Mealey's Mortgage Lending

  • September 30, 2021

    City Failed To Show Proximate Causation In Discriminatory Lending Suit

    SAN FRANCISCO — An en banc Ninth Circuit U.S. Court of Appeals on Sept. 28 affirmed in part and reversed in part a federal district court’s partial denial of a motion to dismiss filed by Wells Fargo and Co. and Wells Fargo Bank NA (collectively, Wells Fargo) in a discriminatory lending lawsuit, ruling that the city of Oakland, Calif. failed to sufficiently establish proximate causation in arguing that Wells Fargo’s alleged discriminatory lending practices caused property values and tax revenues to drop while causing municipal expenditures to rise.

  • September 24, 2021

    9th Circuit Panel Affirms Dismissal Of Time-Barred TILA Rescission Claim

    SAN FRANCISCO — Without providing further detail in a two-page memorandum opinion, a Ninth Circuit U.S. Court of Appeals panel on Sept. 22 affirmed a federal district court’s dismissal of borrowers’ Truth In Lending Act (TILA) rescission claim against their loan servicer and others for failure to bring the claim within the applicable statute of limitations.

  • September 24, 2021

    Borrower Sufficiently Pleaded Injury-In-Fact In FCRA Suit, Panel Rules

    CINCINNATI — A federal district court erred in ruling that a borrower lacked standing to bring its claim for negligence under the Fair Credit Reporting Act (FCRA) against his mortgage loan servicer based on its continued reporting of a discharged mortgage to credit reporting agencies (CRAs) because the borrower sufficiently alleged an injury-in-fact that was “fairly traceable” to the loan servicer’s actions, a Sixth Circuit U.S. Court of Appeals panel ruled Sept. 13 in reversing and remanding.

  • September 23, 2021

    Home Equity Lender, Others Sued Over Predatory Lending Scheme

    SHERMAN, Texas — A home equity lender, its parent company and a specialized mortgage lender engaged in a predatory lending scheme to defraud a borrower seeking to obtain a home equity loan after losing his job by selling the borrower a sale-leaseback loan without providing him with the necessary disclosures or conducting the necessary due diligence to ensure that the borrower could repay the loan, the borrower alleges in a Sept. 20 complaint filed in Texas federal court.

  • September 23, 2021

    Borrower Sues Lender Over Alleged Discriminatory Lending Practices

    PHILADELPHIA — An African-American borrower sued his commercial mortgage lender in Pennsylvania federal court on Sept. 21, alleging that the lender engaged in discriminatory lending practices by failing to notify the borrower that his commercial mortgage loan included a maturity date, which resulted in unnecessary legal fees and a refinance of the loan, something the borrower argues the lender does not do to white borrowers.

  • September 22, 2021

    Rosenthal Act Claim Against Loan Servicer To Proceed After Dismissal Bid

    SAN FRANCISCO — A federal magistrate judge in California on Sept. 20 allowed a claim for violation of the Rosenthal Fair Debt Collection Practices Act against a mortgage loan servicer to proceed in a foreclosure dispute, ruling that borrowers have sufficiently shown that the servicer engaged in debt collection in violation of the statute.

  • September 21, 2021

    Judge: CRAs’ Investigation Of Mortgage Debt Dispute Not An FCRA Violation

    DALLAS — A federal judge in Texas on Sept. 17 dismissed a borrower’s claims under the Fair Credit Reporting Act (FCRA) against a credit reporting agency (CRA) stemming from its handling of the borrower’s dispute of a delinquent mortgage entry on his credit report, ruling that the borrower has failed to sufficiently show that the CRA’s actions in handling the dispute violated any provision of the FCRA.

  • September 21, 2021

    Refinance Lender’s Subrogation Lien Claim Barred By Statute Of Limitations

    DALLAS — A subrogation lien claim brought by a refinance lender is barred by the applicable four-year statute of limitations, and thus, a Texas trial court did not err in issuing a judgment finding that any lien or power of sale held by the refinance lender on the subject property is void and unenforceable, a Texas Court of Appeals, Fifth District panel ruled Sept. 17 in affirming.

  • September 16, 2021

    Trial Period Plan Not A Loan Modification Agreement, Judge Rules

    PROVIDENCE, R.I. — A federal judge in Rhode Island on Sept. 15 ruled that a mortgage lender did not breach the terms of a mortgage loan agreement by entering into a loan modification agreement with a borrower who fell behind on his loan payments because the lender had agreed only to a trial period plan (TPP) with the borrower before determining that the borrower did not qualify for loan modification.

  • September 14, 2021

    Filed-Rate Doctrine Applies To Intermediaries, Washington High Court Rules

    OLYMPIA, Wash. — The filed-rate doctrine applies not only to insurers but also to intermediaries, such as mortgage loan brokers and servicers who participate “in the procurement of the policy from insurers,” the Washington Supreme Court ruled Sept. 2 in answering a question in a force-placed insurance dispute certified to it by the Ninth Circuit U.S. Court of Appeals.

