LexisNexis® Legal Newsroom
Mealey's Banking & Finance - Federal Judge Reserves Ruling On RESPA Claim, Partially Grants Dismissal

DETROIT - A Michigan federal judge on Jan. 22 granted a bank's motion to dismiss a former property owner's claims for violation of federal mortgage guidelines and wrongful foreclosure but reserved its decision on his claims for violation of the Real Estate Settlement Procedures Act (RESPA) in consideration of a recent court ruling on a similar claim (Walter W. Lawson Jr. v. Wells Fargo Bank N.A., No. 15-11287, E.D. Mich.; 2016 U.S. Dist. LEXIS 7386).

Mealey's Banking & Finance - Judge Dismisses Claims For Violation Of RESPA And FDCPA For Lack of Standing

ST LOUIS - A Missouri federal judge on Jan. 25 granted a loan servicer's motion to dismiss claims for violation of the Real Estate Settlement Procedures Act (RESPA) and the Fair Debt Collection Practices Act (FDCPA), finding that the plaintiff was not a party to the underlying loan and lacked standing (Jasan Sayles v. BSI Financial Services, No. 4:15-CV-612, E.D. Mo.; 2016 U.S. Dist. LEXIS 8134).

Mealey's Banking & Finance - Federal Judge Finds Borrower Lacks Standing, Dismisses RESPA Claims

ANN ARBOR, Mich. - A Michigan federal judge on Jan. 19 granted a bank's motion to dismiss claims asserted against it in relation to the foreclosure of a property, finding that the former homeowner lacked standing to sue and that he had no private right of action under the Real Estate Settlement Procedures Act (RESPA) (David J. Pauley v. Bank of America N.A., No. 15-12405, D. Mich.; 2016 U.S. Dist. LEXIS 5693).

Mealey's Banking & Finance - Federal Judge Finds Qualified Written Request Triggers Duty Under RESPA

CINCINNATI - After finding that borrowers have stated plausible claims for violation of the Real Estate Settlement Procedures Act (RESPA) in relation to its provisions on qualified written requests (QWRs) and the Fair Debt Collection Practices Act (FDCPA), an Ohio federal judge on Jan. 5 found that a loan servicer was not entitled to judgment on the pleadings at this time (William H. Schatzman, et al. v. Partners for Payment Relief LLC, No. 1:15-cv-302, S.D. Ohio; 2016 U.S. Dist. LEXIS 462).

Mealey's Banking & Finance - 6th Circuit Affirms Dismissal Of RESPA Claims Against Chase

CINCINNATI - The Sixth Circuit U.S. Court of Appeals on Dec. 10 affirmed a district court's decision in favor of a bank, finding that former property owners failed to show that it violated the Real Estate Settlement Procedures Act (RESPA) when it failed to respond to their letters (Martin Martini, et al. v. JPMorgan Chase Bank, N.A., et al., No. 15-1423, 6th Cir.; 2015 U.S. App. LEXIS 21504).

Mealey's PI/Product Liability - New York Appeals Panel Reverses Ruling For Third-Party Defendants In Injury Suit

NEW YORK - A New York appeals panel on Nov. 17 reversed a New York County Supreme Court ruling that tossed a real estate agent and her agency as third-party defendants in an injury suit, finding that the third parties failed to demonstrate that there were no triable issues of fact (Barbara Stimmel, et al. v. Julianne Osherow, et al., No. 15781, N.Y. Sup., App. Div., 1st Dept.; 2015 N.Y. App. Div. LEXIS 8450).

Mealey's Banking & Finance - Judge Dismisses RESPA Claims Related To Bank's Foreclosure Of Property

DETROIT - A Michigan federal judge on Nov. 16 granted a bank's motion to dismiss, finding that former property owners' claims for wrongful foreclosure, violation of the Real Estate Settlement Procedures Act (RESPA) and other causes of action failed (Roy Smith, et al. v. Nationstar Mortgage, No. 15-13019, E.D. Mich.; 2015 U.S. Dist. LEXIS 154344).

Mealey's Banking & Finance - Amended Default Judgment Would Adversely Affect Insurer's Rights, Panel Rules

DAYTONA BEACH, Fla. - A Florida appeals panel on Nov. 13 found that an insurer has nonparty standing to move to vacate the amended default judgment against its title insurance company insured, and the lower court lacked subject matter jurisdiction when it amended the judgment, vacating the amended default final judgment in a dispute over misappropriated real estate deposits (Gotham Insurance Co. v. Andrew Matthew, et al., No. 5D13-3008, Fla. App., 5th Dist.; 2015 Fla. App. LEXIS 17004).

Mealey's Insurance - Amended Default Judgment Would Adversely Affect Insurer's Rights, Panel Rules

DAYTONA BEACH, Fla. - A Florida appeals panel on Nov. 13 found that an insurer has nonparty standing to move to vacate the amended default judgment against its title insurance company insured, and the lower court lacked subject matter jurisdiction when it amended the judgment, vacating the amended default final judgment in a dispute over misappropriated real estate deposits (Gotham Insurance Co. v. Andrew Matthew, et al., No. 5D13-3008, Fla. App., 5th Dist.; 2015 Fla. App. LEXIS 17004).

