robinson v nationstar settlement

That notice must be provided within 30 days of receiving the complete loss mitigation application. The denial letters stated that the loan's principal balance exceeded the limit under HAMP. 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. Thus, based on his report and experience, Oliver concludes that Nationstar "failed to comply" with Regulation X and that it is possible to "identify violations" of Regulation X "using the methodologies" he described, without the necessity of a file-by-file review. Id. Thorn v. Jefferson-Pilot Life Ins. On May 5, 2014, Nationstar asked the Robinsons for additional information to evaluate the appeal, including documents to verify their income. Id. Nov. 12, 2011), the court held that a plaintiff who signed a deed of trust on a property and was a joint tenant with her son, but did not sign the promissory note, had constitutional standing to bring a RESPA claim because she stood to be injured if a default on her son's loan led to the loss of her equitable interest in the property. Id. Because all of the Rule 23(a) and (b)(3) requirements are met as to a class asserting violations of 12 C.F.R. 2003). "We want to hear from you," Raoul says. In approving such a modification, Nationstar made a mistake: the underwriter working on the Robinsons' loan had erroneously double-counted their income. Campbell v. Nationstar Mortg., 611 F. App'x 288, 297-98 (6th Cir. LLC, No. PDF In the United States Court of Appeals for the Fourth Circuit Id. 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. 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. Sept. 2, 2015). Here, Mrs. Robinson signed the Deed but did not sign the Note. Although this data was not provided to Oliver, there is no reason it could not be produced and used to make determinations on the timeliness of decisions on loss mitigation applications. See supra parts I.B.1, I.B.3, I.C.1. In contrast, Nationstar maintains that there is no way to reliably identify when a loss mitigation application is submitted or complete using codes and status change entries in its existing software, and that the only way to make those determinations is through a file-by-file review. A separate Order shall issue. Robinson v. Nationstar Mortg. LLC | 2015 WL 4994491 | D. Md. | Judgment 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. For example, Nationstar's own internal procedures reveal that when a loss mitigation application is received, a processor reviews it to determine if all required information and documents have been received, and enters one code, specifically "code HMPC" in LSAMS signifying "Financial Application Complete," and a different code, specifically "code HMPA," signifying "Financial Application Incomplete." 15-05811, 2016 WL 3055901 (N.D. Cal. Thus, the Court concludes that common computerized analysis can largely answer the question of whether Nationstar violated these RESPA provisions with respect to individual borrowers. Your Email Please enter your email. "When these issues were identified several years ago, we immediately made restitution to our impacted customers and invested in process improvements to prevent reoccurrence," Jay Bray, CEO and chairman of Mr. Cooper said in a statement Monday. 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. Reg. The "Maryland Subclass" consists of "[a]ll persons in the State of Maryland that submitted a loss mitigation application to Nationstar after January 10, 2014, and through the date of the Court's certification order." It will be otherwise denied. The Motion will be granted as to all of Tamara Robinson's claims and as to Demetrius Robinson's claims under 12 C.F.R. 877-683-9363. Md. "[A]n evaluation of the merits to determine the strength of plaintiffs' case is not part of a Rule 23 analysis." at *2. Ward, 595 F.3d at 180 (quoting Gunnells, 348 F.3d at 430). Law 13-301(1). Factors "pertinent" to the predominance and superiority requirements include the "class members' interests in individually controlling" the litigation, whether litigation on the matter has already been begun by other class members, whether concentrating the litigation in one forum is desirable or undesirable, and the potential difficulties managing the class action presents. v. DEMETRIUS ROBINSON; TAMARA ROBINSON, Plaintiffs - Appellees, v. . 2605(f). In its Motion to Strike, Nationstar argues that Oliver's methodology has not been peer reviewed, has a high error rate because he used the wrong data fields to identify the dates of events, failed to consider the timing of foreclosure sales relative to the dates of the submission of loan modification applications, and did not propose a specific methodology for calculating damages. Thus, the Court concludes that, while Nationstar may have defenses as to some borrowers, the common proof that establishes the asserted violations, as well as the common question of whether the Robinsons can prove a pattern-or-practice violation by Nationstar, will predominate over the individual issues as to these claims. Actual damages may also include "non-pecuniary damages, such as emotional distress and pain and suffering." 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. MCC JR 318, 530-531. P. 23(a)(1). Accordingly, Nationstar's Motion for Summary Judgment will be granted as to the MCPA claims under sections 13-301 and 13-303. Mr. Robinson then submitted another loan modification application on August 25, 2014. 