LexisNexis® Legal Newsroom
Mealey's Banking & Finance - 11th Circuit Affirms Dismissal Of Claims Related To Loan Assignment

ATLANTA - The 11th Circuit U.S. Court of Appeals on Jan. 22 affirmed a district court's ruling dismissing causes of action for violation of the Truth In Lending Act (TILA), the Real Estate Settlement and Procedures Act (RESPA) and other claims asserted by a borrower against a bank and loan servicer, finding that the claims were barred by collateral estoppel or were abandoned on appeal (Hussain Kareem v. Ocwen Services LLC, et al., No. 16-15589, 11th Cir., 2018 U.S. App. LEXIS 1761).

Mealey's Banking & Finance - 6th Circuit Deems RESPA, Other Claims Abandoned On Appeal

CINCINNATI - After finding that a borrower failed to raise any new arguments on appeal, the Sixth Circuit U.S. Court of Appeals on Jan. 18 affirmed a district court's decision finding no evidence to support a claim for violation of the Real Estate Settlement Procedures Act (RESPA) and other causes of action asserted against a loan servicer (Tiffany Wiggins v. Ocwen Loan Servicing LLC, No. 17-1228, 6th Cir., 2018 U.S. App. LEXIS 1153).

Mealey's Banking & Finance - Judge Grants Judgment To Mortgagors, Reinsurer On RESPA, Unjust Enrichment Claims

PITTSBURGH - In a mortgage insurance reinsurance scheme case, a Pennsylvania federal judge on Jan. 19 granted judgment on the pleadings to mortgagors and a reinsurer with regard to a Real Estate Settlement Procedures Act (RESPA) claim and an unjust enrichment claim (Linda Menichino, et al. v. Citibank, N.A., et al., No. 12-00058, W.D. Pa., 2018 U.S. Dist. LEXIS 8648).

Mealey's Insurance - Judge Grants Judgment To Mortgagors, Reinsurer On RESPA, Unjust Enrichment Claims

PITTSBURGH - In a mortgage insurance reinsurance scheme case, a Pennsylvania federal judge on Jan. 19 granted judgment on the pleadings to mortgagors and a reinsurer with regard to a Real Estate Settlement Procedures Act (RESPA) claim and an unjust enrichment claim (Linda Menichino, et al. v. Citibank, N.A., et al., No. 12-00058, W.D. Pa., 2018 U.S. Dist. LEXIS 8648).

Mealey's Banking & Finance - Judge Finds Lender's Duty To Respond Was Not Triggered Under RESPA

SACRAMENTO, Calif. - A California federal judge on Jan. 11 granted a lender's motion to dismiss causes of action for violation of the unfair competition law (UCL), the Real Estate Settlement and Procedures Act (RESPA) and other claims, finding that a borrower's communications about the origination of her loan did not trigger the lender's duty to respond under RESPA (Susan Ann Feighery, et al. v. Ditech Financial LLC, No. 2:17-cv-01473, E.D. Calif., 2018 U.S. Dist. LEXIS 5472).

Mealey's Insurance - Wisconsin Panel Says Policy Clearly Bars Coverage For Mold Damages

WAUKESHA, Wis. - The Second District Wisconsin Court of Appeals on Dec. 13 affirmed that a trial court correctly entered judgment for an insurer in a suit seeking damages as a result of injuries caused by mold contamination in a rented apartment because the policy at issue clearly bars coverage for mold damages and mold-related injuries (Susan M. Smith v. Mumm Real Estate LLC, No. 2016AP1944, Wis. App., Dist. 2, 2017 Wisc. App. LEXIS 1039).

Mealey's Litigation Procedure - PCA To Issue Award, Asks Russia And Investors Questions On Quantum

THE HAGUE, Netherlands - In preparation for the issuance of a final award in a treaty dispute over real estate investments in Crimea, the Permanent Court of Arbitration (PCA) on Dec. 13 announced that it has posed certain questions to the investors and the Russian Federation in relation to responsibility and quantum (Lugzor LLC, et al. v. The Russian Federation, No. 2015-29, PCA).

Mealey's Antitrust/Unfair Competition - Judge Finds Late Fees Charged For Apartment Rental Did Not Violate UCL

SAN DIEGO - A California federal judge on Dec. 1 granted a motion to dismiss claims for violation of California's unfair competition law (UCL) and a claim related to debt collection asserted against landlords, finding that their alleged practice of charging late fees was neither unfair nor fraudulent and that the late fees did not constitute debt collection (Jordan Kohler v. Greystar Real Estate Partners, LLC, et al., No. 15cv2195, S.D. Calif., 2017 U.S. Dist. LEXIS 198151).

