PORTLAND, Maine - A Maine federal judge on April 29 ruled that a mortgage lender may proceed with its federal foreclosure case, based on diversity of citizenship, because the abstention doctrine in Burford v. Sun Oil Co. (319 U.S. 315, 331-33 ) does not apply to the present case with regard to the Maine Foreclosure Diversion Program (Residential Mortgage Loan Trust 2013-TT2, by U.S. Bank National Association v. Joane K. Lloyd, et al., No. 15-466, D. Maine; 2016 U.S. Dist. LEXIS 57213).
PHILADELPHIA - The Third Circuit U.S. Court of Appeals held May 2 that the entire $102 million that an insured paid to settle two underlying class action lawsuits is precluded from coverage by an excess insurance policy's "Professional Services Charge Exception," reversing a lower federal court's ruling that approximately $30 million of the $102 million was recoverable under the policy (The PNC Financial Services Group, Inc., et al. v. Houston Casualty Co., et al., Nos. 15-1656, 15-1717, 3rd Cir.; 2016 U.S. App. LEXIS 7883).
ATLANTA - A letter stating the mortgage lender's required net payout amount for a short sale to proceed, which was nearly $300,000 less than the amount offered by the buyer, was clearly a clerical error and did not lead to the formation of a valid contract, the 11th Circuit U.S. Court of Appeals ruled April 28, upholding a trial court's decision denying the buyer's request to enforce the short sale contract and permitting the lender to proceed with a foreclosure (Victor W. Patterson, et al. v. CitiMortgage, Inc., et al., No. 14-14636, 11th Cir.; 2016 U.S. App. LEXIS 7660).
BOSTON - The First Circuit U.S. Court of Appeals on April 29 reversed a dismissal for lack of jurisdiction in a predatory lending suit filed against the lender that held the note and mortgage at the time of foreclosure after the original lender went bankrupt (Carol Proal v. JPMorgan Chase Bank, N.A., No. 15-1732, 1st Cir.; 2016 U.S. App. LEXIS 7793).
ST. LOUIS - The Eighth Circuit U.S. Court of Appeals on April 20 affirmed a trial court's rejection of claims by a married couple seeking to reverse foreclosure on their property by alleging that Green Tree Servicing LLC lacked the authority to do so (Raymond L. Brown, et al. v. Green Tree Servicing LLC, No. 15-1527, 8th Cir.; 2016 U.S. App. LEXIS 7104).
PHOENIX - An Arizona federal judge on April 20 declined to dismiss a lawsuit brought by home sellers accusing a mortgage lender and loan officer of negligence and fraud related the information contained in the lender's pre-qualification information form for a buyer (William Leist, et al. v. Academy Mortgage Corporation, et al., No. 16-314, D. Ariz.; 2016 U.S. Dist. LEXIS 52808).
ORLANDO, Fla. - A Florida federal judge on April 18 partially granted and partially denied motions to dismiss a proposed class complaint accusing a mortgage servicer and an insurer of engaging in a kickback scheme where borrowers were overcharged for "force-placed" insurance (John C. Sekula, et al. v. Residential Credit Solutions, Inc., et al., No. 15-2104, M.D. Fla.; 2016 U.S. Dist. LEXIS 51636).
SEATTLE - A Washington federal judge on April 12 rejected a couple's claims that their lenders violated the Truth in Lending Act (TILA) when they failed to rescind their mortgage, finding that the couple's notice of rescission was filed too late (Rolf Nieuwejaar, et al. v. Nationstar Mortgage, LLC, et al., No. 15-1663, W.D. Wash.; 2016 U.S. App. LEXIS 49250).
CAMDEN, N.J. - Noting a jurisdictional divide, a New Jersey federal judge on April 8 ruled that he would follow Third Circuit of the U.S. Court of Appeals precedent and declined to dismiss a class complaint accusing a mortgage servicer of engaging in a force-placed insurance (FPI) scheme (Joseph Burroughs, et al. v. PHH Mortgage Corporation, No. 15-6122, D. N.J.; 2016 U.S. Dist. LEXIS 47475).
HOUSTON - A mortgagor had only three days, not 90 as he tried to argue, to vacate his foreclosed property, a Texas appellate panel ruled March 29, finding that a mortgagor cannot qualify as a bona fide tenant under the federal's Protecting Tenants at Foreclosure Act of 2009 (PTFA) (Mark F. Hanks v. The Huntington National Bank, No. 01-15-00188-CV, Texas App., 1st Dist.; 2016 Tex. App. LEXIS 3179).
SAN DIEGO - A California appeals panel on March 18 affirmed a ruling that a man who sued after being denied a loan modification did not state a valid claim under California's unfair competition law (UCL), Business and Professions Code Section 17200 (Jonah Mechanic v. Bank of America N.A., et al., No. D067080, Calif. App., 4th Dist., Div. 1; 2016 Cal. App. Unpub. LEXIS 2013).
DENVER - A Colorado federal judge on March 18 affirmed an award entered in a bankruptcy court for damages against a bank for its violation of an automatic stay by sending out letters containing statements of foreclosure to a homeowner in bankruptcy (In re: Brenda A. Ogden; PNC Bank N.A. v. Brenda A. Ogden, No. 15-01274, D. Colo.; 2016 U.S. Dist. LEXIS 35338).
