Id. Mr. Cooper Withdraws Mortgage Payments Without - Class Action 2007)), aff'd sub nom. All but $28.6 million of its. Where it is now apparent, in hindsight, that Nationstar was permitted to withhold relevant and necessary data in the discovery process, it is unsurprising that Nationstar employees would then review loan files, with their complete data, and identify problems. (quoting East Tex. at 983 (quoting 12 U.S.C. The servicer "is liable for any economic damages caused by the violation." State attorneys general are here for homeowners, Raoul adds. According to Oliver, if he used incorrect data, that was a result of the limited data fields and definitions provided to him. Once an underwriter is assigned, that employee double-checks whether the application contains all required documentation and is complete. Bouchat v. Balt. Years later, the parties filed a notice of settlement. The fact that each borrower must individually show damages under 12 U.S.C. Code Ann., Com. Ward, 595 F.3d at 180 (quoting Gunnells, 348 F.3d at 430). 2010). The fee arrangement will be considered as an issue potentially affecting the credibility, rather than the admissibility, of the expert testimony. Specifically, if a loss mitigation application is received "45 days or more before a foreclosure sale," the loan servicer must provide a notice to the borrower "in writing within 5 days" of receiving it in which the servicer acknowledges receipt of the application and states whether the "application is either complete or incomplete." Corp. ("McLean I"), 595 F. Supp. Because all of the Rule 23(a) and (b)(3) requirements are met as to a class asserting violations of 12 C.F.R. Finally, the Court notes that a decision to certify a class is based on whether or not a putative class satisfies the Rule 23 factors, not on a preliminary assessment of the underlying merits of the claim. After March 2014, Mrs. Robinson was primarily responsible for communicating with Nationstar and PaCE. For a class action brought for violations of Regulation X, a servicer is liable for "actual damages to each of the borrowers in the class" and, upon a finding of a "pattern or practice" of noncompliance, statutory damages amounting to a maximum of $2,000 per class member up to a total of the lesser of $1 million or one percent of the servicer's net worth. Additional facts relevant to the pending motions are set forth below. A class action allows representative parties to prosecute not only their own claims, but also the claims of other individuals which present similar issues. Accordingly, Nationstar did not send the Robinsons an acknowledgment letter within five days stating that it had received the application, as required by Regulation X. Id. PDF SETTLEMENT AGREEMENT Nationstar Mortgage LLC ("Nationstar"). Campbell v. Nationstar Mortg., 611 F. App'x 288, 297-98 (6th Cir. See, e.g. A "borrower" may enforce the provisions of Regulation X pursuant to 12 U.S.C. Robinson, 2015 WL 4994491, at *4 (citing Marchese v. JPMorgan Chase Bank, N.A., 917 F. Supp. Similarly, though the precise nature of the fees imposed was not specified, it is reasonable to infer that some were attributable to delays linked to RESPA violations. United States v. Valona, 834 F.2d 1334, 1344 (7th Cir. Because Oliver's methodology is reliable within the meaning of Federal Rule of Civil Procedure 702 and Daubert, Nationstar's Motion to Strike will be denied. Code Ann., Com. at *2. The Magistrate Judge ordered Nationstar to run those scripts and return the electronic data to the Robinsons. Nationstar's Motion for Summary Judgment will be granted as to Tamara Robinson. 2d 873, 883 (D. Md. (kw2s, Deputy Clerk) Download PDF Law 13-301(1). 1024.41(b)(1). P. 23(b)(3). See Krakauer v. Dish Network, L.L.C., 925 F.3d 643, 658 (4th Cir. On May 5, 2014, Nationstar asked the Robinsons for additional information to evaluate the appeal, including documents to verify their income. Finally, where Nationstar has offered no specific argument in its brief, beyond those addressed above, to refute Oliver's proffered analysis for identifying RESPA violations arising from the failure to notify borrowers of their appeal rights or the failure to exercise diligence in requesting documents based on repeated requests for the same documents, 12 C.F.R. Moreover, because borrowers often submit multiple loan modification applications, and because Nationstar's data is stored at the loan level, not at the application level, Nationstar claims that it is not possible to tell from the data alone, without reviewing the files, whether a status or code change is in response to a specific loan modification application. Summ. 1976). "If a borrower's complete loss mitigation application is denied for any trial or permanent loan modification option available to the borrower," the servicer must state in the required notice to the borrower "the specific reason or reasons for the servicer's determination for each such