Mealey's Mortgage Lending

  • March 11, 2021

    Borrower’s Claims In Wrongful Foreclosure Suit Dismissed As Insufficient

    SAN FRANCISCO — A federal judge in California on March 9 granted a pair of motions to dismiss filed by defendants in a wrongful foreclosure action, ruling that a borrower’s claims against those defendants were lacking for various reasons.

  • March 10, 2021

    Mortgage Broker Alleged To Receive Kickbacks For Mortgage, Refinance Referrals

    GREENBELT, Md. — A mortgage broker violated provisions of the Real Estate Settlement Procedures Act (RESPA) and the Racketeer Influenced and Corrupt Organizations Act (RICO) by engaging in an illegal kickback scheme whereby the broker received the alleged kickbacks from a nonparty title services provider in exchange for assigning the provider with business, borrowers allege in a March 8 complaint filed in Maryland federal court.

  • March 09, 2021

    Claims Against Law Firm Over Actions In Foreclosure Proceedings Dismissed

    SEATTLE — Dismissal of a borrower’s claims against a law firm under the Washington Consumer Protection Act (CPA) and the Fair Debt Collection Practices Act (FDCPA) is warranted because the firm was not a party or unlicensed debt collector in nonjudicial foreclosure proceedings, but instead, served as legal counsel to a loan servicer during the proceedings, a federal judge in Washington ruled on March 5.

  • March 05, 2021

    5th Circuit: Magistrate Lacked Jurisdiction To Issue Foreclosure Suit Judgment

    NEW ORLEANS — The Fifth Circuit U.S. Court of Appeals on March 2 vacated and remanded a federal magistrate judge’s entry of a final judgment in a foreclosure and declaratory judgment action stemming from a borrower’s default on a home equity loan, finding that the magistrate judge lacked jurisdiction because a loan servicer did not grant express consent for the magistrate judge to conduct proceedings and issue the decision.

  • March 05, 2021

    U.S. Supreme Court Requests Responses To Petition In Quiet Title Suit

    WASHINGTON, D.C. — The U.S. Supreme Court on Feb. 18 requested that the U.S. government and the Federal Home Loan Mortgage Corp. (Freddie Mac) respond to a petition for writ of certiorari filed by a corporation that purchased a property in a foreclosure sale that is seeking a determination as to whether the structure of the Federal Housing Finance Agency (FHFA) violates the separation of powers provision principle and whether quiet title actions brought by the FHFA are contract claims under the Federal Foreclosure Bar of the Housing and Economic Recovery Act of 2008 (HERA).

  • March 05, 2021

    Borrower Sues Law Firm, Others Over Debt Collection Efforts On Mortgage Loan

    NEWARK, N.J. — A borrower sued two debt collectors and his lender in New Jersey federal court on March 3, alleging that the defendants violated the Fair Debt Collection Practices Act (FDCPA) and New Jersey state law by attempting to collect on the defaulted loan more than 13 years after the default.

  • March 02, 2021

    Experian Named In FCRA Suit Over Erroneous Mortgage Loan Payment Entry

    ATLANTA — A borrower sued credit reporting agency Experian Information Solutions Inc. and a loan servicer in Georgia federal court on Feb. 26, alleging that the defendants violated provisions of the Fair Credit Reporting Act (FCRA) by erroneously reporting a late mortgage loan payment on the borrower’s credit report and failing to correct the mistake when it was made known to the defendants.

  • February 25, 2021

    Federal Claims Receive 2nd Life In Borrowers’ Suit Over Home Foreclosure

    PROVIDENCE, R.I. — A federal judge in Rhode Island on Feb. 22 partially granted a request made by borrowers in a breach of contract lawsuit against the holder of their mortgage note and a debt collector to alter or amend his ruling dismissing their claims for violation of Truth in Lending Act (TILA) and Fair Debt Collection Practices Act (FDCPA), ruling that his dismissal of the TILA and FDCPA on jurisdictional grounds was incorrect.

  • February 25, 2021

    Panel:  Court Did Not Err In Sustaining Demurrer In Wrongful Foreclosure Suit

    LOS ANGELES — In an unpublished opinion, a California appellate panel on Feb. 22 affirmed a state trial court’s ruling sustaining a demurrer filed by their loan servicer without leave to amend in a wrongful foreclosure lawsuit, ruling that borrowers have failed to show that the loan servicer lacked the necessary authority to foreclose on their real property.

  • February 25, 2021

    Borrower’s FCRA Claim Against Loan Servicer Dismissed On Jurisdictional Grounds

    BROOKLYN, N.Y. — A federal judge in New York on Feb. 23 granted a loan servicer’s motion to dismiss a claim for violation of the Fair Credit Reporting Act (FCRA) brought against it by a borrower for allegedly reporting incorrect information regarding the borrower’s default on her mortgage to the credit reporting agencies, ruling that the borrower failed to make a prima facie showing that the court lacked personal jurisdiction over the defendant.

