ATLANTA — The 11th Circuit U.S. Court of Appeals on Aug. 3 affirmed dismissal of an amended complaint filed by borrowers against lenders and loan servicers in relation to the foreclosure of their property, holding that the complaint lacked specific factual allegations and ordering their attorney to show cause as to why he should not incur additional fees for intentionally delaying the litigation (Karun N. Jackson, et al. v. Bank of America, N.A., et al., No. 16-16685, 11th Cir., 2018 U.S. App. LEXIS 21517).
MISSOULA, Mont. — A Montana federal magistrate judge on July 31 recommended that a court grant summary judgment in favor of a bank related to a borrower’s allegations that a foreclosure sale was void, holding that the bank had the authority to sell the property as the holder of the promissory note and deed of trust (William F. Trebas, Jr. v. Guild Mortgage Company, et. al., No. 17-113, D. Mont., 2018 U.S. Dist. LEXIS 128044).
LAS VEGAS — After finding that a loan servicer and a law firm have no beneficial interest in a property, a Nevada federal judge on July 31 dismissed a property owner’s claims for violation of the Truth in Lending Act (TILA), the Real Estate Settlement and Procedures Act (RESPA) and other causes of action for failure to state a claim (Richey Garrison Guidi v. Quality Loan Service Corp., et al., No. 2:17-cv-02946, D. Nev., 2018 U.S. Dist. LEXIS 127800).
WASHINGTON, D.C. — Wells Fargo Bank NA will pay $2.09 billion to settle claims by the U.S. Department of Justice alleging that the financial institution issued false and misleading statements to shareholders about the investment quality of the subprime loans that were packaged in its residential mortgage-backed securities (RMBS), according to a settlement agreement reached between the parties on Aug. 1.
SEATTLE — After holding that a loan servicer held a note and had the legal authority to appoint a trustee to foreclose on the property, a Washington appeals court on July 30 affirmed a trial court’s ruling dismissing a borrower’s Washington law and other claims against the servicer (Darla J. Pardo v. Northwest Trustee Services, et al., No. 76622-8-I, Wash. App., Div. 1, 2018 Wash. App. LEXIS 1753).
CINCINNATI — The Sixth Circuit U.S. Court of Appeals on July 30 affirmed dismissal of a borrower’s claims against numerous lenders, loan servicers and attorneys in relation to his mortgage, holding that it lacked jurisdiction over the untimely appeal (Timothy Burns v. Ocwen Loan Servicing LLC, et al., No. 18-1490, 6th Cir., 2018 U.S. App. LEXIS 21133).
NEW ORLEANS — The Fifth Circuit U.S. Court of Appeals on July 27 held that a district court did not abuse its discretion in holding that a borrower’s claims were barred by judicial estoppel because he failed to amend his bankruptcy schedules to disclose a quit claim deed for his mortgage or a change in his financial status (Mark Anthony Fornesa, et al. v. Fifth Third Mortgage Company, No. 17-20324, 5th Cir., 2018 U.S. App. LEXIS 20920).
SANTA ANA, Calif. — Borrowers on July 23 sued two loan-servicing companies in a California court in relation to the foreclosure of their property, asserting claims for violation of the California Homeowner’s Bill of Rights (HBOR) and negligence (Lloyd M. Cotton, et al. v. Select Portfolio Servicing Inc., No. 2018-01007321, Calif. Super, Orange Co.).
SAN FRANCISCO — A California federal judge on July 23 refused to grant a borrower’s application for a temporary restraining order enjoining the foreclosure of his property, holding that his claims related to the assignment of his loan lacked merit (John B. Freitas v. Clear Recon Corporation, et al., No. 18-03993, N.D. Calif., 2018 U.S. Dist. LEXIS 122943).
PHILADELPHIA — The City of Philadelphia on July 20 moved to compel a bank to produce documents and data on correspondent loans, arguing that information is relevant to its disparate impact claim under the Fair Housing Act (FHA) (Philadelphia v. Wells Fargo & Co., et al., No. 17-2203, E.D. Pa.).
