TAMPA, Fla. — A federal judge in Florida on Nov. 15 dismissed fraud claims brought by borrowers in three lawsuits against mortgage servicer Bank of America NA (BOA) over its alleged mishandling of their requests for loan modification under the Home Affordable Modification Program (HAMP), ruling that the claims are barred by Florida’s Banking Statute of Frauds.
SAN FRANCISCO — A federal judge in California on Nov. 8 certified a class of borrowers who have their mortgage loans serviced by Ocwen Loan Servicing LLC or its predecessor-in-interest, PHH Mortgage Corp. (collectively, PHH) and were charged “pay-to-pay” convenience fees for processing the borrowers’ loan payments online, ruling that a borrower has sufficiently met all statutory requirements for granting class certification.
WASHINGTON, D.C. — U.S. Supreme Court review of a federal appellate court panel’s ruling affirming a federal district court’s ruling dismissing borrowers’ class claims for violation of their right to due process against government-sponsored agencies (GSEs) and the Federal Housing Finance Agency (FHFA) over the government agencies’ handling of nonjudicial foreclosures is necessary because the GSEs’ use of such foreclosures violates the borrowers’ Fifth Amendment rights under the U.S. Constitution, the borrowers argue in a Nov. 5 petition for a writ of certiorari.
SPRINGFIELD, Mo. — A federal judge in Missouri on Nov. 10 dismissed a majority of claims brought by borrowers against their mortgage lender and mortgage loan servicer, ruling that the borrowers have failed to sufficiently plead that the defendants are liable for the original lender’s failure to provide information it obtained during an appraisal showing that the borrowers’ home was located in a flood zone.
DALLAS — A borrower sued his mortgage lender and credit reporting agency Experian Information Solutions Inc. in Texas federal court on Nov. 5, alleging that the defendants have violated the Fair Credit Reporting Act (FCRA) by inaccurately reporting his mortgage loan as, inter alia, closed with no balance as of the date of last activity and discharged in Chapter 13 bankruptcy.
CHICAGO — A federal judge in Illinois on Nov. 1 denied a mortgage loan servicer’s motion to dismiss a claim brought by borrowers for violation of the Fair Debt Collection Practices Act (FDCPA), ruling that the borrowers have sufficiently pleaded that the loan servicer believed that their mortgage loan was in default at the time it acquired the loan and acted as a debt collector under the statute when it initiated foreclosure proceedings.
SACRAMENTO, Calif. — A property owner on Oct. 29 filed a putative class action against Bank of America N.A. (BOA) and Integon National Insurance Co. in California federal court, alleging unfair and deceptive practices connected to home mortgage loan servicing, including that a reinsurance program does not serve a legitimate purpose.
NEW YORK — A borrower has failed to sufficiently plead any of her claims against a reverse mortgage lender as a matter of law, just as a federal judge in New York recently ruled that she failed to properly plead them against the servicer of the loan and, thus, those claims should be dismissed with prejudice, the lender argues in an Oct. 29 motion to dismiss filed in the federal court.
BALTIMORE — A federal magistrate judge in Maryland on Oct. 28 granted final approval of a $2,606,776 settlement in a class action alleging that a mortgage loan servicer engaged in an illegal kickback scheme with a title and settlement services company in violation of the Real Estate Settlement Practices Act (RESPA) and the Racketeer Influenced and Corrupt Organizations Act (RICO), ruling that the settlement is fair, reasonable and adequate.
CHICAGO — A federal district court did not err in finding a man guilty of bank fraud in connection with a scheme in which he was involved to defraud mortgage lenders because evidence presented at trial was sufficient to show that government prosecutors met their burden of proving the elements of the crime “beyond a reasonable doubt,” a Seventh Circuit U.S. Court of Appeals panel ruled Oct. 25 in affirming.
