PHILADELPHIA - The Third Circuit U.S. Court of Appeals on May 22 affirmed a district court's dismissal of a property owner's complaint in relation to the denial of his loan modification application, finding that he failed to plead any facts to support his claims against the Consumer Financial Protection Bureau (CFPB) (Scott E. Robinson v. Consumer Financial Protection Bureau, et al., No. 17-1458, 3rd Cir., 2017 U.S. App. LEXIS 8898).
PASADENA, Calif. - In a majority ruling, the Ninth Circuit U.S. Court of Appeals on May 22 reversed a district court's dismissal of a borrower's claim for rescission of her loan under the Truth in Lending Act (TILA) but affirmed dismissal of her claim for violation of the Fair Debt Collection Practices Act (FDCPA), finding that a trustee was not a debt collector under the act (Vien-Phuong Thi Ho v. Recontrust Company, NA, et al., No. 10-56884, 9th Cir., 2017 U.S. App. LEXIS 8917).
FRESNO, Calif. - A California federal judge on May 18 denied a borrower's motion to amend her complaint in which she alleges that a bank violated California's unfair competition law (UCL) and other laws related to a wrongful foreclosure, finding that she failed to allege any facts that would support new claims (Brenda D. Dowling v. Bank of America, et al., No. 1:14-cv-01041, E.D. Calif., 2017 U.S. Dist. LEXIS 76063).
SAN FRANCISCO - A California federal judge on May 17 partially granted a mortgage company's motion to dismiss claims including violation of California's unfair competition law (UCL), allowing part of a borrower's dual tracking claim to proceed and dismissing the remainder of the claims with leave to amend (Gilbert Chavez v. CitiMortgage Inc., No. 17-cv-01205, N.D. Calif., 2017 U.S. Dist. LEXIS 75430).
CINCINNATI - A majority of the Sixth Circuit U.S. Court of Appeals on May 18 affirmed a lower federal court's ruling that the liquidating agent of an insolvent credit union is not entitled to $5 million in employee dishonesty coverage under a fidelity bond issued to the credit union for losses arising from an employee's alleged fraudulent scheme (National Credit Union Administration Board v. Cumis Insurance Society Inc., No. 16-3140, 6th Cir.).
RIVERSIDE, Calif. - A California federal judge on May 15 granted a motion filed by a lender and a loan servicer to dismiss a property owner's complaint, which asserted claims for violation of California's unfair competition law (UCL) and the Fair Debt Collection Practice Act (FDCPA), finding that his allegations were conclusory (Phillip D. Jackson v. Nationstar Mortgage LLC, et al., No. 5:17-cv-00044, C.D. Calif., 2017 U.S. Dist. LEXIS 73826).
ATLANTA - The 11th Circuit U.S. Court of Appeals on May 15 affirmed a district court's dismissal of a borrower's claim for violation of the Real Estate Settlement Procedures Act (RESPA) against a loan-servicing company, finding that Florida was the improper venue for the case (Robert Crenshaw v. Specialized Loan Servicing, LLC, No. 16-16201, 11th Cir., 2017 U.S. App. LEXIS 8502).
WASHINGTON, D.C. - The U.S. Department of Justice on May 16 announced that a lender has agreed to pay more than $89 million to settle claims that it violated federal housing law in relation to its participation in a reverse mortgage program.
ATLANTA - The 11th Circuit U.S. Court of Appeals on May 16 held that a directors and officers liability insurance policy's prior acts exclusion bars coverage for an underlying $15 million settlement arising from claims that a financial corporation's former executive officers breached their fiduciary duties (Clifford Zucker v. U.S. Specialty Insurance Co., 11th Cir., 15-10987, 2017 U.S. App. LEXIS 8585).
CINCINNATI - An Ohio federal judge on May 9 granted in part insurers' motion to compel discovery in a dispute over fidelity bond coverage for the alleged fraudulent conduct of a bank insured's former loan officer (Fifth Third Bancorp, et al. v. Certain Underwriters at Lloyd's, et al., No. 14-869, S.D. Ohio, 2017 U.S. Dist. LEXIS 70639).
SAN JOSE, Calif. - A couple lacks the authority to challenge the assignment of the rights to the mortgage on their property in an effort to preempt foreclosure, a California appeals court held May 9 in affirming judgment on unfair competition law (UCL) claims (William E. Hellmuth, et al. v. Bank of America N.A., et al., No. H042544, Calif. App., 6th Dist., 2017 Cal. App. Unpub. LEXIS 3230).
CHICAGO - A mortgage insurance reinsurer argues in a May 5 reply brief to an Illinois federal court that the rehabilitator of two insolvent insurers failed to assert sufficient allegations to support breach of contract and breach of the implied covenant of good faith and fair dealing claims (People of the State of Illinois, ex rel., Anne Melissa Dowling, Acting Director of Insurance of the State of Illinois, as Rehabilitator for Triad Guaranty Insurance Corporation and Triad Guaranty Assurance Corp. v. AAMBG Reinsurance Inc., No. 16-cv-07477, N.D. Ill.).
FRESNO, Calif. - After finding that a borrower lacked standing under a recently decided California Supreme Court ruling to challenge a foreclosure and that his claims were not cognizably pleaded, a California federal magistrate judge on May 8 recommended that a motion to amend the borrower's complaint to add new defendants should be denied as futile (David Leroy Newman v. Bank of New York Mellon, et al., No. 1:12-cv-01629, E.D. Calif., 2017 U.S. Dist. LEXIS 70076).
