LexisNexis® Legal Newsroom
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).

Mealey's Banking & Finance - Panel Finds Ocwen Did Not Violate RESPA When It Denied Information Request

ATLANTA - After finding that a loan servicer was not required to provide a borrower with the contact information for the owner of the borrower's loan, the 11th Circuit U.S. Court of Appeals on Aug. 8 affirmed dismissal of his claims for violation of the Real Estate Settlement Procedures Act (RESPA) (David Mejia v. OCWEN Loan Servicing LLC, No. 16-16353, 11th Cir., 2017 U.S. App. LEXIS 14533).

Mealey's Litigation Procedure - Judge Orders Successors In Interest To File Motion To Substitute

SAN DIEGO - A California federal judge on July 12 refused to rule on a loan-servicing company's motion to dismiss claims for violation of California's unfair competition law (UCL) and the Real Estate Settlement Procedures Act (RESPA) until the parties move to substitute the deceased plaintiff with her successors in interest (Margarette Smith v. Specialized Loan Servicing LLC, No. 16cv2519, S.D. Calif., 2017 U.S. Dist. LEXIS 109002).

Mealey's Banking & Finance - Judge Orders Successors In Interest To File Motion To Substitute

SAN DIEGO - A California federal judge on July 12 refused to rule on a loan-servicing company's motion to dismiss claims for violation of California's unfair competition law (UCL) and the Real Estate Settlement Procedures Act (RESPA) until the parties move to substitute the deceased plaintiff with her successors in interest (Margarette Smith v. Specialized Loan Servicing LLC, No. 16cv2519, S.D. Calif., 2017 U.S. Dist. LEXIS 109002).

Mealey's Banking & Finance - Judge Dismisses RESPA Claim Against Wells Fargo For Failure To Respond

MIAMI - After a former property owner failed to respond to a bank's motion for summary judgment on his claim for violation of the Real Estate Settlement Procedures Act (RESPA), a Florida federal judge on June 12 entered a default ruling against him and entered judgment in favor of the bank (Francisco Urdaneta v. Wells Fargo Bank, N.A., No. 1:16-cv-22987, S.D. Fla., 2017 U.S. Dist. LEXIS 90693).

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 Litigation Procedure - Judge Denies Amendment To Mortgage Insurance Reinsurance Scheme Suit

PITTSBURGH - In a mortgage insurance reinsurance scheme case, a Pennsylvania federal judge on June 6 denied leave to a putative class of mortgagors to file a third amended complaint based on their new theory under the Real Estate Settlement Procedures Act (RESPA) because it is time-barred and reliance on any equitable tolling doctrine has been disavowed (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 Denies Amendment To Mortgage Insurance Reinsurance Scheme Suit

PITTSBURGH - In a mortgage insurance reinsurance scheme case, a Pennsylvania federal judge on June 6 denied leave to a putative class of mortgagors to file a third amended complaint based on their new theory under the Real Estate Settlement Procedures Act (RESPA) because it is time-barred and reliance on any equitable tolling doctrine has been disavowed (Linda Menichino, et al. v. Citibank, N.A., et al., No. 12-00058, W.D. Pa., 2017 U.S. Dist. LEXIS 86380).

Mealey's Litigation Procedure - Zillow Removes Class Suit Over Housing Value Estimates To Federal Court

CHICAGO - Zillow Inc. and Zillow Group Inc. (collectively, Zillow) on May 25 removed to federal court a class complaint accusing the real estate website of providing inaccurate home value estimates in violation of Illinois state laws (Vipul B. Patel, et al. v. Zillow, Inc., et al., No. 17-4008, N.D. Ill.).

Mealey's PI/Product Liability - Appeals Court Vacates Damages Awarded To Couple For Alleged Construction Defects

SEATTLE - A Washington appeals panel on May 22 vacated a trial court judge's decision to award $9,772.50 in damages to a couple who accused their home builder of defective construction, holding that the builder's failure to complete a cedar fence and issues with the kitchen cabinets and trim and the exterior stone veneer of the garage did not breach the terms of the real estate purchase and sale agreement (REPSA) (Ian Schumacher, et al. v. T. Garrett Construction, Inc., No. 76022-0-I, Wash. App., Div. 1, 2017 Wash. App. LEXIS 1226).