Lexis Legal News : Mealey's Mortgage Lending : Lawsuit Filings, Litigation, Settlements, Verdicts and Court News

Mealey's Mortgage Lending

December 7, 2018
Borrower Asserts Lenders Violated UCL, TILA In California Superior Court

SANTA ANA, Calif. — A borrower on Dec. 4 sued various mortgage entities in a California court, alleging that they violated California’s unfair competition law (UCL), the Truth in Lending Act (TILA) and other laws by failing to help him obtain a loan modification to prevent foreclosure (Carl Hardin v. Select Portfolio Servicing Inc., No. 2018-01035974, Calif. Super., Orange Co.).
December 6, 2018
Panel Rejects Borrower’s Challenge To Jury Verdict For Loan Servicers

SAN FRANCISCO — After holding that a district court properly excluded evidence that was not relevant to a lawsuit filed by a borrower in relation to an alleged wrongful foreclosure and that jury instructions were not confusing, the Ninth Circuit U.S. Court of Appeals on Dec. 5 affirmed a jury verdict and ruling for loan servicers (Tsvetan S. Torbov v. Cenlar FSB, et al., No. 18-15382, 9th Cir., 2018 U.S. App. LEXIS 34280).
December 5, 2018
9th Circuit Affirms Dismissal Of TILA Claims As Time-Barred

SAN FRANCISCO — After finding that claims for violation of the Truth in Lending Act (TILA) were barred by statutes of limitations and that borrowers failed to submit facts to show that lenders violated TILA, the Ninth Circuit U.S. Court of Appeals on Dec. 3 affirmed dismissal of the lawsuit (Adrienne J. Styles, et al. v. Deutsche Bank National Trust Company, et al., No. 18-15372, 9th Cir., 2018 U.S. App. LEXIS 33869).
December 5, 2018
Borrower’s UCL, FDCPA Claims Not Supported By Facts, 9th Circuit Holds

PASADENA, Calif. — A panel of the Ninth Circuit U.S. Court of Appeals on Dec. 3 affirmed dismissal of a foreclosure-related action filed by a borrower, holding that she failed to allege facts to support her claims for violations of the Fair Debt Collection Practices Act (FDCPA), California’s unfair competition law (UCL) and other causes of action (Alicia Johnson v. Ocwen Loan Servicing, LLC, et al., No. 18-55279, 9th Cir., 2018 U.S. App. LEXIS 33891).
December 3, 2018
SFR Seeks High Court Review Of Interpretation Of HERA Foreclosure Bar

WASHINGTON, D.C. — An investment pool on Nov. 21 filed a petition for writ of certiorari with the U.S. Supreme Court, seeking review of a Ninth Circuit U.S. Court of Appeals ruling in which the court held that the Housing and Economic Recovery Act of 2008 (HERA) prevents homeowner associations (HOAs) and others from foreclosing on a property that was purchased and securitized by Federal Home Loan Mortgage Corp. (Freddie Mac) or the Federal Housing Finance Agency (Fannie Mae) even where a foreclosing party’s lien was senior to the loan (SFR Investments Pool 1 LLC v. Federal Home Loan Mortgage Corporation, et al., No. No. 18-670, U.S. Sup., 2018 U.S. S. Ct. Briefs LEXIS 4322).
December 3, 2018
Judge Holds HOLA Preempts Foreclosure-Related Claims Against Wells Fargo

SACRAMENTO, Calif. — A California federal judge on Nov. 29 dismissed numerous claims asserted by borrowers against lenders in relation to a foreclosure of their property, holding that all of their claims were preempted by the Home Owners Loan Act (HOLA) (Josefino R. Galang, et al. v. Wells Fargo Bank, N.A., et al., No. 2:18-cv-01640, E.D. Calif., 2018 U.S. Dist. LEXIS 201768).
November 28, 2018
Borrower Did Not Suffer Damages Caused By RESPA Violations, Judge Holds

FORT WORTH, Texas — A Texas federal judge on Nov. 27 dismissed a borrower’s complaint against a lender, holding that she failed to plead that she suffered actual damages as a result of the bank’s alleged violations of the Real Estate Settlement and Procedures Act (RESPA) (Wynetta Williams v. Wells Fargo Bank, N.A., No. 4:18-cv-00564, N.D. Texas, 2018 U.S. Dist. LEXIS 199867).
November 28, 2018
11th Circuit Affirms Dismissal Of Borrower’s FDCPA, Criminal Law Claims

ATLANTA — The 11th Circuit U.S. Court of Appeals on Nov. 27 dismissed a borrower’s appeal of a decision dismissing her complaint against a loan servicer and its CEO, holding that she abandoned any claim that the district court erred in dismissing her case (Norma E. Butler-Stern, et al. v. Jay Memmott, et al., No. 18-10632, 11th Cir., 2018 U.S. App. LEXIS 33253).
November 27, 2018
Federal Judge Stays Case Pending High Court Ruling On FDCPA

DETROIT — A Michigan federal judge on Nov. 21 granted a request to stay a proposed class action filed by a borrower who asserts that a law firm, its founder and president violated the Fair Debt Collection Practices Act (FDCPA) pending the outcome of the U.S. Supreme Court’s ruling on whether the FDCPA applies to nonjudicial mortgage foreclosures (Freddie Garland v. Orlans PC, et al., No. 18-11561, E.D. Mich., 2018 U.S. Dist. LEXIS 198201).
November 27, 2018
Federal Judge Dismisses Borrower’s Claims Against Lenders As Conclusory

