|
Defendant
|
Plaintiff
|
Court
|
Amount
|
Overview | Case Title |
Case Number
|
Date Filed | Link to Story |
| American General Finance Inc., Springleaf Finance Corp. | Lois King and Deloris Sims, on behalf of themselves and others similarly situated | Court of Common Pleas for Orangeburg County, South Carolina | $87,000,000 | A South Carolina court ruled against defendant, holding that a class of 9,157 people could recover damages between $1,500 and $7,500 each under a law in the state for defendants failure to comply with mortgage laws. | King v. American General Finance, Inc. | 96-CP-38-595 | 1996 | www.mortgagedaily.com/LitigationCompliance081711.asp, www.mortgagedaily.com/LitigationCompliance081711.asp |
| Capital One Mortgage; Dovenmuehle Mortgage, Inc.; John Does 1-10 | Etta Lowery | U.S. Court of Appeals for the Fifth Circuit | n/a | Plaintiff sought to invalidate her mortgage under the Texas Constitution and sought rescission and restitionary damages under the Truth in Lending Act, claiming that she thought her home-equity loan was a fixed-rate mortgage, however, she learned in 2009 that the loan was an adjustable-rate mortgage. The court ruled in defendants’ favor, finding that Lowery was given the required three-day rescission right as required by the Texas Constitution and that her right to rescind under the Truth in Lending Act expired in 2006. | Lowery v. Capital One Mortgage, et al. | 10-10906 | 6/20/2011 | www.mortgagedaily.com/LitigationCompliance081711.asp |
| Home Loan Center, Inc. | Clarence E. Boschma, et al. | Court of Appeals of California, Fourth District, Division Three | n/a | The Fourth District Court of Appeals of California reversed a lower court’s decision that option-ARM disclosures used by defendant were adequate. The appeals court noted that “plaintiffs adequately alleged fraud and section 17200 causes of action.” | Boschma, et al. v. Home Loan Center, Inc. | G043716 | 8/10/2011 | www.mortgagedaily.com/LitigationCompliance081711.asp |
| Prime Capital Funding LLC; Kirk Ayzenberg, America’s Wholesale Lender; Countrywide Bank, NA; Countrywide Home Loans Servicing, L.P.; First Magnus Financial Corp.; Homecomings Financial, L.L.C. a GMAC Company; MAK Abstract, E*Trade, d/b/a E*Trade Financial Corporate Services, Inc.; d/b/a E*Trade Mortgage Corp. | Karen V. Cappuccio | U.S. Court of Appeals for the Third Circuit | $90,000 | After refinancing her mortgage in 2006, plaintiff filed suit under the Truth In Lending Act, 15 U.S.C 1601, claiming failure to properly notify her of her right to cancel the mortgage. The court instructed the jury that, because her signature was on the notice of right to cancel, something more than her testimony was needed to rebut the presumption that she received it. The jury returned a verdict for defendants. The Third Circuit vacated and remanding, stating that there is no basis in TILA or the Federal Rules of Evidence for the instruction and the error was not harmless. The signature does no more than create a rebuttable presumption of delivery. | Cappuccio v. Prime Capital Funding LLC, et al. | 09-4055 (Appeals Ct.) | opinion filed 8/16/2011 | www.mortgagedaily.com/LitigationCompliance081711.asp |
| Prospect Mortgage LLC | U.S. Department of Housing and Urban Development | U.S. Department of Housing and Urban Development | $3,100,000 | HUD and Prospect Mortgage settled HUD’s allegations that Prospect used its “series LLC” structure to facilitate illegal kickbacks or referral fees to brokers, lenders, and servicers in violation of HUD rules. | In re Prospect Mortgage, LLC | HUD ID No. 13920 | 7/8/2011 | www.mortgagedaily.com/SettlementProspect071311.asp |
| Wekesa Madzimoyo | JP Morgan Chase Bank | U.S. Court of Appeals for the Eleventh Circuit | n/a | Appellate Court ruled that district court should not have accepted jurisdiction over a foreclosure proceeding removed from state court. | n/a | n/a | n/a | www.mortgagedaily.com/litigationforeclosures091411.asp |
| Ocwen Financial Corp.; Goldman Sachs Bank USA; Litton Loan Servicing, LP | New York Department of Financial Services and Banking Department | New York Department of Financial Services and Banking Department | n/a | The Superintendant of Financial Services announced that the Department of Financial Services and Banking Department has entered into an agreement with Ocwen, Goldman Sachs, and Litton Loan Servicing, requiring Goldman Sachs to write down principal on NY mortgages as a condition of selling its mortgage servicing subsidiary. Goldman acquired Litton in 2007 now seeks to sell Litton to Ocwen in a $264 million all-cash transaction. As part of the transactions, all three firms will adhere to “new mortgage servicing practices.” | Agreement on Mortgage Servicing Practices | n/a | 9/1/2011 | www.mortgagedaily.com/SettlementNY090111.asp |
| Legacy Bank of Florida | John R. Hock; Doreen T. Zic-Hock | District Court of Appeal of Florida, Fourth District | n/a | Petitioners filed a petition for certiorari challenging an order of the circuit court requiring petitioners to post a $400,000 bond into the court registry as a condition to their claim of rescission of a home equity mortgage on their residence. The appellate court dismissed the petition finding that it failed to show irreparable harm not remedial on appeal. | Hock, et al. v. Legacy Bank of Florida | 4D10-3872 | 4/20/2011 | www.mortgagedaily.com/LitigationCompliance081711.asp |
| Deutsche Bank AG; Mortgage IT Inc.; DB Structured Products Inc.; Deutsche Bank Securities Inc. | United States of America (U.S. Attorney’s Office in Manhattan) | U.S. District Court for the Southern District of New York | $1,000,000,000 | Government argued that Deutsche hid the risk levels of mortgages issued by MortgageIT to qualify for mortgage insurance, which would cause the government to step in if borrowers were unable to repay. The government claims to have already paid almost $400 million so far, and is suing Deutsche Bank under a law that allows them to receive triple damages. The DOJ filed an amended complaint adding DB Structured Products and Deutsche Bank Securities as defendants. | United States v. Deutsche Bank AG, et al. | 1:2011cv02976 | 5/3/2011 | www.mortgagedaily.com/MctLawsuitDeutsche071211.asp, www.mortgagedaily.com/MctLawsuitGoldman080911.asp, www.mortgagedaily.com/LitigationMbs090711.asp |
| Golden West Financial Corp;, World Savings Bank, FSB; World Savings and Loan Association; World Mortgage Company; World Savings Bank SSB; World Loan Company, Home Loan Experts; Wachovia Corp.; AmNet Mortgage, LLC; American Mortgage Network, LLC; Wachovia Mortgage, FSB; Wachovia Bank, FSB; Wachovia Bank, N.A. | The State of Connecticut, by and through Connecticut Attorney General George Jepsen | n/a | $741,465 | Connecticut AG has reached a settlement with Wells Fargo over payment-option adjustable-rate mortgages that it inherited with its acquisition of Wachovia Corp. The agreement resolves allegations of deceptive marketing on option ARMs. | n/a | n/a | 8/17/2011 (settlement signed) | www.mortgagedaily.com/SettlementWellsCT081711.asp |
| Quicken Loans, Inc. | Monique Brown | Ohio County West Virginia Circuit Court | $2,513,432 | $2 million in punitive damages awarded against Quicken Loans in relation to predatory lending practices in West Virginia. | Brown v. Quicken Loans, Inc. et al. | n/a | n/a | www.mortgagedaily.com/LawsuitQuicken091911.asp |