222. 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 Mr. Robinson signed the promissory note ("the Note"), the deed of trust ("the Deed"), and the balloon payment rider for the 2007 loan, Tamara Robinson ("Mrs. Robinson") signed only the Deed and balloon payment rider and did not sign the Note. 1024.41(c)(1)(i) and (d), because the Robinsons made no showing that the Rule 23 requirements were met. THEODORE D. CHUANG United States District Judge. 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. (quoting 7AA Charles Allan Wright et al., Federal Practice and Procedure 1778 (3d ed. Appellate Win Affirms $3 Million Settlement in Class Action against Nationstar Mortgage - Tycko & Zavareei LLP Contact Us We look forward to hearing from you. More Information 1024.1, prescribe additional duties and responsibilities of mortgage servicers under RESPA. Law 13-316(e)(1), and "actual damages," 12 U.S.C. Id. A dispute of material fact is only "genuine" if sufficient evidence favoring the nonmoving party exists for the trier of fact to return a verdict for that party. Law 13-316(c). News Ask a Lawyer 2605(f). In assessing this element, "numbers alone are not controlling" and a district court should consider "all of the circumstances of the case." 218. 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. 2002), is misplaced. 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. Law 13-301 and 13-303, and that Mr. Robinson therefore may not assert such claims on behalf of the class, Mr. Robinson's remaining claims and defenses are typical of the class members. PDF United States District Court Middle District of Florida Tampa Division To satisfy the numerosity requirement, the proposed class must be so numerous that "joinder of all members is impracticable." 1024.41(b)(1). Because such information is stored electronically and based on objective criteria, the members of the class will be ascertainable without significant administrative burden. 12 U.S.C. See Krakauer v. Dish Network, L.L.C., 925 F.3d 643, 658 (4th Cir. Cal. This abandoned high school was converted into a 31-unit apartment building, number of unlawful practices in handling mortgages following the Great Recession. MSJ JR 0284. In addition to the fines and restitution, Delaware Attorney General Kathleen Jennings said the settlements require Nationstar to adhere to increased "servicing standards." See Tagatz, 861 F.2d at 1042. Id. Once the documents are received, the Remedy Star substatus and LSAMS code are changed again to mark the application complete. Fed. To prepare his expert report, Oliver reviewed a randomly selected sample of 400 loans serviced by Nationstar in which a loan modification application was submitted. Northern District of Ohio, ohnd-1:2021-cv-00452 of 0 An error occurred while loading the PDF. Proof of these claims requires a showing of the dates that an application was received, an acknowledgment letter was sent, an application became complete, Nationstar sent a decision letter to the borrower, and a foreclosure sale is scheduled. Nationstar Mortgage LLC v. Demetrius Robinson is generally unproblematic as the non-injured parties can just be sorted out at the remedies phase of the suit."). Sept. 29, 2021). TDC-14-3667, 2019 WL 4261696 (D. Md. 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. Docket for Robinson v. Nationstar Mortgage LLC, 8:14-cv-03667 Brought to you by the RECAP Initiative and Free Law Project, a non-profit dedicated to creating high quality open legal information. On February 16, 2017, the Court referred the case to United States Magistrate Judge Charles B. Cal. at 983. Gunnells v. Healthplan Serv., Inc., 348 F.3d 417, 458 (4th Cir. Finally, a loan servicer "is only required to comply with the requirements" of section 1024.41 "for a single complete loss mitigation application for a borrower's mortgage loan account." To calculate damages, Oliver stated that he would look to data from the LSAMS application, including data tables that contain fee information, to identify fees that would not have been charged but for Nationstar's various RESPA violations, but that he was not able to evaluate this data in his report because it had not been provided to him. Plaintiffs Demetrius and Tamara Robinson (the "Robinsons") have resided in a home in Damascus, Maryland that has been subject to a mortgage loan. 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. Thus, Mrs. Robinson is not "obligated" to pay the amount due on the Note and therefore is not a "borrower" for purposes of RESPA. In 2017, the CFPB fined Nationstar $1.75 million for failing to report accurate data about its mortgage transactions. Compl. 2013). 1024.41(f), (g), and (h), and Md. 10696, 10708 (Feb. 14, 2013) (codified at 12 C.F.R. 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. Specifically, the application itself would have to be reviewed to determine when it was stamped as received by Nationstar. 2015) Court Description: MEMORANDUM OPINION. Make your practice more effective and efficient with Casetexts legal research suite. Bouchat v. Balt. Since Mr. Robinson has the same goal as the other class members of establishing that Nationstar violated Regulation X with respect to his loan, he will adequately protect their interests. 