trial or permanent loan modification and, if applicable, that the borrower was not evaluated on other criteria." Corp. ("McLean II"), 398 F. App'x 467, 471 (11th Cir. On November 21, 2014, the Robinsons filed suit against Nationstar on behalf of themselves and a class of similarly situated individuals nationwide. Code Ann., Com. Several states also fined Nationstar in 2018 over failing to have proper procedures in place and "unfair and deceptive" mortgage modification policies. The Robinsons assert, and Nationstar does not argue otherwise, that litigation regarding Regulation X is not proceeding against Nationstar in another forum. Updates will also be available at the toll-free number: 1-866-404-0137. Fed. The Consumer Financial Protection Bureau (CFPB) today ordered Nationstar Mortgage LLC to pay a $1.75 million civil penalty for violating the Home Mortgage Disclosure Act (HMDA) by consistently failing to report accurate data about mortgage transactions for 2012 through 2014. . Nationstar's claim that the above-described coding is not dispositive, because an underwriter could subsequently determine that more information was needed after all, is not persuasive. Nationstar's failings resulted in "substantial consumer harm," CFPB Director Kathleen Kraninger said in a statement. The Robinsons have not made any mortgage payments since January 2014 and have not been assessed any late fees since February 2014. If a borrower is experiencing issues or not getting the help needed, contact your state attorneys general. See id. The Robinsons assert that they have suffered damages in the lost opportunity to have their mortgage loan modified and to pursue other loss mitigation options; in the fees, late fees, and interest that Nationstar has assessed since they became delinquent on their loan; in the lost "time and effort" which they expended in "pursuing the loss mitigation process with Nationstar" rather than trying to improve their business; and in administrative costs, including "postage, travel expenses, photocopying, scanning, and facsimile expenses." From this approach, Oliver concluded that for approximately 60 percent of the sampled loans, Nationstar failed to comply with the requirement that it inform the borrower of loss mitigation application determination within 30 days of receiving a complete application. 1976) (holding that while it may be unethical for a lawyer to testify on behalf of a client as an expert, "it does not necessarily follow that any alleged professional misconduct" would require exclusion of the testimony because the rules of professional conduct do "not delineate rules of evidence"); United States v. Fogel, 901 F.2d 23, 26 (4th Cir. They have a home in Damascus, Maryland purchased by Demetrius Robinson ("Mr. Robinson"). The entry under "objected" acts as a unique identifier for an electronic file, but it does not contain information about the file's substance and could in fact contain multiple submissions or documents relating to one borrower. The Fourth Circuit has stated that 74 members is "well within the range appropriate for class certification," Brady v. Thurston Motor Lines, 726 F.2d 136, 145 (4th Cir. . Universal Athletic Sales Co. v. Am. The Motions are fully briefed, and no hearing is necessary to resolve the issues. Therefore, Nationstar was required to comply with section 1024.41 in processing it. 0 Since Mrs. Robinson may not bring a claim under Regulation X, she may not be a named class representative. The proposed settlement with the CFPB requires Nationstar to pay $73 million in restitution to affected borrowers, as well as a $1.5 million civil penalty to the agency. Tenn. Aug. 28, 2018) (holding that a spouse who signed a deed of trust stating that a person who did not sign the promissory note was not obligated on the security instrument, but did not sign the promissory note, was not a borrower under RESPA). Gariety v. Grant Thornton, LLP, 368 F.3d 356, 366 (4th Cir. But see Ayres v. Ocwen Loan Servicing, LLC, 129 F. Supp. Settlement. McLean v. GMAC Mortg. Mortgage Servicing Rules Under the Real Estate Settlement Procedures Act ("Regulation X"), 78 Fed. See 12 C.F.R. See supra parts I.B.1, I.B.3, I.C.1. In assessing this element, "numbers alone are not controlling" and a district court should consider "all of the circumstances of the case." Through both a declaration by a Nationstar Vice President of Default Servicing, Brandon Anderson, and an expert report by Stuart D. Gurrea, Nationstar contests Oliver's analysis and endeavors to establish that the only way to identify RESPA violations using Nationstar's data is through a file-by-file review. 1024.41(f), (g), and (h), and Mr. Robinson's MCPA claim under sections 13-301 and 13-303. Id. 2006). If the named plaintiff satisfies all of the Rule 23(a) requirements and the Rule 23(b)(3) requirements, then class certification is appropriate. 