Mealey's Mortgage Lending

  • March 16, 2020

    Appeals Panel Says Dispute Exists Whether Woman Opted Out Of TCPA Settlement

    NEW ORLEANS — A Fifth Circuit U.S. Court of Appeals panel on March 12 vacated in part a ruling awarding summary judgment to Wells Fargo Bank N.A. in a suit accusing the lender of violating the Telephone Consumer Protection Act (TCPA), finding that a genuine dispute exists as to whether the plaintiff opted out of a class action settlement (Joanna Pruitt Lester v. Wells Fargo Bank N.A., No. 18-30422, 5th Cir.).

  • March 11, 2020

    High Court Denies Woman’s Request To Rehear Arguments Seeking TILA Ruling Reversal

    WASHINGTON, D.C. — The U.S. Supreme Court on March 9 denied a borrower’s petition to rehear arguments that it should review an 11th Circuit U.S. Court of Appeals ruling that affirmed the dismissal of her Truth in Lending Act (TILA) lawsuit based on the Rooker-Feldman doctrine (Gail Zamore v. Deutsche Bank National Trust Co., et al., No. 19-125, U.S. Sup.).

  • March 10, 2020

    High Court Will Not Decide If Ownership Interest Triggers TILA Rights 

    WASHINGTON, D.C. — The U.S. Supreme Court on March 9 denied a borrower’s petition for a writ of certiorari seeking review of a Ninth Circuit U.S. Court of Appeals ruling that he could not rescind a mortgage loan under the Truth in Lending Act (TILA) because it was a residential mortgage transaction that was not subject to the statute (Timothy Barnes v. Chase Home Finance LLC, et al., No. 19-923, U.S. Sup.).

  • March 09, 2020

    Federal Magistrate Dismisses RESPA, HBOR, UCL Claims In Foreclosure Dispute

    SACRAMENTO, Calif. — A federal magistrate judge in California on March 2 dismissed a homeowner’s claims under the Real Estate Settlement Procedures Act (RESPA), California Business and Professions Code Section 17200, et seq., and Homeowners Bill of Rights (HBOR), finding that the amended complaint asserting a nonjudicial mortgage foreclosure does not allege any actual damages (Donald Catherine v. Wells Fargo Bank N.A., No. 19-1487, E.D. Calif., 2020 U.S. Dist. LEXIS 36774).

  • March 09, 2020

    Some RESPA Claims Not Barred By State Court Foreclosure Case, Judge Says

    NEW YORK — A loan servicer’s state court foreclosure action does not bar a man’s claims accusing it of violating the Real Estate Settlement Procedures Act (RESPA) by failing to provide him with an explanation as to why it denied a loss mitigation application and rendering a decision on his second application within 30 days of receipt, a federal judge in New York ruled Feb. 28, finding that the claims were not addressed in the state court proceeding (James St. Louis v. Selene Finance LP, No. 18-CV-6182, E.D. N.Y., 2020 U.S. Dist. LEXIS 33858).

  • March 09, 2020

    Loan Servicer Can Face Liability Under FDCPA For Charging Speedpay Fees

    WEST PALM BEACH, Fla. — A federal judge in Florida on March 2 refused to dismiss a woman’s lawsuit accusing her loan servicer of violating the Fair Debt Collection Practices Act (FDCPA) when charging a Speedpay fee for making payments on her mortgage loan over the phone or online, finding that the charging of the fees is not permitted by law (Sheryl Glover v. Ocwen Loan Servicing LLC, No. 20-cv-80053, S.D. Fla., 2020 U.S. Dist. LEXIS 38701).

  • March 09, 2020

    Man’s Foreclosure Suit Remanded Following Removal Of TILA Claim

    SANTA ANA, Calif. — A federal judge in California on Feb. 24 remanded a man’s wrongful foreclosure action after he withdrew his claim under the Truth in Lending Act (TILA), finding that although complete diversity exists between the parties, the amount in controversy does not exceed $75,000 (Syed Ahmed v. Bank of America N.A., et al., No. SA CV 19-2027-DOC-JDE, C.D. Calif., 2020 U.S. Dist. LEXIS 31733).

