LexisNexis® Legal Newsroom
Troutman Sanders LLP: Two Federal Appeals Courts Split over Borrowers’ Rights to Sue under HAMP

By John C. Lynch , David N. Anthony , Ethan G. Ostroff and Maryia Y. Jones Courts nationwide have seen a groundswell of lawsuits by borrowers predicated on loan servicers' decisions not to provide loan modification relief under the Home Affordable Modification Program ("HAMP"). Some...

Troutman Sanders LLP: District Court Denies Class Certification of Unlawful Foreclosure Claims

By John C. Lynch , Jason E. Manning and Elizabeth "Liz" S. Flowers On April 30, 2012, the United States District Court for the District of Massachusetts denied class certification of Plaintiffs' unlawful foreclosure claims, finding that Plaintiffs failed to satisfy Rule 23(a) requirements...

Troutman Sanders LLP: The CFPB Goes After the Mortgage Industry: New Proposed Mortgage Loan Origination (MLO) Standards

By John C. Lynch , David N. Anthony , Paige S. Fitzgerald and Virginia Bell Flynn On March 9, 2012, the Consumer Financial Protection Bureau announced that it will propose residential mortgage loan origination (MLO) rules this summer, with a goal of adopting final rules by January 2013. According...

Troutman Sanders LLP: VA Supreme Court Rules Face-to-Face Interview Required Before Foreclosure

By David N. Anthony , John C. Lynch , Ethan G. Ostroff and Maryia Y. Jones On April 20, 2012, in a surprising decision, the Supreme Court of Virginia revived borrowers' claims against defendant loan holder and servicer, concluding that the borrowers' non-payment under a home loan did not constitute...

Troutman Sanders LLP: Residential lenders beware: Eleventh Circuit affirms strip off in Chapter 7 bankruptcies

By John C. Lynch , Jeffery W. Cavender and Matthew R. Brooks The U.S. Court of Appeals for the Eleventh Circuit has ruled that Chapter 7 debtors can strip off, or void, wholly unsecured mortgage liens. The per curiam opinion, issued May 11, 2012, marks a significant departure from the standard Chapter...

Troutman Sanders LLP: Supreme Court Limits Scope of Liability for Real Estate Settlement Service Charges under RESPA

By David N. Anthony and Nicholas R. Klaiber A May 24, 2012, decision of the United States Supreme Court clarifies the potential scope of liability for entities providing real estate settlement services under the Real Estate Settlement Procedures Act (RESPA). In Freeman v. Quicken Loans, Inc. , No...

Troutman Sanders LLP: CFPB Announces Plan to Implement New Rules for Mortgage Industry

By John C. Lynch , Ethan G. Ostroff and David M. Gettings The Consumer Financial Protection Bureau (CFPB) announced yesterday that it will be taking steps over the course of 2013 to focus on the mortgage industry's compliance with new consumer protections. The 2010 Dodd-Frank Act required the...

Troutman Sanders LLP: North Carolina Court of Appeals Forestalls Borrower’s Attempt to Collaterally Attack Foreclosure Proceeding

By John C. Lynch and D. Kyle Deak On Plaintiff's appeal of dismissal of his Complaint seeking to challenge the authority of the lender to foreclose, the Court of Appeals affirmed the Superior Court's dismissal and found that Plaintiff's failure to properly and timely appeal the Order of...