Mealey's Mortgage Lending

  • August 14, 2019

    Attorney’s Conviction For Role In Mortgage Fraud Upheld By 7th Circuit

    CHICAGO — A Seventh Circuit U.S. Court of Appeals panel on Aug. 9 affirmed a federal judge in Illinois’ ruling finding an attorney liable for his role in a mortgage fraud scheme, holding that the Illinois LLC Act did not shield him from liability because he was aware that the loan applications he was handling contained misrepresentations and that they were submitted on behalf of straw buyers (Fifth Third Mortgage Co. v. Ira Kaufman, No. 18-3295, 7th Cir., 2019 U.S. App. LEXIS 23807).

  • August 14, 2019

    Judge:  Loan Servicer Cannot Be Liable For Unimplemented Mortgage Regulations

    NEWPORT NEWS, Va. — A federal judge in Virginia on Aug. 9 dismissed a woman’s lawsuit accusing her loan servicer and loan trustee of breaching the terms of a deed of trust by foreclosing on her home before she was given a loan modification, finding that the mortgage regulations the defendants are accused of violating were not in place when the woman obtained her loan in 2006 (Tonja Dupree v. Fay Servicing LLC, et al., No. 19cv51, E.D. Va., 2019 U.S. Dist. LEXIS 134807).

  • August 14, 2019

    U.S. Bank’s Foreclosure Action Against Couple Was Timely, Judge Rules

    LAREDO, Texas — A federal judge in Texas on Aug. 12 awarded summary judgment to U.S. Bank N.A., after finding that its foreclosure action against a couple was timely because it was filed within three years of notifying the couple that it intended to accelerate on the loan (U.S. Bank N.A. v. Oscar N. Lightner, No. 17-cv-103, S.D. Texas, 2019 U.S. Dist. LEXIS 135632).

  • August 13, 2019

    Panel Affirms Dismissal Of UCL, Negligence, IIED Claims In Loan Modification Suit

    LOS ANGELES — A California appeals panel on Aug. 5 affirmed a lower court’s dismissal of a homeowner’s negligence, intentional inflection of emotional distress and unfair competition law claims against his lender, finding that the lender did not owe the borrower a duty in tort during his mortgage modification negotiations (Kwang K. Sheen v. Wells Fargo Bank, N.A., No. B289003, Calif. App., 2nd Dist., Div. 8, 2019 Cal. App. LEXIS 714).

  • August 12, 2019

    11th Circuit: City Did Not Sustain Injury Over Bank’s Lending Practices

    ATLANTA — A three-judge panel of the 11th Circuit U.S. Court of Appeals on July 30 vacated a federal judge in Florida’s ruling that the city of Miami Gardens failed to show that Wells Fargo & Co. and Wells Fargo Bank violated the Fair Housing Act by engaging in discriminatory lending practices in Latino and African-American neighborhoods and held that the city lacked standing to bring its suit because it did not have standing under Article III of the U.S. Constitution (City of Miami Gardens v. Wells Fargo & Co., et al., No. 18-13152, 11th Cir., 2019 U.S. App. LEXIS 22570).

  • August 11, 2019

    10th Circuit: Acceleration Date Triggers Limitations Period On Foreclosure Action

    DENVER — A federal judge in Colorado’s ruling awarding summary judgment to Bank of America N.A. (BANA) in a foreclosure action was affirmed July 31 by a 10th Circuit U.S. Court of Appeals panel that overruled a man’s argument that the lender’s 2017 attempt to foreclose on his property was untimely because the date of acceleration of the loan triggers the statute of limitations (Troy D. Paggen v. Bank of America N.A., et al., No. 18-1390, 10th Cir., 2019 U.S. App. LEXIS 22699).