SAN JOSE, Calif. - A California appeals court on March 18 found an appeal filed by a couple unhappy with their residential mortgage loan situation was not timely filed and fails to state a claim against one defendant (Erik Rueppel, et al. v. Bank of America N.A., et al., No. H040953, H041779, Calif. App., 6th Dist.; 2016 Cal. App. Unpub. LEXIS 1982).
LOS ANGELES - A woman's mere contention that she owns a defective heating system lacks sufficient specifics, a federal judge in California held March 17 in dismissing her unfair competition law (UCL), Business and Professions Code Section 17200, et seq., action for lack of standing (Joanna Park-Kim v. Daikin Industries Ltd., et al., No. 15-9523, C.D. Calif.; 2016 U.S. Dist. LEXIS 35565).
SAN FRANCISCO - The doctrine of res judicata precludes a homeowner's lawsuit against mortgage companies for alleged unfair deceptive practices with regard to a mortgage loan, a California federal judge ruled March 18 (Jon C. Amedee v. CitiMortgage, Inc., et al., No. 15-03356, N.D. Calif.; 2016 U.S. Dist. LEXIS 35548).
ATLANTA - A panel of the Georgia Court of Appeals on March 15 ruled that a trial court erred in dismissing a man's counterclaim to quiet title on his foreclosed property but affirmed a trial court ruling that denied him attorney fees (Michael A. Cronan v JP Morgan Chase, No. A15A1996, Ga. App.).
HARTFORD, Conn. - A Connecticut federal judge on March 14 denied a mortgagor's motion to dismiss in a foreclosure action on the basis that letters of rescission allegedly sent by the mortgagor to the bank were untimely under the Truth in Lending Act (Bank of New York Mellon v. Keyin Worth, No. 13-1489, D. Conn.; 2016 U.S. Dist. LEXIS 32218).
WARREN, Ohio - An Ohio appeals court on March 14 reversed a trial court's judgment degree in foreclosure case because the note and mortgage attached to the mortgage company's affidavit were not certified or authenticated (Green Tree Servicing LLC v. Russell L. Luce, et al., No. 2015-A-0022, Ohio App., 11th App. Dist.; 2016 Ohio App. LEXIS 914).
SAN FRANCISCO - A health exchange company's officer's opinions regarding their financial health after passage of the Patient Protection and Affordable Care Act (ACA) and forward-looking statements with adequate warnings do not support class action claims under securities law, a federal judge in California held March 14 (Jeffrey West v. eHealth Inc., et al., No. 15-360, N.D. Calif.; 2016 U.S. Dist. LEXIS 33429).
CHARLESTON, W.Va. - A West Virginia federal judge on March 11 granted a motion to remand a class complaint alleging mortgage mismanagement, finding that the lender failed to show that the suit met the Class Action Fairness Act (CAFA) requirements (Lowell E. Lanham, et al. v. Nationstar Mortgage, LLC, No. 15-6358, S.D. W.Va.; 2016 U.S. Dist. LEXIS 31392).
TAMPA, Fla. - Although a Florida federal judge expressed his doubts as to the ultimate success of a borrower's complaint against her lender under the Real Estate Settlement Procedures Act (RESPA), he found in a March 9 ruling that, as pleaded, her complaint has facial plausibility that allowed it to mostly survive the lender's motion to dismiss (Matilde Amarchand v. CitiMortgage Inc., No. 8:15-cv-02051, M.D. Fla.; 2016 U.S. Dist. LEXIS 30463).
BOSTON - A Massachusetts federal magistrate judge on March 9 determined that a company that purchased a home through a foreclosure is entitled to an entry of judgment for approximately $6,500, which represents the amount of the deficiency stemming from the foreclosure (Rosario Klevisha v. Provident Funding Associates L.P., et al., No. 15-10629, D. Mass.; 2016 U.S. Dist. LEXIS 30137).
FORT WORTH, Texas - A Texas federal judge on March 8 granted a motion to dismiss a case filed by mortgage borrowers who allege that their request for a loan modification was not acted upon, finding that the borrowers failed to show harm (Ryan L. Reed, et al. v. JPMorgan Chase Bank, National Association, No. 16-17, N.D. Texas; 2016 U.S. Dist. LEXIS 29776).
NEW YORK - A trial judge did not err in allowing a lawyer to testify about his meeting with a plaintiff regarding signatures for mortgage loan documents, the Second Circuit U.S. Court of Appeals ruled March 8, affirming a verdict in favor of mortgage companies on a fraud claim (Linda D. Crawford v. Tribeca Lending Corp., et al., No. 15-1403, 2nd Cir.; 2016 U.S. App. LEXIS 4305).
NEW ORLEANS - The Fifth Circuit U.S. Court of Appeals on March 2 affirmed a lower federal court's dismissal of breach of contract, bad faith and detrimental reliance claims in a dispute over whether an agreement between The City of New Orleans and a municipal bonds insurer obligated the insurer to retain its credit worthiness (New Orleans City v. Ambac Assurance Corp., et al., No. 15-30532, 5th Cir.; 2016 U.S. App. LEXIS 3960).