  • March 09, 2020

    Loan Servicer Awarded Summary Judgment In Couple’s Foreclosure Suit

    DETROIT — A federal judge in Michigan on March 5 awarded summary judgment to a loan servicer in a couple’s wrongful foreclosure action, holding that their previous state court default judgment award against the original lender is immaterial because it is no longer a party to the loan (Mati Leeal v. Ditech Financial LLC, No. 17-cv-10645, E.D. Mich., 2020 U.S. Dist. 38048).

  • March 09, 2020

    Judge Refuses To Dismiss Suit Over Wells Fargo’s Access To Credit Report

    CHICAGO — A federal judge in Illinois on March 6 refused to dismiss a man’s class action lawsuit accusing Wells Fargo Bank N.A. of violating the Fair Credit Reporting Act (FCRA) when accessing his credit report after bankruptcy proceedings that discharged his mortgage loan, finding that the lender’s arguments were based on materials outside the four corners of the complaint (Wylie S. Rogers v. Wells Fargo Bank N.A., No. 19-cv-02596, N.D. Ill., 2020 U.S. Dist. LEXIS 39069).

  • March 06, 2020

    11th Circuit Panel Refuses To Review Ruling Remanding Suit Over Foreclosure

    ATLANTA — An 11th Circuit U.S. Court of Appeals panel on Feb. 26 dismissed an appeal brought by two loan servicers seeking review of a ruling remanding a couple’s wrongful foreclosure lawsuit, finding that it lacked jurisdiction over the case because the decision to remand was based on a defect in the removal rather than a lack of subject matter jurisdiction (Lisa Bowman, et al. v. PHH Mortgage Corp., et al., No. 19-14041-HH, 11th Cir., 2020 U.S. App. LEXIS 5980).

  • March 05, 2020

    Elderly Woman Must Arbitrate Claims Over Mortgage Loan, Federal Judge Says

    CLARKSBURG, W.Va. — An elderly woman who is seeking restitution for payments she made on mortgage loans she alleges were predatory in nature must arbitrate her claims against the successor-in-interest to the original mortgage lender, a federal a judge in West Virginia ruled March 4, finding that an arbitrator must determine the conscionability of a delegation clause in a loan agreement signed by the woman’s then-husband in 2004 (Judy Moore v. CitiFinancial Inc., et al., No. 19-CV-138, N.D. W.Va., 2020 U.S. Dist. LEXIS 37196).

  • February 28, 2020

    Reverse Mortgage Lender, Plaintiffs Settle Elderly Financial Abuse, UCL Suit

    LOS ANGELES — A federal judge in California on Feb. 18 ordered the dismissal of a putative class action alleging that a reverse mortgage lender “is scamming the nation’s senior citizens and their heirs out of millions of dollars” by conducting and charging for numerous property inspections and force-placing property insurance on properties that are insured after being notified Feb. 14 that the parties had reached a settlement (Nancy Palombi, et al. v. American Advisors Group, et al., No.19-cv-2120, C.D. Calif.).

  • February 27, 2020

    Man Was Properly Notified Of Foreclosure, Judge Says In Dismissing Suit

    PROVIDENCE, R.I. — A federal judge in Rhode Island on Feb. 10 dismissed a man’s lawsuit accusing Bank of America N.A. (BOA) and the subsequent purchaser of his home of breach of contract, quiet title and violation of state law, holding that the plaintiff was adequately notified of the foreclosure sale of his home (Carl D. Jefferson v. Bank of America N.A., et al., No. 19-126, D. R.I., 2020 U.S. Dist. LEXIS 22541).

  • February 27, 2020

    Law Firm Can Be Liable For Violating Debt Collection Act, Judge Rules

    PHILADELPHIA — A federal judge in Pennsylvania on Feb. 10 denied in part a law firm’s motion for dismissal from a woman’s lawsuit over the foreclosure of her home, finding that the firm could be held liable under the Fair Debt Collection Practices Act (FDCPA) because it was acting as a debt collector when filing a state court foreclosure suit on behalf of her mortgage lender (Jola Bronstein v. Bayview Loan Servicing LLC, et al., No. 18-4223, E.D. Pa., 2020 U.S. Dist. LEXIS 23865).

