Mealey's Mortgage Lending

  • January 07, 2020

    9th Circuit Upholds Dismissal Of Man’s TILA Suit For Lack Of Jurisdiction

    PASADENA, Calif. — A Ninth Circuit U.S. Court of Appeals panel on Dec. 27 affirmed the dismissal of man’s Truth in Lending Act (TILA) lawsuit seeking rescission of a loan, holding that his failure to attempt to resolve his claim with the Federal Deposit Insurance Corp. excluded the court from having jurisdiction under the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) (Norman Shaw v. Bank of America Corp., et al., No. 17-56706, 9th Cir., 2019 U.S. App. LEXIS 38549).

  • January 07, 2020

    Judge Denies Certification Of Class Challenging Loan Servicer’s Diligence

    BUFFALO, N.Y.— A federal judge in New York on Dec. 30 denied a couple’s motion to certify a nationwide class for borrowers who claim that Bank of America N.A. violated the Real Estate Settlement Procedures Act (RESPA) by failing to use reasonable diligence when reviewing loan modification applications, holding that their expert’s report showed that the proposed class lacked commonality and that individual issues predominated over classwide questions (Bobbi Jackson, et al. v. Bank of America N.A., No. 16-CV-787, W.D. N.Y., 2019 U.S. Dist. LEXIS 222511).

  • January 07, 2020

    Woman’s Failure To Allege Damages Fatal To RESPA Claim, Judge Rules

    FORT WORTH, Texas — A federal judge in Texas on Dec. 13 awarded summary judgment to Wells Fargo Bank N.A. on a woman’s claim that the lender violated the Real Estate Settlement Procedures Act (RESPA), ruling that while it is unclear if the bank properly responded to her loan modification application, her failure to allege damages was fatal to her cause of action (Jerri Gooden v. Wells Fargo Bank N.A., No. 19-cv-00244-P, N.D. Texas, 2019 U.S. Dist. LEXIS 214821).

  • January 04, 2020

    Proposed Class’s RESPA Claim Against Loan Servicer Survives Dismissal

    LOS ANGELES — A proposed class of borrowers sufficiently stated a claim that JP Morgan Chase Bank N.A. (Chase) violated the Real Estate Settlement Procedures Act (RESPA) when failing to timely respond to requests for recordings of calls regarding their loans, a federal judge in California ruled Dec. 23, holding that the requests were not overbroad (Anthony Barbano, et al. v. JP Morgan Chase Bank N.A., No. 19-1218, C.D. Calif., 2019 U.S. Dist. LEXIS 220251).

  • January 04, 2020

    Bank’s Default Notice Complied With Mortgage Terms, Judge Rules

    PROVIDENCE, R.I. — A federal judge in Rhode Island on Dec. 18 granted a mortgage lender’s motion for summary judgment in a suit it brought seeking judicial foreclosure on a woman’s home, holding that its notice of default complied with the terms of the mortgage and that it had standing to bring the lawsuit (Citibank N.A. v. Katherine L. Caito, No. 18-427-JJM-LDA, D. R.I., 2019 U.S. Dist. LEXIS 219473).

  • January 04, 2020

    11th Circuit Finds No Controversy In Bank’s Authority To Foreclose

    ATLANTA — An 11th Circuit U.S. Court of Appeals panel on Dec. 19 affirmed the dismissal of a couple’s lawsuit challenging the foreclosure on their home, holding that there is no actual controversy over the assignment of interest in the loan among lenders because it is allowed in the security deed (Allan Lavut, et al. v. Bank of America N.A., et al., No. 19-11123, 11th Cir., 2019 U.S. App. LEXIS 37774).

  • January 02, 2020

    Bank, Mortgage Company Settle Class Claims Of Unwanted Calls For $2.4 Million

    RIVERSIDE, Calif. — HSBC Bank USA, National Association and PHH Mortgage Corp. will pay $2.4 million to end a class suit accusing the two companies of violating the Telephone Consumer Protection Act (TCPA) by placing automatic debt collection calls to cell phones without prior consent, according to a class settlement granted final approval by a federal judge in California on Dec. 30 (Saber Ahmed, et al. v. HSBC Bank USA, et al., No. 15-2057, C.D. Calif., 2019 U.S. Dist. LEXIS 222750).