  • February 23, 2021

    Couple’s Appeal Arguments In Wrongful Foreclosure Suit Can’t Save Suit

    CINCINNATI — A Sixth Circuit U.S. Court of Appeals panel on Feb. 19 ruled that a federal district court did not err in granting summary judgment in favor of a loan servicer in a couple’s wrongful foreclosure action because none of the couple’s arguments on appeal is persuasive in showing that they were entitled to the relief they sought.

  • February 19, 2021

    Borrowers May Amend Complaint In TILA Rescission Suit Against Lender, Others

    SEATTLE — A federal judge in Washington on Feb. 17 granted a motion filed by borrowers in a Truth in Lending Act (TILA) rescission lawsuit against their lenders and others to amend their complaint, ruling that although the borrowers failed to follow the necessary local rules governing amendment, any amendment of their complaint would not provide any undue delay or prejudice the defendants.

  • February 19, 2021

    Mortgage Lender’s Deed Of Trust Found To Survive Foreclosure Sale

    LAS VEGAS — A mortgage lender’s deed of trust on real property survived a homeowners association’s (HOA) foreclosure sale on the property in an attempt to collect on a lien because borrowers’ “pre-foreclosure payments satisfied the superpriority default,” a federal judge in Nevada ruled Feb. 12 in granting the lender’s motion for summary judgment.

  • February 19, 2021

    11th Circuit Panel Finds Court Has Jurisdiction Over Mortgage Lender’s Executive

    ATLANTA — An 11th Circuit U.S. Court of Appeals panel on Feb. 17 ruled on panel rehearing that a federal district court did not err when it determined that it had personal jurisdiction over a mortgage lender’s executive even though it would not ordinarily have such jurisdiction based on his own contacts because his company’s “suit-related forum contacts” satisfy the minimum contacts test since relators sufficiently alleged that the lender was the executive’s alter ego under “a corporate veil-piercing theory.”

  • February 18, 2021

    District Court Correct In Declining To Reopen FDCPA Case, Panel Rules

    PHILADELPHIA — A Third Circuit U.S. Court of Appeals panel on Feb. 8 ruled that a federal district court did not abuse its discretion in denying a motion to reopen a lawsuit filed by borrowers who alleged that their mortgage servicer and a law firm it retained violated the Fair Debt Collection Practices Act (FDCPA) in their handling of the borrowers’ mortgage note because the borrowers failed to sufficiently show that the mortgage servicer or law firm “engaged in fraud or other misconduct” that prevented the borrowers from “fairly presenting their case.”

  • February 18, 2021

    Loan Servicer Found To Be Holder Of Promissory Note In Mortgage Dispute

    RALEIGH, N.C. — A North Carolina Court of Appeals panel on Feb. 16 ruled that a state trial court did not err in entering summary judgment in favor of a financial services company that sought to enforce the terms of a promissory note and deed of trust on a mortgage refinance loan because there was no genuine issue of facts as to the company’s holder status.

  • February 17, 2021

    Panel Upholds Dismissal Of Wrongful Foreclosure Claim In Borrower Suit

    PASADENA, Calif. — A Ninth Circuit U.S. Court of Appeals panel on Feb. 16 ruled that a federal district court did not err in dismissing a borrower’s claim for wrongful foreclosure against her mortgage loan servicer and others, rejecting the borrower’s assertion that two of the defendants lacked standing to foreclose on her property.

  • February 12, 2021

    Default Judgment Ruling Over Failure To Repay Mortgage Loan Overturned On Appeal

    LITTLE ROCK, Ark. — An Arkansas trial court erred in entering a default judgment against two churches in a lawsuit stemming from their failed repayment of a mortgage loan because the churches’ lender did not file a motion for such relief as required pursuant to state precedent, an Arkansas appellate panel ruled Feb. 10 in reversing and remanding.

  • February 12, 2021

    District Court Correct In Declining To Reopen FDCPA Case, Panel Rules

    PHILADELPHIA — A Third Circuit U.S. Court of Appeals panel on Feb. 8 ruled that a federal district court did not abuse its discretion in denying a motion to reopen a lawsuit filed by borrowers who alleged that their mortgage servicer and a law firm it retained violated the Fair Debt Collection Practices Act (FDCPA) in their handling of the borrowers’ mortgage note because the borrowers failed to sufficiently show that the mortgage servicer or law firm “engaged in fraud or other misconduct” that prevented the borrowers from “fairly presenting their case.”

  • February 10, 2021

    HERA Foreclosure Bar Did Not Extinguish Fannie Mae Deed Of Trust, Panel Rules

    SAN FRANCISCO — Under the federal foreclosure bar of the Housing and Economic Recovery Act of 2008 (HERA), the purchaser of residential property subject to a deed of trust held by the Federal National Mortgage Association (Fannie Mae) “did not extinguish Fannie Mae’s first deed of trust” on the property, a Ninth Circuit U.S. Court of Appeals panel ruled Feb. 9.

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