Mealey's Banking & Finance - Federal Judge Grants Dismissal Of Claims Related To Loan Modification

LEXINGTON, Ky. - A Kentucky federal judge on Oct. 29 granted motions to dismiss filed by various lenders in relation to alleged violations of the Fair Debt Collection Practices Act (FDCPA), Truth in Lending Act (TILA), the Real Estate Settlement Procedures Act (RESPA) and other causes of action, finding that the claims were time-barred or failed (Ellen Sparks v. Countrywide Home Loans Inc., et al., No. 5:15-cv-99, E.D. Ky.; 2015 U.S. Dist. LEXIS 146986).

Mealey's Insurance - Judge Awards $9.2M To Excess Insurer In Coverage Dispute Over Failed Real Estate

CLEVELAND - An Ohio federal judge on Oct. 26 refused to reconsider an Aug. 28 ruling that held a primary insurer liable under the principles of equity to reimburse an excess insurer for the $7,996,655.57 in defense costs it was ordered to pay to their insured in connection with an underlying lawsuit arising from a failed real estate project, awarding the excess insurer $7,996,655.57 plus $1,160,629.09 in prejudgment interest (IMG Worldwide Inc., et al. v. Westchester Fire Insurance Co., No. 11-1594, N.D. Ohio, Eastern Div.; 2015 U.S. Dist. LEXIS 144868).

Mealey's Banking & Finance - Federal Judge Dismisses All Federal Claims Against Banks, Grants Leave To Amend

HONOLULU - A Hawaii federal judge on Oct. 23 dismissed numerous federal law claims asserted by a borrower against several banks, but granted him leave to amend his claims for violation of the Racketeer Influenced and Corrupt Organizations Act, the Real Estate Settlement Procedures Act (RESPA), the Truth in Lending Act (TILA) and the Fair Debt Collections Practices Act (FDCPA) (Jeffrey G. Hagan v. Deutsche Bank, et al., No. 15-00189, D. Hawaii; 2015 U.S. Dist. LEXIS 144560).

Mealey's Banking & Finance - Federal Judge Allows RESPA Claim Against Lenders To Proceed

GRAND RAPIDS, Mich. - A Michigan federal judge on Oct. 20 granted a motion for summary judgment on a borrower's claims for wrongful foreclosure and negligence but allowed his claims against a lender and mortgage servicer for violation of the Real Estate Settlement Procedures Act (RESPA) to proceed (Harold H. Clark v. OCWEN Loan Servicing LLC, et al., No. 1:15-cv-659, W.D. Mich.; 2015 U.S. Dist. LEXIS 142095).

Mealey's Banking & Finance - Federal Judge Dismisses RESPA And FDCPA Claims Against Banks

PHILADELPHIA - A Pennsylvania federal judge on Sept. 30 granted motion filed by two banks, dismissing claims asserted by former homeowners for violation of the Fair Debt Collections Practices Act (FDCPA), the Equal Credit Opportunity Act (ECOA), Real Estate Settlement Procedures Act (RESPA) and other claims related to the foreclosure of their home (Kimberly Andress, et al. v. Nationstar Mortgage LLC, et al., No. 15-1779, E.D. Pa.; 2015 U.S. Dist. LEXIS 133689).

Mealey's Banking & Finance - 6th Circuit Affirms Dismissal Of RESPA And HAMP Claims Against Lender

CINCINNATI - The Sixth Circuit U.S. Court of Appeals on Sept. 28 affirmed a district court's dismissal of claims asserted by property owners against a bank, finding that the Real Estate Settlement Procedures Act (RESPA) was not in effect at the relevant time and that the Home Affordable Mortgage Program (HAMP) does not impose a legal duty of care on lender (Roderick Ray, et al. v. U.S. Bank National Association, Successor Trustee to Bank of America, Successor by Merger to LaSalle Bank, N.A., No. 15-1241, 6th Cir.; 2015 U.S. App. LEXIS 17220).

Mealey's Banking & Finance - Federal Judge Allows FDCPA Claims Against Loan Servicer To Proceed

FORT LAUDERDALE, Fla. - A Florida federal judge on Sept. 28 found that a borrower failed to submit evidence to support his claim for violation of the Real Estate Settlement Procedures Act (RESPA) but allowed his claims against a loan servicer for violation of the Fair Debt Collection Practices Act (FDCPA) and another claim to proceed (Alex Rodriguez v. Seterus Inc., No. 15-61253, S.D. Fla.; 2015 U.S. Dist. LEXIS 130172).

