TACOMA, Wash. - A Washington federal judge on Nov. 2 partially granted a title company's motion to dismiss claims asserted against it in relation to a foreclosure sale, finding that the borrowers sufficiently pleaded their claims but that they failed to properly serve the company with their complaint (James M. Brewster, et al. v. Seaside Trustee of Washington, Inc., et al., No. 16-5732, W.D. Wash.; 2016 U.S. Dist. LEXIS 152257).
TACOMA, Wash. - Since borrowers did not file a lawsuit for 10 years after their mortgage was entered into, a Washington federal judge on Nov. 3 found that their claims for rescission under the Truth in Lending Act (TILA) and all of their other causes of action were barred by applicable statutes of limitations (Ernst Meinhart, et al. v. CMG Mortgage Inc., et al., No. 16-5665, W.D. Wash.; 2016 U.S. Dist. LEXIS 152835).
OLYMPIA, Wash. - The Washington Supreme Court on Nov. 3 responded to three certified questions submitted by a federal district court in an insurer's lawsuit seeking recovery from a bank for losses arising from embezzlement committed by the insured's employee (Travelers Casualty & Surety Co. v. Washington Trust Bank, No. 92483-0, Wash. Sup.).
NEW YORK - A New York federal magistrate judge on Nov. 1 granted a motion to transfer a declaratory relief action filed against a bank and lender, finding that the case should be heard in the U.S. District Court for the District of Arizona (Raymond A. Ribail v. Bank of America, N.A., et al., No. 16-CV-04678, S.D. N.Y.; 2016 U.S. Dist. LEXIS 152068).
SAN FRANCISCO - A California federal judge on Nov. 1 dismissed claims for wrongful foreclosure, violation of California civil code and other causes of action asserted by a borrower against banks in relation to her residential mortgage, finding that she failed to show that a bank held no interest in the property or that she was discriminated against (Annie G. Weaver v. Wells Fargo Bank, N.A., et al., No. 16-cv-04907, N.D. Calif.; 2016 U.S. Dist. LEXIS 151374).
DENVER - The 10th Circuit U.S. Court of Appeals on Nov. 1 affirmed a lower federal court's finding that because coverage never vested before the Federal Deposit Insurance Corp. (FDIC) took over a bankrupt bank, the bank and consequently the FDIC never acquired the right to enforce a financial institution crime bond (Federal Deposit Insurance Corporation v. Kansas Bankers Surety Co., No. 15-1390, 10th Cir.; 2016 U.S. App. LEXIS 19622).
UTICA, N.Y. - After finding that a former property owner lacked standing to sue a lender for breach of contract and that she failed to allege that she held title to the property, a New York federal judge on Nov. 1 granted the lender's motion to dismiss the complaint for failure to state a claim (Cynthia Zap v. Mortgage Electronic Registration Systems Inc., No. 6:15-cv-00624, N.D. N.Y.; 2016 U.S. Dist. LEXIS 150988).
ORLANDO, Fla. - A Florida federal judge on Oct. 31 refused to grant injunctive relief to a property owner in relation to an attempt to enjoin several lenders from foreclosing on a property and ordered the parties to submit a joint statement as to why the court has jurisdiction over the case (Joseph E. Altier v. Suntrust Mortgage Inc., et al., No. 6:16-cv-1752, M.D. Fla.; 2016 U.S. Dist. LEXIS 150371).
TACOMA, Wash. - A Washington federal judge on Oct. 31 found that a borrower's claims for violation of the Racketeer Influenced and Corrupt Organizations Act in relation to her mortgage were barred by a four-year statute of limitations and dismissed all of her claims without leave to amend (Danica Ann Nikolich v. Bank of America, N.A., et al., No. 16-5252, W.D. Wash.; 2016 U.S. Dist. LEXIS 149960).
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).