Mealey's Banking & Finance - Panel: Notice Requirement Is Ambiguous, Coverage Owed For Derivatives Litigation

ST. LOUIS - The Eighth Circuit U.S. Court of Appeals found July 16 that an insurer owes coverage for underlying derivatives litigation alleging that the insured participated in an anticompetitive overpricing scheme involving municipal bonds (George K. Baum & Co. v. Twin City Fire Insurance Co., Nos...

Mealey's Banking & Finance - Financial Industry Regulatory Authority Creates Arbitration Task Force

WASHINGTON, D.C. - The Financial Industry Regulatory Authority (FINRA) on July 17 announced that it has created an arbitration task force to assist in improving securities arbitration for participants.

Mealey's Banking & Finance - Judge Grants In Part, Denies In Part Dismissal In Securities Class Action

NEW YORK - Without providing further opinion, a federal judge in New York on July 15 granted in part and denied in part a motion to dismiss filed by Goldman Sachs & Co. and others in a securities class action lawsuit regarding Goldman's alleged misrepresentations pertaining to the financial condition...

Mealey's Banking & Finance - 9th Circuit Reverses Dismissal Of Claimants' TILA, RESPA Claims

SAN FRANCISCO - In a majority ruling, Ninth Circuit U.S. Court of Appeals on July 16 reversed a ruling that dismissed claims for violation of various federal statutes asserted by homeowners, finding that their claims were not time-barred and that their claim for violation of the Truth in Lending Act...

Mealey"s Banking & Finance - Panel: Claims Triggered Coverage Under Real Estate Errors And Omissions Policy

PORTLAND, Ore. - The Ninth Circuit U.S. Court of Appeals on July 18 affirmed a lower federal court"s ruling that an underlying complaint contained allegations of "real estate services" related to the sale of property and, therefore, were sufficient to trigger an insurer"s duty to...

Mealey's Banking & Finance - Insured Failed To Timely Report $10.5M Shortfall Claim Brought By Bank, Judge Says

AUSTIN, Texas - A professional liability insurer has no duty to defend its insured against a bank's underlying claim that it discovered a $10.5 million shortfall in the depository accounts it was providing for the insured's customers, a Texas federal judge ruled July 18, granting the insurer's...

Mealey's Banking & Finance - Federal Judge Finds Homeowner's Claims Related To Foreclosure Are Barred

DETROIT - A Michigan federal judge on July 22 found that all of a homeowner's claims against a mortgage lender and a loan servicer were either barred by state law or were not sufficiently pleaded, dismissing an action filed in relation to the sheriff's sale of her home (Tyessia Ross v. Federal...

Mealey's Banking & Finance - Federal Judge Finds Bank Was Entitled To Foreclose On Property

HOUSTON - A Texas federal judge on July 28 granted summary judgment in favor of a bank, finding that a statute of limitations did not invalidate its ability to foreclose on a property (Jerry Factor, et al. v. JP Morgan Chase Bank, N.A., No. 3:13-CV-266, S.D. Texas; 2014 U.S. Dist. LEXIS 102318).

Mealey's Banking & Finance - Federal Judge Dismisses Claims For Violations Of Fair Credit Reporting Act

BALTIMORE - After finding that class claims asserted by homeowners in relation to the foreclosure of their property failed under the Fair Credit Reporting Act (FCRA), a Maryland federal judge on July 29 granted a bank's motion to dismiss the case (Byron R. Bartlett, et al. v. Bank of America, NA...

Mealey's Banking & Finance - Federal Judge Allows Claims Alleging Credit Inaccuracies To Proceed

PHOENIX - An Arizona federal judge on July 29 granted a bank's motion to dismiss a homeowner's complaint in relation to allegations that it refused to correct inaccuracies in his credit report, but ordered that the bank respond to the most recently filed complaint (Patrick Renner v. Bank of America...

Mealey's Banking & Finance - Judge Orders Banks, Officer To Pay $1.3 Billion For Mortgage Fraud

NEW YORK - A New York federal judge on July 30 ordered Bank of America Corp., as successor to Countrywide Financial Corp. and Countrywide Home Loans, and a former Countrywide officer to pay $1.3 billion in damages in connection with Countrywide's residential mortgage lending business and a scheme...

Mealey's Banking & Finance - Federal Judge Grants Judgment For Banks, Finds Loan Modification Was Null

WASHINGTON, D.C. - A District of Columbia federal judge on July 30 granted summary judgment in favor of two banks on all claims asserted by a homeowner in relation to the execution of a loan modification, finding that the underlying loan modification agreement was not valid (James T. Covington, et al...

Mealey's Banking & Finance - Federal Judge Finds Homeowner's TILA Claims Against Banks Are Time-Barred

RICHMOND, Va. - A Virginia federal judge on Aug. 1 granted a group of banks' motion to dismiss a homeowner's action against them in relation to the foreclosure sale of her house, finding that her claims for violation of the Truth in Lending Act (TILA) were time-barred and for failure to state...

