Mealey's Mortgage Lending

  • March 25, 2021

    Law Firm, Mortgage Servicer Named In FDCPA Suit Over Foreclosure Suit Filing

    BROOKLYN, N.Y. — A borrower sued a law firm and her mortgage servicer in New York federal court on March 23, alleging that the defendants violated provisions of the Fair Debt Collection Practices Act (FDCPA) and New York state law by attempting to initiate time-barred foreclosure proceedings after the borrower defaulted on her mortgage loan.

  • March 23, 2021

    Review Of Quiet Title Action Ruling Unnecessary, Respondents Tell High Court

    WASHINGTON, D.C. — U.S. Supreme Court review of a Ninth Circuit U.S. Court of Appeals panel ruling that a federal district court’s determination that a quiet title action brought by Federal Home Loan Mortgage Corp. (Freddie Mac) and M&T Bank was timely because Freddie Mac was standing in the shoes of its conservator and M&T was standing in the shoes of Freddie Mac when the action was brought is not warranted because the Federal Foreclosure Bar protects a conservatorship property from “extinguishment  by ‘foreclosure[] or sale,’” Freddie Mac and M&T argue in a March 22 respondents’ brief filed in the Supreme Court.

  • March 19, 2021

    Contract Breach, Reliance Claims In Wrongful Foreclosure Suit Dismissed

    BOSTON — A federal judge in Massachusetts on March 16 dismissed claims alleging that a mortgage loan trustee and loan servicer breached the terms of a mortgage loan by improperly collecting escrow payments from a borrower, ruling that the terms of the mortgage loan allowed for such action.

  • March 19, 2021

    Counties’ Claims In Discriminatory Lending Suit Against Wells Fargo To Proceed

    BALTIMORE — In a Feb. 17 ruling, a federal judge in Maryland allowed claims brought pursuant to the Fair Housing Act (FHA) made by two Maryland counties to proceed against Wells Fargo & Co., holding that the counties have sufficiently alleged injuries in violation of the statute based on Well Fargo’s alleged predatory and discriminatory lending practices targeting minority borrowers in those counties.

  • March 18, 2021

    Borrower’s Contract Breach Suit Against Loan Servicer Remanded To State Court

    FORT LAUDERDALE, Fla. — A federal judge in Florida on March 8 remanded a borrower’s breach of contract lawsuit against its loan servicer to state court, ruling that the evidence provided by the loan servicer in support of its removal notice is insufficient to support such action.

  • March 17, 2021

    Borrower’s FDCPA Claim Not Barred By Entire Controversy Doctrine, Judge Rules

    NEWARK, N.J. — A federal judge in New Jersey on March 16 denied a motion to dismiss filed by a lender and mortgage loan servicer in a Fair Debt Collection Practices Act (FDCPA) lawsuit, ruling that the defendants’ argument that a borrower’s claims against them are barred by New Jersey’s entire controversy doctrine is insufficient because no final state court judgment on the merits has been issued.

  • March 16, 2021

    Remaining Claims In FDCPA Suit Over Foreclosure Proceedings Dismissed

    SCRANTON, Pa. — A federal judge in Pennsylvania on March 12 ruled that a lender and loan servicer are entitled to summary judgment on claims brought by borrowers in a Fair Debt Collection Practices Act (FDCPA) lawsuit stemming from a foreclosure action because the loan servicer was not a debt collector on the FDCPA and the borrowers’ basis for their FDCPA claim resulted from their bankruptcy filing and not the foreclosure action.

  • March 16, 2021

    Dismissal Of Borrowers’ Credit Reporting Claims Against Loan Servicer Upheld

    SAN FRANCISCO — A Ninth Circuit U.S. Court of Appeals panel on March 12 ruled in an unpublished opinion that a federal district court did not err in dismissing borrowers’ state and federal credit reporting claims against their loan servicer, ruling that the borrowers failed to state a valid claim for relief in alleging that information the servicer reported to the credit report agencies was misleading and inaccurate.

  • March 15, 2021

    Failure To Produce Agreement Dooms Borrower’s Claims Against Loan Servicer

    NEW ORLEANS — A federal judge in Louisiana on March 11 granted a motion to dismiss filed by defendants in a mortgage fraud lawsuit, ruling that a borrower failed to produce a written agreement to support his claim that he was injured by the defendants’ failure to properly process his application for loss mitigation in a within the timeframe agreed by the parties.

  • March 15, 2021

    Dismissal Of RICO Claims In Borrower Suit As Barred Under Res Judicata Affirmed

    CINCINNATI — A federal district court did not err in applying the doctrine of res judicata in  dismissing a developer’s claims brought pursuant to the Racketeer Influenced and Corrupt Organizations Act (RICO) against it lender because the borrower could have brought its claims in a related state court action, a Sixth Circuit U.S. Court of Appeals panel ruled March 10 in affirming.

