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Mealey's Mortgage Lending

  • June 21, 2018

    Federal Judge Rejects Objections, Rules Foreclosure Ruling Was Valid

    NASHVILLE, Tenn. — A Tennessee federal judge on June 18 rejected a borrower’s objections to a magistrate judge’s report and recommendation that her foreclosure-related claims be dismissed, holding that the district court lacked jurisdiction and that the case was barred by rulings in two previous lawsuits (Ralinda Brooks, et al. v. First Franklin Financial Corp., No. 3:17-00953, M.D. Tenn., 2018 U.S. Dist. LEXIS 101604).

  • June 19, 2018

    New Jersey Panel Holds Foreclosure Action Was Timely, Affirms Ruling

    TRENTON, N.J. — A New Jersey appeals court on June 15 ruled that a bank’s original foreclosure case, which was voluntarily dismissed, did not begin to run a statute of limitations, rejecting a borrower’s argument that the foreclosure action was time-barred (Deutsche Bank National Trust Company, ex rel. v. Michael Hochmeyer, et al., No. A-4714-16T3, N.J. Super., App. Div., 2018 N.J. Super. Unpub. LEXIS 1402).

  • June 19, 2018

    9th Circuit Affirms Dismissal Of UCL, HBOR Claims Related To Foreclosure

    PASADENA, Calif. — The Ninth Circuit U.S. Court of Appeals on June 18 affirmed a district court’s decision to grant judgment on the pleadings for lenders and a loan servicer, holding that her claims were barred by a two-year statute of limitations and that she had no viable claim for violation of California’s unfair competition law (UCL) (Pamela Rae v. Bank of America, N.A., et al., No. 17-55283, 9th Cir., 2018 U.S. App. LEXIS 16344).

  • June 14, 2018

    Therapist Cannot Opine That Mortgage Dispute Caused Man’s Depression

    PITTSBURGH — A mental health therapist cannot testify as an expert about whether the conduct of mortgage companies caused a man’s depression and anxiety because she admittedly based her opinions on just talking to the man as a friend she had met online, not as a licensed counselor, a Pennsylvania federal judge held June 12 (Francis Vilkofsky, Jr. v. Specialized Loan Servicing, LLC, et al., No. 2:16-cv-01291, W.D. Pa., 2018 U.S. Dist. LEXIS 97875).

  • June 13, 2018

    Judge Denies Most Of Bank’s Motion To Dismiss Foreclosure-Related Claims

    SAN FRANCISCO — A California federal judge on June 11 granted a bank’s motion to dismiss a borrower’s claim for violation of California’s unfair competition law (UCL) for failure to state a claim, but allowed most of her claims to proceed, including a cause of action for breach of California’s Homeowners Bill of Rights (HBOR) (Ursula Ogamba v. Wells Fargo Bank, N.A., No. 2:17-cv-01754, E.D. Calif., 2018 U.S. Dist. LEXIS 97803).

  • June 11, 2018

    Magistrate Judge Dismisses UCL, HBOR Claims Against Wells Fargo

    SAN FRANCISCO — A California federal magistrate judge on June 7 dismissed a borrower’s claims for violation of the California Homeowners Bill of Rights (HBOR) and California’s unfair competition law (UCL) with leave to amend, holding that she failed to plead sufficient facts to show that a lender violated the laws in relation to a loan modification (Julie Galvez v. Wells Fargo Bank, N.A., et al., No. 17-cv-06003, N.D. Calif., 2018 U.S. Dist. LEXIS 96300).

  • June 7, 2018

    Banks Gave Proper Notice Of Foreclosure Under Michigan Law, Judge Holds

    DETROIT — After finding that a trustee and loan servicer did not fail to give a borrower proper notice in violation of Michigan’s foreclosure by advertisement statue, a Michigan federal judge on June 4 granted dismissal of causes of action related to the foreclosure of the borrower’s property (Maurice McClain v. Deutsche Bank National Trust Company, et al., No. 18-10452, E.D. Mich., 2018 U.S. Dist. LEXIS 93729).

  • June 6, 2018

    6-Year Foreclosure Statute No Longer Applies In Nevada, Judge Holds

    LAS VEGAS — After finding that the Nevada Supreme Court rejected the argument that a lender cannot foreclose on a property after six years has passed since the borrower ceased making payment, a Nevada federal judge on June 4 dismissed an action filed by borrowers seeking to enjoin foreclosure of their property after eight years of nonpayment on their loan (Douglas Stacey, et al. v. Carrington Mortgage Service, LLC, et al., No. 2:17-cv-02128, D. Nev., 2018 U.S. Dist. LEXIS 93277).

  • June 4, 2018

    MERS Had Authority To Assign Loan; Panel Affirms Dismissal

    SEATTLE — The Ninth Circuit U.S. Court of Appeals on May 31 affirmed a district court’s ruling in favor of lenders and loan servicers, finding that a borrower’s claims for fraud and violation of Washington consumer protection law were untimely (Herbert R. Pearse v. First Horizon Home Loan Corp., et al., No. 16-35935, 9th Cir., 2018 U.S. App. LEXIS 14364).

  • 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).