LexisNexis® Legal Newsroom
    Mealey's Banking & Finance - Judge Finds Wells Fargo Did Not Refuse Loan Assumption Based On Age

    PITTSBURGH - A Pennsylvania federal judge on June 7 granted a motion filed by a bank to dismiss claims for discrimination and violation of housing law in relation to its refusal to approve an assumption agreement, finding that a resident of the property, who was attempting to assume the obligations of the loan, failed to show that she was a qualified borrower (Rosanne Russick v. Wells Fargo, Inc., d/b/a Wells Fargo Home Mortgage, No. 2:17-cv-00149, W.D. Pa., 2017 U.S. Dist. LEXIS 87191).

    Mealey's Banking & Finance - 9th Circuit Refuses To Vacate Ruling Dismissing TILA Rescission Claim

    PASADENA, Calif. - The Ninth Circuit U.S. Court of Appeals on June 6 affirmed a trial court's decision not to vacate a ruling that granted dismissal in favor of a lender on a borrower's claims for violation of the Truth in Lending Act (TILA), finding that a borrower failed to show that the judgment was void (April E. Diggs v. Greenpoint Mortgage Funding Inc., 16-55709, 9th Cir., 2017 U.S. App. LEXIS 10046).

    Mealey's Banking & Finance - Professional Liability Insurer Did Not Ratify Policy, 2nd Circuit Affirms

    NEW YORK - The Second Circuit U.S. Court of Appeals on June 5 held that intervenors in a professional liability coverage dispute have failed to show that the insurer performed any act that ratified the insurance policy, affirming a lower court's ruling rescinding the policy because the insured made material misrepresentations on the insurance application (Continental Casualty Co. v. Joseph J. Boughton, Jr., et al., No. 16-2384, 2nd Cir., 2017 U.S. App. LEXIS 9860).

    Mealey's Banking & Finance - Judge Grants Dismissal, Finds 25-Acre Property Was Exempt From RESPA

    DAYTON, Ohio - An Ohio federal judge on June 5 dismissed a former property owner's claims against loan servicers for violation of the Real Estate Settlement Procedures Act (RESPA), finding that the property was exempt from RESPA requirements because it was more than 25 acres and that the court lacked jurisdiction over his breach of contract claims (Michael Hoy v. Aurora Loan Services LLC, et al., No. 3:16-cv-502, S.D. Ohio, 2017 U.S. Dist. LEXIS 85999).

    Mealey's Banking & Finance - 8th Circuit Finds Borrowers' Right To Rescind Under TILA Expired

    ST LOUIS - The Eighth Circuit U.S. Court of Appeals on June 2 affirmed a trial court's ruling dismissing a claim for violation of the Truth in Lending Act (TILA) asserted by borrowers against lenders, finding that their notice of rescission of the loan was untimely (Alan G. Keiran, et al. v. Home Capital Inc., et al., No. 15-3437, 8th Cir., 2017 U.S. App. LEXIS 9767).

    Mealey's Banking & Finance - Judge Dismisses Insolvent Insurers' Breach Claims In Mortgage Reinsurance Suit

    CHICAGO - An Illinois federal judge on June 1 dismissed breach of contract and breach of the implied covenant of good faith and fair dealing claims brought by the rehabilitator of two insolvent insurers against a mortgage insurance reinsurer and a bank (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., 2017 U.S. Dist. LEXIS 84231).

    Mealey's Banking & Finance - Judge Finds No Support For TILA Or HOEPA Claims Against U.S. Bank

    TOPEKA, Kan. - After borrowers, who alleged that they were subject to predatory lending practices, failed to assert facts to support their claims against a bank, a Kansas federal judge on May 31 granted the bank's motion to dismiss the case (Everett Bigler, et al. v. U.S. Bank Trust, No. 16-cv-4194, D. Kan., 2017 U.S. Dist. LEXIS 82778).

    Mealey's Banking & Finance - 2nd Circuit Finds Banks Have Standing To Enforce Mortgages

    NEW YORK - The Second Circuit U.S. Court of Appeals on May 31 affirmed a district court's decision that several banks had standing to enforce individual notes and mortgages under New York law, rejecting a bankruptcy trustee's appeal of a district court's summary judgment ruling in favor of the banks (Michael H. Arnold, as Chapter 11 Trustee v. First Citizens National Bank, et al., No. 16-4012, 2nd Cir., 2017 U.S. App. LEXIS 9499).

    Mealey's Banking & Finance - Judge Refuses To Allow Amendment, Denies Reinstatement Of Fraud Claim

    SACRAMENTO, Calif. - A California federal judge on May 30 denied a borrower's motion to file an amended complaint to add a new lender as a defendant and to reinstate previously dismissed claims for fraud and misrepresentation, finding that he failed to submit any new information warranting amendment (Frank Malifrando v. Real Time Resolutions Inc., et al., No. 2:16-cv-0223, E.D. Calif.; 2016 U.S. Dist. LEXIS 91739).

    Mealey's Banking & Finance - 9th Circuit Affirms Dismissal Of Los Angeles' FHA Claims Against Lenders

    SEATTLE - The Ninth Circuit U.S. Court of Appeals on May 26 affirmed a decision to grant summary judgment to two lenders on claims for violation of the Fair Housing Act (FHA) and unjust enrichment asserted by the city of Los Angeles in relation to alleged predatory lending practices, finding a lack of connection between an established disparity and any facially neutral policy of the lenders (City of Los Angeles v. Bank of American Corporation, et al., No. 15-55897, 9th Cir., 2017 U.S. App. LEXIS 9265).

    Mealey's Banking & Finance - 3rd Circuit Finds Court Did Not Err In Dismissing Complaint Against CFPB

    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).

    Mealey's Banking & Finance - 9th Circuit Reverses Dismissal Of TILA Claim Against ReconTrust

    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).

    Mealey's Banking & Finance - Judge Finds Borrower Did Not Allege New Facts To Support Amendment

    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).

    Mealey's Banking & Finance - Judge Dismisses Foreclosure-Related Claims Against CitiMortgage, Allows Amendment

    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).

    Mealey's Banking & Finance - Credit Union's Directors Knew Of Employee Dishonesty Well Before Bond Was Issued

    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.).

    Mealey's Banking & Finance - Judge Finds Borrower Did Not Rescind Note, Dismisses TILA And UCL Claims

    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).

    Mealey's Banking & Finance - 11th Circuit Finds Florida Is Improper Venue For RESPA Claim

    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).

    Mealey's Banking & Finance - Financial Freedom To Pay $89M To Settle Reverse Mortgage Claims

    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.

    Mealey's Banking & Finance - Prior Acts Exclusion Bars Coverage For Fraudulent Transfer Claims, Panel Affirms

    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).

    Mealey's Banking & Finance - Judge Partly Grants Motion To Compel Discovery In Dispute Over Employee Fraud

    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).

    Mealey's Banking & Finance - Trial Court Properly Rejected UCL Foreclosure Claims, Appeals Court Finds

    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).

    Mealey's Banking & Finance - Insurers' Rehabilitator Fails To Allege Breach Of Contract Claim, Reinsurer Asserts

    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.).

    Mealey's Banking & Finance - Magistrate Finds Borrower Lacks Standing Under California High Court Ruling

    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).

    Mealey's Banking & Finance - Judge Finds Borrowers Cannot Invoke Constitutional Claim For Invasion Of Privacy

    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).

    Mealey's Banking & Finance - Institute Argues High Court Should Review Ruling On Nevada Housing Law

    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).