robinson v nationstar settlement

On July 17, 2014, Nationstar informed Mr. Robinson by letter that he did not qualify for a HAMP modification and that since the March 14 loan modification offer had not been accepted, it was withdrawn. The Robinsons appealed the Magistrate Judge's ruling because it did not require Nationstar to run a structural script for a third database. 2601 et seq. 15-0925, 2015 WL 5165415, at *4 (D. Md. R. Civ. Code Ann., Com. The Court may rely only on facts supported in the record, not simply assertions in the pleadings. "Since then, we have continued to invest in technology, people, and leadership to ensure that our compliance and risk management programs not only meet our regulators' expectations but also support sustainable growth and maintain our position as an industry leader.". When considering whether expert testimony is reliable or should be excluded, the court considers the following factors: "When an expert's report or testimony is 'critical to class certification,'" the district court "must make a conclusive ruling on any challenge to that expert's qualifications or submissions before it may rule on a motion for class certification." Fed. 12 C.F.R. 1024.41(c)(1)(i). 2005))). 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. Under subsection (h), if a loan servicer receives a complete loss mitigation application more than 90 days before a foreclosure sale but then denies the application, the servicer must allow the borrower to appeal and must respond to the appeal within 30 days of receiving it. cause[d] damages retroactively" and "transmogrifie[d]" the costs that predate the RESPA violation into damages. The Nationwide Class and the Maryland Subclass are ascertainable and satisfy the Rule 23(a) factors. Id. In Frank v. J.P. Morgan Chase Bank, N.A., No. FCRA). 12 U.S.C. Nationstar Call Settlement Administrator. 10696, 10708 (Feb. 14, 2013) (codified at 12 C.F.R. The Magistrate Judge ordered Nationstar to run those scripts and return the electronic data to the Robinsons. . McLean I, 595 F. Supp. All Rights Reserved. (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"). Fed. Regulation X, which became effective on January 10, 2014, 78 Fed. Nationstar denies all allegations of wrongdoing and no judgment or determination of wrongdoing has been made. 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. Ohio 2014). RESPA's implementing regulations, codified at 12 C.F.R. 1024.41(a). 702, 703. For example, in EQT, the court concluded that a proposed class of all individuals who owned an interest in a gas estate was not ascertainable because the actual owners could be determined only through an individualized review of land records. 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. If the Court approves the Settlement and it becomes final and effective, and you remain in the Settlement Class, you will receive a payment. 1024.41(c) and (d) impose obligations on a loan servicer once it receives a "complete loss mitigation application" and once the completed application is denied. See Torres v. Mercer Canyons Inc., 835 F.3d 1125, 1137 (9th Cir. See, e.g., Linderman v. U.S. Bank Nat'l Ass'n, 887 F.3d 319, 321 (7th Cir. Baez, 709 F. App'x at 983. McLean v. GMAC Mortg. MSJ JR 0284. Certification will not be granted as to the claims under 12 C.F.R. On September 9, 2014, Nationstar sent Mr. Robinson a letter denying the loan modification application and stating that it could not offer him any modification because his income was not high enough to cover the mortgage payments under any modification option. . 2016) (dicta). Mrs. Robinson was the primary point of contact for the Robinsons in interacting with Nationstar. Class litigation would also promote consistent results on the common question whether Nationstar engaged in a pattern or practice of violating Regulation X and would provide Nationstar with finality and closure on that issue. Regulation X went into effect on January 10, 2014. 2605(f)(1)(A); see 12 C.F.R. Robinson v. Nationstar Mortgage, LLC Complaint with jury demand against Nationstar Mortgage, LLC. Sept. 29, 2017); Billings v. Seterus, Inc., 170 F. Supp. But, Nationstar is correct that Owens-Benniefield may Fla. 2009), aff'd, 398 F. App'x 467, 471 (11th Cir. 1024.41(f), (g), and (h); and (4) there is no evidence of actual damages from any RESPA violation. The record is undisputed that as of September 25, 2017, Nationstar had neither started foreclosure proceedings nor moved for foreclosure judgment on the Robinsons' home. See Broussard, 155 F.3d at 344. (quoting 7AA Charles Allan Wright et al., Federal Practice and Procedure 1778 (3d ed. The settlement in the form of a consent judgment, filed in the U . Id. 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." 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. 1 . In the Amended Complaint, the Robinsons claim that Nationstar's representations that it offered many loss mitigation plans and "would evaluate" borrowers "for eligibility for all these loss mitigation plans" were false. Date: September 9, 2019, Civil Action No. 1024.41(d). J. These letters are based on standard Nationstar templates, and the code reflects the type of letter sent. 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. HARRISBURG Attorney General Josh Shapiro, as part of a multistate effort, today announced that his office obtained an $86.3 million settlement from Nationstar Mortgage, the country's fourth-largest mortgage servicer. 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. 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). 