PASADENA, Calif. - The Ninth Circuit U.S. Court of Appeals on Oct. 19 affirmed a federal court's finding that a bank's management liability insurance policy's "unrepaid loan carve-out" does not bar coverage for damages sought by the Federal Deposit Insurance Corp. (FDIC) in an underlying lawsuit alleging tortious conduct by the bank's directors and officers (St. Paul Mercury Insurance Co. v. Federal Deposit Insurance Corporation, No. 14-56830, 9th Cir.; 2016 U.S. App. LEXIS 18811).
PASADENA, Calif. - In a majority ruling, the Ninth Circuit U.S. Court of Appeals on Oct. 19 affirmed a district court's dismissal of a property owner's claims for violation of the Fair Debt Collection Practices Act (FDCPA), finding that a trustee was not a debt collector under the statute, but remanded the case for further review of her claim for rescission under the Truth in Lending Act (TILA) (Vien-Phuong Thi Ho v. Recontrust Company, NA, et al., No. 10-56884, 9th Cir.; 2016 U.S. App. LEXIS 18836.)
CINCINNATI - A federal magistrate judge on Oct. 18 recommended that a former property owner's claims against a mortgage company be dismissed for lack of subject matter jurisdiction, but declined a lender's request that he be declared a vexatious litigator (Phillips Brantley v. CitiMortgage, No. 1:16-cv-707, S.D. Ohio; 2016 U.S. Dist. LEXIS 144020).
ROCKFORD, Ill. - An Illinois federal judge on Oct. 18 granted a lender's motion to dismiss a case filed by a borrower, finding that all of a former property owner's claims related to a foreclosure could have been raised in a previous state court case (Lorenzo C. Reyes v. CitiMortgage Inc., No. 15-50273, N.D. Ill.; 2016 U.S. Dist. LEXIS 143653).
SAN FRANCISCO - The Ninth Circuit U.S. Court of Appeal on Oct. 14 affirmed a district court's dismissal of a borrower's fourth amended complaint and a claim for fraud related to her mortgage, finding that she failed to allege how any fraud on the part of the lender occurred (Dana Y. Coward v. J.P. Morgan Chase Bank, N.A., No. 14-16378, 9th Cir.; 2016 U.S. App. LEXIS 18541).
SAN FRANCISCO - A California federal judge on Oct. 5 partially granted a motion to dismiss claims related to reverse mortgages on a borrower's property, finding that their claims for violation of California's unfair competition law (UCL) could proceed and that their claims for elder financial abuse were properly pleaded (Willie York, et al. v. Bank of America, et al., No. 14-cv-02471, N.D. Calif.; 2016 U.S. Dist. LEXIS 138585.)
SAN FRANCISCO - After finding that numerous causes of action asserted by a borrower in relation to a foreclosure, including claims for violation of California's unfair competition law (UCL) and the Truth in Lending Act (TILA) against several defendants, failed, a California federal judge on Oct. 4 dismissed the case without leave to amend (Camilla Spangler v. Selene Finance LP, et al., No. 16-cv-01503, N.D. Calif.; 2016 U.S. Dist. LEXIS 137208).
MILWAUKEE - A Wisconsin federal judge on Sept. 30 held that there is a question of fact as to whether an insured could have reasonably foreseen that claims of wrongful acts brought against it by mortgage lenders would result in claims by a title insurer in a dispute arising from the insured's mortgage loan closing services (Fiserv Solutions Inc. v. Endurance American Specialty Insurance Co., et al., No. 11-0603, E.D. Wis.; 2016 U.S. Dist. LEXIS 136938).
WASHINGTON, D.C. - The U.S. Supreme Court on Oct. 3 refused to grant certiorari in a case brought by former homeowners who challenged the foreclosure sale and forcible detainer of their home (Nicholas C. Daniels, et ux. v. Federal Home Loan Mortgage Corporation, No. 16-168, U.S. Sup.; 2016 U.S. LEXIS 5329).
WASHINGTON, D.C. - The U.S. Department of Justice (DOJ) on Sept. 28 announced that Branch Banking & Trust Co. (BB&T) has agreed to pay the United States $83 million to resolve allegations that it violated the False Claims Act (FCA) when it originated faulty housing loans.
COLUMBUS, Ohio - An Ohio federal judge on Sept. 28 granted a lender's motion to dismiss a foreclosure-related action filed against it, finding that the underlying loan was not unconscionable (Helen Smith v. Household Realty Corp., No. 2:16-CV-360, S.D. Ohio; 2016 U.S. Dist. LEXIS 133423).
FRESNO, Calif. - After finding that a borrower's claims related to the foreclosure of her property were already litigated and dismissed on the merits in another action, a California court on Sept. 26 affirmed dismissal of a state court case as barred by res judicata (Shelly Max v. Federal National Mortgage Association, et al., No. F070592, Calif. App., 5th Dist.; 2016 Cal. App. Unpub. LEXIS 7023).
LOS ANGELES - Two Wells Fargo Bank employees filed a class complaint in the Los Angeles County Superior Court on Sept. 22 accusing the banking giant's leaders of creating a fraudulent scheme that cheated customers and drove up the stock price and then firing the low-level employees who refused to participate in the scheme and seeking $2.6 billion in damages (Alexander Polonsky, et al. v. Wells Fargo Bank & Company, et al., No. BC634475, Calif. Super., Los Angeles Co.).