Mealey's Banking & Finance - 5th Circuit Finds Loan Transaction Was Not Void, Affirms Dismissal

NEW ORLEANS - After finding that a borrower failed to show that the sale of a mortgage between lenders was void, the Fifth Circuit U.S. Court of Appeals on Dec. 1 affirmed a district court's summary judgment ruling for the lenders (David Johnson v. Real Estate Mortgage Network, et al., No. 17-20347, 5th Cir., 2017 U.S. App. LEXIS 24369).

Mealey's Banking & Finance - 9th Circuit Finds No Support For RESPA, FDCPA Claims Against Wells Fargo

SEATTLE - The Ninth Circuit U.S. Court of Appeals on Oct. 26 affirmed a district court's decision to dismiss claims for violation of the Fair Debt Collection Practices Act (FDCPA) and the Real Estate Settlement Procedures Act (RESPA) asserted against a bank, finding that a borrower failed to show that any issues of material dispute existed as to the owner of the mortgage note (Frederick T. Brewster v. Wachovia Mortgage, FSB, et al., No. 12-35490, 9th Cir., 2017 U.S. App. LEXIS 21287).

Mealey's Litigation Procedure - PCA Holds Merits Hearing In Real Estate Investment Arbitration Against Russia

THE HAGUE, Netherlands - The Permanent Court of Arbitration (PCA) on Oct. 26 announced several updates in an arbitration commenced by real estate investors against the Russian Federation, noting that it recently held a hearing on the merits and that Russia has yet to participate in the case (Everest Estate LLC, et al. v. The Russian Federation, No. 2015-36, PCA).

Mealey's Banking & Finance - Florida Federal Judge Finds Facts To Support RESPA, FDCPA Claims

JACKSONVILLE, Fla. - After finding that a borrower sufficiently pleaded facts to support her causes of action for violation of the Real Estate Settlement and Procedures Act (RESPA) and other claims against a loan servicer in relation to her mortgage, a Florida federal judge on Oct. 24 refused to dismiss the borrower's amended complaint (Mary R. Johnson v. Specialized Loan Servicing LLC, et al., No. 3:16-cv-178, M.D. Fla., 2017 U.S. Dist. LEXIS 176142).

Mealey's Banking & Finance - Federal Judge Dismisses RESPA Claim As Barred By State Court Ruling

CHICAGO - After finding that a borrower's claims related to his requests for a loan modification from a lender were barred by a previous state court foreclosure judgment, an Illinois federal judge on Oct. 10 dismissed his claim for violation of the Real Estate Settlement and Procedures Act (RESPA) (James Alexander Saadi v. Citimortgage Inc., No. 17-1966, N.D. Ill., 2017 U.S. Dist. LEXIS 166986).

Mealey's Litigation Procedure - Panel Finds Servicer's Response To Borrower Did Not Violate RESPA

ATLANTA - After finding that a borrower failed to show that a loan servicer's response to her request for information regarding her loan did not violate the Real Estate Settlement Procedures Act (RESPA), the 11th Circuit U.S. Court of Appeals on Sept. 22 affirmed a summary judgment ruling for the servicer (Jaki Baez v. Specialized Loan Servicing LLC, No. 16-17292, 11th Cir., 2017 U.S. App. LEXIS 18362).

Mealey's Banking & Finance - Homeowners Say Reinsurer, Mortgagors Are Not Entitled To Judgment On RESPA Claim

PITTSBURGH - In a mortgage insurance reinsurance scheme case, mortgagors and a reinsurer are not entitled to judgment on a Real Estate Settlement Procedures Act (RESPA) claim under Third Circuit U.S. Court of Appeals law, homeowners say in a brief filed Sept. 19 in a Pennsylvania federal court (Linda Menichino, et al. v. Citibank, N.A., et al., No. 12-00058, W.D. Pa., 2017 U.S. Dist. LEXIS 86380).

Mealey's Insurance - Homeowners Say Reinsurer, Mortgagors Are Not Entitled To Judgment On RESPA Claim

PITTSBURGH - In a mortgage insurance reinsurance scheme case, mortgagors and a reinsurer are not entitled to judgment on a Real Estate Settlement Procedures Act (RESPA) claim under Third Circuit U.S. Court of Appeals law, homeowners say in a brief filed Sept. 19 in a Pennsylvania federal court (Linda Menichino, et al. v. Citibank, N.A., et al., No. 12-00058, W.D. Pa., 2017 U.S. Dist. LEXIS 86380).

Mealey's Insurance - Judge: Claims Based Solely On Faulty Workmanship Do Not Amount To 'Occurrence'

PHILADELPHIA - Granting commercial general liability insurers' motion for summary judgment in a breach of contract lawsuit, a Pennsylvania federal judge held Aug. 31 that underlying construction defects claims against insureds fail to amount to an "occurrence" under the policies and that the "real estate development activities-completed operations" exclusion further bars coverage (Northridge Village LP, et al. v. Travelers Indemnity Co. of Connecticut, et al., No. 15-1947, E.D. Pa., 2017 U.S. Dist. LEXIS 140541).