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 2003). Northern District of Ohio, ohnd-1:2021-cv-00452 of 0 An error occurred while loading the PDF. On June 16, 2017, the Magistrate Judge bifurcated discovery to focus initially on the merits of the Robinsons' individual claim and the question of class certification, ordered Nationstar to disclose electronic records so that the Robinsons could sample Nationstar's data for purposes of a motion for class certification, and limited the discovery of such records to a sample of 400 loans from the period from January 10, 2014 to June 30, 2014 and "to areas which inform" the Court's decision on class certification, namely whether Nationstar was in compliance with Regulation X. Mot. 120. Id. The CFPB estimates about 40,000 borrowers were harmed by Nationstar's allegedly unfair and deceptive practices, according to a statement released Monday. See supra parts I.B.1, I.B.3, I.C.1. R. Civ. 12 C.F.R. See id. See Keen, 2018 WL 4111938, at *5-6. Signed by Magistrate Judge Jillyn K Schulze on 9/9/2016 . In approving such a modification, Nationstar made a mistake: the underwriter working on the Robinsons' loan had erroneously double-counted their income. A Division of NBC Universal. 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. 164. Once an underwriter is assigned, that employee double-checks whether the application contains all required documentation and is complete. Ins. 2601(a). Finally, the named plaintiff must "fairly and adequately protect the interests of class" without a conflict of interest with the absent class members. 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. 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. Law 13-316(c), which requires a response to a loan modification application within 15 days. See Md. 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. Law 13-301 and 303. PO Box 3560. 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. (2012), and the Maryland Consumer Protection Act ("MCPA"), Md. 28, 2017). 2015). First, Nationstar correctly notes that Mr. Robinson, in his Motion, and Oliver, in his expert report, do not put forward any evidence establishing that the necessary prerequisites for a class action have been met with respect to the claim that Nationstar did not evaluate borrowers "for all loss mitigation options available to the borrower," in violation of 12 C.F.R. JA 130. Marchese v. JPMorgan Chase Bank, N.A., 917 F. Supp. Gariety v. Grant Thornton, LLP, 368 F.3d 356, 366 (4th Cir. The Robinsons, however, have not identified any evidence that Nationstar did not intend to, and did not, conduct such evaluations. Subscribe to our free newsletter right now. Id. Id. . 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.'" According to Oliver, if he used incorrect data, that was a result of the limited data fields and definitions provided to him. Instead, the Robinsons assert that Nationstar has not affirmatively proven that it conducted such reviews. In Baez v. Specialized Loan Servicing, LLC, 709 F. App'x 979 (11th Cir. If a class is ascertainable, it must then satisfy all four elements of Rule 23(a): numerosity, commonality, typicality, and adequacy. 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. 2d 452, 468 (D. Md. Id. Nationstar ultimately became the servicer of the Robinsons' loan. MCC JR 0003. 2013); Poindexter v. Teubert, 462 F.2d 1096, 1097 (4th Cir. Since the Court has already concluded that Nationstar is entitled to summary judgment on the Robinsons' claims under 12 C.F.R. The distinction is crucial. Sept. 2, 2015). 1024.1 to 1024.41 and known as "Regulation X," see 12 C.F.R. A servicer that fails to comply with Regulation X is liable for "any actual damages to the borrower as a result of the failure" to comply. Many impacted consumers have already received refunds and more will be contacted by the settlement administrator in the coming weeks. 2010) (considering consistency of results that provide finality to the defendant as favoring a finding of superiority). 2012). Where such statements in no way promise approval, the Robinsons appear to claim that such statements are false or misleading because Nationstar never intended to, and did not, evaluate the Robinsons for the various loss mitigation options. Your Email Please enter your email. UNITED STATES DISTRICT COURT DISTRICT OF MARYLAND. The Robinsons and Nationstar then engaged in a series of tortured exchanges over the next several months. Md. EQT Prod. Sept. 9, 2019), there were multiple other claims at issue, for which Oliver's expert report seemed better suited to address. v. Nationstar Mortgage LLC, Case No. 1998). The Court does not find such a prohibition in the Maryland Attorneys' Rules of Professional Conduct. 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. 1024.41(b)(1). Check out:Covid-19 pandemic is the first time 40% of Americans have experienced food insecurity, Don't miss:Amex Blue Cash Preferred is offering an elevated welcome bonus for a limited time, Get Make It newsletters delivered to your inbox, Learn more about the world of CNBC Make It, 2023 CNBC LLC. R. Civ. Thus, Mrs. Robinson is not "obligated" to pay the amount due on the Note and therefore is not a "borrower" for purposes of RESPA. Id. R. Civ. Code Ann., Com. Mr. Robinson then submitted another loan modification application on August 25, 2014. Reg. 1024.41(b)(2)(B). A $3.8 million settlement has been reached in a Nationstar convenience fee class action lawsuit, which claimed that the mortgage lender wrongfully charged convenience fees to their consumers when making payments on past due accounts. Compl. See id. Code Ann., Com. Id. 