WILMINGTON, Del. - A Delaware federal judge on Sept. 26 refused to reconsider dismissal of an action in which borrowers failed to amend their claim for violation of the Truth in Lending Act (TILA) by the deadline set by the court, finding nothing that would warrant reconsideration (Mazen Shahin, et al. v. PNC Bank N.A., et al., No. 13-1404, D, Del.; 2016 U.S. Dist. LEXIS 131620).
DETROIT - After finding that a borrower had no right to rescission under the Truth in Lending Act (TILA) and that many of his claims lacked merit and detail, a Michigan federal judge on Sept. 26 granted a motion to dismiss his complaint (Dante K. Muhammad v. Wells Fargo Bank, N.A., No. 16-11073, E.D. Mich.; 2016 U.S. Dist. LEXIS 130948).
PHILADELPHIA - The Third Circuit U.S. Court of Appeals on Sept. 20 affirmed a district court's dismissal of claims asserted against banks, finding that a borrower's causes of action for violation of the Truth in Lending Act (TILA) and Fair Debt Collections Practices Act (FDCPA) were time-barred and that certain claims were also already resolved in a foreclosure case (Rose M. Jacques v. Chase Bank USA, N.A., et al., No. 16-1318, 3rd Cir.; 2016 U.S. App. LEXIS 17172).
SCRANTON, Pa. - A Pennsylvania federal judge on Sept. 19 adopted a magistrate judge's recommendation that a property owner's request for preliminary injunction be denied, finding that the property owner failed to show that he would suffer any irreparable caused by the denial (Russell R. Loveless, et al. v. Bank of America, N.A., No. 3:13-CV-01546, M.D. Pa.; 2016 U.S. Dist. LEXIS 127430).
BOISE, Idaho - After finding that claims for wrongful foreclosure were barred by a ruling in a state court case and that a cause of action for rescission under the Truth in Lending Act (TILA) was barred by a three-year statute of limitations, an Idaho federal judge on Sept. 15 granted a motion filed by lenders to dismiss a complaint against them in its entirety (Eamonn J. Anderson, et al. v. Northwest Trustee Services Inc., et al., No. 2:15-CV-00198, D. Idaho; 2016 U.S. Dist. LEXIS 126798).
DETROIT - A Michigan federal judge on Sept. 8 dismissed a borrower's claims for violation of the Truth in Lending Act (TILA) and Real Estate Settlement Procedures Act (RESPA) as barred by statutes of limitations, denying her request for leave to amend (Joan Ball v. Federal National Mortgage Association, as Trustee for FannieMae Guaranteed Remic Pass-Through Certificates FannieMae Remic Trust 2004-W12, formerly known as Cendant Mortgage Corp., No. 16-11475, E.D. Mich.; 2016 U.S. Dist. LEXIS 121562).
PHILADELPHIA - The Third Circuit U.S. Court of Appeals on Sept. 6 affirmed dismissal of a property owner's claim for violation of the Pennsylvania Unfair Trade Practices and Consumer Protection Law (UTPCPL), finding that she failed to comply with a district court's orders and did not appear at trial (Deonne New-Howard, et al. v. JP Morgan Chase Bank, N.A., No. 15-3879, 3rd Cir.; 2016 U.S. App. LEXIS 16367).
MIAMI - A Florida federal judge on Sept. 2 granted defendants' motion to stay discovery pending resolution of their motions to dismiss an amended class action complaint alleging that they participated in a fraudulent scheme that overcharged borrowers for lender-placed insurance (LPI) (Jeffrey Parker, et al. v. AHMSI Insurance Agency Inc. d/b/a Belt Line Insurance Agency, et al., No. 15-23840, S.D. Fla.).
LOS ANGELES - A California federal judge on Sept. 7 granted a lender's motion to dismiss asserted by a homeowner for negligence and breach of the covenant of good faith and fair dealing, noting that the plaintiff in the case failed to file her opposition to the pleading by the established court deadline (Raquel Velasquez v. Caliber Home Loans Inc., et al., No. 2:16-cv-5960-ODW [E], C.D. Calif.; 2016 U.S. Dist. LEXIS 120970).
SELMA, Ala. - After granting voluntary dismissal of a borrower's claim for violation of the Truth in Lending Act (TILA), an Alabama federal judge on Sept. 6 remanded her remaining claims against a bank to a state court (Ashley Gill, as Administratrix of the Estate of Marshall Gill, v. Wells Fargo Bank, N.A., No. 2:15-00162, S.D. Ala.; 2016 U.S. Dist. LEXIS 119870).
CONCORD, N.H. - Expert testimony on homeowners' loan modification application with mortgage lenders fails to offer interpretation of process outside of paraphrasing subsections of the Real Estate Settlement and Procedures Act (RESPA), a New Hampshire federal judge ruled Aug. 31, barring the testimony (Jason S. Dionne and Denise C. Dionne v. Federal National Mortgage Association and JPMorgan Chase Bank N.A., No. 15-056, D. N.H.; 2016 U.S. Dist. LEXIS 117352).
LAS VEGAS - A Nevada federal court on Sept. 2 stayed a foreclosure-related action pending the outcome of a decision by the Ninth Circuit U.S. Court of Appeals on whether Nevada's nonjudicial foreclosure framework is unconstitutional under the due process clause of the U.S. Constitution (Deutsche Bank National Trust Co. v. Southern Highlands Community Association, et al., No. 2:15-cv-01276, D. Nev.; 2016 U.S. Dist. LEXIS 119521).