- Volume 11, Issue #9
- 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).
- 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).
- 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).
- 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).
- 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).
- 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).
- 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).
- 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).
- 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).
- 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).
- 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).
- 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).
- 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).
- 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).
- 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).
- 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).
- 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).
- 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).