  • August 09, 2019

    1st Circuit Denies Lender’s Request For Rehearing After Vacating Opinion

    BOSTON — The First Circuit U.S. Court of Appeals on July 29 denied as moot JPMorgan Chase Bank N.A.’s petition for a rehearing of ruling that its default and acceleration notice to a couple regarding the foreclosure on their home was inaccurate after the federal appeals court vacated its February decision and certified to the Supreme Judicial Court (SJC) of Massachusetts a question on whether an inaccurate or deceptive notice voids the subsequent foreclosure sale (Mark R. Thompson, et al. v. JPMorgan Chase Bank N.A., No. 18-1559, 1st Cir., 2019 U.S. App. LEXIS 22507).

  • August 09, 2019

    Panel Affirms Dismissal Of Estate’s Suit Seeking Insurance Money From Lenders

    NEW ORLEANS — A Fifth Circuit U.S. Court of Appeals panel on Aug. 6 affirmed the dismissal of an estate’s lawsuit that sought to obtain insurance proceeds for flood damages to a home from the mortgage lenders on the property, holding that the security instrument on the mortgage note states that the proceeds would be released only once the necessary repairs are made (Estate of Bonell Rashti v. Bank of America, N.A., et al., No. 18-20539, 5th Cir.).

  • August 07, 2019

    U.S. Supreme Court Denies Rehearing Over Alleged Wrongful Foreclosure

    WASHINGTON, D.C. — The U.S. Supreme Court on Aug. 5 denied a borrower’s petition for rehearing as to whether it should review a federal judge’s ruling allowing a lender to foreclose on a property during bankruptcy proceedings (Mark Anthony Fornesa, et al. v. Fifth Third Mortgage Co., No. 18-1339, U.S. Sup.).

  • August 07, 2019

    DOJ Reaches Settlement With Companies Over Discriminatory Lending Practices

    WASHINGTON, D.C. — The U.S. Department of Justice announced July 30 that it had reached a settlement with three California loan modification companies, their principals and a law firm for allegedly convincing 400 Hispanic homeowners to pay $5,000 for unnecessary loan audits they were told were needed to obtain home loan modifications.

  • August 06, 2019

    Consumer Financial Protection Bureau Files Amicus Brief Supporting Borrower

    RICHMOND, Va. — The Consumer Financial Protection Board (CFPB) on Aug. 2 filed an amicus curiae brief in the Fourth Circuit U.S. Court of Appeals in support of a borrower who claims that a federal judge in Virginia erred in dismissing his class action suit accusing his loan servicer of violating the Real Estate Settlement Procedures Act (RESPA) when failing to pay his property taxes, explaining that a loan servicer’s obligations to pay a borrower’s property taxes do not depend on when the borrower paid the funds into an escrow account (Rodney W. Harrell v. Freedom Mortgage Corp., No. 19-1379, 4th Cir.).

  • July 31, 2019

    2nd Circuit Reinstates Part Of Man’s FDCPA Suit Against Law Firm

    NEW YORK — A Second Circuit U.S. Court of Appeals panel on July 22 reversed and remanded part of a federal judge in New York’s ruling dismissing a man’s Fair Debt Collection Practices Act (FDCPA) lawsuit against a law firm, finding that the plaintiff could have sufficiently stated a claim that the firm used a deceptive representation and/or an unconscionable means to collect payment on his mortgage (Gregory Hayles v. Aspen Properties Group LLC, et al., No. 18-2683, 2nd Cir., 2019 U.S. App. LEXIS 21647).

  • July 31, 2019

    Judge Dismisses Man’s TILA Suit, Finds He Fails To Allege Active Misleading  

    TRENTON, N.J. — A federal judge in New Jersey on July 26 dismissed without prejudice a man’s class action accusing Santander Bank N.A. of violating the Truth in Lending Act (TILA), finding that the plaintiff failed to show that his claim was subject to equitable tolling because he does not allege that the lender actively misled him about the accrual of interest to his loan (Paul Aversano, et al. v. Santander Bank N.A., No. 17-12694, D. N.J., 2019 U.S. Dist. LEXIS 125025).

