In a recent decision, a federal court in the Southern District of New York (SDNY) dismissed a putative class action complaint alleging, among other things, that a mortgage servicer violated the Fair Debt Collection Practices...more
7/24/2018
/ Consumer Financial Products ,
Excessive Fees ,
FDCPA ,
Financial Services Industry ,
Inspection Rights ,
Mortgage Servicers ,
Mortgages ,
Motion to Dismiss ,
Notice of Default ,
Putative Class Actions ,
RICO
A recent decision of the Supreme Judicial Court of Massachusetts highlights the importance of using clear and unambiguous remedy provisions in residential mortgages and deeds of trust....more
The Nevada Supreme Court has upheld the constitutionality of Nevada's pre-2015 statutory scheme for homeowners association (HOA) foreclosures. This decision contradicts the Ninth Circuit Court of Appeals' conclusion that the...more
2/6/2017
/ Appeals ,
Banking Sector ,
Beneficiaries ,
Deed of Trust ,
Due Process ,
Foreclosure ,
Fourteenth Amendment ,
Homeowners Association (HOA) ,
Mortgage Lenders ,
Mortgages ,
Motion to Dismiss ,
NV Supreme Court ,
Takings Clause ,
Wells Fargo
The 11th Circuit Court of Appeals has affirmed its prior holding in Arencibia v. Mortgage Guaranty Insurance Corp. that an entity that acquires and collects debt on its own behalf does not qualify as a debt collector under...more
The non-judicial foreclosure of a Nevada HOA super lien cannot constitutionally extinguish a mortgage lender's security interest, the Ninth Circuit Court of Appeals has held. This holding will affect many lawsuits in federal...more
A federal appeals court recently decided that a plaintiff could not assert a claim against the issuer of a reverse mortgage for breach of regulations issued by the U.S. Department of Housing and Urban Development (HUD), when...more
8/9/2016
/ Banking Sector ,
Breach of Contract ,
Financial Institutions ,
Fraudulent Concealment ,
Fraudulent Inducement ,
HECM ,
HUD ,
Liens ,
Mortgage Lenders ,
Mortgages ,
Real Estate Market ,
Reverse Mortgages ,
Summary Judgment ,
Written Agreements
A federal district court in Illinois recently dismissed a putative class action against a foreclosure firm, holding that an allegation in a foreclosure complaint that the mortgagor is personally liable for any deficiency on a...more
In the wake of SFR Investments Pool 1, LLC v. U.S. Bank, N.A., in which the Nevada Supreme Court held that an HOA foreclosure sale may extinguish a first position deed of trust, lenders have advanced numerous arguments as to...more
The Sixth Circuit Court of Appeals recently held that a limited liability company (“LLC”) constitutes a “person” within the meaning of the Fair Debt Collection Practices Act (FDCPA or the “Act”), in Anarion Investments LLC v....more
8/27/2015
/ Appeals ,
Banking Sector ,
Banks ,
Consumer Lenders ,
Debt Collection ,
Debt Collectors ,
FDCPA ,
Limited Liability Company (LLC) ,
Mortgage Lenders ,
Mortgage Servicers ,
Mortgages ,
Wrongful Foreclosures
In a recent putative class action by borrowers against a mortgage servicer alleging violations of the Truth in Lending Act (“TILA”), the Seventh Circuit Court of Appeals found that mortgage servicers must credit electronic...more
The Supreme Court of South Carolina recently held that a lienholder’s ability to obtain equitable subordination of a prior mortgage was not precluded by its agent’s knowledge that the prior mortgage had not been satisfied. In...more
The Missouri Supreme Court recently ruled that a St. Louis County ordinance requiring lenders to mediate with borrowers prior to foreclosure was void ab initio because it was not directed to a matter of purely municipal...more
A Florida appellate court recently rejected a real estate developer’s creative effort to shed its property of contractor’s liens. The court applied the venerable principal of mortgage law that a borrower may not extinguish...more
A federal appellate court recently confirmed that, in Michigan, a foreclosing party does not need to hold the mortgage note to have "standing" to foreclose.
In the recent case, an individual borrower faced with...more
Under the Truth in Lending Act (TILA), the assignee of a mortgage note is not considered a "creditor" and is therefore not bound by TILA requirements imposed solely on creditors. One federal appellate court, however, has...more
A federal judge recently rejected motions to dismiss in a suit in which the U.S. government alleged that two mortgage originators and their officers defrauded the Department of Housing and Urban Development (HUD) into...more
The Fourth Circuit, in an unpublished opinion, recently held that an oral statement that borrowers should disregard notices of foreclosure sale while being considered for a loan modification is insufficient to set aside a...more