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…
Read More »In Hayes v. M&T Mortgage Corp., 1-07-1063 (Ill.App.Ct.,March 25, 2009) the plaintiff filed an action against the mortgagee seeking damages for the mortgagee’s failure to abide by applicable HUD regulations relating to rehabilitation loans and cited the breach of those regulations as the basis for dismissal of the mortgagee’s foreclosure…
Read More »At issue in Llewellyn v. Shearson Financial Network, Inc., 08-cv-00179 (D. Colo., March 31, 2009) were the legality of efforts by a loan servicer to collect on a loan the plaintiff believed to have been repaid (but was in fact still outstanding due to an intermediary’s absconding of the funds).…
Read More »The Chapter 7 trustee in In re Hunter, 400 B.R. 651 (Bkrtcy. N.D.Ill., March 2009) filed an adversary complaint against the originator of two consumer residential mortgage loans obtained by debtor prepetition and assignee of one of the loans, seeking damages and rescission of both loans on the basis of…
Read More »Among other debt collection claims the district court in Whittiker et al., v. Deutsche Bank Nat. Trust Co., 1:08 CV 300. — F.Supp.2d —-, (N.D.Ohio, March 17, 2009) was asked to assess whether the plaintiff stated a claim under the Fair Debt Collection Practices Act because the defendant in state…
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