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. Code Ann., Com. Am. Certification will not be granted as to the claims under 12 C.F.R. Robinson et al v. Nationstar Mortgage LLC, No. 8:2014cv03667 - Justia Law 1024.41(a). Thus, a loan servicer could not have complied with Regulation X for a loss mitigation application submitted before January 10, 2014 because there was no regulation in effect with which to comply. 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. This assertion mischaracterizes the burden of proof in a civil case. 1024.41(a). While Mrs. Robinson stated that she was conducting bookkeeping for Green Earth Services during the relevant time frame, she testified that her work was less than six hours per week, and the Robinsons have not shown that her time spent communicating with Nationstar "resulted in actual pecuniary loss" to Mr. Robinson or the business. 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. Amchem Prods. 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. Nationstar further argues that summary judgment must be entered in its favor on the Robinsons' claims under 12 C.F.R. 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. "[N]amed class representatives [must] demonstrate standing through a 'requisite case or controversy between themselves personally and defendants,' not merely allege that 'injury has been suffered by other, unidentified members of the class to which they belong and which they purport to represent.'" 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. McLean v. GMAC Mortg. Md. 1967). RESPA's implementing regulations, codified at 12 C.F.R. 1024.41(h)(1). PDF PUBLISHED - United States Court of Appeals for the Fourth Circuit 12 U.S.C. CFPB Director Kathleen Kraninger said in a statement. 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. These fees allegedly violated the Fair Debt Collection Practices Act and the Washington state Collection Agency Act. 2010). Local R. 105.6. 1984), and has upheld the certification of a class with as few as 18 members, Cypress v. Newport News Gen. & Nonsectarian Hosp. At this stage of the proceedings, the Court must rely on facts in the record, and not assertions in the pleadings. R. Civ. A code is also added to LSAMS to put a hold on foreclosure proceedings. Therefore, Nationstar was required to comply with section 1024.41 in processing it. Subsequent to the Court's approval, one of the objectors to the settlement filed an appeal. If you are a member of the Settlement Class, you must submit a completed Claim Form to receive a payment. 2d 754, 768-69 (D. Md. In the case of Tony Robinson and Debra Robinson vs Nationstar Mortgage, LLC, the appeals court ruled that the lender did not actually have the right to foreclose on the property. If the initial application is not complete, a different Remedy Star substatus notation and LSAMS code are entered, and a letter is created and sent to the borrower asking for the required documents. v. Windsor, 521 U.S. 591, 623-24 (1997). Law 13-303(4)-(5), 13-408. 14-cv-10457, in the U.S. District Court for the Northern District of Illinois, Eastern Division.. Join a Free TCPA Class Action Lawsuit Investigation. 2d 1360, 1366 (S.D. Class Cert. Where a contingency fee arrangement for expert witnesses is not expressly prohibited by the Maryland Rules of Professional Conduct, the Court declines to find that the fee arrangement here constituted an ethical violation. A settlement has been reached in a class action lawsuit alleging Nationstar Mortgage LLC (Nationstar or Defendant) violated the Real Estate Settlement Procedures Act (RESPA) by failing to adhere to its requirements with respect to its customers loss mitigation applications and that Nationstar violated Maryland law by not timely responding to its customers mortgage servicing complaints. 2010) (holding that a plaintiff who "was not a borrower or otherwise obligated on the . 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. 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"). 2605(f)(1)(A); see 12 C.F.R. 8:2014cv03667 - Document 18 (D. Md. 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. Individual damages would be below the cost of litigation even if each class member could establish that Nationstar's conduct consisted of a pattern or practice of violating Regulation X, because the statute limits such damages to $2,000 per borrower. uniformity of decision as to persons similarly situated, without sacrificing procedural fairness or bringing about other undesirable results." Nationstar broke that trust by engaging in unfair and deceptive practices," Kraninger added. 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. 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. Code Ann., Com. 2006). 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. Tagatz v. Marquette Univ., 861 F.2d 1040, 1042 (7th Cir. Several states also fined Nationstar in 2018 over failing to have proper procedures in place and "unfair and deceptive" mortgage modification policies. 2015). See id. 1972). Congress enacted RESPA to protect consumers from "unnecessarily high settlement charges caused by certain abusive practices" in the real estate mortgage industry, and to ensure "that consumers throughout the Nation are provided with greater and more timely information on the nature and costs of the settlement process." Id. The commonality requirement is also met. that it is improper to pay an expert witness a contingent fee." Law 13-301 and 303. Nationstar correctly notes that the Robinsons have not identified a false or misleading statement or representation by Nationstar in the record. 