The Plaintiffs in Trevino v. Merscorp, Inc. — F.Supp.2d —-, Civ.Action No. 07-568, (D.Del., September 2008) brought a class action complaint against Mortgage Electronic Registration Systems, Inc. (MERS), and the loan servicer, among others, challenging MERS’s flat fee arrangement on referring foreclosure and other enforcement proceedings to attorneys. The complaint…
Read More »We had some good news this month though. In an issue we have been tracking because we have often advanced it – unsuccessfully – here in Illinois, (See _Payton v. New Century Mortgage Corp._, 2003 WL 22349118 (N.D.Ill.2003) and _Fairbanks Capital Corp. v. Jenkins_, 225 F.Supp.2d 910 (N.D.Ill.2002)) a District…
Read More »A recent opinion from Tennessee that has generated some concern in the servicing industry. In US Bank, N.A. v. Tennessee Farmers Mutual Ins. Co., No. W2006-02536-COA-R3-CV (Tenn. Ct. App. Dec. 21, 2007) the bank initiated foreclosure proceedings but did not notify the insurance company. Before the foreclosure process was complete,…
Read More »Attached is In Re Application of County Treasurer (Hawkeye Investment v. Lanz) 1-06-3387 (Dec. 28, 2007) which is notable for the court’s refusal to strictly apply the Tax Code in an attempt by a homeowner to redeem after the period to redeem expired. It also holds that Section 22-45 of…
Read More »In Jerman v. Carlisle, McNellie, Rini, Kramer & Ulrich LPA, 538 F.3d 469 (6th Cir., August 18, 2008) the Debtor brought an action against a debt collection law firm alleging violations of the FDCPA arising from the law firm’s use of a deceptive foreclosure notification. The debtor claimed that Defendants…
Read More »The servicer in Campbell v. Countrywide Home Loans, Inc. 07-20499, — F.3d —-, (5th Cir. (Tex.), August 26, 2008 ) took the position that a debtor’s pre-petition escrow obligations under the mortgage documents were not claims for purposes of the Bankruptcy Code’s automatic stay. It therefore reasoned that it could…
Read More »The U.S. District Court for the Southern District of New York in Cedeno v. IndyMac Bancorp, Inc., 06 Civ. 6438 (S.D.N.Y., August 26, 2008) was asked to decide if a lenders failure to disclose to the plaintiff class that it selected appraisers and appraisal companies who performed faulty and defective…
Read More »In In re Thayer, 07-6045, (March 31, 2008. 8th Cir. BAP (Minn.)) Chapter 7 debtors/mortgagors timely cancelled their prepetition refinancing transaction with lender pursuant to the Truth in Lending Act (TILA). However, the closing agent, unaware of the cancellation, paid off the debtor’s prior mortgage. The mortgagee then assigned its…
Read More »The Court declined to dismiss a mortgagors’ claim against mortgagee in Reyes v. Downey Savings and Loan Ass’n, F.A., No. SACV 07-0615-AG (March 29, 2008 C.D.Cal.) alleging that mortgagee violated the California Unfair Competition Law (UCL) by promising them a lower interest rate than was delivered, misrepresenting the loan terms,…
Read More »In Chiles v. Ameriquest Mortg. Co. Slip Copy, 2008 WL 724612 (March 17, 2008 E.D.Pa. 2008.) the mortgagor contended that he was entitled to rescission under TILA due to the mortgagee’s failure provide the variable rate disclosures. The mortgagee produced evidence that Plaintiff acknowledged receipt of documents containing the variable…
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