LexisNexis® Legal Newsroom
    Mealey's Banking & Finance - Panel: Failure To Request Written Consent Before Settlement Negates Coverage

    PASADENA, Calif. - The Ninth Circuit U.S. Court of Appeals on Jan. 19 found that a lower federal court properly applied California law in finding that a bank insured breached its professional liability insurance policy by failing to request or obtain the insurer's written consent before executing a settlement in an underlying mortgage loan dispute (OneWest Bank, FSB, v. Houston Casualty Co., No. 15-55579, 9th Cir.; 2017 U.S. App. LEXIS 993).

    Mealey's Banking & Finance - High Court Finds Clause Did Not Confer Federal Jurisdiction For Fannie Mae

    WASHINGTON, D.C. - The U.S. Supreme Court on Jan. 18 reversed a decision granting judgment for the Federal National Mortgage Association (Fannie Mae) on claims related to a property foreclosure, finding that the sue-and-be-sued clause in a federal charter does not expressly confer jurisdiction on federal courts (Crystal Monique Lightfoot, et al. v. Cendant Mortgage Corporation, et al., No. 14-1055, U.S. Sup.; 2017 U.S. LEXIS 785).

    Mealey's Banking & Finance - Deutsche Bank To Pay $7.3B For Misleading Investors In Sale Of RMBS

    WASHINGTON, D.C. - Deutsche Bank AG and its current and former subsidiaries and affiliates and ACE Securities Corp. will pay $7.2 billion in civil penalties and relief to homeowners and others to settle claims that it misrepresented investors regarding the investment quality of residential mortgage-backed securities (RMBS) between 2006 and 2007, the U.S. Department of Justice announced on Jan. 17.

    Mealey's Banking & Finance - Federal Judge Dismisses Foreclosure-Related Claims As Barred By Rooker-Feldman

    CHICAGO - An Illinois federal judge on Jan. 17 granted a mortgage company's motion to dismiss foreclosure-related claims asserted by a former property owner, finding that the case was barred by a state court action (Fred Freeman v. Long Beach Mortgage Co., et al., No. 16-cv-4272, N.D. Ill.; 2017 2017 U.S. Dist. LEXIS 5943).

    Mealey's Banking & Finance - 3rd Circuit Finds Claims Against U.S. Bank Are Barred By Foreclosure Case

    PHILADELPHIA - The Third Circuit U.S. Court of Appeals on Jan. 12 affirmed a district court's decision to dismiss causes of action related to the assignment of a mortgage against a bank and a mortgage company, finding that the case was barred by the doctrine established in Rooker v. Fidelity Trust Co. (263 U.S. 413 [1923]) and District of Columbia Court of Appeals v. Feldman (460 U.S. 462 [1983]) (Marieliz Monclova v. U.S. Bank NA, As trustee, on behalf of the holders of the CSMC Mortgage-Backed pass-through certificates series 2007-I, et al., No. 16-3677, 3rd Cir.; 2017 U.S. App. LEXIS 597).

    Mealey's Banking & Finance - Coverage Of Share Dispute Barred By 'Insured Vs. Insured' Exclusion, Panel Affirms

    ST. LOUIS - The Eighth Circuit U.S. Court of Appeals on Jan. 11 affirmed a lower court's ruling that a directors and officers liability insurance policy's "insured vs. insured" exclusion bars coverage for an underlying share dispute brought against a closely held corporation and two members of its board of directors by a former board member and her two daughters (Jerry's Enterprises, Inc. v. U.S. Specialty Insurance Co., No. 15-3324, 8th Cir.; 2017 U.S. App. LEXIS 475).

    Mealey's Banking & Finance - Judge Finds UCL Claims Against Wells Fargo Fail For Lack Of Standing

    SAN FRANCISCO - After finding that two borrowers failed to adequately plead their claims for violation of California's unfair competition law (UCL) and negligence, a California federal judge on Jan. 10 granted a motion to dismiss filed by Wells Fargo Bank N.A. (Michelle A. Graham, et al. v. Wells Fargo Bank, N.A., No. 3:15-cv-04220. N.D. Calif.; 2017 U.S. Dist. LEXIS 3598).

    Mealey's Banking & Finance - Judge Allows Deutsche Bank To Amend Claims Related To Default Notices

    SAN DIEGO - A California federal judge on Jan. 5 granted a bank's request to assert counterclaims against borrowers and to add various counterdefendants to an action in which property owners assert claims for violation of California's unfair competition law (UCL), the Truth in Lending Act (TILA) and other causes of action, finding that amendment would not prejudice the claimants (Rick J. Hinrichsen, et al. v. Quality Loan Service Corporation, et al., No. 16cv0690, S.D. Calif.; 2017 U.S. Dist. LEXIS 1670).