Mealey's Banking & Finance - Judge: Insurer Has Duty To Defend, Indemnify Against Claims Insured Misused Funds

CHICAGO - An Illinois federal judge held on Sept. 24 that an insurer has a duty to defend or indemnify its insured against underlying claims that its insured misused and misappropriated funds involving real estate closing, loan closing and title and escrow services (Title Industry Assurance Co. v. Chicago Abstract Title Agency, et al., No. 14-1906, N.D. Ill.; 2015 U.S. Dist. LEXIS 128096).

Mealey's Insurance - Judge: Insurer Has Duty To Defend, Indemnify Against Claims Insured Misused Funds

CHICAGO - An Illinois federal judge held on Sept. 24 that an insurer has a duty to defend or indemnify its insured against underlying claims that its insured misused and misappropriated funds involving real estate closing, loan closing and title and escrow services (Title Industry Assurance Co. v. Chicago Abstract Title Agency, et al., No. 14-1906, N.D. Ill.; 2015 U.S. Dist. LEXIS 128096).

Mealey's Insurance - Judge: Primary Insurer Owes Excess Insurer $7.9M In Underlying Defense Costs

CLEVELAND - An Ohio federal judge held Aug. 28 that a primary insurer is liable under the principles of equity to reimburse an excess insurer for the $7,996,655.57 in defense costs it was ordered to pay to their insured in connection with an underlying lawsuit arising from a failed real estate project in Orlando, Fla. (IMG Worldwide Inc., et al. v. Westchester Fire Insurance Co., No. 11-1594, N.D. Ohio, Eastern Div.; 2015 U.S. Dist. LEXIS 114659).

Mealey's Banking & Finance - Judge Finds Servicing Company's Request To Transfer RESPA Claim Is Moot

DENVER - A Colorado federal judge on Aug. 26 denied a loan servicing company's request to transfer a borrower's lawsuit, which asserts a cause of action for violation of the Real Estate Settlement Procedures Act (RESPA), to a bankruptcy court, finding that its arguments were moot or inappropriate (Christine Warren v. Green Tree Servicing LLC, No. 14-cv-02241, D. Colo.; 2015 U.S. Dist. LEXIS 114978).

Mealey's Banking & Finance - 3rd Circuit Affirms Dismissal Of TILA And RESPA Claims, Remands

PHILADELPHIA - The Third Circuit U.S. Court of Appeals on Aug. 24 affirmed dismissal of claims asserted by borrowers for violation of the Real Estate Settlement Procedures Act (RESPA), the Truth in Lending Act (TILA) and other claims, but remanded the case so that they can have the chance to amend their complaint (Nina Shahin, et al. v. PNC Bank, Local Branch at 87 Greentree Driver, Dover, DE 19904, et al., No. 15-1405, 3rd Cir.; 2015 U.S. App. LEXIS 14836).

Mealey's Banking & Finance - Federal Judge Dismisses RESPA And Damages Claims, Grants Leave To Amend

WEST PALM BEACH, Fla. - A Florida federal judge on July 27 found that a borrower's claims for violation of the Real Estate Settlement Procedures Act (RESPA) were valid but that her damages claims failed and that the case should be dismissed with leave to replead (Elina Zaychick v. Bank of America, N.A., No. 9:15-CV-80336, S.D. Fla.; 2015 U.S. LEXIS 97514).

Mealey's Banking & Finance - Endorsement Bars Coverage For Negligence Claim Against Realtor, Panel Says, Reverses

INDIANAPOLIS - An Indiana appeals panel on July 22 found that a business owners insurance policy's "limitation of real estate operations" endorsement precludes coverage for an underlying negligence suit against a real estate listing agent insured, reversing and remanding a lower court's ruling against the insurer (Property-Owners Insurance Co. v. Gerald T. Powers and Phyllis J. Powers, et al., No. 73A05-1501-PL-2, Ind. App.; 2015 Ind. App. Unpub. LEXIS 826).

Mealey's Bankruptcy - Energy Future Holdings Proposes 2 Options For Reorganizing

WILMINGTON, Del. - Chapter 11 debtor Energy Future Holdings Corp. (EFH) on July 23 filed an amended plan of reorganization that includes two options for emerging from bankruptcy, with the company favoring a plan that includes $12.1 billion of new debt and equity arranged by an ad hoc group and the conversion of EFH into a real estate investment trust (In re: Energy Future Holdings Corp., No. 14-10979, D. Del. Bkcy.).

Mealey's Insurance - Endorsement Bars Coverage For Negligence Claim Against Realtor, Panel Says, Reverses

INDIANAPOLIS - An Indiana appeals panel on July 22 found that a business owners insurance policy's "limitation of real estate operations" endorsement precludes coverage for an underlying negligence suit against a real estate listing agent insured, reversing and remanding a lower court's ruling against the insurer (Property-Owners Insurance Co. v. Gerald T. Powers and Phyllis J. Powers, et al., No. 73A05-1501-PL-2, Ind. App.; 2015 Ind. App. Unpub. LEXIS 826).