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. The Nationstar Mortgage Unwanted Phone Calls Class Action Lawsuit is Wright, et al. 2010). The ruling serves as a reminder that Florida remains one of the top states for both mortgage fraud and lender errors. More Information A class action allows representative parties to prosecute not only their own claims, but also the claims of other individuals which present similar issues. Although each class member must individually show that they suffered "actual damages" under 12 U.S.C. 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. For example, it was undisputed that on May 30, 2014, Mr. Robinson, in response to Nationstar's requests for additional information, resubmitted the same information sent with his March 2014 loan modification application. Code Ann., Com. 2001) (striking expert testimony because of a contingent fee arrangement), aff'd, 43 F. App'x 547 (4th Cir. See Stillmock, 385 F. App'x at 274 ("[T]here is no reasoned basis to conclude that the fact that an individual plaintiff can recover attorney's fees in addition to statutory damages of up to $1,000 will result in enforcement of [the Fair Credit Reporting Act] by individual actions of a scale comparable to the potential enforcement by way of class action."). 2605(f)(2), "Rule 23 contains no suggestion that the necessity for individual damage determinations destroys commonality, typicality, or predominance, or otherwise forecloses class certification." Mich. 2016), at least one district court has held that loan servicers need not comply with Regulation X if the borrower had previously submitted a loss mitigation application before the January 10, 2014 effective date, see Trionfo v. Bank of America, N.A., No. See id. On March 8, 2014, Nationstar sent to Mr. Robinson a letter stating that he was ineligible for a HAMP modification, but on March 15, 2014, it sent a different letter offering a loan modification under which Mr. Robinson would receive a reduced interest rate for two years. In Accrued Financial, the United States Court of Appeals for the Fourth Circuit held that where commercial real estate tenants assigned their potential claims against their landlords to a commercial real estate auditor under an arrangement through which the auditor would receive a percentage of any recovery in litigation, the assignments violated public policy because where the auditor's employees could testify in such litigation, the assignments "provide for supplying expert testimony for a contingent fee." See Lierboe v. State Farm Mut. Id. at 300. 2d 754, 768-69 (D. Md. Id. To satisfy the numerosity requirement, the proposed class must be so numerous that "joinder of all members is impracticable." Where the results of such an analysis would apply to any individual claim, it would be highly inefficient and wasteful to require duplicative analysis in each such case. Code Ann., Com. 1984), and has upheld the certification of a class with as few as 18 members, Cypress v. Newport News Gen. & Nonsectarian Hosp. Law 13-316(c), which requires a response to a mortgage servicing complaint or inquiry within 15 days. A conflict of interest will not defeat the adequacy requirement when "all class members share common objectives[,] the same factual and legal positions, and . Lembach v. Bierman, 528 F. App'x 297 (4th Cir. Casetext, Inc. and Casetext are not a law firm and do not provide legal advice. 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. Make your practice more effective and efficient with Casetexts legal research suite. 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. Class Certif. 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"). He asserted that the amount of fees was calculated based on Nationstar's statements, but he could not specify the nature of the fees. A plaintiff has the burden to show that all of the necessary prerequisites for a class action have been met. 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. R. Civ. "); cf. Nationstar Mortgage agreed to settle an action commenced by the Consumer Financial Protection Bureau for $91 million to resolve allegations surrounding mortgage servicing misconduct and deceptive practices that resulted in financial harm to borrowers. 2605(f)(1). or other representation . See 12 C.F.R. For the foregoing reasons, Nationstar's Motion for Summary Judgment will be GRANTED IN PART and DENIED IN PART. 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. 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. Opp'n Mot. . 2018). An 85-year Harvard study found the No. At different stages in the processing of a loan modification application, Nationstar employees enter certain codes into certain databases, and certain information can be stored and accessed through those applications. Moreover, the possibility that some members of the class as defined by the Robinsons have not suffered any injury cognizable under RESPA or MCPA does not preclude certifying the class. While several district courts have concluded that loss mitigation applications submitted before Regulation X's effective date do not count as the single application for which a loan servicer must comply with Regulation X, see, e.g., Farber v. Brock & Scott, LLC, No. Fed. R. Civ. If the application is denied, a notice to that effect is sent to the borrower. The use of a class action is primarily justified on the grounds of efficiency, because it advances judicial economy to resolve common issues affecting all class members in a single action. This Court previously held that a loan modification application can be an inquiry under the MCPA that triggers a duty to respond, and that in the case of the Robinsons, the loan modification application that was "submitted at the request of Nationstar[] necessarily seeks a response."

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