  • February 26, 2020

    11th Circuit Affirms Dismissal Of Class Action Over Debt Collection

    ATLANTA — An 11th Circuit U.S. Court of Appeals panel on Feb. 10 affirmed the dismissal of a putative class action suit accusing a mortgage lender and law firm of violating the Fair Debt Collection Practices Act (FDCPA), finding that the defendants were not debt collectors under the statute (Rosemary Arbuckle Anderman, et al. v. JP Morgan Chase Bank et al., No. 19-13734, 11th Cir., 2020 U.S. App. LEXIS 4154).

  • February 26, 2020

    5th Circuit Panel:  Bankruptcy Discharge Did Not Extinguish Lender’s Lien On Home

    NEW ORLEANS — A Fifth Circuit U.S. Court of Appeals panel on Feb. 24 affirmed the dismissal of a woman’s declaratory judgment lawsuit against her mortgage lender, finding that her bankruptcy discharge nearly 10 years ago did not relinquish the lender’s lien on the home (Elizabeth Domel v. JPMorgan Chase Bank N.A., No. 19-50753, 5th Cir.).

  • February 26, 2020

    Judge:  National Bank Act Does Not Preempt Maryland Law On Escrow Interest

    BALTIMORE — A federal judge in Maryland on Feb. 24 denied a majority of Bank of America N.A.’s (BofA) motion to dismiss a class action suit accusing the lender of violating a Maryland law that requires it to pay interest to borrowers on escrow funds for property tax and insurance payments, finding that the law is not preempted by the National Bank Act (NBA) and Office of the Comptroller of the Currency (OCC) regulations because the state law does not interfere with the lender’s ability to conduct real estate loans (Cynthia Clark v. Bank of America N.A., No. SAG-18-3672, D. Md., 2020 U.S. Dist. LEXIS 31454).

  • February 25, 2020

    Judge Transfers Suit Accusing Equifax Of Selling Data After Refinancing Home

    PHILADELPHIA — A federal judge in Pennsylvania on Feb. 21 transferred a lawsuit accusing Equifax Inc. and its affiliates of violating the Fair Credit Reporting Act (FCRA) of illegally selling information to mortgage brokers who made phone calls to plaintiffs’ Florida home after they began refinancing the loan on a home they own in Delaware, finding that litigating the suit in the U.S. District Court for the Northern District of Georgia would enhance judicial efficiency (Harold Berk v. Equifax Inc., et al., No. 19-4629, E.D. Pa., 2020 U.S. Dist. LEXIS 29714).

  • February 24, 2020

    Judge Trims Some Claims From Couple’s Suit Over Adjustable-Rate Mortgage

    NASHVILLE, Tenn. — A federal judge in Tennessee granted in part a loan servicer’s motion for judgment on the pleadings in a couple’s lawsuit over an adjustable-rate mortgage they obtained in 2002 on Feb. 19, finding that while they could proceed with their claim under the Truth in Lending Act (TILA), their claims for misappropriation and fraud failed (Tony U. Odigie, et al. v. Nationstar Mortgage LLC, No. 18-cv-00675, M.D. Tenn., 2020 U.S. Dist. LEXIS 28130).

  • February 10, 2020

    Magistrate Recommends Denying Dismissal Of Class Action Over Reverse Mortgages

    NEW YORK — A federal magistrate judge on Feb. 5 recommended denying dismissal of a class action suit brought by an elderly woman who claims that the holder of a reverse mortgage prematurely paid property taxes on her home, finding that she sufficiently alleged that she suffered an injury as a result of the defendants’ conduct (Margaret Shakespeare v. Live Well Financial Inc., et al., No. CV 18-7299, E.D. N.Y., 2020 U.S. 21714).

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