Mealey's Mortgage Lending
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June 02, 2021
Hawaii Supreme Court Overturns Summary Judgment Ruling In Foreclosure Suit
HONOLULU — A Hawaiian appellate panel erred in affirming a state trial court’s grant of summary judgment in favor of a lender in a foreclosure action because, in support of its argument that a borrower defaulted on her mortgage, the lender submitted a ledger that was ambiguous, the Hawaii Supreme Court ruled May 28 in vacating the appellate panel’s judgment and remanding for further proceedings.
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June 01, 2021
Borrowers Seek To Overturn Dismissal In Foreclosure Action To Repurchase Home
WASHINGTON, D.C. — Borrowers asked the U.S. Supreme Court on May 13 to grant review of a Sixth Circuit U.S. Court of Appeals panel ruling upholding dismissal of their lawsuit against their mortgage loan servicer, the assignee of the mortgage and others for lack of standing, arguing that the dismissal of their lawsuit “resulted in an actual or substantial prejudice” to the borrowers.
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May 28, 2021
Appellate Panel Affirms Dismissal Of Claims In Wrongful Foreclosure Suit
VENTURA, Calif. — A California appellate panel upheld a state trial court’s dismissal of a borrower’s claims in a wrongful foreclosure action brought against his lender, loan servicer and others on May 27, ruling that the trial court did not err by sustaining demurrer with leave to amend the borrower’s California Civil Code Section 2924.11, bad faith and unfair competition law (UCL) claims.
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May 27, 2021
Borrowers Seek To Overturn Dismissal In Foreclosure Action To Repurchase Home
WASHINGTON, D.C. — Borrowers asked the U.S. Supreme Court on May 13 to grant review of a Sixth Circuit U.S. Court of Appeals panel ruling upholding dismissal of their lawsuit against their mortgage loan servicer, the assignee of the mortgage and others for lack of standing, arguing that the dismissal of their lawsuit “resulted in an actual or substantial prejudice” to the borrowers.
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May 27, 2021
Loan Servicer, CRA Sued Over Mortgage Loan Discharge Entry On Credit Report
ATLANTA — A mortgage loan servicer and credit reporting agency (CRA) violated provisions of the Fair Credit Reporting Act (FCRA) by incorrectly showing a borrower’s mortgage loan as discharged on her consumer credit report even though the loan had specifically not been discharged as part of the borrower’s Chapter 13 bankruptcy plan, the borrower argues in a May 25 complaint filed in Georgia federal court.
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May 26, 2021
FDCPA Claim May Proceed In Mortgage Debt Collection Lawsuit, Judge Rules
PHILADELPHIA — A federal judge in Pennsylvania on May 24 ruled that a loan servicer and a law firm retained by the loan servicer to collect on a mortgage loan debt are partially entitled to summary judgment on claims that they violated the Fair Debt Collection Practices Act (FDCPA) and Pennsylvania’s consumer protection statute because genuine issues of material fact exist as to most of a borrower’s debt collection claim.
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May 21, 2021
11th Circuit Panel Upholds Dismissal Of Borrower Claims In Quiet Title Suit
ATLANTA — An 11th Circuit U.S. Court of Appeals panel on May 19 ruled that a federal district court did not err in dismissing a borrower’s lawsuit against its creditor and mortgage loan servicer seeking to halt their nonjudicial foreclosure of her real property for failure to state a claim for relief because none of the borrower’s arguments on appeal supports a showing that the lower court’s ruling was in error or an abuse of discretion.
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May 20, 2021
Debt Collector Named In Borrower Class Action Over Late Payment Fee Charges
CLEVELAND — A debt collector’s charging of late payment fees to borrowers whose mortgage loans have been accelerated for lack of payment violates state and federal law because the borrowers were no longer required to make their monthly payments after acceleration occurred, a borrower argues in a consumer class action lawsuit filed May 19 in Ohio federal court.
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May 20, 2021
Panel: Application Of Conditions Precedent In Foreclosure Suit Was Proper
TACOMA, Wash. — A Washington appellate panel affirmed a state trial’s court’s grant of summary judgment to a mortgage lender in a foreclosure proceeding on May 18, ruling that although the notice requirements in a deed of trust were a conditions precedent to the foreclosure, strict application of the conditions precedent sought by borrowers is not warranted.
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May 19, 2021
Nevada Supreme Court Affirms Summary Judgment Ruling In Quiet Title Suit
CARSON CITY, Nev. — A Nevada Supreme Court panel on May 14 ruled that consistent with its recent holdings, arguments made on appeal by a purchaser of property in a homeowners association (HOA) foreclosure sale are not in line with the high court’s precedent and a trial court did not err ruling that the foreclosure sale “did not extinguish the first deed of trust because” the Federal National Mortgage Association (Fannie Mae) was the owner of the secured loan “at the time of the foreclosure sale.”
