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Mealey's Mortgage Lending

  • June 1, 2018

    Judge Allows County’s Disparate Impact Claim Against HSBC To Proceed

    CHICAGO — An Illinois federal judge on May 30 partially dismissed a county’s claims that a bank’s discriminatory lending practices have caused it to suffer injuries, but found that a complaint sufficiently alleges that the bank’s policies caused disparate impact (County of Cook v. HSBC North America Holdings Inc., et al., No. 14-02031, N.D. Ill, 2018 U.S. Dist. LEXIS 89724).

  • May 30, 2018

    Previous Case Bars Action Against Lender, Loan Servicer, Judge Holds

    LOS ANGELES — After finding that a previous lawsuit filed by borrowers involved the same primary issues and parties, a California federal judge on May 24 dismissed a second lawsuit in which the borrowers asserted causes of action for violation of California’s unfair competition law (UCL), the Fair Debt Collection Practices Act (FDCPA) and other claims as barred by res judicata (Thomas S. Lin, et al. v. Shellpoint Mortgage Servicing, et al., No. 18-1153, C.D. Calif., 2018 U.S. Dist. LEXIS 88075).

  • May 29, 2018

    Judge Holds Bank’s Response To Borrower Was Sufficient, Dismisses Complaint

    SAN DIEGO — After finding that a bank’s response to a borrower’s qualified written request was sufficient and that missing information from loan modification documents would not stop foreclosure, a California federal judge on May 25 dismissed a borrower’s claims for violation of California’s unfair competition law (UCL), the Real Estate Settlement and Procedures Act (RESPA) and other causes of action  (Robert Vaughn v. Wells Fargo Bank, et al., No. 17-cv-2365, S.D. Calif., 2018 U.S. Dist. LEXIS 88518).

  • May 29, 2018

    Judge Refuses To Dismiss Fraud Claim Related To Loan Servicer’s Conduct

    TRENTON, N.J. — After finding that a borrower alleged facts to show that a loan servicer possibly delayed the loan modification process and that its conduct lacked good faith, a New Jersey federal judge on May 23 denied the servicer’s request to dismiss a cause of action for violation of the New Jersey Consumer Fraud Act (NJCFA) (Denise D’Alessandro v. Ocwen Loan Servicing LLC, No. 18-cv-01290, D. N.J., 2018 U.S. Dist. LEXIS 86482).

  • May 25, 2018

    Wells Fargo Argues FDCPA Does Not Apply To Nonjudicial Foreclosures

    WASHINGTON, D.C. — A bank and a law firm on May 16 filed their response to a borrower’s petition for writ of certiorari that seeks U.S. Supreme Court review of a decision that the Fair Debt Collection Practices Act (FDCPA) does not apply to nonjudicial foreclosure actions, arguing that no conflict exists on the issue and that the petition should be denied (Dennis Obduskey v. McCarthy & Holthus LLP, No. 17-1307, U.S. Sup., 2018 U.S. S. Ct. Briefs LEXIS 1101).

  • May 22, 2018

    5th Circuit Holds Trust Failed To Give Proper Notice Of Intent To Accelerate Debt

    NEW ORLEANS — The Fifth Circuit U.S. Court of Appeals on May 21 reversed a judgment that allowed a trust to foreclose on a property, finding that the trust failed to give the borrowers proper notice of its intent to accelerate their loan before filing a foreclosure lawsuit (Wilmington Trust, et al. v. Angel Rob, et al., No. 17-50115, 5th Cir., 2018 U.S. App. LEXIS 13179).

  • May 21, 2018

    Panel Affirms Ruling For Attorney General In Mass Joinder Litigation Scam Case

    LOS ANGELES — A California appeals panel on May 15 affirmed a trial court’s ruling in which the California attorney general asserted claims for violation of California’s unfair competition law (UCL) and other claims against a former attorney and others in relation to a mass joinder litigation scam on homeowners facing foreclosure, finding that a trial court did not err in granting summary adjudication for the attorney general (The People v. Mitchell J. Stein, No. B275955, Calif. App., 2nd Dist., Div. 5, 2018 Cal. App. Unpub. LEXIS 3359).

  • May 18, 2018

    Freddie Mac Properly Removed Quiet Title Lawsuit, 3rd Circuit Holds

    PHILADELPHIA — Noting that the Federal Home Loan Mortgage Corp. (Freddie Mac) has the authority to remove a case in which it is named as a party to federal court, the Third Circuit U.S. Court of Appeals on May 15 found that a district court had jurisdiction over a borrower’s claims against lenders and affirmed the dismissal of the case (Kenneth J. Taggart v. Wells Fargo Bank, N.A., et al., Nos. 17-1836 & 17-2416, 3rd Cir., 2018 U.S. App. LEXIS 12558).

  • May 17, 2018

    Borrower Appeals Summary Judgment Ruling For Wells Fargo To 9th Circuit

    SACRAMENTO, Calif. — A borrower who alleged that a bank violated California’s unfair competition law (UCL) and other laws when it refused to accept his untimely mortgage payment as part of a trial period plan on May 16 filed a notice of an appeal to the Ninth Circuit U.S. Court of Appeals of a judge’s decision granting summary judgment for the bank (Paul Schrupp v. Wells Fargo Bank, N.A., No. 2:16-636, E.D. Calif., 2018 U.S. Dist. LEXIS 82835).

  • May 16, 2018

    Judge Grants Dismissal Of Claims That Wells Fargo Wrongly Charged Fees

    SAN FRANCISCO — A California federal judge on May 14 found no facts to support causes of action asserted by a first-time homebuyer who alleged that Wells Fargo & Co. violated the Real Estate Settlement and Procedures Act (RESPA) and California’s unfair competition law (UCL) when it improperly charged borrowers mortgage interest rate-lock fees, dismissing his claims with partial leave to amend (Victor Muniz v. Wells Fargo & Co., et al., No. 3:17-cv-04995, N.D. Calif., 2018 U.S. Dist. LEXIS 81040).

