In Philadelphia Indemnity Insurance Company, v. Chicago Title Insurance Company v. Western Capital Partners LLC, Nos. 12-2525, 12-2612 & 12-2691 (7th Cir. November 13, 2014) the issue was whether complete defense rule requires a title insurer to defend all claims or causes of action brought against its insured. The matter…
Read More »The underlying bankruptcy proceedings in In re Thompson, No. 05-28262-SVK, (Bankr. E.D. Wis. Oct. 21, 2014) culminated in the disallowance of the mortgagee’s proof of claim after the mortgagee failed to establish that it was the holder of the mortgage note. Affirming the decision to disallow the claim the district…
Read More »Although the mortgagors did not argue that the servicer in the foreclosure action committed consumer fraud when it submitted an affidavit that MERS had assigned not only the mortgage, but also the note in which MERS had no interest, the U.S. Bankruptcy Court in _In Re: Residential Capital, LLC_, No.…
Read More »In Commerce Bank v. West Bend Mut. Ins. Co., A14-0247 (Minn. Ct. App. Sept. 22, 2014) the mortgagee brought suit under a general liability insurance policy for damages from vandalism. The policy provided that if the insurer denied the insured’s claim due to its misfeasance or failure to comply with…
Read More »The district court in Wilson v. Bank of Am., N.A., CIV.A. 14-2498 (E.D. Pa. Sept. 24, 2014) explicated what duties a servicer has in response to a Notice of Error under the new Regulation X, 12 C.F.R. § 1024.35(e). In _Wilson_, the Plaintiff sent the loan servicer an inquiry which…
Read More »Bank of America, N.A. v. Higgin, 2014 IL App (2d) 131302 (Sept. 26, 2014), a recent appellate decision from Illinois, should serve as a cautionary tale for plaintiff mortgagees in setting their bid at sale. Following judgment of foreclosure, the mortgagee bid $1,905,374.78, which was $83,305.25 more than the judgment…
Read More »The Ninth Circuit held in Merritt v. Countrywide Fin. Corp., 09-17678 (9th Cir. July 16, 2014) that an obligor is not required to allege that he or she has the ability to tender the non-rescindable balance of a loan to state a claim for rescission under Section 1635 of TILA.…
Read More »The Supreme Court of Missouri in Conway v. CitiMortgage, Inc., SC93951 (Mo. Aug. 19, 2014) and Watson v. Wells Fargo Home Mortgage, Inc., SC93769 (Mo. Aug. 19, 2014) addressed whether the actions of a loan servicer who was not a party to the initial transaction are in connection with the…
Read More »Following a trend, the Eleventh Circuit held that a creditor who filed a proof of claim in a Chapter 13 bankruptcy on a debt that it knew to be stale violated the FDCPA. In Crawford v. LVNV Funding, LLC, No. 13-12389(11th Cir, July 2014), neither the debtor nor the trustee…
Read More »The statute addressed in 1010 Lake Shore Ass’n v. Deutsche Bank Nat. Trust Co., 2014 IL App (1st) 130962 (August 12, 2014) was Section 9(g)(3) of the Illinois Condominium Property Act 765 ILCS 605/9(g)(3) which governs the obligations of a purchaser at a foreclosure sale to pay unpaid assessments. The…
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