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Mealey's Mortgage Lending

  • October 31, 2018

    Federal Judge Refuses To Strike Relators’ Claims Against JPMorgan Chase

    SHERMAN, Texas — A Texas federal judge on Oct. 30 denied a bank’s request to strike allegations against it asserted by a group of relators, holding that the bank failed to show that its alleged conduct before a $25 billion settlement reached with the U.S. government and others did not relate to current allegations for violations of Home Affordable Modification Program (HAMP) guidelines (Michael J. Fisher, et al. v. JPMorgan Chase Bank, N.A., No. 4:16-CV-00395, E.D. Texas, 2018 U.S. Dist. LEXIS 185384).

  • October 30, 2018

    5th Circuit Affirms Dismissal Of FDCPA, TILA Claims, Warns Of Sanctions

    NEW ORLEANS — The Fifth Circuit U.S. Court of Appeal on Oct. 25 affirmed a district court’s dismissal of a borrower’s claims for violation of the Truth in Lending Act (TILA) and the Fair Debt Collection Practices Act (FDCPA) against lenders for failure to state a claim, warning that it would issue sanctions against him if he files any future frivolous claims (Jerry Mason v. Ocwen Loan Servicing LLC, et al., No. 17-10941, 5th Cir., 2018 U.S. App. LEXIS 30140).

  • October 29, 2018

    9th Circuit Affirms Dismissal Of Claims Against Lenders For Lack Of Standing

    PASADENA, Calif. — The Ninth Circuit U.S. Court of Appeals on Oct. 26 affirmed a district court’s dismissal of claims for violation of the Real Estate Settlement Procedures Act (RESPA), California’s unfair competition law (UCL) and other claims, holding that borrowers failed to show that lenders engaged in business acts that were unlawful, unfair or fraudulent or that they submitted evidence to show that the lenders did not sufficiently respond to their qualified written requests (Jim Ross Meskimen, et al. v. The Bank of New York Mellon, et al., No. 18-55394, 9th Cir., 2018 U.S. App. LEXIS 30320).

  • October 26, 2018

    Judge Holds Owner Violated Order Appointing Receiver By Filing State Court Case

    DETROIT — A Michigan federal judge on Oct. 25 granted a holding company’s emergency motion for retention of a court-appointed receiver, holding that an entity that purchased a property at foreclosure had no authority to file a state court lawsuit in an attempt to extinguish the holding company’s redemption interest in the property (The Sawyers and Lerner Building LLC v. Auto Club Lampost LLC, et al., No. 2:16-cv-11003, E.D. Mich., 2018 U.S. Dist. LEXIS 183051).

  • October 25, 2018

    Judge Dismisses Lawsuit Against Bank As Barred By Foreclosure Case

    CHICAGO — An Illinois federal judge on Oct. 23 granted a bank’s motion to dismiss a complaint filed by a borrower, holding that claims for breach of contract and other causes of action were barred by a foreclosure judgment (Navin Desai v. Hanmi Bank, No. 18-3621, N.D. Ill., 2018 U.S. Dist. LEXIS 181467).

  • October 23, 2018

    Lender To Pay $13.2M To Resolve Violations Of FHA Insurance Requirements

    WASHINGTON, D.C. — The U.S. Department of Justice (DOJ) on Oct. 19 said that a mortgage company has agreed to pay $13.2 million to settle claims that it violated the False Claims Act, 31 U.S.C. § 3729, by falsely stating that it complied with Federal Housing Administration (FHA) insurance requirements. 

  • October 22, 2018

    Borrower Sues Servicer In California Court, Asserts UCL, HBOR Claims

    SANTA ANA, Calif. — A borrower on Oct. 4 sued a loan servicer in a California court, asserting that it violated the California Homeowners Bill of Rights Act (HBOR) and unfair competition law (UCL) when it initiated the foreclosure process while his loan modification application was under review (Dennis Gonzales v. Select Portfolio Servicing Inc., No. 2018-01022512, Calif. Super., Orange Co.).