Mealey's Banking & Finance - 9th Circuit Finds Court Erred In Dismissing Claim Alleging Deceptive Acts

HONOLULU - After finding that a property owner sufficiently alleged her claim that banks and others violated Hawaii law, the Ninth Circuit U.S. Court of Appeals on Aug. 4 reversed a decision dismissing the claim and remanded the case for further proceedings (Watoshina Lynn Compton v. Countrywide Financial...

Mealey's Banking & Finance - 4th Circuit Finds Court Properly Denied New Trial On Class's RESPA Claims

RICHMOND, Va. - After finding that due to a group of class claimants' failure to move for judgment before a jury rendered a verdict in favor of a bank and real estate firm on their claims for violation of the Real Estate Settlement Procedures Act (RESPA), the Fourth Circuit U.S. Court of Appeals...

Mealey's Banking & Finance - Judge: Forensic Sampling May Be Appropriate In Consolidated Securities Lawsuits

NEW HAVEN, Conn. - Although a Connecticut federal judge on Aug. 4 saw the value in conducting forensic in several residential mortgage-backed securities (RMBS), which comprise thousands of mortgages, he declined to issue a definitive ruling and denied a trust's motion to expedite the matter and conduct...

Mealey's Banking & Finance - Federal Judge Dismisses Bank's Claims Against Quicken Loans As Time-Barred

NEW YORK - A New York federal judge on Aug. 4 dismissed a bank's breach of contract claims related to representations and warranties made by a loan company in relation to the quality of mortgage loans, finding that the case was barred by a six-year statute of limitations (Deutsche Bank National Trust...

Mealey's Banking & Finance - Standing Lacking For UCL Claim In Foreclosure Dispute, 9th Circuit Affirms

PASADENA, Calif. - Homeowners' wrongful foreclosure claims against mortgage lenders, including a claim under California's unfair competition law (UCL), alleging that the assignment of their home loan obligation to a securitized investment trust was void because it did not comply with the pooling...

Mealey's Banking & Finance - Federal Judge Deals Final Blow To Homeowners' UCL Claims Against Lender

SACRAMENTO, Calif. - A California federal judge on Aug. 6 dismissed for the second time two homeowners' claims under the state's unfair competition law (UCL) that their mortgage lender's unfair business practices caused them to default on their loan after finding that the homeowners again...

Mealey's Banking & Finance - Consumer Financial Protection Bureau Orders Amerisave To Pay $20.8 Million

IOWA CITY, Iowa - The Consumer Financial Protection Bureau on Aug. 12 found that Amerisave Mortgage Corp. and others violated the Truth In Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA), ordering them to pay $20,892,234 in penalties (In re In the Matter of: Amerisave Mortgage...

Mealey's Banking & Finance - Panel: Bank Had No Duty To Inquire Whether Adviser Had Authority To Open Account

ST. LOUIS - The Eighth Circuit U.S. Court of Appeals on Aug. 13 held that a bank had no duty to investigate whether an insured investment company gave an adviser authority to open a doing/business/as bank account, affirming a lower court's ruling dismissing an insurer's lawsuit stemming from...

Mealey's Banking & Finance - 7th Circuit Dismisses Attorney's Appeal Over Costs Award As Frivolous

CHICAGO - After finding that a property owner and her attorney's appeal of a foreclosure action was frivolous, the Seventh Circuit U.S. Court of Appeals on Aug. 13 affirmed a court's decision to award a mortgage lender fees and costs (PNC Bank N.A. v. Sheila M. Spencer, et al., No. 13-2676, 7th...

Mealey's Banking & Finance - New York Federal Judge: Judgment Offer Does Not Moot Debt Collection Class Claims

NEW YORK - A debt collector's offer of judgment does not moot Fair Debt Collection Practices Act (FDCPA) class claims brought by a New York woman because the plaintiff had already requested permission to move for class certification, a New York federal judge ruled Aug. 13 (Angelique Tocco v. Real...

Mealey's Banking & Finance - 11th Circuit Affirms Decision Against Property Owner For Misrepresentations

ATLANTA - The 11th Circuit U.S. Court of Appeals on Aug. 19 affirmed a Florida federal court's decision to imprison a homeowner for making false statements to secure a reverse-mortgage loan, finding that the court did not err when it calculated the loss amount (United States of America v. Yesenia...

Mealey's Banking & Finance - Arizona Federal Judge Denies Class Certification In Suit Over Mortgage Program

PHOENIX - An Arizona federal judge on Aug. 15 denied class certification in a suit over a low-down-payment mortgage program, finding that the named plaintiff was an insufficient class representative and that individualized issues predominate (Margaret Galas, et al. v. The Lending Company, Inc., et al...