The wife of the owner of a development company who was sued in Champion Bank v. Regional Development, LLC, 4:08 CV 1807 CDP (May 13, 2009 E.D.Mo.) said she was asked (forced?) by the company’s lender to guarantee a note issued for company in violation of the Equal Credit Opportunity…
Read More »A federal judge in California has backed a loan servicer in a dispute over a loan cancellation claim brought under the Truth in Lending Act (TILA). In Aurora Loan Services LLC v. Britton, 2:08-cv-01535-GEB-KJM, (E.D. Calif., May 21, 2009), the Servicer asked the court to modify the normal rescission procedures…
Read More »In a question that has vexed litigants and the courts for years a district court in New Jersey, in a thinly-reasoned opinion, held that assignee is liable for the assignor’s RESPA violations. In Carmen v. Metrocities Mortg. Corp., Civ. No. 08-2729 (D.N.J., May 18, 2009), the court found that an…
Read More »The wife of the owner of a development company who was sued in Champion Bank v. Regional Development, LLC, 4:08 CV 1807 CDP (May 13, 2009 E.D.Mo.) said she was asked (forced?) by the company’s lender to guarantee a note issued for company in violation of the Equal Credit Opportunity…
Read More »At trial the borrowers contended that the evidence presented proved that neither of them received two copies of the Notice of Right to Cancel required under TILA. 15 U.S.C. § 1635(a 12 C.F.R. § 226.23(b)(1). The district court found for the lender that it was more likely than not that…
Read More »In Moret v. Select Portfolio Servicing, Inc., No. 08-61996-CIV (May 6, 2009, S.D. Fla.), a Florida District Court sided with its sister courts and an Alabama Bankruptcy Court when it held that only an entity qualifying as a credit repair organization has liability under the Credit Repair Organization Act (CROA).…
Read More »The defendants in ABN AMRO Mortg. Group, Inc. v. Tullar 06-0824 (Iowa App., Apr. 22, 2009), argued that the lender was not contractually authorized to accelerate the debt and foreclose upon the mortgage because the parties’ agreements expressly incorporated HUD regulations, which prohibited foreclosure unless at least three full monthly…
Read More »The loan broker and his brokerage argued in Whitley v. Taylor Bean & Whitacker Mortg. Corp., 08 C 3114 (N.D.Ill., Apr. 2009) that they have no liability under the federal Credit Repair Organizations Act (CROA) which prohibits false statements to consumer reporting agencies or persons providing credit. See, 15 U.S.C.…
Read More »The US District Court for the Northern District of Alabama has followed the approach of its sister court in the Southern District of New York in rejecting the array of services defense to a Section 8 RESPA claim. In Busby v. JRHBW Realty, Inc., 2:04-CV-2799-VEH (N.D.Ala., Apr. 2009) the borrower…
Read More »Consumers suing in some California District Courts better think twice before asking to rescind a loan under TILA. Several recent cases from the Eastern and Northern District of California have tossed TILA rescission cases where the consumer has failed to allege in the Complaint that he or she has tendered…
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