  • March 11, 2021

    Borrower’s Claims In Wrongful Foreclosure Suit Dismissed As Insufficient

    SAN FRANCISCO — A federal judge in California on March 9 granted a pair of motions to dismiss filed by defendants in a wrongful foreclosure action, ruling that a borrower’s claims against those defendants were lacking for various reasons.

  • March 10, 2021

    Mortgage Broker Alleged To Receive Kickbacks For Mortgage, Refinance Referrals

    GREENBELT, Md. — A mortgage broker violated provisions of the Real Estate Settlement Procedures Act (RESPA) and the Racketeer Influenced and Corrupt Organizations Act (RICO) by engaging in an illegal kickback scheme whereby the broker received the alleged kickbacks from a nonparty title services provider in exchange for assigning the provider with business, borrowers allege in a March 8 complaint filed in Maryland federal court.

  • March 09, 2021

    Claims Against Law Firm Over Actions In Foreclosure Proceedings Dismissed

    SEATTLE — Dismissal of a borrower’s claims against a law firm under the Washington Consumer Protection Act (CPA) and the Fair Debt Collection Practices Act (FDCPA) is warranted because the firm was not a party or unlicensed debt collector in nonjudicial foreclosure proceedings, but instead, served as legal counsel to a loan servicer during the proceedings, a federal judge in Washington ruled on March 5.

  • March 05, 2021

    5th Circuit: Magistrate Lacked Jurisdiction To Issue Foreclosure Suit Judgment

    NEW ORLEANS — The Fifth Circuit U.S. Court of Appeals on March 2 vacated and remanded a federal magistrate judge’s entry of a final judgment in a foreclosure and declaratory judgment action stemming from a borrower’s default on a home equity loan, finding that the magistrate judge lacked jurisdiction because a loan servicer did not grant express consent for the magistrate judge to conduct proceedings and issue the decision.

  • March 05, 2021

    U.S. Supreme Court Requests Responses To Petition In Quiet Title Suit

    WASHINGTON, D.C. — The U.S. Supreme Court on Feb. 18 requested that the U.S. government and the Federal Home Loan Mortgage Corp. (Freddie Mac) respond to a petition for writ of certiorari filed by a corporation that purchased a property in a foreclosure sale that is seeking a determination as to whether the structure of the Federal Housing Finance Agency (FHFA) violates the separation of powers provision principle and whether quiet title actions brought by the FHFA are contract claims under the Federal Foreclosure Bar of the Housing and Economic Recovery Act of 2008 (HERA).

  • March 05, 2021

    Borrower Sues Law Firm, Others Over Debt Collection Efforts On Mortgage Loan

    NEWARK, N.J. — A borrower sued two debt collectors and his lender in New Jersey federal court on March 3, alleging that the defendants violated the Fair Debt Collection Practices Act (FDCPA) and New Jersey state law by attempting to collect on the defaulted loan more than 13 years after the default.

  • March 02, 2021

    Experian Named In FCRA Suit Over Erroneous Mortgage Loan Payment Entry

    ATLANTA — A borrower sued credit reporting agency Experian Information Solutions Inc. and a loan servicer in Georgia federal court on Feb. 26, alleging that the defendants violated provisions of the Fair Credit Reporting Act (FCRA) by erroneously reporting a late mortgage loan payment on the borrower’s credit report and failing to correct the mistake when it was made known to the defendants.

  • February 25, 2021

    Federal Claims Receive 2nd Life In Borrowers’ Suit Over Home Foreclosure

    PROVIDENCE, R.I. — A federal judge in Rhode Island on Feb. 22 partially granted a request made by borrowers in a breach of contract lawsuit against the holder of their mortgage note and a debt collector to alter or amend his ruling dismissing their claims for violation of Truth in Lending Act (TILA) and Fair Debt Collection Practices Act (FDCPA), ruling that his dismissal of the TILA and FDCPA on jurisdictional grounds was incorrect.

  • February 25, 2021

    Panel:  Court Did Not Err In Sustaining Demurrer In Wrongful Foreclosure Suit

    LOS ANGELES — In an unpublished opinion, a California appellate panel on Feb. 22 affirmed a state trial court’s ruling sustaining a demurrer filed by their loan servicer without leave to amend in a wrongful foreclosure lawsuit, ruling that borrowers have failed to show that the loan servicer lacked the necessary authority to foreclose on their real property.

  • February 25, 2021

    Borrower’s FCRA Claim Against Loan Servicer Dismissed On Jurisdictional Grounds

    BROOKLYN, N.Y. — A federal judge in New York on Feb. 23 granted a loan servicer’s motion to dismiss a claim for violation of the Fair Credit Reporting Act (FCRA) brought against it by a borrower for allegedly reporting incorrect information regarding the borrower’s default on her mortgage to the credit reporting agencies, ruling that the borrower failed to make a prima facie showing that the court lacked personal jurisdiction over the defendant.

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