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Mealey's Mortgage Lending

  • April 16, 2019

    Panel Holds Servicer Had Authority To Foreclose, Affirms Dismissal

    NEW ORLEANS — After holding that a mortgage servicer had the authority to foreclose on a property, the Fifth Circuit U.S. Court of Appeals on April 12 affirmed the dismissal of a fourth amended complaint filed by borrowers and a decision granting summary judgment on a loan servicer’s judicial foreclosure counterclaim (Bruce W. Bowman, III, et al. v. CitiMortgage, Incorporated, No. 18-10867, 5th Cir., 2019 U.S. App. LEXIS 10910).

  • April 12, 2019

    General Electric To Pay $1.5B Civil Penalty Over Subprime Loan Activity

    WASHINGTON, D.C. — General Electric Co. (GE) will pay a $1.5 billion civil penalty pursuant to the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) to resolve claims that it originated billions of dollars in subprime mortgage loans and issued and sold them to investment banks without disclosing the true quality of the loans, according to a settlement agreement reached on April 12 between the U.S. Department of Justice and GE.

  • April 10, 2019

    11th Circuit Affirms Denial Of Appellate Fees Under Florida Law

    ATLANTA — The 11th Circuit U.S. Court of Appeals on April 8 affirmed a court’s ruling that a borrower was not entitled to appellate fees under the Florida Deceptive and Unfair Trade Practices Act (FDUTPA), holding that she had no interest in the fee award because it would not affect the ability to pay her attorneys (Sara Alhassid v. Nationstar Mortgage, LLC, d.b.a. Champion Mortgage, No. 18-11985, 11th Cir., 2019 U.S. App. LEXIS 10201). 

  • April 8, 2019

    9th Circuit Holds Bank Had Superior Interest In Property, Reverses Ruling

    SAN FRANCISCO — After holding that a bank’s payment of homeowners association dues was sufficient under Nevada case law to show that it held the superior interest in a deed of trust, the Ninth Circuit U.S. Court of Appeals on April 3 reversed part of a court’s decision that granted summary judgment on the bank’s quiet title claim (Bank of America, N.A. v. Arlington West Twilight Homeowners Association, et al., No. 17-15796, 9th Cir., 2019 U.S. App. LEXIS 9666).

  • April 8, 2019

    Borrower Asks High Court To Vacate Denial Based On New Developments

    WASHINGTON, D.C. — A borrower on March 18 asked the U.S. Supreme Court to grant his request for rehearing of a case seeking review of a court’s dismissal of his claims for violation of the Racketeer Influenced and Corrupt Organizations Act (RICO) against a bank, asking the high court to consider recent material developments involving a computer glitch that allegedly resulted in foreclosures (John M. Barone v. Wells Fargo Bank, N.A., a.k.a., et al., No. 18-783, U.S. Sup.).

  • April 8, 2019

    Borrowers Seek Rehearing Of High Court’s Denial Of Cert In Dual Tracking Action

    WASHINGTON, D.C. — Borrowers on March 15 filed a petition for rehearing with the U.S. Supreme Court, asking that the court reconsider its denial of their petition for a writ of certiorari, which sought review of a District of Columbia federal court’s decision that their lawsuit filed against a lender was barred by res judicata because it was directly related to an underlying foreclosure case (Lazina King, et al. v. Caliber Home Loans Inc., No. 18-686, U.S. Sup., 2019 U.S. S. Ct. Briefs LEXIS 1058).

  • April 4, 2019

    Panel Affirms Judgment For Bank; Majority Holds Loan Was Not Accelerated

    SPOKANE, Wash. — A Washington appellate panel on April 2 upheld a trial court’s summary judgment ruling for a bank in a suit seeking to judicially foreclose its deed of trust on a delinquent mortgage but split as to reason to affirm (U.S. Bank National Association, et al. v. Angela Ukpoma, et al., No. 35791-1-III, Wash. App., Div. 3, 2019 Wash. App. LEXIS 798).

