Illinois district court finds that Zillow’s “Zestimates” are not appraisals and do not invade…

In Patel v.Zillow, Inc.,No. 17-CV-4008 (N.D. Ill. Aug. 23, 2017) a U.S. District Court found that Zillow’s property valuations are not appraisals, and therefore it does not have to be licensed under Illinois law, and the valuations do not support a trespass claim because they do not invade their privacy.…

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Illinois court holds that Fannie Mae cannot be liable for a money judgment obtained…

Fannie Mae succeeding in reversing a decision by the Circuit Court of Cook County which entered an in personam money judgment against it for the City of Chicago’s demolition costs on the basis that the demolition proceeding where the costs were assessed was an in rem action and Fannie Mae…

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Provider of loan modification services is not engaging in “real estate transactions” under Illinois’…

The Illinois Supreme Court was asked to answer the certified question whether the State of Illinois may pursue a claim under the Illinois Human Rights Act against providers of loan modification servicers to distressed mortgagors under a reverse redlining theory. The Court held that the services did not fall under…

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Ninth Circuit holds that in a fraudulent transfer the creditor can reach assets of…

The Ninth Circuit held in DZ Bank AG Deutsche Zentral-Genossenschaft Bank v. Meyer, No. 15-35086 (9th Cir. Aug. 24, 2017) that where the debtor fraudulently transferred assets the creditor is not limited to recovering the value of the assets that were directly traceable to the bank’s security interest. The case…

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Florida court holds consumer has no standing to sue under the FDCPA where communication…

A consumer in a state court collection action brought suit under the FDCPA contending that the debt collector’s response to the consumer’s motion to dismiss the state court case constituted a communication in violation of 15 U.S.C. § 1692e. The district court held that the response was a “formal pleading”…

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Sixth Circuit holds that tendering homestead exemption does not deprive debtors of standing to…

The Sixth Circuit held in In re Burke, 863 F.3d 521 (6th Cir. July 14, 2017), that a Trustee cannot deprive Chapter 7 debtors of standing to compel the Trustee to abandon the property by tendering their homestead exemption. The Chapter 7 Trustee moved to evict Debtors from their home,…

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Federal Banking Regulators Propose Extension of Certain Capital Rules Treatment for Non-Advanced Approaches Banks

On August 22, 2017, the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation have issued a joint proposed rule to extend the current transitional capital rules treatment of certain regulatory capital deductions and risk weights and certain minority interest…

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Servicemembers Civil Relief Act provides no protection to a mortgagor whose obligation is incurred…

In an issue of first impression, the Fourth Circuit held in Sibert v. Wells Fargo Bank, N.A., 863 F.3d 331 (4th Cir. July 17, 2017), that 50 U.S.C. § 3953 of the Servicemembers Civil Relief Act (“SCRA”) offers a mortgagor who has multiple periods of military service no protection if…

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California court confirms that escrow agent’s duty is to the lender not the homeowner

In Ruvalcaba v. Ocwen Loan Servicing, No. 15-cv-00744 (S.D. Ca. July 13, 2017), the District Court for the Southern District of California considered the scope of a title company’s duties when acting as a sub-escrow agent and to whom it owes duties arising out of a lender’s closing instructions and…

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Debt collector cannot invoke FDIC’s safe harbor when relying on precedent that is later…

The issue in *Oliva v Blatt, Hasenmiller, Leibsker & Moore*, No. 15-2516 (7th Cir. July 24, 2017) (en banc) was whether a debt collector who violated the venue provision of the FDCPA can avoid liability on the ground that it was relying on controlling circuit precedent interpreting the statute when…

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