robinson v nationstar settlement

The MCPA prohibits the use of an "unfair or deceptive trade practice" in the "[t]he extension of consumer credit" or "[t]he collection of consumer debts" and provides for a private right of action. Nationstar asserts that Oliver's testimony should be stricken because this fee arrangement includes an unethical contingency fee. (2000) (reflecting that the prior version of the rules of professional conduct prohibited an attorney from "acquiesc[ing] in the payment of compensation to a witness contingent on the content of his testimony or the outcome of the case"). Code Ann., Com. An expert's testimony is "critical" where it is "important to an issue decisive for the motion for class certification." Nationstar argues that it should be granted summary judgment on all of the RESPA claims because Nationstar was required to comply with Regulation X only as to a borrower's first loss mitigation application, and the Robinsons' March 7, 2014 application was not their first loan modification application. The Robinsons also claim as damages interest overcharges of approximately $141,000. 2003). Maryland's Commissioner of Financial Regulation Announces Settlement He asserted that the amount of fees was calculated based on Nationstar's statements, but he could not specify the nature of the fees. Code Ann., Com. Because such information is stored electronically and based on objective criteria, the members of the class will be ascertainable without significant administrative burden. Law 13-316(c), which requires a response to a mortgage servicing complaint or inquiry within 15 days. v. Nationstar Mortgage LLC, Case No. Robinson v. Nationstar Mortgage, LLC: Complaint with jury demand Code Ann., Com. Nationstar further argues that summary judgment must be entered in its favor on the Robinsons' claims under 12 C.F.R. 2605(f)(1). Baez, 709 F. App'x at 983. 1024.41(a). . Commonality requires that a class have "questions of law or fact common to the class" which are capable of classwide resolution, such that the determination of the truth or falsity of the common issue "will resolve an issue that is central to the validity of each one of the claims in one stroke." Indeed, since previous versions of the Maryland rule expressly stated that contingency fee arrangements for experts were forbidden, but that explicit language was removed, it is reasonable to conclude that the amendment changed the rule in Maryland to no longer bar contingency fee arrangements. Subsequent to the Court's approval, one of the objectors to the settlement filed an appeal. MCC JR 318, 530-531. application to Nationstar after January 10, 2014, and through the date of the Court's . Nationstar Mortgage Robocall Class Action Settlement Checks Mailed 12 C.F.R. Instead, he analyzed certain data fields that were returned by the scripts written by a different expert. The Court agrees that costs, including administrative costs, "incurred whether or not the servicer complied with its obligations" are not actual damages "caused by, or 'a result of,'" the RESPA violation, whether or not they occurred before or after the violation. 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. Here, even though the Robinsons' March 7, 2014 loss mitigation application was not the Robinsons' first such application, it was their first submitted after the effective date of Regulation X. The fact that Oliver's methodology has not been subjected to peer review and that he has not published any articles about it does not invalidate it. An "unfair or deceptive" trade practice includes a "false . Id. In Washington v. Am. Although the parties have not offered specific details on the nature and timing of those costs and fees, it is reasonable to infer that at least some portion of them were incurred after they submitted their March 7, 2014 loan modification application and after Nationstar had violated Regulation X. 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. 