MISSOULA, Mont. - A Montana federal judge on May 8 granted summary judgment for a bank, finding that it did not invade the privacy of property owners when its inspector took pictures of the property after a default on a loan and that the bank was permitted to inspect the property pursuant to the deed on the home (Carey and Ryan Prather v. Bank of America, N.A., No. 15-163. D. Mont., 2017 U.S. Dist. LEXIS 70781).
WASHINGTON, D.C. - A national community associations institute on May 4 submitted an amicus curiae brief in the U.S. Supreme Court in support of a homeowner's association trust, arguing that the court should overturn an appeals court ruling that found that a Nevada housing statute was unconstitutional on its face (Bourne Valley Court Trust v. Wells Fargo Bank, N.A., No. 16-1208, U.S. Sup. 2017 U.S. S. Ct. Briefs LEXIS 1270).
CINCINNATI - After finding that a bank had no obligation to review or approve a borrower's loan modification request, the Sixth Circuit U.S. Court of Appeals on May 2 affirmed a district court's ruling dismissing his claims related to the foreclosure of his property (Robert T. Brimm v. Wells Fargo Bank, N.A., et al., No. 16-2070, 6th Cir., 2017 U.S. App. LEXIS 7968).
FORT LAUDERDALE, Fla. - A Florida federal judge on May 2 decided that claims for violation of the Real Estate Settlement Procedures Act (RESPA) against a loan servicer failed because a borrower failed to show that it did not respond to her request for information (Shelisa Todd v. Ocwen Loan Servicing LLC, No. 17-cv-60454, S.D. Fla., 2017 U.S. Dist. LEXIS 66541).
NEW YORK - The Second Circuit U.S. Court of Appeals on April 28 vacated an award of $295,298 for a loan servicer, but replaced the amount of the award with $106,511, finding that former property owners were unjustly enriched when they took advantage of an unrecorded mortgage (Green Tree Servicing, LLC v. Nicholas Christodoulakis, et al., No. 16-1765, 2nd Cir., 2017 U.S. App. LEXIS 7644).
SAN FRANCISCO - After finding that a borrower had no authority to challenge a foreclosure under California law, the Ninth Circuit U.S. Court of Appeals on April 27 affirmed summary judgment for various lenders on his wrongful foreclosure claim (Barry Halajian v. Deutsche Bank National Trust Co., et al., No. 15-15236, 9th Cir., 2017 U.S. App. LEXIS 7497).
NEW ORLEANS - The Fifth Circuit U.S. Court of Appeals on April 24 affirmed a trial court's ruling granting summary judgment in favor of a lender, finding that a notice of acceleration was abandoned, causing a statute of limitations to cease running (Livier Hernandez v. Select Portfolio Servicing, No. 16-41308, 5th Cir., 2017 U.S. App. LEXIS 7207).
DETROIT - After holding that a mortgagee's claims for violation of Michigan law applied only to landlord-tenant relationships and that his claim for violation of the Fair Debt Collection Practices Act (FDCPA) failed, a Michigan federal judge on April 25 granted summary judgment in favor of a mortgage lending service and a finance corporation on all of his claims and dismissed the case (John Tierney v. HSBC Consumer Lending Mortgage Services Inc., et al., No. 16-cv-11379, E.D. Mich., 2017 U.S. Dist. LEXIS 62157).
HOUSTON - After determining that the amount in controversy met federal jurisdictional requirements, a Texas federal judge on April 20 refused to remand claims for breach of contract and fraud asserted by property owners against their mortgage lender (George Holland, et al. v. CitiMortgage Inc., No. 4:16-CV-3219, S.D. Texas, 2017 U.S. Dist. LEXIS 60046).
SAN DIEGO - After finding that borrowers who are challenging the foreclosure of their property failed to respond to a motion to dismiss their claims asserted against the current owner of the property, a California federal judge on April 21 granted dismissal with leave to amend (Celia Duenas, et al. v. Nationstar Mortgage Holdings Inc., et al., No. 16-CV-2824, S.D. Calif., 2017 U.S. Dist. LEXIS 62117).
SAN FRANCISCO - Wells Fargo & Co. and Wells Fargo Bank N.A. have agreed to increase their settlement payment to $142 million, $32 million more than the settlement proposed in March, to end claims by a class of individuals who allege that the banking company opened accounts, enrolled them in products and services and submitted applications for products and services without consent, according to a motion for preliminary approval filed by the plaintiffs on April 20 in the U.S. District Court for the Northern District of California (Shahriar Jabbari, et al. v. Wells Fargo & Company, et al., No. 15-2159, N.D. Calif.).
KANSAS CITY, Kan. - A Kansas federal judge on April 20 partially granted a motion filed by a loan management company to dismiss numerous claims asserted against it in relation to the denial of a loan modification, but found that claims for violation of the Truth In Lending Act (TILA) and Regulation X of the Real Estate Settlement Procedures Act (RESPA) can proceed (Douglas and Serenity Boedicker v. Rushmore Loan Management Services, LLC, No. 2:16-cv-02798, D. Kan., 2017 U.S. Dist. LEXIS 60597).