  • December 26, 2019

    Request For Loan Modification Restarted Limitations Period, 9th Circuit Says

    SEATTLE — A Ninth Circuit U.S. Court of Appeals panel on Dec. 13 affirmed a ruling dismissing a man’s lawsuit alleging that his mortgage lender and loan servicer’s attempt to foreclose on his loan was barred by the six-year statute of limitations, finding that the man restarted the limitations period when he requested a loan modification (David Barton Thacker v. Bank of New York Mellon, et al., No. 19-35215, 9th Cir., 2019 U.S. App. LEXIS 36894).

  • December 23, 2019

    Judge Remands Class Action Over Loan Servicer’s Phone Calls

    BOSTON — A federal judge in Massachusetts on Dec. 20 remanded a class action lawsuit brought by a woman who claims that a loan servicer’s repeated phone calls to her about her defaulted mortgage loan violated state law, finding that the loan servicer failed to show that the damages the woman is seeking are in excess of $75,000 (Cheryl Pantano v. Ocwen Loan Servicing LLC, No 19-cv-11178, D. Mass., 2019 U.S. Dist. LEXIS 219033).

  • December 20, 2019

    5th Circuit Affirms Dismissal Of Servicemembers’ Suit Over Foreclosures

    NEW ORLEANS — A Fifth Circuit U.S. Court of Appeals panel on Dec. 19 upheld the dismissal of a class action suit brought by active members of the military who claim that their mortgages were unlawfully foreclosed upon in violation of the Servicemembers Civil Relief Act (SCRA), finding that orders for the seizure of the borrowers’ property that were obtained through executory proceedings in Louisiana state court were not default judgments (Steven Fodge, et al. v. Trustmark National Bank, et al., No. 19-30279, 5th Cir.).

  • December 17, 2019

    Wells Fargo To Pay $10M To Resolve Philadelphia’s Discriminatory Lending Suit

    PHILADELPHIA — The city of Philadelphia and Wells Fargo & Co. on Dec. 16 filed a joint stipulation to dismiss with prejudice a lawsuit the city filed in Pennsylvania federal court against the bank, after the lender agreed to pay $10 million to resolve allegations that it violated the Fair Housing Act (FHA) by steering African American and Latino borrowers into loans that had less favorable terms than those offered to Caucasian borrowers (Philadelphia v. Wells Fargo & Co., No. 17-cv-2203, E.D. Pa.).

  • December 17, 2019

    Dismissal Of Couple’s Debt Collection, Declaratory Judgment Claims Affirmed

    NEW ORLEANS — A federal judge in Texas did not err when dismissing with prejudice a couple’s lawsuit against their mortgage lender and loan servicer, a Fifth Circuit U.S. Court of Appeals panel ruled Dec. 13, holding that the couple’s failure to sufficiently state a claim under the Texas Debt Collection Act (TDCA) was also fatal to their cause of action under the Texas Deceptive Trade Practices Act (TDCPA) (Kenneth Lawry v. Bank of New York Mellon Trust Co., N.A., No. 19-10671, 5th Cir., 2019 U.S. App. LEXIS 36963).

  • December 16, 2019

    5th Circuit: Woman’s Bankruptcy Filings Tolled Limitations For Foreclosure

    NEW ORLEANS — A Fifth Circuit U.S. Court of Appeals panel on Dec. 10 affirmed a summary judgment ruling in favor of a lender and loan servicer, holding that a woman’s multiple filings for bankruptcy tolled the four-year statute of limitations for the lender’s counterclaim for judicial foreclosure (Sharon D. Rose v. Select Portfolio Servicing Inc., et al., No. 19-50598, 5th Cir., 2019 U.S. App. LEXIS 36574).