3d 249, 266 (D. Md. 2014). Since there is no genuine issue of material fact as to whether Nationstar violated subsection (h), summary judgment will be entered for Nationstar on that claim. Parties, docket activity and news coverage of federal case Robinson et al v. Nationstar Mortgage LLC, case number 8:14-cv-03667, from Maryland Court. For the following reasons, the Motion for Summary Judgment will be GRANTED IN PART and DENIED IN PART; the Motion to Strike will be DENIED; and the Motion for Class Certification will be GRANTED IN PART and DENIED IN PART. 1024.41(b)(2)(i)(B) and Md. Class certification will be granted, with Demetrius Robinson as the named plaintiff, as to both the Nationwide Class and the Maryland Class for the claims under 12 C.F.R. 2601(a). While Mr. Robinson sought to reduce his monthly mortgage payment in applying for a loan modification, his deposition testimony reflects that he understands that the present lawsuit contends that Nationstar did not process the Robinsons' loan modification application correctly. "); cf. While she is trained as a bookkeeper, at the time of the Robinsons' 2014 application for a loan modification and in the subsequent months, Mrs. Robinson was not employed in any capacity. 2015) (holding that Regulation X did not apply to loss mitigation applications submitted before the effective date). See 12 C.F.R. Jennings' office said that these new standards are more robust than existing law and will be in place for three years starting in January 2021. See Torres v. Mercer Canyons Inc., 835 F.3d 1125, 1137 (9th Cir. Nationstar's Motion for Summary Judgment will be granted as to Tamara Robinson. Rules 19-303.4(b) (2018). After an additional period of expert discovery relating to the class certification motion, discovery closed on December 30, 2018. If the initial application is complete, the substatus in Remedy Star is changed to refer the application to an underwriter for review, and an additional code is added in LSAMS. . 15-3960, 2017 WL 623465, at *8 (D. Md. Courts have held that a person who did not sign the promissory note is not a "borrower" for the purposes of RESPA because that individual has not "assumed the loan." Robinson v. Nationstar Mortgage, LLC - Justia Dockets & Filings 1024.41(f), (g), and (h) and Md. Mr. Robinson's counsel is experienced in complex civil litigation and class action litigation. That notice must be provided within 30 days of receiving the complete loss mitigation application. Delaware Attorney General Kathleen Jennings said the settlements, Several states also fined Nationstar in 2018, Kwame Raoul, attorney general of Illinois, latest research from the Mortgage Bankers Association. Summary judgment will therefore be entered for Nationstar on the claims that Nationstar violated subsections (f) and (g). Ward, 595 F.3d at 180 (quoting Gunnells, 348 F.3d at 430). Gunnells v. Healthplan Serv., Inc., 348 F.3d 417, 458 (4th Cir. 2001) (striking expert testimony because of a contingent fee arrangement), aff'd, 43 F. App'x 547 (4th Cir. "We will be watching the mortgage interest industry to ensure they are treating homeowners fairly and fulfilling their obligations.". See id. May 31, 2016), the plaintiff had signed the deed of trust but not the promissory note but was nevertheless deemed to have standing because she had owned the home with a right of survivorship with her deceased husband, who had signed the note. Wright et al. Plaintiffs "must present specific evidence to establish a causal link between the [servicer's] violation and their injuries." Where the cost of litigation as compared to the potential recovery gives class members little incentive to bring suit, and there is little reason to individually control the litigation, a class action is a superior method to vindicate the rights of class members. After attempts to modify the loan failed, the Robinsons filed a class action Complaint against Defendant Nationstar Mortgage, LLC ("Nationstar") for alleged violations of the Real Estate Settlement Procedures Act ("RESPA"), 12 U.S.C. After they became delinquent on their loan, the Robinsons submitted another loan modification application to Nationstar on March 7, 2014. The Federal Rules of Evidence do not prohibit these kinds of arrangements. Code Ann., Com. Auto. News Ask a Lawyer v. Windsor, 521 U.S. 591, 623-24 (1997). After attempts to modify their loan failed, the Robinsons filed a Class Action Complaint against Defendant Nationstar Mortgage, LLC ("Nationstar") for alleged violations of the Real Estate Settlement Procedures Act ("RESPA"), 12 U.S.C. 2014))). Fed. Id. Instead, the Robinsons assert that Nationstar has not affirmatively proven that it conducted such reviews. The Borrower Payment Amount shall be used: (1) for payments to borrowers who submit claims and are in either or both of the Service Transfer and Property Preservation Populations set forth below; and (2) for reasonable costs and expenses of the Settlement Administrator, including taxes and fees for tax counsel. 1024.41(a). Md. 1024.41(i). Reg. Local R. 105.6. 