Mealey's Mortgage Lending

  • April 15, 2021

    Judge:  Loan Assignee Failed To Show It Held Mortgage Note Before Foreclosing

    PORTLAND, Ore. — A federal judge in Oregon on April 12 declined to grant summary judgment in favor of defendants in a Fair Debt Collection Practices Act (FDCPA) lawsuit, ruling that defendants failed meet their burden of showing that no questions of fact remains as to whether they held a mortgage note when they initiated foreclosure proceedings on a borrower’s home after defaulting on the note.

  • April 14, 2021

    Borrower’s FRCA Claim Sufficient To Avoid Dismissal At This Point, Judge Rules

    RICHMOND, Va. — A federal judge in Virginia on April 12 denied a loan servicer’s motion for judgment on the pleadings in a lawsuit alleging that a loan servicer and three credit reporting agencies (CRAs) violated provisions of the Fair Credit Reporting Act (FCRA) by failing to investigate a borrower’s dispute showing a negative report on his credit report, ruling that although the borrower’s allegations in support of his claims are scant, they are sufficient to survive dismissal at this stage of the litigation.

  • April 13, 2021

    Summary Judgment Motions Granted In Declaratory Relief Action Over Home Foreclosure

    HOUSTON — A federal judge in Texas on March 26 ruled that a mortgage loan servicer and its assignee are entitled to summary judgment on a borrower’s claims seeking to bar foreclosure on her property after she defaulted on her mortgage loan because the foreclosure is not barred by the statute of limitations.

  • April 12, 2021

    Settlement Agreement Results In Dismissal Of Borrowers’ TILA Rescission Suit

    SEATTLE — A federal judge in Washington on April 9 issued an order dismissing a Truth in Lending Act (TILA) rescission lawsuit brought by borrowers against their lenders and others after the parties notified the judge that they had reached the terms of a settlement agreement.

  • April 12, 2021

    Court Had Jurisdiction In Foreclosure Action After Dissolving TRO, Panel Rules

    ST. LOUIS — An Eighth Circuit U.S. Court of Appeals panel on April 9 affirmed a federal district court’s dismissal of a borrower’s lawsuit against his mortgage lender that sought to halt a foreclosure sale on the borrower’s property, ruling that the lower court had jurisdiction over the lawsuit after it dissolved a temporary restraining order (TRO) the borrower sought to halt the foreclosure sale.

  • April 09, 2021

    District Court’s Dismissal Of Borrower Claims In Debt Collection Suit Affirmed

    NEW YORK — A federal district court did not err in dismissing a borrower’s claims for fraud, negligent infliction of emotional distress (NIED) and violations of the Fair Debt Collection Practices Act (FDCPA) against his mortgage loan servicer and others because the borrower waived or failed to sufficiently plead the elements of those claims, a Second Circuit U.S. Court of Appeals panel ruled April 9 in affirming.

  • April 09, 2021

    Judge: Borrowers Properly Plead Price-Fixing Scheme For Sherman Act Claim

    GREENBELT, Md. — A federal judge in Maryland on April 2 denied a motion to dismiss a claim for violation of the Sherman Act filed by defendants in a consumer class action, ruling that borrowers have pleaded sufficient evidence to show that a horizontal price-fixing agreement existed between the defendants and a title and settlement services company, which were direct competitors.

  • April 07, 2021

    Mortgage Payment Fees Found Not To Violate FDCPA, State Debt Collection Laws

    LOS ANGELES — A federal judge in California on April 5 dismissed state and federal debt collection law claims brought by borrowers in a putative class action lawsuit against a mortgage servicer over its charging of “pay-to-pay” convenience fees for making mortgage payments online or over the telephone, ruling that the borrowers have failed to show that charging such fees violated the Fair Debt Collection Practices Act (FDCPA) or any corresponding state laws alleged by the borrowers.

  • April 06, 2021

    Alabama High Court Remands Statute Of Limitations Ruling In HELOC Suit

    MONTGOMERY, Ala. — An Alabama trial court erred in ruling that a lender’s claim seeking to recover a debt under a home equity line of credit (HELOC) is barred by the statute of limitations because the trial court erroneously determined that borrowers sufficiently showed that the lender sought to recover only pursuant to an open-account theory, a divided Alabama Supreme Court ruled April 2 in reversing and remanding.

  • April 05, 2021

    Removal Of Borrower Suit Over Home Foreclosure Was Proper, Panel Rules

    NEW ORLEANS — A mortgage loan assignee and loan servicer’s removal of a borrower’s lawsuit alleging that the defendants violated Texas law in its attempt to foreclose on her home was proper because the assignee and servicer sufficiently showed that diversity jurisdiction existed to warrant such removal, a Fifth Circuit U.S. Court of Appeals panel ruled April 1 in affirming.

