Mealey's Mortgage Lending : Mealey's : Legal News & Analysis

Mealey's Mortgage Lending

July 19, 2023
Hispanic Wells Fargo Workers Allege Discriminatory Practices, Lost Opportunities

SAN ANTONIO — A group of current and former employees of Wells Fargo Bank N.A. allege in a class complaint filed in a Texas federal court that the bank forces its employees to offer predatory mortgage lending options to Spanish-speaking customers and excludes members of a bilingual team from opportunities within the company.
July 19, 2023
Bank: Woman Alleging Improper Fees For Mortgage Payments Has No Standing

CHARLESTON, W.Va. — Bank of America N.A. (BANA) asserts that “[n]either federal law nor West Virginia law prohibit BANA from charging a fee for an extra service requested and agreed to by the borrower” in its motion to dismiss a woman’s class action complaint alleging that the bank improperly charged and collected illegal payment processing fees when borrowers made their monthly mortgage payments by telephone or online.
July 18, 2023
Texas Supreme Court To Determine Status Of Loan Re-Acceleration

NEW ORLEANS — The Texas Supreme Court accepted two certified questions submitted by the Fifth Circuit U.S. Court of Appeals to determine whether a lender can simultaneously rescind and re-accelerate a loan under Texas law.
July 18, 2023
Kansas Appeals Court Affirms Statute Of Limitations Applies To Homeowners’ Claims

TOPEKA, Kan. — A Kansas appeals court affirmed summary judgment for homeowners on statute of limitations grounds, rejecting an appeal from a loan servicer that did not foreclose on the mortgage or collect on the note for more than 16 years after the homeowners defaulted on the loan.
July 12, 2023
5th Circuit Asks Texas Supreme Court To Determine Status Of Loan Re-Acceleration

NEW ORLEANS — The Fifth Circuit U.S. Court of Appeals certified two questions to the Texas Supreme Court to determine whether a lender can simultaneously rescind and re-accelerate a loan under Texas law.
July 12, 2023
Mortgage Company Agrees To Pay $23.75M To Settle FCA Violations For Federal Loans

ALBANY, N.Y. — Movement Mortgage LLC will pay $23.75 million to resolve allegations that it failed to comply with program requirements when it originated and underwrote mortgages insured by federal programs in violation of the False Claims Act (FCA), the U.S. attorney for the Northern District of New York announced.
July 12, 2023
Settlement Reached In Suit Alleging Consumer Fraud In Loan Modification Row

CHICAGO — A jury trial in an Illinois federal court has ended after Wells Fargo NA and a couple agreed to settle claims that the lender violated an Illinois consumer fraud statute by failing to provide the borrowers with a loan modification under the Home Affordable Modification Program (HAMP) before foreclosing on their home.
July 05, 2023
Borrowers Say Amended Complaint Corrects Deficiencies, Argue Against Dismissal

RALEIGH, N.C. — A couple urges a district court to deny motions filed by a mortgage lender and a realty company for dismissal of a first amended complaint alleging that the companies engaged in an unlawful kickback scheme in which the realty company would steer all of its clients to the mortgage company for their loans.
July 05, 2023
Judgment, Foreclosure Order Affirmed By Ohio Appeals Court

DAYTON, Ohio — An Ohio appeals court panel found no reversible error in a trial court’s judgment awarding a mortgage servicing company summary judgment and decree of foreclosure, rejecting the homeowner’s appeal.
June 30, 2023
TILA Doesn’t Apply To Business Loans, Federal Judge Says, Dismisses Claims

SACRAMENTO, Calif — A California federal judge granted a motion to dismiss after finding that the Truth in Lending Act (TILA) does not apply to loans made for business purposes.
June 28, 2023
TILA Claim Fails But Judge Grants Leave To Amend Complaint On Other Violations

LOS ANGELES — A borrower’s claim against his home equity loan holder for a Truth in Lending Act (TILA) violation is barred under statute of limitation grounds, but he may file an amended complaint asserting reformation of contract and unjust enrichment claims, a California federal judge ruled.
June 27, 2023
Judge: FCRA Claim Fails Because Credit Report Contained No False Information

CHICAGO — A federal judge in Illinois found that because there is no false information in a consumer reporting agency’s report that reflected that a woman had “‘historic late [mortgage] payments in 2018 and 2019,’” there is no Fair Credit Reporting Act (FCRA) violation and awarded the agency summary judgment.
June 27, 2023
6th Circuit Finds No Valid Reason For Woman’s Attempts To Block Foreclosure

CINCINNATI — A woman’s claims against a mortgage servicing company in an attempt to block a foreclosure are barred by res judicata, the Sixth Circuit U.S. Court of Appeals said, affirming a district court’s order awarding summary judgment.
June 23, 2023
Borrowers Appeal Order Dismissing Claims Against Loan Servicer To 9th Circuit

