robinson v nationstar settlement check

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) (holding that "incidental costs related to the sending of correspondence" to the servicer, including "postage and travel," are not actual damages under RESPA because such a rule "would transform virtually all unsatisfactory borrower inquiries into RESPA lawsuits"). 1024.41(d). Opp'n Mot. Nationstar broke that trust by engaging in unfair and deceptive practices," Kraninger added. As for the claims of errors in Oliver's analysis, although this criticism is couched as his "misunderstanding the nature of Nationstar's various databases," Nationstar largely challenges Oliver's failure to use particular data fields, some which were never made available to him. %%EOF 1993) (quoting Blum v. Yaretsky, 457 U.S. 991, 1001 n.13 (1982)). Thus, the nature of the proof of whether there has been a pattern or practice of RESPA violations provides substantial support for a finding of predominance. In its Motion to Strike, Nationstar moves to strike the report of the Robinsons' expert witness, Geoffrey Oliver, on the grounds that (1) Oliver was hired pursuant to an ethically improper contingency fee agreement; and (2) his testimony does not meet the requirements of Federal Rule of Evidence 702 and Daubert v. Merrell Dow Pharmaceuticals, Inc., 509 U.S. 579 (1993). Id. 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. Stewart v. Bierman, 859 F. Supp. Before the error was discovered, Mr. Robinson appealed this offer as insufficient on April 10, 2014. See Fed. Tagatz v. Marquette Univ., 861 F.2d 1040, 1042 (7th Cir. Between July 2010 and November 2013, the Robinsons submitted and Nationstar denied three applications for a loan modification under the Home Affordable Modification Program ("HAMP"). Am. J. After several customers of Green Earth Services canceled its services, the Robinsons sought loss mitigation in the form of a loan modification from Nationstar. Lembach v. Bierman, 528 F. App'x 297 (4th Cir. 1024.41(a). Nationstar's failings resulted in "substantial consumer harm," CFPB Director Kathleen Kraninger said in a statement. 1 Nationstar later conceded that at the time the Robinsons submitted their application, it had not yet updated its systems to comply with Section 1024.41. United States v. Valona, 834 F.2d 1334, 1344 (7th Cir. Fed. endstream endobj 304 0 obj <. . ("MCC") 2, ECF No. 2605(f). See 12 C.F.R. Id. Law 13-316(e)(1), and "actual damages," 12 U.S.C. McLean v. GMAC Mortg. Md. "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." Nationstar insists that its customers agreed to receive phone calls from the mortgage loan provider, however it agreed to pay $12.1 million to avoid ongoing litigation. 1024.41(i). How do I get my check reissued? The Robinsons' Motion for Class Certification will be GRANTED IN PART and DENIED IN PART. Nationstar employees use four software applications and databases to store and track electronic information relating to loans: (1) Loan Services and Accounting Management System ("LSAMS"), Nationstar's primary loan servicing software, which contains data for loans, including the permanent records of the accounting history, communication logs, and letters documented with codes that were sent to the borrower; (2) Remedy Star, Nationstar's proprietary loss mitigation and loan modification management system, which, among other tasks, tracks the status and timeline of a loan modification and links to documents stored in FileNet; (3) LPS Desktop ("LPS"), an application which Nationstar uses to track and manage foreclosure processes and communicate with outside attorneys; and (4) FileNet, a platform that houses PDF images of documents, including letters sent to borrowers by Nationstar. Nationstar argues that summary judgment should be entered on the Robinsons' MCPA claim under section 13-316 because the Robinsons have not shown that they submitted a complaint or inquiry that triggers a duty to respond. 325 0 obj <>stream 1024.41(h)(1), (4). Although Nationstar argues that Mr. Robinson has a conflict of interest because he wishes to avoid foreclosure and to delay payments on his mortgage, the record does not reflect that proposition. Because such a common question would have to be resolved in many if not all individual cases, it advances, rather than undermines, the argument in favor of predominance. A class action may be maintained under Rule 23(b)(3) if common questions of law or fact "predominate over any questions affecting only individual members" and a "class action is superior to other available methods for fairly and efficiently adjudicating the controversy." 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 id. 15-3960, 2017 WL 623465, at *8 (D. Md. Once an underwriter is assigned, that employee double-checks whether the application contains all required documentation and is complete. 