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. Because of the need to protect the rights of absent plaintiffs to assert different claims and of defendants to assert facts and defenses specific to individual class members, courts must conduct a "rigorous analysis" of whether a proposed class action meets the requirements of Federal Rule of Civil Procedure 23 before certifying a class. Likewise, although Mrs. Robinson expended time corresponding with Nationstar, she was not working for pay at the same time, and the Robinsons have not provided evidence to quantify the loss to Mr. Robinson, the only viable plaintiff here. Courts have wide discretion to certify a class based on their familiarity with the issues and potential difficulties arising in class action litigation. 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. Nationstar ultimately became the servicer of the Robinsons' loan. Nationstar Mortgage TCPA Class Action Settlement Consumer Financial Protection Bureau and Multiple States Enter into Robinson v. Nationstar Mortgage, LLC - Justia Dockets & Filings See 12 C.F.R. 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. Law 13-316(c), which requires a response to a mortgage servicing complaint or inquiry within 15 days. R. Evid. 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. From January 2012 to December 2016, the CFPB and 50 state attorneys general claim Nationstar, which is now doing business asMr. Cooper, engaged in a number of unlawful practices in handling mortgages following the Great Recession. Nationstar will need to enhance its policies and processes around how it handles consumer complaints, performs escrow analyses and conducts audits, for example. See Robinson v. Nationstar Mortg. Ins. Finally, the named plaintiff must "fairly and adequately protect the interests of class" without a conflict of interest with the absent class members. Joint Record ("MSJ JR") 0102. Id. Fed. Mr. Robinson's counsel is experienced in complex civil litigation and class action litigation. 2006). 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." In Robinson v. Nationstar Mortgage LLC, No. Maryland's Commissioner of Financial Regulation Announces Settlement For the foregoing reasons, Nationstar's Motion for Summary Judgment will be GRANTED IN PART and DENIED IN PART. Code Ann., Com. During this time and up until September 25, 2017, Nationstar had not begun any foreclosure proceedings on the Robinsons' home. Finally, Nationstar argues that summary judgment should be entered on the RESPA claims because the Robinsons cannot establish that they have suffered actual damages as a result of Nationstar's violations of Regulation X. These claims do not have to be factually or legally identical, but the class claims should be fairly encompassed by those of the named plaintiffs. These events will be represented by discrete data points in Nationstar's databases, such that these violations may be proved through that data. 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." 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. After this missed payment, Nationstar assessed a late fee. P. 23(a)(3); Deiter v. Microsoft Corp., 436 F.3d 461, 466-67 (4th Cir. While class members would not be eligible for statutory damages unless actual damages are shown, see 12 U.S.C. In response, on May 30, 2014, Mr. Robinson sent Nationstar the exact same application that he had submitted on March 7, 2014. The one-time consulting fee was paid in August 2013 to PaCE, a forensic loan auditor, to advise the Robinsons on how to communicate with Nationstar and to handle their loan. Discovery Order, ECF No. Robinson v. Nationstar Mortg. LLC - Casetext "We will be watching the mortgage interest industry to ensure they are treating homeowners fairly and fulfilling their obligations.". Gunnells, 348 F.3d at 429 ("[T]he need for individualized proof of damages alone will not defeat class certification."). The Robinsons do not address this argument in their Opposition. PDF NATIONSTAR MORTGAGE LLC, D/B/A MR. COOPER, Defendant. Id. Gunnells, 348 F.3d at 427-28. See Eisen v. Carlisle & Jacquelin, 417 U.S. 156, 178 (1974) ("In determining the propriety of a class action, the question is not whether the plaintiff or plaintiffs have stated a cause of action or will prevail on the merits, but rather whether the requirements of Rule 23 are met."). 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. According to Oliver, if he used incorrect data, that was a result of the limited data fields and definitions provided to him. 15-3960, 2017 WL 623465, at *8 (D. Md. The language of the regulation states not that a loan servicer must comply with Regulation X's requirements only for a borrower's first loss mitigation application, but that a loan servicer must "comply with the requirements" only "for a single complete loss mitigation application." On February 10, 2022, the Court of Appeals issued a decision affirming the Final Approval Order. McLean I, 595 F. Supp. A borrower may enforce violations of these provisions through a private cause of action pursuant to 12 U.S.C. DEMETRIUS ROBINSON and TAMARA ROBINSON, Plaintiffs, v. NATIONSTAR MORTGAGE LLC, Defendant. . Some of the alleged damages are not supported in law or in fact. Tagatz, 861 F.2d at 1042; cf. Subscribe to our free newsletter right now. Robinson v. Nationstar Mortgage, LLC: Complaint with jury demand

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