NEWARK, N.J. - A New Jersey federal judge on June 2 granted a bank's motion to dismiss an amended complaint filed against it in relation to a mortgage on a property, finding that a borrower failed to state a claim on which relief could be granted (Ruben Martinez v. Capital One Financial Corp., No. 15-266, D. N.J.; 2016 U.S. Dist. LEXIS 71708).
WASHINGTON, D.C. - Eight financial institutions will pay a combined $190 million to settle claims that they issued misrepresentations concealing the true investment quality of Countrywide Financial Corp. residential mortgage-backed securities (RMBSs) in violation of state and federal securities laws, according to a press release issued on June 2 by the Federal Deposit Insurance Corp. (FDIC).
TROY, Mich. - A Michigan federal judge on May 31 granted a motion for judgment in favor of a bank on certain claims related to an alleged wrongful foreclosure, but allowed claims for violation of the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA) to proceed (Charles J. Beard v. HSBC Mortgage Services, Inc., No. 1:15-CV-1232, W.D. Mich.; 2016 U.S. Dist. LEXIS 70489).
LOS ANGELES - A California federal judge on May 24 granted a property owner's motion to remand his claims for quiet title and other claims to state court, finding that various lenders failed to show that the court had jurisdiction (Shetty v. The Bank of New York Mellon, et al., No. 16-02375, C.D. Calif.; 2016 U.S. Dist. LEXIS 68191).
CHARLOTTE, N.C. - A North Carolina federal judge on May 23 found that the circumstances surrounding the foreclosure of a property did not warrant the issuance of a temporary restraining order (TRO) and that claims for violation of the Truth in Lending Act (TILA) and other claims were time-barred (Elihah Walker, et al. v. SGB Corporation d/b/a West America Mortgage Co., No. 3:15-cv-00607, W.D. N.C., 2016 U.S. Dist. LEXIS 67446).
SAN FRANCISCO - The Ninth Circuit U.S. Court of Appeals on May 18 affirmed a district court's decision granting summary judgment in favor of a lender and trust company on a borrower's Nevada law claims, finding that the appeal was time-barred (Robert W. Moore v. Mortgage Electronic Registration Systems Inc., et al., No. 13-17109, 9th Cir.; 2016 U.S. App. LEXIS 9079).
NEW YORK - After finding that a jury had no legally sufficient basis on which to find that misrepresentations alleged by the U.S. government were made with contemporaneous fraudulent intent, the Second Circuit U.S. Court of Appeals on May 23 reversed a judgment ordering a lender and the chief operating officer of its Full Spectrum Lending Division (FSL) to pay $1.28 billion in civil penalties (United States Ex Rel. Edward O'Donnell v. Countrywide Home Loans, Inc., et al., Nos. 15-496, 15-499, 2nd Cir.; 2016 U.S. App. LEXIS 9365).
OXFORD, Miss. - After finding that a bank gave proper notice to a borrower when it took over a loan, a Mississippi federal judge on May 18 found that claims for violation of the Truth in Lending Act (TILA) and Mississippi law failed (Bertha Berkley v. Midfirst Bank, et al., No. 3:15-CV-110, N.D. Miss.; 2016 U.S. Dist. LEXIS 66116).
BALTIMORE - After finding that a law firm attempted to collect debt directly from a borrower even though it knew that she was represented by an attorney, a Maryland federal judge on May 17 refused its request for summary judgment on her claim for violation of the Fair Debt Collection Practices Act (FDCPA) (Cheryl Keyser-Bomar v. Alba Law Group, P.A., No. 15-573, D. Md.; 2016 U.S. Dist. LEXIS 64501).
CINCINNATI - The Sixth Circuit U.S. Court of Appeals on May 12 affirmed a district court's decision to grant summary judgment for a mortgage company, finding no genuine issue of material fact as to whether the conditions of a loan refinance were met (Michael G. May v. CitiMortgage Inc., No. 15-1061, 6th Cir.; 2016 U.S. App. LEXIS 8880).
ATLANTA - The 11th Circuit U.S. Court of Appeals on May 12 reinstated a suit filed by a borrower against her mortgage servicer under the Real Estate Settlement Procedures Act (RESPA) after the borrower's loan payments were increased without an explanation (Margaret C. Renfroe v. Nationstar Mortgage, LLC, No. 15-10582, 11th Cir.; 2016 U.S. App. LEXIS 8707).
PHILADELPHIA - A Pennsylvania federal judge on May 10 referred a case by a couple who are accusing three credit-reporting agencies (CRAs) and their lender of falsely reporting multiple late payment to arbitration; the order came just one day after the judge dismissed the couple's defamation claims, as well as part of their claims brought under the Fair Credit Reporting Act (FCRA) (Beatrice Cicala v. Trans Union, LLC, et al., No. 15-6790, Joseph Cicala v. Trans Union, LLC, et al., No. 15-6801, E.D. Pa.; 2016 U.S. Dist. LEXIS 61212).
SAN FRANCISCO - Homeowners adequately identify allegations of misleading and deceptive statements made by a mortgage company regarding how payments would be treated during a transition period when the loan was transferred between mortgage companies, a California federal judge ruled May 4 (Peter Mazonas, et al. v. Nationstar Mortgage LLC, et al., No. 16-00660, N.D. Calif.; 2016 U.S. Dist. LEXIS 59424).
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).