1024.41(b)(2)(i)(B), which requires that an acknowledgment letter be sent within five days of receipt of a loss mitigation application; 12 C.F.R. Notably, although a borrower may recover up to $2,000 in statutory damages upon a showing of a "pattern or practice of non-compliance with the requirements" of Regulation X, 12 U.S.C. 2605(f)(2). (ds) Download PDF Search this Case Code Ann., Com. 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. According to Nationstar's Underwriting Workflow Procedures, which sets forth the steps followed to review loans for modifications, when a borrower submits a loan modification application, a code is entered into LSAMS and updates the loan's substatus in Remedy Star. Auto. From this methodology, Oliver concluded that Nationstar failed to inform borrowers of their appeal rights in 39 percent of the sampled loans and failed to exercise reasonable diligence by improperly requested the same documentation already provided in 18 percent of the loans. The Deed specifies that a person who signs it but "does not execute the note" is a co-signer of the Deed in order to mortgage and convey that person's interest in the Property under the terms of the Deed, but "is not personally obligated to pay the sums secured by this Security Instrument," and her consent is not required to alter the terms of the Deed or the Note. USCA4 Appeal: 21-1087 Doc: 38 Filed: 06/15/2021 Pg: 9 of 33 The first of these prerequisites is that the class must exist and be "readily identifiable" or "ascertainable" by the court through "objective criteria." Sept. 29, 2017); Billings v. Seterus, Inc., 170 F. Supp. Law 13-316(c), which requires a response to a loan modification application within 15 days. The Court does not find such a prohibition in the Maryland Attorneys' Rules of Professional Conduct. Filed by Janie Robinson. 2605(f)(1)(B), a borrower cannot recover these additional damages "without first recovering actual damages." Law 13-301(1). 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. 2601(a). Reg. 2d 452, 468 (D. Md. Under Federal Rule of Civil Procedure 56(a), the Court grants summary judgment if the moving party demonstrates that there is no genuine issue as to any material fact, and that the moving party is entitled to judgment as a matter of law. Nationstar's reliance on Accrued Financial Services v. Prime Retail, Inc., 298 F.3d 291 (4th Cir. Co., 595 F.3d 164, 179 (4th Cir. 2015) Court Description: MEMORANDUM OPINION. The plaintiff's claim "cannot be so different from the claims of absent class members that their claims will not be advanced by" proof of the plaintiff's own individual claim. For the foregoing reasons, Nationstar's Motion for Summary Judgment will be GRANTED IN PART and DENIED IN PART. 09-08213, 2011 WL 11651320 (C.D. 2605(f)(1)(A)). See id. Corp. ("McLean I"), 595 F. Supp. SETTLEMENT CONFERENCE ORDER by District Judge Ronald A. : 1-855-914-4649 (Toll-Free) / 1-855-535-1813 (TTY) Nationstar, d/b/a Mr. Cooper, Consent Order. The data derived from scripts written by another expert, Abraham J. Wyner, without the benefit of seeing the databases, a process necessitated by Nationstar's unwillingness or inability to produce the relevant data. If the named plaintiff satisfies all of the Rule 23(a) requirements and the Rule 23(b)(3) requirements, then class certification is appropriate. Nationstar has no process for standardizing file names. Messner v. Northshore Univ. The predominance and superiority requirements under Rule 23(b)(3) are designed to ensure that the class action "achieve[s] economies of time, effort, and expense, and promote[s] . During this time and up until September 25, 2017, Nationstar had not begun any foreclosure proceedings on the Robinsons' home. v. Nationstar Mortgage LLC Nationstar Call Settlement Administrator PO Box 3560 1024.41(c)(1)(ii), which requires a servicer to respond to a loan modification application within 30 days of receipt of a complete loss mitigation application and provide notice of appeal rights; 12 C.F.R. In Pennsylvania, the settlement affected 2,234 loans for a total of $2.75 million in restitution for these borrowers. Id. While the date that Nationstar's systems came into compliance, is unknown, Nationstar's systematic noncompliance presents common questions of law and fact for all class members. 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. If the application is complete "more than 37 days before a foreclosure sale," the servicer may not move for a foreclosure judgment or conduct a foreclosure sale, but instead must first "[e]valuate the borrower for all loss mitigation options available to the borrower," send to the borrower "a notice in writing stating the servicer's determination of which loss mitigation options, if any, it will offer," and include a statement of applicable appeal rights. . 