  • October 22, 2018

    Fraud Claim Against Bank Was Barred By Foreclosure, Federal Judge Holds

    TAMPA, Fla. — After finding that a fraud claim asserted by borrowers was an attempt to challenge a foreclosure judgment, a Florida federal judge on Oct. 17 affirmed a decision that their claims against a bank were barred by a previous foreclosure (Abelardo Alonso, et al. v. Bank of America, N.A., No. 8:17-cv-2547, M.D. Fla., 2018 U.S. Dist. LEXIS 178123).

  • October 18, 2018

    Judge Partially Grants Dismissal Of WVCCPA Claims Related To Loan Servicing

    CHARLESTON, W.Va. — A West Virginia federal judge on Oct. 15 allowed parts of claims for violation of the West Virginia Consumer Credit and Protection Act (WVCCPA) asserted by property owners in relation to the servicing of their loan to proceed, including a claim that the servicer continued to contact them to collect payment even though it knew they were represented by counsel (Jeffrey L. Moore, et al. v. RoundPoint Mortgage Servicing Corp., No. 2:18-cv-01222, S.D. W.Va., 2018 U.S. Dist. LEXIS 176730).

  • October 17, 2018

    New Jersey Court Upholds Foreclosure Ruling For U.S. Bank

    TRENTON, N.J. — A New Jersey appeals panel on Oct. 12 affirmed a trial court’s final judgment of foreclosure against a borrower, holding that all of her challenges to the decision were meritless (U.S. Bank National Association, et al. v. Ryung Hee Cho, No. 5299-16, N.J. Super., Chancery Div., 2018 N.J. Super. Unpub. LEXIS 2277).

  • October 16, 2018

    Judge Affirms Bankruptcy Court’s Dismissal Of Case Seeking To Stop Foreclosure

    CHARLOTTE, N.C. — A North Carolina federal judge on Oct. 12 affirmed a bankruptcy court’s dismissal of an adversary proceeding filed by a borrower attempting to stop a foreclosure, holding that he failed to show that two banks did not have an interest in the loan or that the loan was void (Michael Tyler v. Wells Fargo, N.A., et al., No. 5:18-CV-31, E.D. N.C., 2018 U.S. Dist. LEXIS 176259).

  • October 10, 2018

    Judge Finds Lender, Servicer Had Authority To Foreclose, Dismisses Lawsuit

    BOSTON — After holding that a bank and loan servicer had the authority to pursue foreclosure under the terms of a mortgage and that they did not violate a bankruptcy discharge, a Massachusetts federal judge on Oct. 9 dismissed a borrower’s claims for violation of the Fair Debt Collection Practices Act (FDCPA), wrongful foreclosure and other causes of action (Jean Duplessis v. U.S. Bank National Association, et al., No. 18-cv-10226, D. Mass., 2018 U.S. Dist. LEXIS 173596).

  • October 8, 2018

    Judge Holds Claims Based On Bank’s Alleged ‘Schemes’ Must Be Dismissed

    SAN DIEGO — A California federal judge on Oct. 4 dismissed numerous claims asserted by a trustee against a bank, holding that her claim for violation of the Fair Housing Act (FHA) was time-barred and that she did not show that the bank was a debt collector under the Fair Debt Collection Practices Act (FDCPA) (Natalie Price v. Grand Bank for Savings, FSB, et al., No. 18cv440, S.D. Calif., 2018 U.S. Dist. LEXIS 172809).