    Mealey's Banking & Finance - Judge Finds TILA And Quiet Title Claims Are Precluded By Foreclosure Case

    CLEVELAND - An Ohio federal judge on Jan. 5 granted a mortgage company's motion to dismiss claims for violation of the Truth in Lending Act (TILA) and other claims related to a foreclosure, finding that the claims were barred by a ruling in a state court case (Kariem Hasan v. Citimortgage Inc., No. 1:16cv2311, N.D. Ohio; 2017 U.S. Dist. LEXIS 1471).

    Mealey's Banking & Finance - 3rd Circuit Finds Capital One Did Not Misrepresent Loan

    PHILADELPHIA - The Third Circuit U.S. Court of Appeals on Jan. 4 affirmed a district court's ruling in favor of a lender, finding that a property owner failed to allege any facts to support a finding that it breached any mortgage agreement with him or intentionally inflicted emotional distress (Ruben Martinez v. Capital One, N.A., No. 16-2753, 3rd Cir.; 2017 U.S. App. LEXIS 89).

    Mealey's Banking & Finance - Federal Judge Dismisses UCL Claim Against MERS For Failure To Amend

    SAN FRANCISCO - After finding that a borrower failed to amend her claims for violation of California's unfair competition law (UCL) and declaratory relief, a California federal judge on Jan. 3 granted a motion to dismiss a second amended complaint against lenders in relation to a mortgage (Modesta Jacinto v. Ditech Financial LLC, et al., No. 16-cv-02815, N.D. Calif.; 2017 U.S. Dist. LEXIS 1012).

    Mealey's Banking & Finance - Federal Judge Partially Grants Discovery Related To Reverse Mortgage

    NEW HAVEN, Conn. - A Connecticut federal judge on Dec. 30 partially granted a property owner's request for production of documents in relation to his reverse mortgage but denied the motion as to his request regarding certain policies of the lender (Vincent Bartold v. Wells Fargo Bank, N.A., No. 14-cv-00865, D. Conn.; 2016 U.S. Dist. LEXIS 180216).

    Mealey's Banking & Finance - 10th Circuit Finds FDCPA Claim Was Barred By Limitations Period

    DENVER - The 10th Circuit U.S. Court of Appeals on Dec. 28 affirmed a district court's dismissal of a claim for violation of the Fair Debt Collections Practices Act (FDCPA) against several mortgage entities as time-barred by a one-year statute of limitations and that an exception to a federal evidence rule did not apply (Elbert Kirby Jr., et al. v. David M. O'Dens, et al., Nos. 15-5107 and 16-5029, 10th Cir.; 2016 U.S. App. LEXIS 23339).

    Mealey's Banking & Finance - Federal Judge Finds Foreclosure Claims Are Barred By Previous Suit

    HOUSTON - A Texas federal judge on Dec. 30 found that a foreclosure-related case was barred by the doctrine of res judicata because the pleadings in the previous case were identical and already dismissed (Lester Anthony McPherson v. Bank of America, N.A., et al., No. 16-3498, S.D. Texas; 2016 U.S. Dist. LEXIS 180115).

    Mealey's Banking & Finance - Magistrate Recommends Dismissal Of Foreclosure-Related Claims Against Loan Servicer

    SACRAMENTO, Calif. - After finding no evidence to support a borrower's claims for wrongful foreclosure and violation of California's unfair competition law (UCL), a California federal magistrate judge on Dec. 22 recommended that his claims against a loan servicer be dismissed without leave to amend (Timothy Mulgrew Jr. v. Green Tree Servicing LLC, et al., No. 2:14cv2998, E.D. Calif.; 2016 U.S. Dist. LEXIS 177715).

    Mealey's Banking & Finance - 4th Circuit Finds No Evidence To Support FDCPA Claims Against Ocwen

    RICHMOND, Va. - The Fourth Circuit U.S. Court of Appeals on Dec. 20 affirmed the grant of summary judgment to a loan-servicing company, finding that a borrower failed to submit sufficient evidence to create a genuine issue of material fact to support his claims related to the alleged improper reporting of his debt (Thomas W. Lovegrove v. Ocwen Home Loans Servicing LLC, No. 15-2158, 4th Cir.; 2016 U.S. App. LEXIS 22640).

    Mealey's Banking & Finance - Judge Refuses To Dismiss RESPA Claim, Adopts Magistrate's Report

    DETROIT - A Michigan federal judge on Dec. 20 adopted a magistrate judge's recommendation that the majority of claims asserted by former property owners against two loan companies in relation to the foreclosure of their property be dismissed, but found that their cause of action for violation of the Real Estate Settlement Procedures Act (RESPA) should be allowed to proceed (Rodney Helm, et al. v. Freedom Mortgage Corporation, et al., No. 15-cv-12394, E.D. Mich.; 2016 U.S. Dist. LEXIS 175450).