  • April 2, 2019

    Panel Holds Court Erred Dismissing FDCPA Claim Sua Sponte, Reverses Ruling

    ST. PAUL, Minn. — A Minnesota appeals court on April 1 reversed a district court’s sua sponte dismissal of a borrower’s claims for violation of the Fair Debt Collection Practices Act (FDCPA), holding that the court was of competent jurisdiction to decide FDCPA claims and that the law provides that the borrower could choose her forum (Hannah Levine v. Bayview Loan Servicing LLC, No. A18-0789, Minn. App.).

  • March 29, 2019

    Judge Holds Lender Owed Borrower A Duty Of Care, Refuses To Dismiss Claims

    SACRAMENTO, Calif. — In an opinion filed March 27, a California federal judge refused to dismiss a borrower’s claims for breach of contract, intentional and negligent infliction of emotional distress and slander of title, holding that she showed that a loan modification agreement existed between her and a bank and that the lender owed her a duty of care that it may have breached by refusing to accept her payments (Denise Wallace v. Nationstar Mortgage LLC, et al., No. 2:18-cv-02768, E.D. Calif., 2019 U.S. Dist. LEXIS 52182).

  • March 27, 2019

    Federal Entities Ask High Court To Decline Review Of HERA Foreclosure Bar

    WASHINGTON, D.C. — The Federal National Mortgage Association (FHFA), the Federal Home Loan Mortgage Corp. (Freddie Mac) and the Federal Housing Finance Agency (Fannie Mae) on March 25 argued that the U.S. Supreme Court should deny a petition for review of a Ninth Circuit U.S. Court of Appeals ruling because the federal foreclosure bar under the Housing and Economic Recovery Act of 2008 (HERA) requires that homeowner associations (HOAs) and other lien holders first seek consent from the FHFA before foreclosing on property held by it  (SFR Investments Pool 1 LLC v. Federal Home Loan Mortgage Corporation, et al., No. No. 18-670, U.S. Sup.).

  • March 26, 2019

    High Court Won’t Review Whether FDCPA Applies To Nonjudicial Foreclosures

    WASHINGTON, D.C. — The U.S. Supreme Court on March 25 denied two petitions for writ of certiorari filed by a borrower and a law firm that sought review of whether the Fair Debt Collection Practices Act (FDCPA) applies to nonjudicial foreclosures (Maxwell & Morgan, P.C., et al. v. Martha A. McNair, No. 18-729, Rick Greer v. Green Tree Servicing LLC, et al., No. 17-1351, U.S. Sup.).

  • March 22, 2019

    Foreclosure Did Not Terminate Fannie Mae’s Interest, Judge Holds

    RENO, Nev. — A Nevada federal judge on March 19 granted summary judgment for lenders, holding that a homeowners association foreclosure sale did not extinguish the Federal National Mortgage Association’s (Fannie Mae) interest in a property (Bank of America, N.A., et al. v. Huffaker Hills Unit No. 2 Residence Association, et al., No. 3:15-cv-00502, D. Nev., 2019 U.S. Dist. LEXIS 46025).

  • March 20, 2019

    High Court Holds FDCPA Does Not Apply In Nonjudicial Foreclosure Cases

    WASHINGTON, D.C. — A business engaged in nonjudicial foreclosure proceedings is not a debt collector under the Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. § 1692, the U.S. Supreme Court unanimously held on March 20 (Dennis Obduskey v. McCarthy & Holthus LLP, No. 17-1307, U.S. Sup.).

  • March 19, 2019

    Florida Panel Holds Deficiency Case Was Not Time-Barred, Reverses Ruling

    TAMPA, Fla. — After holding that a trial court erroneously granted borrowers summary judgment on their statute of limitations defense to a deficiency action brought against them by a debt collector, a Florida appeals court on March 15 reversed the ruling in their favor and remanded the case for further proceedings (Dyck-O’Neal, Inc. v. Teresa Norton, et al., No. 2D17-4968, Fla. App., 2019 Fla. App. LEXIS 3939).