  • October 5, 2018

    Judge Holds UCL, Other Claims Lack Facts, Partially Grants Dismissal

    SACRAMENTO, Calif. — A California federal judge on Sept. 26 partially granted a motion filed by lenders to dismiss claims for negligence, violation of California’s unfair competition law (UCL) and other causes of action but allowed a borrower’s claim for violation of California’s Homeowner’s Bill Of Rights (HBOR) to proceed, holding that she submitted sufficient evidence to possibly show that the defendants failed to meet their statutory obligations under the HBOR when they did not exercise due diligence in contacting her about her default (Chanell S. Watkins v. Ditech Financial LLC, et al., No. 2:17-cv-02247, E.D. Calif., 2018 U.S. Dist. LEXIS 165718).

  • October 4, 2018

    Judge Dismisses RESPA Damages Claim, Allows Borrower To Amend

    DALLAS — A Texas federal judge on Oct. 3 granted a loan servicer’s motion to dismiss claims for damages under the Real Estate Settlement and Procedures (RESPA) and fees, holding that a borrower failed to show that the servicer engaged in a pattern or practice in violation of RESPA (German Ruiz v. PennyMac Loan Services LLC, No. No. 3:18-CV-1544, N.D. Texas, 2018 U.S. Dist. LEXIS 170460).

  • October 3, 2018

    Judge Holds FDCPA Applied To Debt, Refuses To Dismiss Borrower’s Case

    OAKLAND, Calif. — A California federal judge on Oct. 1 refused to dismiss a borrower’s causes of action for violation of the Fair Debt Collection Practices Act (FDCPA) and the California Rosenthal Fair Debt Collections Practice Act, holding that the FDCPA applied to an allegedly settled debt with her lender (Melinda Rudio v. Credit Control, LLC, No. 16-cv-03003, N.D. Calif., 2018 U.S. Dist. LEXIS 169522).

  • October 3, 2018

    Nevada Federal Judge Holds Housing Statute Allowed For Foreclosure

    LAS VEGAS — A Nevada federal judge on Sept. 24 held that a bank failed to submit any arguments that would warrant setting aside a homeowners association foreclosure sale, holding that the sale was not conducted under an unconstitutional statute (U.S. Bank National Association v. SFR Investments Pool 1, LLC, et al., No. 2:17-CV-1424, D. Nev., 2018 U.S. Dist. LEXIS 162657).

  • October 1, 2018

    5th Circuit Says Woman’s Allegations Did Not Provide Notice Of RESPA Claim

    NEW ORLEANS— A woman’s attempt to revive her lawsuit against the Federal National Mortgage Association, also known as Fannie Mae, was rejected Sept. 4 by a Fifth Circuit U.S. Court of Appeals panel that found that she did not sufficiently state a claim under the Real Estate Settlement Procedures Act (RESPA) because she did not allege a violation in her initial complaint and because the information in her petition did not put Fannie Mae on notice of a potential claim (Angela B. Putty v. Federal National Mortgage Association, No. 17-11404, 5th Cir., 2018 U.S. App. LEXIS 25076).

  • September 28, 2018

    3rd Circuit Holds Bank Did Not Hold Mortgage, Affirms Dismissal

    PHILADELPHIA — The Third Circuit U.S. Court of Appeals on Sept. 25 upheld a district court’s decision that a bank was not liable to a borrower because it did not hold the loan at the time the action was filed, affirming dismissal of her claims asserted in a bankruptcy adversary case for violation of the Truth in Lending Act and other New York law claims (In re: Washington Mutual Inc., et al. v. Washington Mutual Inc., No. 17-2360, 3rd Cir., 2018 U.S. App. LEXIS 27330).

  • September 25, 2018

    4th Circuit Rules FDCPA Applies, Remands So Borrower Can Amend

    RICHMOND, Va. — The Fourth Circuit U.S. Court of Appeals on Sept. 20 modified a district court’s decision that the Fair Debt Collection Practices Act (FDCPA) did not apply to mortgage-related entities and a law firm, holding that a borrower’s claims lacked specific allegations but that he should be granted leave to amend (Kevin Richardson v. Shapiro & Brown, LLP, et al., No. 17-2064, 4th Cir., 2018 U.S. App. LEXIS 26898).