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Mealey's Mortgage Lending

  • August 6, 2018

    Panel Warns Attorney Could Incur Fees For Delaying Foreclosure-Related Case

    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).

  • August 3, 2018

    Magistrate Judge Holds Bank Had Authority To Foreclose, Dismisses Case

    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).

  • August 3, 2018

    Judge Dismisses RESPA, TILA Claims Against Loan Servicer And Law Firm

    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).

  • August 2, 2018

    Wells Fargo To Pay $2.09B To Settle RMBS Dispute With Justice Department

    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.

  • August 1, 2018

    Servicer Had Authority To Appoint Trustee To Foreclose, Washington Court Holds

    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).

  • August 1, 2018

    6th Circuit Holds It Lacks Jurisdiction Over Borrower’s Untimely Appeal

    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).

  • July 30, 2018

    5th Circuit Affirms Dismissal For Lender Based On Judicial Estoppel

    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).

  • July 30, 2018

    Borrowers Assert HBOR, Negligence Claims Against Servicers In California Court

    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.).

  • July 26, 2018

    Federal Judge Refuses To Issue Restraining Order Prohibiting Foreclosure

    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).

  • July 23, 2018

    Philadelphia Says Discovery Is Relevant To FHA Claim, Moves To Compel

    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.).

  • July 19, 2018

    Issue Of Fact Exists As To Timeliness Of TILA Notice, Judge Holds

    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).

  • July 18, 2018

    Judge Allows FHFA To Intervene In Borrower’s Lawsuit Against Fannie Mae

    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).

  • July 12, 2018

    Judge Holds Borrower Waived Right To Dispute Removal, Dismisses Case

    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).

  • July 11, 2018

    New Mexico Federal Judge Allows Property Owners To Amend Complaint

    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).

  • July 9, 2018

    4th Circuit Holds Mortgage Company Did Not Show Misappropriation Of Trade Secrets

    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).

  • July 9, 2018

    2nd Circuit Holds Borrower Lacked Standing To Sue Loan Servicer

    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).

  • July 6, 2018

    8th Circuit Affirms $83,122 Award In Fees For Mortgage Lender

    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).

  • July 6, 2018

    Judge Holds Servicer, Trustee Held Interest In Loan, UCL, FDCPA Claims Fail

    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).

  • July 5, 2018

    Philadelphia Opposes Bank’s Discovery Request In Discriminatory Lending Case

    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.).

  • July 2, 2018

    9th Circuit Holds Borrower’s Acknowledgment Tolled Statute Of Limitations

    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).