  • March 15, 2019

    Borrowers Allege Bank, Trustee Mishandled Loan Servicing, Violated UCL

    SAN FRANCISCO — Borrowers on March 12 sued a lender and a trustee in a California court, asserting claims for breach of the covenant of good faith and fair dealing, negligent misrepresentation and violation of California’s unfair competition law (UCL) related to the alleged mishandling of the servicing of their home equity line of credit loan (HELOC) (Timothy S. Bostwick, et al. v. First Tennessee Bank, No. 574465, Calif. Super., San Francisco Co.).

  • March 14, 2019

    Loan Servicer Did Not Violate FDCPA, 11th Circuit Panel Holds

    ATLANTA — The 11th Circuit U.S. Court of Appeals on March 11 affirmed the dismissal of a borrower’s Fair Debt Collection Practices Act (FDCPA) claims against a loan servicer, holding that the servicer did not engage in unlawful debt collection because none of the requested amounts was barred under a five-year statute of limitations under Florida law (Paul A. Green v. Specialized Loan Servicing LLC, No. 17-15681, 11th Cir., 2019 U.S. App. LEXIS 7066).

  • March 13, 2019

    2 Classes Certified In Suit Over Debt Collection Practices For Home Loans

    CHICAGO — An Illinois federal judge on March 8 certified two classes of consumers who accuse Specialized Loan Servicing LLC (SLS) of violating the Fair Debt Collection Practices Act (FDCPA) by having its agents leave misleading door hangers at their homes (Thomas Quinn, et al. v. Specialized Loan Servicing, LLC, No. 16-2021, N.D. Ill., 2019 U.S. Dist. LEXIS 37975).

  • March 8, 2019

    6th Circuit Affirms Dismissal Of Woman’s RESPA Claims As Untimely

    CINCINNATI — A Sixth Circuit U.S. Court of Appeals panel on March 6 upheld the dismissal of a woman’s lawsuit accusing her mortgage lender of violating the Real Estate Settlement Procedures Act (RESPA) and Florida’s Deceptive and Unfair Trade Practices Act (UDTPA), holding that the RESPA claim was barred by the three-year statute of limitations and that Florida’s law does not apply to banks, credit unions and savings and loan associations that are regulated by federal agencies (Maria Del Pilar Nino v. Flagstar Bank FSB, No. 18-1503, 6th Cir., 2019 U.S. App. LEXIS 6697)

  • March 6, 2019

    Magistrate Judge: Borrowers Breached Loan Terms By Failing To Occupy Property

    BIRMINGHAM, Ala. — After finding that borrowers breached the terms of their mortgage by failing to occupy a property within 60 days of executing their loan, an Alabama federal magistrate judge on March 1 held that a lender and its agents had the authority to enter the property and to secure it and granted summary judgment on claims for violations of the Fair Debt Collection Practices Act (FDCPA), negligence and other claims asserted against them (Mark Erdberg, et al. v. Five Brothers Mortgage Company Services and Securing, Inc., et al., No. 2:16-cv-01880, N.D. Ala., 2019 U.S. Dist. LEXIS 32870).

  • March 4, 2019

    3rd Circuit Holds Borrowers Suffered No Injury Under RICO, Affirms Dismissal

    PHILADELPHIA — A Third Circuit U.S. Court of Appeals panel on Feb. 26 affirmed a district court’s dismissal of borrowers’ claims for violation of the Racketeer Influenced and Corrupt Organizations Act, holding that they failed to show any injury in violation of RICO because monthly payments they made and sums paid to bring their loan current were consistent with the terms of their mortgage agreement (Chita Aliperio, et al. v. Bank of America, N.A., et al., No. 17-2393, 3rd Cir., 2019 U.S. App. LEXIS 5738).

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