Archive for October 2016

9th Cir. Holds Foreclosure Trustee Not FDCPA ‘Debt Collector’

The U.S. Court of Appeals for the Ninth Circuit recently held that the trustee of a California deed of trust securing a real estate loan was not a “debt collector” under the federal Fair Debt Collection Practices Act, because the trustee was not attempting to collect money from the borrower. In so ruling, the Court

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Fla. App. Court (1st DCA) Dismisses Foreclosure Due to Trial Court’s Lack of Jurisdiction

The District Court of Appeal for the First District, State of Florida recently ordered the dismissal of a foreclosure action because it held that the trial court’s jurisdiction expired prior to the entry of the judgment of foreclosure in the case. The Appellate Court held that the trial court failed to consider whether it had

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9th Cir. Holds Car Dealer Failed to Provide ‘Completed Inspection Report’ as to ‘Certified’ Used Car

The U.S. Court of Appeals for the Ninth Circuit recently held that a car dealership inspection certificate violated California statutory law that required that a vehicle seller provide a “completed inspection report” prior to the sale of any “certified” used car. In so ruling, the Court held that the term “inspection report” was a term

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4th Cir. Holds Foreclosure is FDCPA ‘Debt Collection,’ Mere Servicer Need Not Provide TILA Notice of Assignment of Loan

The U.S. Court of Appeals for the Fourth Circuit recently confirmed that a law firm and its employees, who pursued foreclosure on behalf of creditors, were acting as “debt collectors” under the federal Fair Debt Collection Practices Act (FDCPA) when they pursued foreclosure proceedings against a borrower. In so ruling, the Court also confirmed that

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Fla. App. Court (2nd DCA) Reverses Foreclosure Due to No Evidence Loan Was Included in Trust Corpus

The District Court of Appeal of the State of Florida, Second District, recently reversed a final judgment of foreclosure in favor of the trustee of a mortgage-backed securities trust, holding that the mortgagee failed to prove that it had standing when the complaint was filed because there was no evidence that the loan was included

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Fla. App. Court Holds FCCPA’s Notice of Assignment Requirement Applies to Mortgagees, But Not Condition Precedent to Foreclosure

The District Court of Appeal of the State of Florida, Fourth District, recently reversed the dismissal of a foreclosure complaint, holding that the “notice of assignment of debt” requirement in the Florida Consumer Collection Practices Act (FCCPA), at Fla. Stat. § 559.715, was not a condition precedent to filing the foreclosure action. However, the Court

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NY Supreme Court Holds Notice of Default Not Required to Deceased Borrower’s Estate

A New York Supreme Court held that the notice of default requirement in New York Real Property Actions and Proceedings Law (RPAPL) § 1304 applies only to a borrower and not a borrower’s estate. As a result, according to the Court, foreclosing entities do not have to provide a notice of default pursuant to the

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11th Cir. Rejects Late Recordation of Satisfaction Class Action Citing Spokeo

The U.S. Court of Appeals for the Eleventh Circuit recently rejected a putative class action against a mortgagee based on the alleged late recording of satisfactions of mortgage in supposed violation of New York law.

CFPB Uses UDAAP in FDCPA-Like $28.5M Consent Order Against Depository Institution

The federal Consumer Financial Protection Bureau (CFPB) recently entered into a $28.5 million Consent Order with a depository institution for alleged violations of the “unfair, deceptive, or abusive” acts or practices provisions of 12 U.S.C. §§ 5531 and 5536 relating to the depository institution’s collection of its delinquent accounts. A copy of the Consent Order

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8th Cir. Holds Foreclosure Did Not Discharge Security Interest in Proceeds of Collateral

The U.S. Court of Appeals for the Eighth Circuit recently held that a secured party’s foreclosure did not discharge an otherwise valid security interest in the proceeds of the collateral, nor did it preclude the creditor from pursuing its rights to such proceeds. A copy of the opinion in Bayer CropScience, LLC v. Stearns Bank National

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11th Cir. Holds Re-Scheduled Foreclosure Sale Does Not Extend RESPA Deadline for Submitting Loss Mit Application

The U.S. Court of Appeals for the Eleventh Circuit recently held that, under the federal Real Estate Settlement Procedures Act, a mortgage loan servicer had no duty to evaluate a borrowers’ loss mitigation application submitted two days before the foreclosure sale, even though the sale was continued, affirming the district court’s grant of summary judgment

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CD Calif. Holds Non-Bank Not ‘True Lender’ on Allegedly Usurious Loans Extended in Name of Bank

The U.S. District Court of the Central District of California recently dismissed a borrower’s putative class action complaint against a non-bank that supposedly was the “true lender” for allegedly usurious student loans that were extended in the name of a bank.