Mealey's Banking & Finance - Judge Finds Borrower Has Standing, Dismisses Claims Against Loan Servicer

FORT LAUDERDALE, Fla. - A Florida federal judge on Aug. 28 dismissed all of a borrower's claims asserted against the servicer of his mortgage in relation to his requests for information on the loan but allowed him leave to amend his claims for violation of the Real Estate Settlement and Procedures Act (RESPA) and the Truth in Lending Act (TILA) (James W. Scott v. 360 Mortgage Group LLC, No. 17-cv-61055, S.D. Fla., 2017 U.S. Dist. LEXIS 139673).

Mealey's IP/Tech - New York Federal Judge Grants Request For Dismissal Of Software Copyright Case

NEW YORK - Allegations that a law firm specializing in real estate and four of its partners infringed copyrighted software were dismissed, with leave to amend, by a New York federal judge on Aug. 30 on grounds that the complaint lacks requisite specificity (Automated Management Systems Inc. v. Rappaport Hertz Cherson Rosenthal, et al., No. 16-4762, S.D. N.Y., 2017 U.S. Dist. LEXIS 139728).

Mealey's Litigation Procedure - Borrower Files Class Action, Claims Wells Fargo Wrongly Charged Interest Fees

SAN FRANCISCO - A first-time homebuyer on Aug. 28 filed a class action complaint in a California federal court, alleging that Wells Fargo & Co. violated the Real Estate Settlement Procedures Act (RESPA) and the Truth in Lending Act (TILA) by wrongly charging borrowers mortgage interest rate-lock extension fees (Victor Muniz v. Wells Fargo & Co., et al., No. 3:17-cv-04995, N.D. Calif.).

Mealey's Banking & Finance - Borrower Files Class Action, Claims Wells Fargo Wrongly Charged Interest Fees

SAN FRANCISCO - A first-time homebuyer on Aug. 28 filed a class action complaint in a California federal court, alleging that Wells Fargo & Co. violated the Real Estate Settlement Procedures Act (RESPA) and the Truth in Lending Act (TILA) by wrongly charging borrowers mortgage interest rate-lock extension fees (Victor Muniz v. Wells Fargo & Co., et al., No. 3:17-cv-04995, N.D. Calif.).

Mealey's Litigation Procedure - Illinois Federal Judge Tosses Class Suit Over Zillow Housing Values

CHICAGO - An Illinois federal judge on Aug. 23 dismissed a class suit filed by the owners of a Shaumburg, Ill., property who claimed that a real estate website underestimated the value of their property in violation of Illinois state laws, finding that the plaintiff's claims failed under Illinois statutory law (Vipul P. Patel, et al. v. Zillow, Inc., et al., No. 17-4008, N.D. Ill., 2017 U.S. Dist. LEXIS 134785).

Mealey's Banking & Finance - Panel Affirms $9.1M Award In Favor Of Excess Insurer In Equitable Indemnity Dispute

CINCINNATI - The Sixth Circuit U.S. Court of Appeals on Aug. 23 held a primary insurer liable under the principles of equity to reimburse an excess insurer for the defense costs it was ordered to pay to their insured in connection with an underlying lawsuit arising from a failed real estate project, affirming a lower court's ruling that awarded the excess insurer the $7,996,655.57 in underlying defense costs plus $1,160,629.09 in prejudgment interest (IMG Worldwide Inc., et al. v. Great Divide Insurance Co., No. 15-4291, 6th Cir.).

Mealey's Insurance - Panel Affirms $9.1M Award In Favor Of Excess Insurer In Equitable Indemnity Dispute

CINCINNATI - The Sixth Circuit U.S. Court of Appeals on Aug. 23 held a primary insurer liable under the principles of equity to reimburse an excess insurer for the defense costs it was ordered to pay to their insured in connection with an underlying lawsuit arising from a failed real estate project, affirming a lower court's ruling that awarded the excess insurer the $7,996,655.57 in underlying defense costs plus $1,160,629.09 in prejudgment interest (IMG Worldwide Inc., et al. v. Great Divide Insurance Co., No. 15-4291, 6th Cir.).

Mealey's Banking & Finance - Former Loan Servicer Can Be Liable For Misapplied Mortgage Payments, Judge Says

EUGENE, Ore. - A couple's former loan servicer can be held liable for violating the Real Estate Settlement Procedures Act (RESPA) and other state laws for misapplying their monthly mortgage payments, a federal judge in Oregon ruled Aug. 14, finding that a couple sufficiently stated claims against the company (Michael Wood, et al. v. Nationstar Mortgage, LLC, et al., No. 16-cv-02061-MC, D. Ore., 2017 U.S. Dist. LEXIS 128782).