  • July 31, 2019

    11th Circuit Says Couple Was Properly Notified Of Foreclosure Action

    ATLANTA — An 11th Circuit U.S. Court of Appeals panel on July 23 upheld a federal judge in Alabama’s ruling that Wells Fargo Bank N.A. properly notified a couple of foreclosure proceedings because the address they provided to the loan servicer was the same as the one listed on the mortgage and promissory note (Federal Home Loan Mortgage Corporation, et al. v. Norman D. Anchrum Jr., et al., No. 18-10786, 11th Cir., 2019 U.S. App. LEXIS 21878).

  • July 24, 2019

    Foreclosed Property Management Company Fails To Have Plaintiffs’ Claims Dismissed

    CHICAGO — A federal judge in Illinois on July 19 denied a motion to dismiss three plaintiffs’ claims accusing a foreclosed property management company of violating the Fair Debt Collection Practices Act (FDCPA) and Illinois Consumer Fraud Act (ICFA), ruling that the plaintiffs sufficiently stated claims under the statutes (Laura Griffin, et al. v. Safeguard Properties Management LLC, et al., No. 18 C 5755, N.D. Ill., 2019 U.S. Dist. LEXIS 121066).

  • July 24, 2019

    Judge Awards Loan Servicer Summary Judgment On Woman’s RESPA Claim

    CHICAGO — A federal judge in Illinois on July 22 granted in part a loan servicer’s motion for summary judgment, finding that while a woman could not establish that the defendant violated the Real Estate Settlement Procedures Act (RESPA) when offering her a loan modification, she could pursue a claim under Illinois’ Consumer Fraud Act (ICFA) (Rosalynn Walker v. Seterus Inc., No. 17 C 7194, N.D. Ill., 2019 U.S. Dist. LEXIS 121068).

  • July 23, 2019

    Judge Refuses To Remand Class Action Suit Over Loan Servicer’s Calls

    BOSTON — A putative class action suit against Select Portfolio Servicing Inc. (SPS) over phone calls it made to borrowers who were behind on their mortgage payments should stay in federal court, a federal judge in Massachusetts ruled July 19, finding that the damages sought by the class exceed $5 million and that jurisdiction is proper under the Class Action Fairness Act (CAFA) (Allen Alper, et al. v. Select Portfolio Servicing Inc., No. 19-cv-10436-DJC, D. Mass., 2019 U.S. Dist. LEXIS 120411).

  • July 23, 2019

    6th Circuit Upholds Ruling Finding Woman Cannot Pursue RESPA Claim

    CINCINNATI — A Sixth Circuit U.S. Court of Appeals panel on July 18 affirmed a federal judge in Tennessee’s ruling dismissing a woman’s cause of action accusing her loan servicer of violating the Real Estate Settlement Procedures Act (RESPA), finding that because she is not a borrower, she cannot bring a claim under the statute (Tara L. Keen v. Robert C. Helson, et al., No. 18-6035, 6th Cir., 2019 U.S. App. LEXIS  21262).

  • July 22, 2019

    Majority Of Suit Over Failed Loan Modification Survives Dismissal

    SEATTLE — A federal judge in Washington on July 18 dismissed only a tort of outrage claim from a lawsuit brought by a woman and her son over a loan servicer’s refusal to offer them a home loan modification after they satisfied the terms of a trial period plan (TPP), after finding that the plaintiffs sufficiently alleged claims for breach of contract and violations of the Washington Consumer Protection Act and Equal Credit Opportunity Act (ECOA) (Mary Lou Grande v. U.S. Bank, N.A., et al., No. C19-333, W.D. Wash., 2019 U.S. Dist. LEXIS 120150).

  • July 22, 2019

    Judge Refuses To Dismiss Consumer Fraud Suit Over Untimely Foreclosure Actions

    SEATTLE — A federal judge in Washington on July 9 refused to dismiss a woman’s lawsuit accusing a law firm of violating the Fair Debt Collection Practices Act (FDCA) and Washington Consumer Protection Act (CPA), after finding that she sufficiently alleged that the firm’s filing of a foreclosure action that was barred by the statute of limitations could have violated both statutes (Karen D. Smith, et al. v. Bank of New York Mellon, et al., No. C19-0538-JCC, W.D. Wash., 2019 U.S. Dist. LEXIS 113688).

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