claims.

  • June 04, 2021

    9th Circuit Panel Certifies Question To Nevada High Court In Quiet Title Action

    SAN FRANCISCO — A Ninth Circuit U.S. Court of Appeals panel on June 3 certified a question to the Nevada Supreme Court in an appeal of a summary judgment ruling in a quiet title action, holding that the state Supreme Court’s action is “determinative” and that “the decisions of the Nevada Supreme Court do not provide controlling precedent.”

  • June 04, 2021

    Claims Allowed To Proceed To Discovery In Mortgage Escrow Dispute

    CHARLOTTE, N.C. — A federal judge in North Carolina on June 2 declined to dismiss a borrower’s claims against her mortgage lender stemming from its alleged placement of an escrow account on the borrower’s mortgage and the lender’s alleged charging of fees that the borrower did not approve.

  • June 04, 2021

    Summary Judgment Ruling In Minnesota Foreclosure Challenge Upheld On Appeal

    ST. PAUL, Minn. — A Minnesota trial court did not commit any reversable errors when it granted summary judgment in favor of a mortgage lender on claims that the lender violated Minnesota’s loss mitigation and mortgage foreclosure dual tracking statute by proceeding with foreclosure proceedings after a borrower had applied for a loan modification, a Minnesota Court of Appeals panel ruled May 20 in affirming.

  • June 02, 2021

    Hawaii Supreme Court Overturns Summary Judgment Ruling In Foreclosure Suit

    HONOLULU — A Hawaiian appellate panel erred in affirming a state trial court’s grant of summary judgment in favor of a lender in a foreclosure action because, in support of its argument that a borrower defaulted on her mortgage, the lender submitted a ledger that was ambiguous, the Hawaii Supreme Court ruled May 28 in vacating the appellate panel’s judgment and remanding for further proceedings.

  • June 01, 2021

    Borrowers Seek To Overturn Dismissal In Foreclosure Action To Repurchase Home

    WASHINGTON, D.C. — Borrowers asked the U.S. Supreme Court on May 13 to grant review of a Sixth Circuit U.S. Court of Appeals panel ruling upholding dismissal of their lawsuit against their mortgage loan servicer, the assignee of the mortgage and others for lack of standing, arguing that the dismissal of their lawsuit “resulted in an actual or substantial prejudice” to the borrowers.

  • May 28, 2021

    Appellate Panel Affirms Dismissal Of Claims In Wrongful Foreclosure Suit

    VENTURA, Calif. — A California appellate panel upheld a state trial court’s dismissal of a borrower’s claims in a wrongful foreclosure action brought against his lender, loan servicer and others on May 27, ruling that the trial court did not err by sustaining demurrer with leave to amend the borrower’s California Civil Code Section 2924.11, bad faith and unfair competition law (UCL) claims.

  • May 27, 2021

    Borrowers Seek To Overturn Dismissal In Foreclosure Action To Repurchase Home

    WASHINGTON, D.C. — Borrowers asked the U.S. Supreme Court on May 13 to grant review of a Sixth Circuit U.S. Court of Appeals panel ruling upholding dismissal of their lawsuit against their mortgage loan servicer, the assignee of the mortgage and others for lack of standing, arguing that the dismissal of their lawsuit “resulted in an actual or substantial prejudice” to the borrowers.

  • May 27, 2021

    Loan Servicer, CRA Sued Over Mortgage Loan Discharge Entry On Credit Report

    ATLANTA — A mortgage loan servicer and credit reporting agency (CRA) violated provisions of the Fair Credit Reporting Act (FCRA) by incorrectly showing a borrower’s mortgage loan as discharged on her consumer credit report even though the loan had specifically not been discharged as part of the borrower’s Chapter 13 bankruptcy plan, the borrower argues in a May 25 complaint filed in Georgia federal court.

  • May 26, 2021

    FDCPA Claim May Proceed In Mortgage Debt Collection Lawsuit, Judge Rules

    PHILADELPHIA — A federal judge in Pennsylvania on May 24 ruled that a loan servicer and a law firm retained by the loan servicer to collect on a mortgage loan debt are partially entitled to summary judgment on claims that they violated the Fair Debt Collection Practices Act (FDCPA) and Pennsylvania’s consumer protection statute because genuine issues of material fact exist as to most of a borrower’s debt collection claim.

  • May 21, 2021

    11th Circuit Panel Upholds Dismissal Of Borrower Claims In Quiet Title Suit

    ATLANTA — An 11th Circuit U.S. Court of Appeals panel on May 19 ruled that a federal district court did not err in dismissing a borrower’s lawsuit against its creditor and mortgage loan servicer seeking to halt their nonjudicial foreclosure of her real property for failure to state a claim for relief because none of the borrower’s arguments on appeal supports a showing that the lower court’s ruling was in error or an abuse of discretion.

  • May 20, 2021

    Debt Collector Named In Borrower Class Action Over Late Payment Fee Charges

    CLEVELAND — A debt collector’s charging of late payment fees to borrowers whose mortgage loans have been accelerated for lack of payment violates state and federal law because the borrowers were no longer required to make their monthly payments after acceleration occurred, a borrower argues in a consumer class action lawsuit filed May 19 in Ohio federal court.

  • May 20, 2021

    Panel: Application Of Conditions Precedent In Foreclosure Suit Was Proper

    TACOMA, Wash. — A Washington appellate panel affirmed a state trial’s court’s grant of summary judgment to a mortgage lender in a foreclosure proceeding on May 18, ruling that although the notice requirements in a deed of trust were a conditions precedent to the foreclosure, strict application of the conditions precedent sought by borrowers is not warranted.

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