16-0307, 2017 WL 1167230, at *3 (E.D.N.C. See MCC JR0529-31. ROBINSON v. NATIONSTAR MO | Civil Action No. TDC - Leagle Neither the rule nor the comment, however, state whether Maryland is one such jurisdiction. 12 C.F.R. 2d 754, 768-69 (D. Md. In analyzing this question, a court compares the class representative's claims and defenses to those of the absent class members, considers the facts needed to prove the class representative's claims, and assesses the extent to which those facts would also prove the claims of the absent class members. Under a provision of Regulation X entitled "Loss mitigation procedures," mortgage servicers must take certain steps when a borrower applies for loss mitigation measures, such as the loan modifications sought in this case. Code Ann., Com. Finally, while Nationstar presented arguments for why the Robinsons have not shown damages as to most of the asserted categories, it did not advance any argument for why the interest damages claimed by the Robinsons were not attributable to Nationstar's Regulation X violations and thus is not entitled to summary judgment on that issue. R. Evid. Nationstar, the fourth-largest mortgage servicer in the U.S., is set to pay $91 million to settle claims brought by the Consumer Financial Protection Bureau and state attorneys general alleging that the company failed to honor mortgage forbearance agreements and unfairly foreclosed on homeowners. The first of these prerequisites is that the class must exist and be "readily identifiable" or "ascertainable" by the court through "objective criteria." PDF In the United States Court of Appeals for the Fourth Circuit Gym, Recreational & Athletic Equip. Co., 595 F.3d 164, 179 (4th Cir. Law 13-301 and 303. In 2007, Mr. Robinson obtained a loan with the principal amount of $755,000 to refinance the property. 2010). For example, since default fees are often paid by sources other than the borrower, such as in a short sale or refinancing, Nationstar challenges Oliver's assessment that fees identified through LSAMS can be deemed to constitute damages from RESPA violations, because the software does not reflect who paid the fee. It will be otherwise denied. Finally, the Court finds that Mr. Robinson will adequately represent the absent class members. 1024.41(i). Certification will also be denied as to the claim under 12 C.F.R. Code Ann., Com. 1024.41(c)(1)(i) and (d), because the Robinsons made no showing that the Rule 23 requirements were met. To establish an MCPA violation under this provision, a plaintiff must establish that (1) the defendant engaged in an unfair or deceptive practice or misrepresentation; (2) the plaintiff relied upon the representation; and (3) doing so caused the plaintiff actual injury. R. Evid. The public policy interest at issue was one against "stirring up litigation or promoting litigating for the benefit of the promoter rather than for the benefit of the litigant or the public," an interest not implicated in the same manner by the fee arrangement with the particular expert witness in this case. A code is also added to LSAMS to put a hold on foreclosure proceedings. Class Members included all U.S. consumers who received a robocall on their cell phone from Nationstar between October 2015 and March 2016. During discovery, Oliver revealed that his fee arrangement with the Robinsons includes a flat fee for his expert services, but that a portion of the fee is contingent on the certification of a class in this case. 2005))). . Since the parties do not argue that the Nationwide Class and the Maryland Subclass differ for the purposes of the class certification analysis, the Court will analyze them together. A letter noting receipt of the application is automatically generated and sent to the borrower, and a Nationstar employee checks the application's documentation to determine if it is complete based on a checklist. The court, however, did not explain how in the absence of any obligation to pay back to the Note, the plaintiff qualified as a "borrower" under the RESPA statute. Accordingly, the Motion is denied as to such claims. See Md. Furthermore, determining whether statutory damages are available will require no individualized consideration, because the pattern-or-practice claim "would be based solely on" Nationstar's conduct and can be established through sampling. Robinson v. Nationstar Mortg. LLC - Casetext at 300. During this time and up until September 25, 2017, Nationstar had not begun any foreclosure proceedings on the Robinsons' home. Because Nationstar employees used standard templates to communicate with borrowers, Oliver concluded that Regulation X violations can be identified through the existence of noncompliant templates and the dates that those templates were in use. Gunnells, 348 F.3d at 427-28. Moreover, the conflict must not be "merely speculative or hypothetical." White setting Settlement Conference for 10/3/2023 at 9:00 AM in Chambers, Room 327, US Courthouse, .
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