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May 19, 2021
Dismissal Of Borrower Claims In Pre-Foreclosure Action Upheld On Appeal
PASADENA, Calif. — A federal district court did not err in dismissing claims brought by a borrower in a pre-foreclosure action against his mortgage loan servicer because the borrower failed to sufficiently state a claim for relief as statutorily required, a Ninth Circuit U.S. Court of Appeals panel ruled in affirming in a memorandum opinion filed May 14.
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May 19, 2021
Borrowers Sue Mortgage Loan Servicer Over Failure To Credit Mortgage Payment
CAMDEN, N.J. — Borrowers sued the owner and servicer of their mortgage loan in New Jersey federal court on May 18, alleging that the defendants violated provisions of the Truth in Lending Act (TILA), the Real Estate Settlement Procedures Act (RESPA) and common law by failing to credit the borrowers for payment on their mortgage loan and erroneously threatening the borrowers with foreclosure on their property as a result.
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May 19, 2021
Homeowner Challenging Foreclosure Has Standing To Bring UCL Claim, Judge Rules
SACRAMENTO, Calif. — A California federal judge on May 14 declined in part two financial institutions’ motion for summary judgment on claims brought by a homeowner including for wrongful foreclosure and violation of California’s unfair competition law (UCL), writing that the dispute over whether a 1099-C form inadvertently sent to the homeowner effectively canceled her loan precludes summary judgment.
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May 19, 2021
Magistrate Judge Recommends Default Judgment In Quiet Title Suit Be Denied
BROOKLYN, N.Y. — A federal magistrate judge in New York on May 3 recommended that the court deny a lender’s motion for default judgment in a quiet title action against another lender and dismiss the action, ruling that the plaintiff’s motion fails to adhere to the district court’s local rules and that the district court lacks subject matter jurisdiction over the action.
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May 17, 2021
Supreme Court Denies Mortgage Lender’s Request To Review False Claims Act Ruling
WASHINGTON, D.C. — The U.S. Supreme Court on May 17 declined to review an 11th Circuit U.S. Court of Appeals ruling reversing a federal district court’s grant of summary judgment in favor of a mortgage lender on claims that it violated the False Claims Act (FCA) by charging fees to veterans who obtained interest rate reduction refinance loans (IRRRL) that were originated by the U.S. Department of Veterans Affairs.
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May 17, 2021
Insurers, Reinsurer Cannot File Summary Judgment Motion On Standing, Judge Says
FRESNO, Calif. — A California federal judge on May 13 denied a motion to reopen law and motion to file a renewed motion for summary judgment on the issue of standing in a suit filed by a class of mortgagors who allege that private mortgage insurers and a captive reinsurer violated anti-kickback provisions of the Real Estate Settlement Procedures Act (RESPA) after determining that the insurers and captive reinsurer failed to show any justification for their untimeliness in raising the standing issue.
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May 14, 2021
Credit Reporting Agency Granted Summary Judgment In Borrower’s FCRA Dispute
CHICAGO — A federal judge in Illinois on May 12 ruled that a borrower has failed to plead sufficient facts showing that a credit reporting agency (CRA) is liable under the Fair Credit Reporting Act (FCRA) for inaccurately reporting the borrower’s mortgage as past due because no dispute of material fact exists as to whether there was an inactionable inaccuracy or whether the CRA’s reinvestigation of the borrower’s dispute was reasonable.
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May 11, 2021
Judge: Lender, Loan Servicer Must Defend RESPA, Other Claims In Borrower Suit
COLUMBIA, Tenn. — A federal judge in Tennessee on March 7 ruled that a mortgage lender and loan servicer are not entitled to judgment on the pleadings regarding claims for breach of contract and violation of the Real Estate Settlement Procedures Act (RESPA) brought by borrowers who alleged that the defendants failed to make a decision on their loan modification application within the statutorily required timeframe before foreclosing on their home because a “factual determination” is required to determine the actual date their application was completed.
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May 11, 2021
Borrowers Have Standing To Sue Over Failure To Timely Record Mortgage Discharge
NEW YORK — A federal district court did not err in denying a mortgage loan servicer’s motion for judgment on the pleadings in a class action lawsuit brought by borrowers who alleged that the loan servicer violated New York’s mortgage-satisfaction-recording statutes when it waited nearly a year to record the satisfaction of mortgage documents with the county clerk’s office as required because the borrowers had the necessary standing to bring their claims, a divided Second Circuit U.S. Court of Appeals panel ruled May 10 in affirming and remanding.
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May 07, 2021
Borrowers Sufficiently Plead RESPA Damages In 3rd Bite At The Apple
TAMPA, Fla. — After twice finding that borrowers failed to sufficiently allege that they suffered any damages as a result of their loan modification provider’s actions as required to state a valid claim for violations for the Real Estate Settlement Procedures Act (RESPA), a federal judge in Florida on May 6 ruled that the borrowers have now properly pleaded their RESPA damages requirement in their second amended complaint.