NEW HAVEN, Conn. — A Connecticut federal judge on Nov. 21 dismissed a borrower’s claims against various lenders and individuals in relation to the handling of her mortgage for lack of jurisdiction and failure to state a claim (Joyce Decormier v. Aurora Loan Services LLC, et al., No. 3:18cv1889, D. Conn., 2018 U.S. Dist. LEXIS 198227).
November 21, 2018
Judge Allows Trust’s UCL, RESPA Claims Against Lenders To Proceed

SAN FRANCISCO — A California federal judge on Nov. 19 allowed a trust’s claims for violation of California’s unfair competition law (UCL) and the Real Estate Settlement Procedures Act (RESPA) to proceed against various lenders, holding that it sufficiently pleaded that it suffered actual damages (Roy Hahn, et al. v. Select Portfolio Inc., et al., No. 18-cv-05629, N.D. Calif., 2018 U.S. Dist. LEXIS 197160).
November 20, 2018
Federal Court Dismisses Wrongful Foreclosure Case For Lack Of Jurisdiction

WASHINGTON, D.C. — A District of Columbia federal judge on Nov. 19 granted a bank’s motion to dismiss a borrower’s wrongful foreclosure claims, holding that she failed to state a plausible causes of action and that the court lacked jurisdiction over the case (Ashante Yussuf v. Wells Fargo, N.A., No. 18-2118, D. D.C., 2018 U.S. Dist. LEXIS 196459).
November 19, 2018
High Court Will Not Review Whether California Escrow Law Preempts NBA

WASHINGTON, D.C. — The U.S. Supreme Court on Nov. 19 denied a petition for writ of certiorari filed by a bank, declining to review an appeals court’s ruling that the National Bank Act (NBA) does not preempt state escrow interest law (Bank of America, N.A. v. Donald M. Lusnak, No. 18-212, U.S. Sup.).
November 19, 2018
Judge Holds HOLA Preempts Borrowers’ UCL, HBOR Claims Against Bank

SAN FRANCISCO — A California federal judge on Nov. 14 granted a bank’s motion to dismiss claims for violation of California’s Homeowners Bill of Rights (HBOR) and unfair competition law (UCL) asserted by borrowers, holding that their claims were preempted by the Home Owners' Loan Act (HOLA) (David Fowler, et al. v. Wells Fargo Bank, N.A., No. 18-cv-01254, N.D. Calif., 2018 U.S. Dist. LEXIS 194423).
November 15, 2018
6th Circuit Holds Court Lacked Jurisdiction To Rule On Garn-St. Germain Act Claim

CINCINNATI — The Sixth Circuit U.S. Court of Appeals on Nov. 13 reversed a district court’s ruling that the Garn-St. Germain Depository Institutions Act of 1982 did not authorize a private right of action for an estate and entering judgment for a loan servicer and property owner, holding that the district court lacked federal jurisdiction and that the case should be remanded (Audrey D. Bantom, et al. v. Bayview Loan Servicing, LLC, No. 18-1245, 6th Cir., 2018 U.S. App. LEXIS 32096).
November 12, 2018
UBS AG Hit With Justice Department Suit Over Sale Of Mortgage-Backed Securities

BROOKLYN, N.Y. — The U.S. Department of Justice sued UBS AG and certain of its affiliates in New York federal court on Nov. 9, alleging that the defendants misrepresented the investment quality of more than $41 billion in residential mortgage-backed securities (RMBS) it sold to investors (United States v. UBS Securities LLC, et al., No. 18-6369, E.D. N.Y.).
November 9, 2018
Borrower Says State Escrow Law Ruling Does Not Warrant High Court Review

WASHINGTON, D.C. — A borrower on Oct. 17 opposed a bank’s petition for writ of certiorari in the U.S. Supreme Court in which it seeks review of an appeals court’s ruling that the National Bank Act (NBA) does not preempt California’s escrow interest law, arguing that the issue is unripe for review and that the analysis requested by the bank would be based on a nonexistent factual record (Bank of America, N.A. v. Donald M. Lusnak, No. 18-212, U.S. Sup.).
November 9, 2018
Law Firm Submits Arguments On FDCPA In U.S. Supreme Court

WASHINGTON, D.C. — A law firm on Nov. 7 asked the U.S. Supreme Court to affirm an appeals court’s decision that the Fair Debt Collection Practices Act (FDCPA) does not apply to nonjudicial foreclosure proceedings, arguing that the FDCPA relates to practices that demand debt and is not related to foreclosure activities (Dennis Obduskey v. McCarthy & Holthus LLP, No. 17-1307, U.S. Sup.).
November 8, 2018
7th Circuit Affirms Ruling For Wells Fargo On RESPA, Wisconsin Law Claims

CHICAGO — After finding that borrowers failed to show that they suffered any actual harm in violation of the Real Estate Settlement and Procedures Act (RESPA) and that a claim for violation of Wisconsin law was precluded by a foreclosure ruling, a panel of the Seventh Circuit U.S. Court of Appeals on Nov. 7 affirmed a summary judgment decision in favor of a bank (Terrence Moore, et al., v. Wells Fargo Bank, N.A., No. 18-1564, 7th Cir., 2018 U.S. App. LEXIS 31534).
November 7, 2018
Borrower Failed To Show UCL Violations, Wrongful Foreclosure, Judge Rules

LOS ANGELES — A California federal judge on Nov. 5 dismissed a borrower’s claims for violation of California’s unfair competition law (UCL), fraud, wrongful foreclosure and other claims related to a property foreclosure, holding that her allegations were conclusory (Shirley Brown v. Bank of America, N.A., et al., No. 18-3418, C.D. Calif., 2018 U.S. Dist. LEXIS 189232).