2605(f)(1). Code Ann., Com. Law 13-316(e), for the reasons stated above, see supra part I.B.4, the Robinsons have provided sufficient evidence to create a genuine issue of material fact whether they have suffered economic damages, in the form of administrative costs, fees, and interest. Fed. 2605(f), is common question of law and fact that Mr. Robinson and the class members would all be required prove in their individual cases in order to qualify for statutory damages. Campbell v. Nationstar Mortg., 611 F. App'x 288, 297-98 (6th Cir. The defendant is accused of violating the Telephone Consumer Protection Act by robocalling consumers regarding a home loan. Potentially eligible class members for all of these provisions can be identified through the LSAMS and Remedy data that marks that an application was received, identified as complete, and denied. For the Regulation X provisions that require the servicer to communicate specific information to a borrower, Oliver's methodology involves reviewing a sample of loan files and identifying a specific communication to a borrower based on the file name. It does not mount any persuasive attack on Oliver's "principles and methodology," Westberry, 178 F.3d at 261, which largely consisted of counting the number of days between events and reviewing files for a particular loan to determine whether they contained certain standard content. Code Ann., Com. 2605(f)(1)(A); see 12 C.F.R. The Court will therefore deny the Motion for Summary Judgment as to this argument. Corp., 546 F.2d 530, 538-39 (3d Cir. In 2017, the CFPB fined Nationstar $1.75 million for failing to report accurate data about its mortgage transactions. "There are going to be a lot of homeowners who need a home loan modification or other assistance," Raoul says. 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. The Robinsons appealed the Magistrate Judge's ruling because it did not require Nationstar to run a structural script for a third database. 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. v. Windsor, 521 U.S. 591, 623-24 (1997). In assessing the Motion, the Court views the facts in the light most favorable to the nonmoving party, with all justifiable inferences drawn in its favor. Updates will also be available at the toll-free number: 1-866-404-0137. A code is also added to LSAMS to put a hold on foreclosure proceedings. See Tyson Foods v. Bouaphakeo, 136 S. Ct. 1036, 1045 (2016) ("When 'one or more of the central issues in the action are common to the class and can be said to predominate, the action may be considered proper under Rule 23(b)(3) even though other important matters will have to be tried separately, such as damages or some affirmative defense peculiar to some individual class members.'" Before relating the facts relevant to the Motion for Class Certification, the Court will highlight the relevant procedural history affecting the record before the Court. They do not seek damages in the Amended Complaint for emotional distress or include such a claim in their itemized list of damages submitted in discovery. Nationstar seeks summary judgment on the Robinsons' RESPA claims on the grounds that (1) Mrs. Robinson is not a proper plaintiff because she is not a "borrower" within the meaning of RESPA; (2) RESPA is inapplicable because Nationstar was required to comply with Regulation X only as to the Robinsons' first loss mitigation application; (3) there is no evidence to support a violation of 12 C.F.R. 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. Finally, the Court finds that common issues of law and fact predominate. Settlement Pool $12,100,000 Settlement Website Nationstar Class Action Settlement Deadline 04/11/2016 Contact Wright et al. On November 21, 2014, the Robinsons filed suit against Nationstar on behalf of themselves and a class of similarly situated individuals nationwide. Several states also fined Nationstar in 2018 over failing to have proper procedures in place and "unfair and deceptive" mortgage modification policies. Reg. The regulation is silent on whether a loss mitigation application submitted before January 10, 2014 could qualify as the "single complete loss mitigation application." Contact Fraudfighters.net Current Class Settlements Search Our Successes Practice Areas Class Actions Financial Services & Economic Justice The next day, Nationstar sent a letter noting that the August 25 application had been received and requesting additional information. See Lierboe v. State Farm Mut. Signed by Judge Theodore D. Chuang on 8/18/2015. Id. See Baby Neal for and by Kanter v. Casey, 43 F.3d 48, 56-57 (3d Cir. Gym, Recreational & Athletic Equip. Nationstar admits that in March 2014, two months after the implementation date of Regulation X, it had not yet updated its systems to comply with the regulation. the same interest in establishing the liability of defendants." Nationstar asserts that Oliver's testimony should be stricken because this fee arrangement includes an unethical contingency fee. Since the MCPA and Regulation X allow recovery only of "economic damages," Md. et al (6:21-cv-00380), Oklahoma Eastern District Court, Filed: 12/23/2021 - PacerMonitor Mobile Federal and Bankruptcy Court PACER Dockets .

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