    Mealey's Banking & Finance - 2nd Circuit Finds Rescission Period Under TILA Had Expired, Affirms Dismissal

    NEW YORK - The Second Circuit U.S. Court of Appeals on Dec. 16 affirmed a decision granting dismissal for a bank of a borrower's claims for rescission under the Truth in Lending Act (TILA), finding that the rescission period had expired (Allyson Smith v. Wells Fargo Bank, N.A., No. 16-611, 2nd Cir.; 2016 U.S. App. LEXIS 22342).

    Mealey's Banking & Finance - 9th Circuit Affirms Dismissal Of UCL And Antitrust Claims Against Bank

    PASADENA, Calif. - The Ninth Circuit U.S. Court of Appeals on Dec. 14 affirmed a court's dismissal of claims for violation of California's unfair competition law (UCL) and for violation of the Sherman Act against several banks, finding that some of a borrower's claims could not be based on vicarious liability and that she lacked standing (Helen Galope v. Deutsche Bank National Trust Company, as Trustee under Pooling and Servicing Agreement dated as of May 1, 2007 Securitized Asset Backed Receivables LLC Trust 2007-BR4, No. 15-55246, 9th Cir.; 2016 U.S. App. LEXIS 22210).

    Mealey's Banking & Finance - California Court Finds Borrower Lacked Standing To Challenge Foreclosure

    LOS ANGELES - After finding that a borrower failed to show that he had standing to challenge the foreclosure of a property, a California court on Dec. 12 affirmed a trial court's decision to grant a demurrer in favor of Citibank N.A. (Marc I. Rosenthal v. Citibank N.A., et al., No. B263465, Calif. App., 2nd Dist., Div. 7; 2016 Cal. App. Unpub. LEXIS 8947).

    Mealey's Banking & Finance - Judge Enters Default Ruling, Awards Investor $1.07M In Damages

    LOS ANGELES - After finding that an investor adequately pleaded that financial advisers deliberately made misrepresentations and concealed information about the risks associated with investments, a California federal judge on Dec. 9 entered a default ruling in her favor for $1,070,972.88 (Julie Marshall v. Platinum Global Advisors, LLC, et al., No. 16-672, C.D. Calif.; 2016 U.S. Dist. LEXIS 171588.)

    Mealey's Banking & Finance - Judge Orders Borrower To Show Cause On Failure To Prosecute Lending Claims

    SANTA ANA, Calif. - A California federal judge on Dec. 7 ordered a property owner to show cause as to why his claims against Nationstar Mortgage LLC should not be dismissed for failure to prosecute and why sanctions should not be imposed for fees incurred by the lender (Frank J. Arlasky v. Nationstar Mortgage LLC, et al., No. 15-01514, C.D. Calif.; 2016 U.S. Dist. LEXIS 169421).

    Mealey's Banking & Finance - 9th Circuit Affirms Ruling For Wells Fargo On Mortgage Lending Claims

    PASADENA, Calif. - The Ninth Circuit U.S. Court of Appeals on Dec. 6 affirmed a district court's decision to grant summary judgment on claims for violation of California's unfair competition law (UCL), negligence, wrongful foreclosure and other claims asserted against Wells Fargo Bank N.A., finding that the borrower failed to submit any disputed facts and that the claims were preempted (Dennly R. Becker v. Wells Fargo Bank, N.A.; Dennley R. Becker and Becker Trust Dated March 25, 1991 v. Wells Fargo Bank, NA, et al., No. 13-16772, Nos. 14-16783, 15-15322, 9th Cir.; 2016 U.S. App. LEXIS 21715).

    Mealey's Banking & Finance - 10th Circuit Affirms Bankruptcy Court's Dismissal Of Fraudulent Transfer Claims

    DENVER - The 10th Circuit U.S. Court of Appeals on Dec. 6 affirmed a bankruptcy court's decision to enter summary judgment against a debtor in relation to the sale of a property, finding that its claims for fraudulent transfer of the loan failed (In re: Expert South Tulsa LLC, Steven R. Rebein, Chapter 7 Trustee for Expert South Tulsa LLC, et al. v. Cornerstone Creek Partners, LLC, No. No. 15-3190, 10th Cir.; 2016 U.S. App. LEXIS 21704).

    Mealey's Banking & Finance - Federal Judge Allows Borrower To Amend Claims Against Loan Servicer

    SAN FRANCISCO - A California federal judge on Dec. 5 dismissed claims for wrongful foreclosure and violations of the California civil code against two mortgage-related entities but granted a borrower leave to file a second amended complaint against one lender in relation to the foreclosure of her property (Sadie S. Shaw v. Ocwen Loan Servicing LLC, et al., No. 15-cv-01755, N.D. Calif.; 2016 U.S. Dist. LEXIS 167720).