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Posts tagged as “Mortgage Law”

4th Cir. Holds Non-Mortgage Office Was Not ‘Branch Office’ Under HUD F2F Rule

The U.S. Court of Appeals for the Fourth Circuit recently held that a mortgagee’s office that was located within 200 miles of the mortgaged property, but did not conduct any mortgage-related business, was not a “branch office” of a “mortgagee” under the HUD rule requiring a face-to-face meeting with mortgage borrowers before filing a mortgage foreclosure action unless the mortgagee does not have a branch office within 200 miles of the borrower's home.

Illinois App. Court (1st Dist.) Holds TILA ‘Failure to Rescind After Notice’ Claims Subject to 1-Yr Statute of Limitations

The Appellate Court of Illinois, First District, recently affirmed a trial court order dismissing a foreclosure counterclaim by two borrowers seeking rescission under the federal Truth in Lending Act (TILA), 15 U.S.C. § 1601 et seq., holding that section 1640(e)’s one-year statute of limitation for legal damages applied to bar the borrower’s section 1635 equitable claim, when the borrowers demanded rescission within three years of closing but did not file suit within one year after the lender failed to respond.

9th Cir. Holds Loan Secured by Property Held in Trust for Family Member Can Be ‘Consumer’ Loan

The U.S. Court of Appeals for the Ninth Circuit recently reversed the dismissal of a trustee borrower’s claims under the federal Truth-In-Lending Act, Real Estate Settlement Procedures Act, and California’s Rosenthal Fair Debt Collection Practices Act seeking rescission of a loan obtained to effectuate repairs upon a property inhabited by the trust’s beneficiary.

Texas Supreme Court Holds Subrogation Available for Mortgagee That Fails to Cure Constitutional Defect

Answering a question certified to it by the U.S. Court of Appeals for the Fifth Circuit, the Supreme Court of Texas recently held that a lender is entitled to equitable subrogation where it failed to correct a curable constitutional defect in the loan documents under Tex. Const. art. XVI, 50.

Illinois App. Court (2nd Dist) Holds Bona Fide Foreclosure Sale Not Voided by Latent Defect in Service of Process

The Appellate Court of Illinois, Second District, recently held that improper service that does not affirmatively appear on the face of the record will not allow a former homeowner to void a foreclosure judgment against the bona fide purchasers of the property.

MERS’s ‘Maine’ Purpose: Recognizing Key Differences Between MERS Mortgages

Maine’s Supreme Court recently held that a foreclosing lender’s equitable interest in the mortgage does not by itself equate to ownership of the mortgage and does not allow courts to compel the mortgage’s assignment. Beal Bank USA v. New Century Mortg. Corp., 2019 ME 150, ¶ 15. The opinion revives concerns over the viability of foreclosing Maine mortgages involving Mortgage Electronic Registration Systems, Inc. (MERS).

5th Cir. Holds False Claims Act FHA Claims Not Covered by Professional Liability Insurance

The U.S. Court of Appeals for the Fifth Circuit recently held that the U.S. Department of Housing and Urban Development is not a direct endorsement lender's “client” because HUD did not pay the lender for its services, and therefore HUD was not covered by the direct endorsement lender's professional liability insurance.

5th Cir. Holds ‘Minor Defect’ in Notice of Default Not Enough for Wrongful Foreclosure

The U.S. Court of Appeals for the Fifth Circuit recently affirmed entry of summary judgment against a homeowner borrower’s wrongful foreclosure claims premised upon receipt of a defective pre-foreclosure notice that erroneously provided a 30-day deadline to cure from the date the notice of default letter was printed, rather than the day the letter was mailed as required under the terms of the deed of trust.