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. Every mortgage has a unique loan number that can be used to identify the borrower and the loan in each of the four databases. Gym, Recreational & Athletic Equip. Id. Code Ann., Com. Robinson et al v. Nationstar Mortgage LLC, No. In February 2014, after their income had further decreased, the Robinsons ceased making payments on the mortgage loan. . Nationstar ultimately became the servicer of the Robinsons' loan. More Information Compl. "There are going to be a lot of homeowners who need a home loan modification or other assistance," Raoul says. 2016) ("[F]ortuitous non-injury to a subset of class members does not necessarily defeat certification of the entire class, particularly as the district court is well situated to winnow out those non-injured members at the damages phase of the litigation, or to refine the class definition. 2017), the United States Court of Appeals for the Eleventh Circuit held that postage costs incurred by the plaintiff to send the "initial request for information is not a cost to the borrower 'as a result of the failure' to comply with a RESPA obligation," because a violation has not occurred and will not "necessarily occur" at the time the plaintiff paid the postage. Similarly, since Mr. Robinson has not suffered injury under these provisions, he may not bring those claims on behalf of the class. Id. 2010). Sept. 2, 2015). Va., Inc., 543 F.2d 1075, 1080 (4th Cir. See Broussard, 155 F.3d at 344. Accordingly, the Motion is denied as to such claims. 26-1. A class action is a superior means for "fairly and efficiently adjudicating" whether Nationstar has violated Regulation X and section 3-316(c) of the MCPA. While it is not necessary to identify every class member at the time of certification for a class to be "ascertainable," a class cannot be certified if its membership must be determined through "individualized fact-finding or mini-trials." Law 13-316(c). or other representation . Law 13-303(4)-(5), 13-408. PO Box 3560. 10696, 10708, provides that "[a] servicer is only required to comply with the requirements of this section for a single complete loss mitigation application for a borrower's mortgage loan account." 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. "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." Id. DEMETRIUS ROBINSON and TAMARA ROBINSON, Plaintiffs, v. NATIONSTAR MORTGAGE LLC, Defendant. If you are a member of the Settlement Class, you must submit a completed Claim Form to receive a payment. CFPB Takes Action Against Nationstar Mortgage for Flawed Mortgage Loan Although Monday's case specifically addresses Nationstar's actions following the Great Recession, the outcome can affect today's homeowners, says Kwame Raoul, attorney general of Illinois. Petitioner: NATIONSTAR MORTGAGE, LLC: Respondent: TAMARA ROBINSON and DEMETRIUS ROBINSON: Case Number: 19-379: Filed: September 24, 2019: Court: U.S. Court of Appeals . Furthermore, to the extent that the Robinsons' claim is that Nationstar falsely stated that it would evaluate the Robinsons for all available loss mitigation plans, the Robinsons point only to statements in letters that the Robinsons "may" be eligible for certain non-HAMP loan modification programs. 1972). After two more extensions were granted, based on a finding by the Magistrate Judge that "Defendant has failed to comply" with its discovery obligations and delayed the process, discovery closed on March 22, 2018. R. Civ. Accordingly, a loan servicer must comply with Regulation X as to the first loss mitigation application submitted after the effective date. Nationstar filed a notice of settlement and a joint motion to proceed before a magistrate . Since the Rule 23(a) factors are satisfied, the Court will now consider whether the Rule 23(b)(3) predominance and superiority considerations are met. 2006). A servicer that fails to comply with Regulation X is liable for actual damages and, upon a finding of a "pattern or practice" of non-compliance by the servicer, up to $2,000 in statutory damages. Am. During this period, in August 2013, the Robinsons retained a forensic loan auditor, Professional Compliance Examiners ("PaCE"), and paid it $2,275 to help them communicate with Nationstar. Robinson, 2015 WL 4994491, at *4 (citing Marchese v. JPMorgan Chase Bank, N.A., 917 F. Supp. 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). Likewise, the articulated concern that Nationstar would not be required to respond to loss mitigation applications filed within a certain number of days of a foreclosure sale, can be addressed through the provision of data relating to the dates of scheduled foreclosure sales.