RIVERSIDE, Calif. — Borrowers who say their mortgage loan servicer failed to properly notify them that it had assumed the servicing responsibilities of their loan on June 22 filed notice in a district court that it will appeal to Ninth Circuit U.S. Court of Appeals a California federal judge’s ruling that dismissed their claims for a third time, this time with prejudice.
June 23, 2023
RICO Claim Against Wells Fargo For Foreclosure Action Tossed By Magistrate Judge

NEW YORK — A federal magistrate judge in New York recommended that a complaint alleging that a lender violated the Racketeer Influenced and Corrupt Organizations Act (RICO) by engaging in a racketeering scheme during a mortgage foreclosure action be dismissed for failure to state a claim.
June 23, 2023
CFPB, Amici Say Discrimination Protection Is Valid For Prospective Borrowers

CHICAGO — Two amicus curiae briefs have been filed in the Seventh Circuit U.S. Court of Appeals in support of the Consumer Financial Protection Bureau (CFPB), which argues in its opening brief that Congress clearly intended the Equal Credit Opportunity Act (ECOA) to apply to prospective mortgage borrowers and that a district court erred in dismissing its case alleging that a lender discriminated against African-Americans by discouraging them from applying for mortgage loans in the Chicago metropolitan area.
June 23, 2023
Judge Grants Final Approval For Convenience Fee Class Action Dispute Settlement

FORT LAUDERDALE, Fla. — A Florida federal judge signed off on final approval of a class action settlement for nearly $2.8 million between borrowers and mortgage loan servicers PHH Mortgage Corp. and Ocwen Loan Servicing LLC over the loan servicers’ alleged charging of illegal “processing fees” to the borrowers for paying their mortgage loans over the telephone or online.
June 22, 2023
Florida Appeals Court: Evidence Not Enough To Defeat Standing In Foreclosure Case

WEST PALM BEACH, Fla. — A Florida appeals court on June 21 found that “circumstantial evidence was not competent substantial evidence” to prove that Bank of New York Mellon did not have standing to bring a mortgage foreclosure suit, reversing a trial court’s final judgment in favor of a homeowner.
June 21, 2023
HBOR, UCL Claims Survive Motion For Summary Judgment In Wrongful Foreclosure Suit

SACRAMENTO, Calif — A California federal judge found that “at least one disputed issue of material fact” remains in a lawsuit alleging wrongful foreclosure and eviction and partially granted and partially denied a lender’s motion for summary judgment.
June 21, 2023
7th Circuit: FCA Suit Properly Dismissed On Causation Grounds

CHICAGO — The Seventh Circuit U.S. Court of Appeals found that a former underwriter who alleged that a mortgage lender made false representations to the U.S. Department of Housing and Urban Development showed proof of materiality but failed to prove causation, affirming summary judgment in the lender’s favor and finding no error in the lower court’s rulings on expert testimony.
June 20, 2023
U.S. Supreme Court Agrees To Hear FCRA Sovereign Immunity Waiver Dispute

WASHINGTON, D.C. — The U.S. Supreme Court on June 20 agreed to decide whether the Fair Credit Reporting Act (FCRA) waives sovereign immunity of the federal government in a case that allowed a borrower to sue the U.S. Department of Agriculture for allegedly misreporting that the borrower was past due in his mortgage loan payments.
June 19, 2023
TILA, RESPA, Other Claims Fail In Suit Against Mortgage Lender, Servicer

ANNISTON, Ala.— A woman failed to “present evidence—not just allegations” that her mortgage lender and servicer violated the law when they sought to foreclose on a property in default, an Alabama federal judge found in granting a motion to dismiss.
June 19, 2023
New York Appeals Court Says Leave To Amend In Foreclosure Case Properly Denied

NEW YORK — A New York appeals court agreed that a bank’s effort to renew its foreclosure action premised on a change in the law failed because the motion was filed after the time to take an appeal had expired in a case that began with a foreclosure action in January 2012.
June 15, 2023
Borrowers, Lender Argue In Appeal Of $10M Class Award For Appraisal Fee Scheme

RICHMOND, Va. — The Fourth Circuit U.S. Court of Appeals should reinstate its previous order finding that homeowners were injured when required to pay a mortgage lender and title insurer for an independent appraisal that was never received and add a clarification that a recent U.S. Supreme Court decision does not affect this case, class representatives urge the appellate court in their initial brief.
June 12, 2023
Oklahoma Supreme Court Rules Voluntary Dismissal Of Foreclosure Decelerates Loan

OKLAHOMA CITY — A lower appeals court erred when it affirmed a trial court’s award of summary judgment to a borrower after finding that voluntary dismissal of a first foreclosure action did not decelerate the loan, the Oklahoma Supreme Court ruled in a case of first impression, remanding the case to the trial court.