Eleventh Circuit hands servicer big loss in FCRA case

On March 25, 2019 the Eleventh Circuit in Marchisio v. Carrington Mortgage Services, LLC, 919 F.3d 1288 (11th Cir. 2019) affirmed a ruling that a servicer failed to conduct a reasonable investigation of the Plaintiffs’ challenge of its report that they owed a balloon payment on their second mortgage loan,…

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Supreme Court answers whether attorneys engaged in non-judicial foreclosure are not debt collectors for…

The facts of Obduskey v. McCarthy & Holthus LLP, No. 17-1307 (U.S. Mar. 20, 2019) are straight-forward. The defendant lawyers were hired to carry out a nonjudicial foreclosure on a Colorado home owned by the petitioner. The lawyers sent a debt validation notice to the petitioner who disputed the debt.…

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Ninth Circuit rules that Fannie Mae is not a “consumer reporting agency” within the…

In Zabriskie v. Federal National Mortgage Association, 912 F.3d 1192 (9th Cir. Jan. 9, 2019) the Ninth Circuit reversed an Arizona district court’s ruling that Fannie Mae was a “consumer reporting agency” within the meaning of the FCRA. Fannie Mae is a government-sponsored entity created by Congress in 1938. Its…

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Florida Appellate Court says lender could have recovered interest accrued beyond the statute of…

In Grant v. Citizens Bank, N.A., 5D17-726 (Dec. 26, 2018) a Florida Appellate Court retreated from its prior rulings that a lender could not recover in a foreclosure amounts that accrued more than five years prior to the filing of the lawsuit. Nevertheless, it held that the trial court erred…

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In a case of first impression, Fifth Circuit rules that bank cannot be held…

The Fifth Circuit in Riddle v. Bank of America, N.A., 911 F.3d 799 (5th Cir. Dec. 21, 2018) affirmed a Texas district court’s ruling that a homeowner failed to plead an agency relationship between a bank and its servicer, and thus failed to state a claim that the bank was…

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Rhode Island court holds mortgage extension agreement ineffective to extend duration of mortgage where…

In Bayview Loan Servicing, LLC v. Providence Bus. Loan Fund, Inc., No. 2018-18-APPEAL (R.I. Jan. 29, 2019) the Rhode Island Supreme Court holds that a recorded amendment to a mortgage which did not state the duration of the extension of the mortgage was ineffective to extend the validity of the…

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Florida court holds that ability to enforce a lost note does not create a…

In another chapter in the seemingly never ending saga of Florida’s statute of limitations litigation, a Florida Appellate Court recently held that a foreclosure complaint was not time barred because the time had run on the bank’s ability to enforce a lost note. Mielke v. Deutsche Bank Nat’l Tr. Co.…

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Seventh Circuit holds dunning letter not misleading by including validation notice on the second…

The Seventh Circuit in O’Boyle v. Real Time Resolutions, Inc., 910 F.3d 338, 341–48 (7th Cir. Dec. 7, 2018) affirmed a Wisconsin district court’s ruling that a letter which stated that important information was on the back of its first page, but the required validation notice was actually on the…

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Eleventh Circuit holds that debt is not “provided for” in the chapter 13 plan…

The Eleventh Circuit affirmed a Florida district court’s holding In re Dukes, 909 F.3d 1306 (11th Cir. Dec. 6, 2018), that a mortgage debt was not discharged under 11 U.S.C. § 1328(a) when the debt was paid outside of the chapter 13 plan because it was not “provided for” in…

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The Fifth Circuit affirms Texas district court’s decision to award successful plaintiff in an…

In Davis v. Credit Bureau of the South, 908 F.3d 972 (5th Cir. Nov. 16, 2018) the debtor alleged that a debt collector violated the FDCPA by falsely representing that it was a credit bureau when it had lost its credit bureau designation some years earlier. The district court entered…

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