Mealey's Mortgage Lending

  • August 16, 2023

    USDA To High Court: FCRA Does Not Waive Government’s Sovereign Immunity

    WASHINGTON, D.C. — A waiver of sovereign immunity requires “clear statutory language,” and the general remedial provisions of the Fair Credit Reporting Act (FCRA) do not contain such a waiver, the U.S. Department of Agriculture tells the U.S. Supreme Court in an Aug. 15 petitioner brief challenging a Third Circuit U.S. Court of Appeals ruling allowing a borrower to sue the department for allegedly misreporting that he was past due in his mortgage loan payments.

  • August 11, 2023

    Borrower Asks For Reconsideration Of Dismissal Against Mortgage Servicer

    PHILADELPHIA — A Third Circuit U.S. Court of Appeals panel improperly found that res judicata applied to quiet title claims, a borrower argues in his motion for reconsideration of the dismissal of his complaint, further asserting that the appellate court erred in finding that his claims were barred by statutes of limitations.

  • August 11, 2023

    Federal Jury Awards Mortgage Servicing Company $22M For Dispute Over Owed Funds

    NEWARK, N.J. — A jury in a New Jersey federal court returned a verdict in a dispute over who was entitled to funds after a mortgage lender ended a long-standing servicing agreement with another company, finding that the servicing company was entitled to more than $22 million on its fraud and conversion claims while awarding the lender $247,000 for breach of contract.

  • August 10, 2023

    Federal Judge Adopts Recommendation To Dismiss RICO Claim Against Wells Fargo

    NEW YORK — A New York federal judge adopted a report and recommendation from a magistrate judge and dismissed 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 for failure to state a claim.

  • August 08, 2023

    Dismissal Affirmed By Nevada Court In Mediation Decision For Foreclosure

    LAS VEGAS — A Nevada appeals court affirmed a lower court’s dismissal of a request for appropriate relief in a foreclosure mediation matter in a long-running case, finding that the lender complied with all of Nevada's Foreclosure Mediation Program (FMP) requirements.

  • August 04, 2023

    Louisiana Panel Reverses Ruling For Insurer In Suit Alleging Insured Stole Files

    BATON ROUGE, La. — A Louisiana appeals panel held that a residential mortgage broker’s electronic loan files are “tangible” under state law and, therefore, can be defined as “‘property’ that is susceptible to ‘loss of use’” under a competitor’s business liability insurance policy, reversing a summary judgment ruling in favor of an insurer that intervened in the broker’s lawsuit alleging that its insured used stolen files to broker mortgage loans for its customers.

  • August 04, 2023

    Judge: Lender’s Motion To Dismiss Granted But Borrower Can Amend TILA Claims

    PHOENIX — An Arizona federal judge granted a lender’s motion to dismiss but allowed a borrower to amend his complaint that alleges that the lender purports to offer home equity lines of credit (HELOCs) but in fact offers home equity loans.

  • August 03, 2023

    4th Complaint Fighting Foreclosure Again Dismissed On Res Judicata Grounds

    ATLANTA — A federal magistrate judge in Georgia recommended that a motion to dismiss a lawsuit filed by a pro se borrower asserting the same claims against a mortgage servicer and a bank over the foreclosure of her home that were made in three previously dismissed cases be granted and the case be dismissed with prejudice.

  • July 31, 2023

    Maryland Court: Mortgage Servicer Entitled To Portion Of Fire Insurance Proceeds

    BALTIMORE — A lower court in Maryland erred in awarding the full proceeds of a fire insurance policy to the estate of a man killed in a house fire, a state appeals court ruled, finding that the mortgage loan servicer was entitled to a portion.

  • July 26, 2023

    6th Circuit: Dismissal Of Suit On Effort To Assume, Modify Mortgage Proper

    CINCINNATI — The Sixth Circuit U.S. Court of Appeals on July 25 held that a widow’s claims were properly dismissed in her suit against a bank and debt collector regarding her attempts to assume and modify her late husband’s mortgage and rejected her argument that the district court judge should have been recused.

  • July 26, 2023

    10th Circuit:  Dismissal Of Suit Against Lender Affirmed, State Law Inapplicable

    DENVER — The 10th Circuit U.S. Court of Appeals affirmed that mortgagors cannot sue a mortgage loan servicer for charging borrowers pay-to-pay convenience fees for making mortgage payments by telephone under the Utah Consumer Sales Practices Act (UCSPA) and denied a borrower’s request to certify questions on the act’s scope to the state Supreme Court.

  • July 21, 2023

    Magistrate:  Dismissal Of Amended Complaint Alleging Wrongful Foreclosure Proper

    ATLANTA — A federal magistrate judge in Georgia recommended dismissal of a borrower’s second amended complaint after finding that he failed to cure deficiencies in his wrongful foreclosure claim against a mortgage servicer.

  • July 21, 2023

    Borrowers Appeal Summary Judgment Award To Loan Servicers To 10th Circuit

    DENVER — Two borrowers filed an appeal in the 10th Circuit U.S. Court of Appeals a day after a Kansas federal court awarded summary judgment to their loan servicers after finding that the claims for violations of the Kansas Consumer Protection Act (KCPA) and the Real Estate Settlement Procedures Act (RESPA) fail.

  • July 20, 2023

    3rd Circuit Affirms Dismissal In Quiet Title Claim Against Mortgage Servicer

    PHILADELPHIA — The Third Circuit U.S. Court of Appeals found no error in a lower court’s decision to dismiss a complaint alleging that a bank had no claim to a mortgage in a foreclosure proceeding, agreeing that a borrower’s claims are barred under res judicata and statutes of limitations.

  • 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.

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