  • December 16, 2019

    Magistrate: UCL Claim In Foreclosure Suit May Proceed Under Unfair, Unlawful Prongs

    OAKLAND, Calif. — A federal magistrate judge in California on Dec. 10 refused to dismiss claims for violation of California unfair competition law (UCL) and other claims in a foreclosure dispute but noted that the UCL claim may proceed only under the unfair and unlawful prongs (Frederick James Beatty v. PHH Mortgage Corporation, et al., No. 19-05145, N.D. Calif., 2019 U.S. Dist. LEXIS 213794).

  • December 12, 2019

    4th Circuit Affirms Ruling Finding Couple’s Mortgage Lending Suit Untimely

    RICHMOND, Va. — A Fourth Circuit U.S. Court of Appeals panel on Dec. 9 upheld a ruling dismissing as untimely a couple’s lawsuit against their mortgage lender and loan servicer, finding that the plaintiffs’ declaratory judgment and breach of contract claims are both subject to the state’s five-year statute of limitations (Carlos Manotas, et al. v. Ocwen Loan Servicing LLC, et al., No. 18-2026, 4th Cir., 2019 U.S. App. LEXIS 36394).

  • December 09, 2019

    Borrower Tells 4th Circuit Split Servicing Duties Inconsistent With RESPA

    RICHMOND, Va. — A borrower seeking reversal of a decision dismissing his class action lawsuit against a loan servicer accused of violating the Real Estate Settlement Procedures Act (RESPA) when failing to make a property tax payment tells the Fourth Circuit U.S. Court of Appeals in an Oct. 31 reply brief that the statute does not support the idea of bifurcated servicing of a loan (Rodney Harrell, et al. v. Freedom Mortgage Corp., No. 19-1379, 4th Cir.).

  • December 09, 2019

    Federal Judge Dismisses UCL, HBOR, Negligence Claims In Mortgage Loan Dispute

    FRESNO, Calif. — A federal judge in California on Dec. 4 dismissed California unfair competition law (UCL) and other claims in a lawsuit alleging that a mortgage lender attempted to foreclose on a personal residence despite the plaintiff’s efforts to seek a loan modification, allowing the plaintiff leave to amend the fraudulent and unfair business practices prongs of his UCL claims (Darryl Banton v. Wells Fargo Bank, N.A, et al., No. 19-00928, E.D. Calif., 2019 U.S. Dist. LEXIS 210909).

  • December 09, 2019

    6th Circuit Upholds Ruling Refusing To Vacate Dismissal Of Couple’s TILA Suit

    CINCINNATI — A Sixth Circuit U.S. Court of Appeals panel on Dec. 6 upheld a ruling denying a couple’s motion to vacate dismissal of their Truth in Lending Act (TILA) lawsuit under Federal Rule of Civil Procedure 60(b)(6), finding that a federal judge in Tennessee did not err when refusing to apply a decision from the Ninth Circuit about the statute of limitations for damages under the statute (Tobin Segrist, et al. v. Bank of New York Mellon, No. 19-5153, 6th Cir., 2019 U.S. App. LEXIS 36232).

  • December 06, 2019

    Judge Denies Parties’ Summary Judgment Motions In Debt Collections Suit

    WORCESTER, Mass. — A federal judge in Massachusetts on Dec. 5 denied motions for summary judgment filed by parties in a Fair Debt Collections Act (FDCPA) lawsuit, finding that there is no dispute that a loan servicer is a debt collector under the statute and that questions exist as to whether a June 2017 letter offering a loan modification to the borrower was an attempt to collect on the defaulted loan (Eugene Weiner v. Rushmore Loan Management Services LLC, et al., No. 17-401440-TSH, D. Mass., 2019 U.S. Dist. LEXIS 209534).

  • December 04, 2019

    Judge Remands Foreclosure Action, Refuses To Exercise Supplemental Jurisdiction

    DENVER — A federal judge in Colorado on Dec. 2 remanded a consolidated lawsuit challenging U.S. Bank N.A.’s foreclosure of a couple’s home after declining to exercise supplemental jurisdiction over the plaintiffs’ claims (Farlan A. Robertson, et al. v. U.S. Bank N.A., et al., No. 19cv2909, D. Colo., U.S. Dist. LEXIS 207121).

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