  • May 11, 2018

    3rd Circuit Holds TILA Rescission Claims Were Untimely

    PHILADELPHIA — The Third Circuit U.S. Court of Appeals on May 8 affirmed a district court’s decision in favor of a loan servicer, finding that a borrower’s claims for violation of the Truth in Lending Act (TILA) were untimely (Ariel Barel v. Green Tree Servicing, LLC, a/k/a Ditech Financial, LLC, et al., No. 17-2817, 3rd Cir., 2018 U.S. App. LEXIS 11991).

  • May 9, 2018

    Magistrate Dismisses Foreclosure- Related Case For Failure To Amend HBOR Claim

    OAKLAND, Calif. — A California federal magistrate judge on May 7 entered a final order dismissing a borrower’s claims against a bank and a trustee after she failed to file a timely complaint asserting an amended cause of action for violation of California’s Homeowners Bill of Rights (HBOR) (So Young Kang v. Wells Fargo Bank, N.A., et al., No. 16-cv-04309, N.D. Calif., 2018 U.S. Dist. LEXIS 56078).

  • May 9, 2018

    Borrower Is Not Entitled To Injunction Preventing Foreclosure, Judge Holds

    SAN FRANCISCO — A California federal judge on May 7 denied an application filed by a borrower who asserts causes of action for violation of California’s unfair competition law (UCL) and the homeowner bill of rights for a temporary restraining order preventing a foreclosure, finding that he failed to allege that the loan servicer and trust lacked the legal authority to foreclose (Keyhan Mohanna v. Carrington Mortgage Services LLC, et al., No. 18-cv-02563, N.D. Calif., 2018 U.S. Dist. LEXIS 76992).

  • May 8, 2018

    HOA Gave Proper Notice Of Foreclosure, Voided Bank’s Interest, Judge Rules

    LAS VEGAS — A Nevada federal judge on May 7 found that a homeowners association’s notice of its intent to foreclose to the interested parties was sufficient to cure a constitutional defect in Nevada housing law and that a bank’s interest in the property was extinguished (U.S.  Bank National Association v. Braewood Heritage Association, et al., No. 2:16-CV-1727, D. Nev., 2018 U.S. Dist. LEXIS 76396).

  • May 4, 2018

    Judge Dismisses HBOR, UCL Claims, Holds No Default Was Recorded

    FRESNO, Calif. — A California federal judge on May 3 granted a motion filed by two lenders to dismiss claims for violation of California housing law and unfair competition law (UCL), finding that a borrower failed to request an alternative to foreclosure and to allege that a notice of sale was recorded (Terrence Taylor v. CitiMortgage Inc., et al., No. 1:17-cv-01231, E.D. Calif., 2018 U.S. Dist. LEXIS 75231).

  • May 3, 2018

    Borrowers Adequately Pleaded FDCPA Claim, Federal Judge Rules

    CHICAGO — After finding that borrowers sufficiently pleaded that they were allegedly misled into believing they were eligible for a deed in lieu of foreclosure, an Illinois federal judge on May 1 denied a request by lenders to dismiss their claim for violation of the Fair Debt Collection Procedures Act (FDCPA) (Cedric Ivey, et al. v. Deutsche Bank National Trust Company, et al., No. 17-cv-2986, N.D. Ill., 2018 U.S. Dist. LEXIS 73475).

  • May 2, 2018

    Philadelphia, Wells Fargo Ask Court To Keep Discovery In FHA Case Confidential

    PHILADELPHIA — The city of Philadelphia and a bank on May 1 jointly moved a Pennsylvania federal court for entry of a confidentiality order in relation to discovery in a lawsuit in which the city alleges that the bank engaged in discriminatory lending practices in minority communities (Philadelphia v. Wells Fargo & Co., et al., No. 17-2203, E.D. Pa.).

  • May 1, 2018

    Trial Court Committed No Error In Ruling For GMAC, Ohio Panel Rules

    WARREN, Ohio — After finding that a loan servicer held a note and mortgage at the time it commenced foreclosure proceedings against former property owners, an Ohio appeals court on April 30 affirmed a summary judgment ruling and foreclosure decree entered in favor of the servicer (GMAC Mortgage LLC, ex rel. v. Richard M. Giuliano, et al., No. 2011-T-0086, Ohio App., 11th Dist., Trumbull Co., 2018 Ohio App. LEXIS 1810).

  • April 30, 2018

    Judge Allows Borrower To Plead Emotional Distress In Violation Of TILA

    COLUMBUS, Ohio — After finding that a borrower could plausibly allege that a bank’s violations of the Truth in Lending Act (TILA) caused her severe emotional distress, an Ohio federal judge on April 23 denied the bank’s motion to dismiss and granted her leave to file an amended complaint (Christine Marais v. Reimer Law Co., et al., No. 2:17-cv-922, S.D. Ohio, 2018 U.S. Dist. LEXIS 67908).

  • April 30, 2018

    Foreclosure-Related Claims Were Precluded, Untimely, 10th Circuit Holds

    DENVER — The 10th Circuit U.S. Court of Appeals on April 27 affirmed a trial court’s ruling that a trust’s claims related to a foreclosure were precluded and untimely, affirming the decision in favor of two banks and a loan servicer (John J. Pembroke Living Trust v. U.S. Bank National Association, et al., No. 17-1244, 10th Cir., 2018 U.S. App. LEXIS 10754).