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Banking

Jul 9, 2020

Substitute trustee was fraudulently joined

The claim against the substitute trustee, seeking to prevent a foreclosure, was fraudulent because the foreclosure had not yet occurred. As such, the Virginia-based substitute trustee was disregarded, meaning there was complete diversity. Background On Jan. 13, 2020, Janie A. Creech filed a complaint against Everbank, Ocwen Loan Servicing LLC and Equity Trustees LLC. A […]

May 22, 2020

‘Branch’ must handle mortgage business to trigger meeting rule

Where there is a “branch office” within 200 miles of the borrower’s home, federal regulations require a bank to conduct a face-to-face meeting before initiating foreclosure proceedings. However, that obligation is only triggered where the “branch office” conducts some business related to mortgages. Background This appeal arises from a dispute over whether a bank was […]

Feb 17, 2020

Ex-homeowner must provide discovery to bank

Where a former homeowner who lost her house in foreclosure failed to proper­ly object to discovery and repeated pre­viously-rejected arguments in a second motion to dismiss, her motion was denied and she was ordered to respond to dis­covery by Deutsche bank, the property’s owner. Background Deutsche Bank brings this action to obtain declaratory relief and […]

Aug 23, 2019

Bank could charge interest on new credit card transactions

Where a credit card customer agreement plainly gave a bank the authority to charge interest to cardholders who had not paid their previous account balance in full and were charged interest on purchases they made during the following billing period, the cardholder could not sue. Background Susan Dress, Amy Edwards and Stephanie Barnett each have […]

Jul 29, 2019

Borrower could not sue bank for foreclosure

A borrower who stopped making payments on a home equity loan more than two years after the time in which to seek rescission of the loan had expired did not have a valid claim against the banks and loan servicing companies connected to the foreclosure on the property securing the loan because the borrower failed […]

Jun 30, 2019

‘Gimmick’ with money order didn’t satisfy mortgage

Where a mortgagee had an undisputed outstanding principal balance of $60,000, his tender of a $890 money order with the words “tendered as full satisfaction of the claim” inscribed in tiny, nearly indecipherable handwriting at the bottom and the mortgage servicer’s subsequent cashing of that money order did not discharge the mortgage based on an […]

May 5, 2019

Homeowners can’t demand production of original note

Homeowners cannot demand that the defendants produce the original note for inspection because such a demand is contrary to Virginia’s non-judicial foreclosure laws. In addition, the homeowners lack standing to contest the assignments of the deed, the appointment of substitute trustees or the securitization of the loan because they are not parties to those documents. […]

Apr 25, 2019

Court lacks jurisdiction in suit to recover debt

A credit union that alleges defendants used improper tactics to recover its debt failed to establish that its suit was properly filed in the Eastern District of Virginia. The court found that 28 U.S.C. § 1332(c) does not apply to federally chartered corporations and so for purposes of deciding whether diversity of citizenship exists between […]

Mar 17, 2019

Homeowner failed to plead RESPA claim

A homeowner who became frustrated after multiple unsuccessful attempts to request loan modification or loss mitigation relief did not adequately state a claim his provider violated the loss mitigation rules because he had already availed himself of the loss mitigation process. Background On May 15, 2006, plaintiff entered into a mortgage loan contract to purchase […]

Feb 15, 2019

Mortgagee’s lien survives foreclosure sale

The bank’s lien survived the foreclosure sale and remained superior to a tax lien filed by the Internal Revenue Service. Because the IRS did not receive proper notice, the tax liens were not discharged by the nonjudicial foreclosure sale, and they remained on the property. But they also remained junior to the bank’s lien, which […]

Jan 12, 2019

Lack of branch office exempts bank from meeting

The court held that because the bank, as a mortgagee, did not have a “branch office” within 200 miles of a woman’s home, it was exempt from the requirement to offer or conduct a face-to-face meeting with her before it foreclosed on her home. Background Jacqueline Dawn Stepp asserts that U.S. Bank National Association improperly […]

Jan 12, 2019

Blind man, not a member, lacks standing to sue credit union website

A blind man who complained that the website of the Department of Labor Federal Credit Union was not accessible to the disabled lacked standing to sue because he was not a member. Background The Department of Labor Federal Credit Union is a federal credit union that, under the Federal Credit Union Act of 1934, accepts […]

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