  • September 07, 2021

    Borrower Seeks Utah High Court Guidance In Convenience Fee Suit

    SALT LAKE CITY — A borrower asked a federal judge in Utah on Sept. 3 to certify two questions to the state’s highest court seeking a determination as to whether her state consumer sales practices law claim against her mortgage servicer for its charging of pay-to-pay convenience fees for making her mortgage payments is preempted by Utah’s Mortgage Lending and Servicing Act (MLSA).

  • September 02, 2021

    Claims In RESPA Suit Over Loan Modification Notification Error Dismissed

    SAN FRANCISCO — A federal judge in California on Aug. 23 dismissed a borrower’s state and federal law claims against his mortgage lender and loan servicer stemming from their alleged failure to provide him with the required notice of certain loss mitigation options they would offer him in an effort to stave off a foreclosure sale on his property, ruling that the defendants complied with the notification provisions of the Real Estate Settlement Procedure Act (RESPA) as required.

  • August 31, 2021

    Forfeiture Of Interests Of Group Connected To Fraud Scheme Sought

    LOS ANGELES — Government prosecutors filed a complaint in California federal court on Aug. 26, seeking forfeiture of interests of general partnership with ties to a real estate fraud scheme in which a group of individuals targeted homeowners, many of whom were elderly, in an attempt to take the homeowners’ property through foreclosure.

  • August 30, 2021

    Loan Servicers Score Summary Judgment Win In Loan Modification Suit

    BALTIMORE — Current and former note holders and servicers of a mortgage loan are entitled to summary judgment on a borrower’s claim seeking declaratory judgment that his deed of trust expired and is no longer enforceable because the borrower erroneously argues that a loan modification agreement into which he entered modified the deed of trust’s maturity date, a federal judge in Maryland ruled Aug. 26 in denying the borrower’s summary judgment motion and granting in part the defendants’ motion.

  • August 27, 2021

    Borrower Claims In Quiet Title Suit Fail To Support Overturning Foreclosure

    BIRMINGHAM, Ala. — A federal judge in Alabama on Aug. 25 dismissed a borrower’s claims against parties in a lawsuit stemming from the foreclosure sale of property the borrower owned, holding that the borrower failed to sufficiently state any claim that would entitle him to the relief he sought.

  • August 20, 2021

    Texas Panel Affirms That Borrower’s Claims Are Barred By Res Judicata

    DALLAS — A Texas trial court did not err in granting a mortgage servicer’s motion for summary judgment on claims that it failed to provide a borrower with necessary documents prior to initiating foreclosure proceedings because the borrower’s claims were barred by the doctrine of res judicata, a Texas appellate panel ruled Aug. 17 in affirming.

  • August 20, 2021

    Plaintiffs Denied Class Certification In TILA, HOEPA Scheme Suit

    DETROIT — A federal judge in Michigan on Aug. 17 declined to certify a class of real estate property purchasers in a lawsuit alleging that a real estate broker, several companies he owns and a real estate agent violated provisions of the Truth In Lending Act (TILA) and the Home Ownership Equity Protection Act (HOEPA) by engaging in a scheme to elicit home purchasers to enter into residential mortgage transactions that would circumvent certain provisions of the statutes.

  • August 19, 2021

    HOA Seeks Remand Of Summary Judgment Ruling In Quiet Title Action

    SAN FRANCISCO — A federal judge erred in granting a mortgage lender’s motion for summary judgment on its quiet title claim against a homeowners association (HOA) stemming from a foreclosure sale because the judge erroneously assumed that the HOA failed to show how borrowers’ lien assessments were applied, the HOA argues in an appellant brief filed July 15 in the Ninth Circuit U.S. Court of Appeals.

  • August 19, 2021

    Judge Trims Borrower Claims In Convenience Fees Suit Against Mortgage Servicer

    SALT LAKE CITY — A federal judge in Utah on Aug. 6 dismissed several claims brought by a borrower who alleges that her mortgage servicer violated state and federal law by improperly charging borrowers pay-to-pay convenience fees for making their loan payments over the telephone, ruling that the borrower has failed to sufficiently state those claims.

  • August 16, 2021

    Mortgage Lender’s Reformation Claim Deemed Timely Under Statute Of Limitations

    RALEIGH, N.C. — A North Carolina appellate court erred in overturning a trial court’s grant of summary judgment in favor of a mortgage lender seeking reformation of a deed of trust and allowing foreclosure on real property because it applied the wrong statute in determining that the lender’s reformation claim was barred by the statute of limitations based on a mutual mistake, the state Supreme Court held in reversing Aug. 13.

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