SAN DIEGO — After finding that an issue of fact exists as to whether a notice of right to rescission from a bank under the Truth in Lending Act (TILA) was timely, a California federal judge on July 17 refused to dismiss the majority of a borrower’s claims but held that he failed show that the bank was a debt collector pursuant to the Fair Debt Collection Practices Act (FDCPA) (Rodney L. Hinrichsen v. Bank of America, N.A., et al., No. 17-cv-0219, S.D. Calif., 2018 U.S. Dist. LEXIS 119367).
SAN FRANCISCO — A California federal judge on July 13 granted a motion filed by the Federal Housing Finance Agency (FHFA) to intervene in a lawsuit filed by a borrower who alleges that the improper identification of a property short sale as a foreclosure affected his ability to obtain a loan, so that the FHFA can appeal a previous order in which the court refused to dismiss the case and held that the borrower’s requests for statutory damages and injunctive relief were not precluded (James Banneck v. Federal National Mortgage Association, No. 3:17-cv-04657, N.D. Calif., 2018 U.S. Dist. LEXIS 117385).
RICHMOND, Va. — A Virginia federal judge on July 9 granted dismissal of claims asserted by a borrower against lenders and loan servicers with leave to amend, holding that the claims were vague and failed to allege required facts (Darlene J. Davis v. Specialized Loan Servicing LLC, et al., No. 3:17-cv-787, E.D. Va., 2018 U.S. Dist. LEXIS 114042).
ALBUQUERQUE, N.M. — A New Mexico federal judge on July 6 granted a motion filed by property owners to amend their complaint to add new defendants named in a third-party complaint and to drop their claim for violation of the Fair Debt Collection Practices Act (FDCPA) (Bob Crabtree, et al. v. Wells Fargo Bank, N.A., No. 18-cv-0377, D. N.M., 2018 U.S. Dist. LEXIS 112365).
RICHMOND, Va. — After holding that a mortgage-servicing company failed to submit “fact-specific” evidence showing that a former employee’s alleged misappropriation of trade secrets to another entity that hired her proximately caused its revenue to decline, the Fourth Circuit U.S. Court of Appeals on July 3 affirmed a summary judgment ruling that the information did not contain trade secrets (360 Mortgage Group, LLC v. Home Point Financial Corporation, et al., No. 17-1014, 4th Cir., 2018 U.S. App. LEXIS 18158).
NEW YORK — After finding that a borrower’s claims for violation of federal mortgage law and other causes of action were part of his bankruptcy estate, the Second Circuit U.S. Court of Appeals on July 6 affirmed a district court’s ruling that he lacked standing to assert claims against a loan servicer (In re: Alman Andrew Beckford v. Bayview Loan Servicing LLC, No. 17-2865, 2nd Cir., 2018 U.S. App. LEXIS 18368).
ST LOUIS — The Eighth Circuit U.S. Court of Appeals on July 3 affirmed an award of fees for a lender in the amount of $83,122.95 incurred to collect on its secured debt in the course of bankruptcy proceedings filed by borrowers who obtained more than $20 million for a residential development (In re: Stephen D. McCormick, et al., No. 17-2192, 8th Cir. 2018 U.S. App. LEXIS 18151).
RIVERSIDE, Calif. — A California federal judge on July 2 granted summary judgment in favor of a loan servicer and trustee on claims including violation of California’s unfair competition law (UCL) and the Fair Debt Collection Practices Act (FDCPA), holding that the borrower failed to show that a deed was fraudulent (John C. Torres v. Nationstar Mortgage LLC, et al., No. 17-1527, C.D. Calif., 2018 U.S. Dist. LEXIS 111277).
PHILADELPHIA — The city of Philadelphia on June 29 filed its opposition to a bank’s motion to compel discovery related to loans allegedly issued using discriminatory lending practices targeted at the city’s African-American and Latino borrowers, arguing that the information sought relates to a pre-complaint analysis by non-testifying experts that lacks merit and is irrelevant (Philadelphia v. Wells Fargo & Co., et al., No. 17-2203, E.D. Pa.).
SAN FRANCISCO — After finding that a statute of limitations on foreclosure in Arizona was tolled when a borrower acknowledged the debt, the Ninth Circuit U.S. Court of Appeals on June 28 affirmed a summary judgment ruling for a trustee, holding that it was entitled to foreclose (Katrina Perkins Steinberger, et al. v. Ocwen Loan Servicing, LLC, et al., No. 17-15314, 9th Cir., 2018 U.S. App. LEXIS 17792).