  • April 02, 2021

    Mortgage Lender Owed Borrowers No Duty Of Care Under HAMP, Judge Rules

    CHICAGO — A federal judge in Illinois on March 31 partially granted a motion to dismiss filed by Wells Fargo Bank NA in a consumer fraud and gross negligence lawsuit, ruling that dismissal of the gross negligence claim is necessary because borrowers and their bankruptcy trustee have failed to sufficiently show that Wells Fargo owed them any duty of care under the Home Affordable Modification Program (HAMP) by denying their request for loan modification prior to foreclosing on their home.

  • April 01, 2021

    Panel: District Court Properly Denied Motion To Vacate In Borrower Suit

    NEW YORK — A Second Circuit U.S. Court of Appeals panel on March 31 affirmed a federal district court’s order denying a borrower’s motion to vacate the district court’s judgment dismissing his claims against parties who serviced his mortgage loan, ruling that the lower court did not abuse its discretion in rejecting the borrower’s request to have his claims arbitrated.

  • March 31, 2021

    California Supreme Court Overturns Title Insurer Immunity Ruling In UCL Dispute

    SACRAMENTO, Calif. — The California Supreme Court on March 22 overturned a state appellate court’s ruling that a title insurer was immune under provisions of the state’s insurance code from a borrower’s lawsuit alleging that the insurer violated provisions of California’s unfair competition law (UCL) by charging rates for deed delivery services that were not approved by the California insurance commissioner, ruling that title insurers are not shielded from liability for charging unauthorized rates.

  • March 30, 2021

    Judge:  Couple’s Claims Against Home Seller, Lender Not Subject To Arbitration

    HUNTINGTON, W.Va. — A federal judge in West Virginia on March 26 refused to dismiss or compel arbitration of a couple’s deceptive trade practices claims against a home seller, a lender and an insurer, finding that their amended complaint can reference allegations that were resolved by a partial settlement of causes of action over alleged defects in the construction of a mobile home and that claims regarding the loan agreement are not subject to arbitration.

  • March 29, 2021

    Split 5th Circuit Panel Affirms Dismissal Of TDCA Claim In Mortgage Lending Suit

    NEW ORLEANS — In a 2-1 decision, a Fifth Circuit U.S. Court of Appeals panel on March 26 rejected an argument made by borrowers that Wells Fargo Bank NA violated the Texas Debt Collection Act (TDCA) by failing to properly represent the amount the borrowers were past due in payments on their mortgage loan in two letters, ruling that even if the amounts in the letters were inaccurate, those inaccuracies did not cause the borrowers to “‘think differently’ with respect to the amount actually past due.”

  • March 26, 2021

    Preliminary Injunction Granted In Borrower Suit Against Loan Servicer, Others

    SEATTLE — A borrower has shown that a substantial likelihood exists that he will succeed on the merits of his claims against his mortgage loan servicer and others in a lawsuit stemming from the defendants’ denial of his request for mortgage assistance and attempted foreclosure of his property because claims the borrower brought against the defendants “can constitute unfair and deceptive acts” under Washington’s consumer protection law and “support a claim for injunctive relief,” a federal judge in Washington ruled March 25 in granting the borrower’s motion for a preliminary injunction.

  • March 25, 2021

    Law Firm, Mortgage Servicer Named In FDCPA Suit Over Foreclosure Suit Filing

    BROOKLYN, N.Y. — A borrower sued a law firm and her mortgage servicer in New York federal court on March 23, alleging that the defendants violated provisions of the Fair Debt Collection Practices Act (FDCPA) and New York state law by attempting to initiate time-barred foreclosure proceedings after the borrower defaulted on her mortgage loan.

  • March 23, 2021

    Review Of Quiet Title Action Ruling Unnecessary, Respondents Tell High Court

    WASHINGTON, D.C. — U.S. Supreme Court review of a Ninth Circuit U.S. Court of Appeals panel ruling that a federal district court’s determination that a quiet title action brought by Federal Home Loan Mortgage Corp. (Freddie Mac) and M&T Bank was timely because Freddie Mac was standing in the shoes of its conservator and M&T was standing in the shoes of Freddie Mac when the action was brought is not warranted because the Federal Foreclosure Bar protects a conservatorship property from “extinguishment  by ‘foreclosure[] or sale,’” Freddie Mac and M&T argue in a March 22 respondents’ brief filed in the Supreme Court.

  • March 19, 2021

    Contract Breach, Reliance Claims In Wrongful Foreclosure Suit Dismissed

    BOSTON — A federal judge in Massachusetts on March 16 dismissed claims alleging that a mortgage loan trustee and loan servicer breached the terms of a mortgage loan by improperly collecting escrow payments from a borrower, ruling that the terms of the mortgage loan allowed for such action.

  • March 19, 2021

    Counties’ Claims In Discriminatory Lending Suit Against Wells Fargo To Proceed

    BALTIMORE — In a Feb. 17 ruling, a federal judge in Maryland allowed claims brought pursuant to the Fair Housing Act (FHA) made by two Maryland counties to proceed against Wells Fargo & Co., holding that the counties have sufficiently alleged injuries in violation of the statute based on Well Fargo’s alleged predatory and discriminatory lending practices targeting minority borrowers in those counties.

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