SAN FRANCISCO — A federal district court erred in ruling that convenience fees charged to borrowers for paying their mortgage loan payments online or over the telephone were “permitted by law” because no such law has “expressly or affirmatively authorized such fees,” the Consumer Financial Protection Bureau (CFPB) argues in an amicus curiae brief filed Oct. 21 in the Ninth Circuit U.S. Court of Appeals in support of borrowers appealing the dismissal of their Fair Debt Collection Practices Act (FDCPA) in a consumer class action lawsuit.
FRESNO, Calif. — Citing the U.S. Supreme Court’s recent TransUnion LLC v. Ramirez decision, the defendants that mortgagors allege violated anti-kickback provisions of the Real Estate Settlement Procedures Act (RESPA) on Oct. 20 asked a California federal court to decertify the class in the long-running suit over captive reinsurance agreements that is scheduled for jury trial on Feb. 15.
CHICAGO — A federal magistrate judge in Illinois on Oct. 21 denied a credit report agency’s (CRA’s) motion to compel a borrower to disclose the terms of settlement agreements he reached with other CRAs stemming from their erroneous file-mixing of the borrower’s credit history on his credit report, ruling that the one-satisfaction rule does not apply to Fair Credit Reporting Act (FCRA) cases.
PORTLAND, Ore. — A federal judge in Oregon on Oct. 16 substantially denied a mortgage lender’s motion to dismiss claims in a borrower lawsuit alleging that the lender mishandled her mortgage loan application, causing her to lose out on the purchase of a home, ruling that the borrower has sufficiently pleaded the elements of her claims to survive dismissal or that the lender has failed to properly plead that dismissal of certain claims is warranted.
CAMDEN, N.J. — Two credit reporting agencies (CRAs) and a mortgage loan servicer violated provisions of the Fair Credit Reporting Act (FCRA) by causing a borrower’s credit report to show her mortgage loan as delinquent even though the borrower had entered into Chapter 13 bankruptcy and made all necessary payments under the bankruptcy plan, the borrower alleges in an Oct. 15 complaint filed in New Jersey federal court.
MONTPELIER, Vt. — Vermont Supreme Court justices on Oct. 15 reversed and remanded a state trial court judge’s dismissal of a bank’s foreclosure lawsuit against borrowers, ruling that the judge abused his discretion in dismissing the suit with prejudice because the bank had complied with the judge’s order requiring it to file a more specific amended complaint.
SAN FRANCISCO — A federal district court erred in dismissing claims in a Fair Debt Collection Practices Act (FDCPA) class action brought by borrowers against a mortgage servicer over its charging of “pay-to-pay” convenience fees for making mortgage payments online or over the telephone because provisions of the FDCPA bar debt collectors from collecting such fees “when their own contract provides the only basis for doing so,” the borrowers argue in an Oct. 14 appellant brief filed in the Ninth Circuit U.S. Court of Appeals.
WASHINGTON, D.C. — A split Fourth Circuit U.S. Court of Appeals panel erred in affirming a federal district court’s grant of class certification and its award of a $10 million class judgment in a predatory lending lawsuit stemming from an allegedly fraudulent appraisal fee scheme because borrowers who brought the class action failed to show that unnamed class members may recover for injuries they may have not suffered, a mortgage lender and its affiliate argue in a petition for a writ of certiorari filed on Sept. 17 in the U.S. Supreme Court.
NEWARK, N.J. — Credit reporting agency Equifax Information Services LLC violated the Fair Credit Reporting Act (FCRA) and prevented a borrower from refinancing her mortgage loan because it has erroneously indicated that the borrower is deceased even though she is not, the borrower alleges in an Oct. 14 complaint filed in New Jersey federal court.
SAN FRANCISCO — Without providing further detail, a Ninth Circuit U.S. Court of Appeals panel on Oct. 13 denied a borrower’s petition for panel or en banc rehearing in an appeal of a federal district court’s rulings denying his attorney’s request to withdraw as counsel and dismissing the borrower’s state law claims filed in connection with his loan servicers’ attempts to foreclose on the borrower’s property after defaulting on a mortgage loan.