robinson v nationstar settlement

Wesleyan Coll. Nationstar also allegedly foreclosed on borrowers with pending forbearance applications after promising not to do so and failed to properly handle escrow payments and accounting for homeowners who were in Chapter 13 bankruptcy proceedings. 1024.41(c)(1)(ii), 1024.41(b)(1), the Court concludes that common computerized analysis will substantially advance the resolution of such claims, even if not entirely eliminating the need for reviewing certain specific file documents. If you were contacted on your cell phone by a company via an . PDF In the United States Court of Appeals for the Fourth Circuit . loan" did not have standing to bring a RESPA claim); Nelson v. Nationstar Mortg. 1976) (holding that while it may be unethical for a lawyer to testify on behalf of a client as an expert, "it does not necessarily follow that any alleged professional misconduct" would require exclusion of the testimony because the rules of professional conduct do "not delineate rules of evidence"); United States v. Fogel, 901 F.2d 23, 26 (4th Cir. . Since neither party contends that Oliver's testimony and report are not "critical," the Court must address the Daubert challenge before reaching the question of class certification. The Federal Rules of Evidence do not prohibit these kinds of arrangements. Certification will not be granted as to the claims under 12 C.F.R. PO Box 3560. See Torres v. Mercer Canyons Inc., 835 F.3d 1125, 1137 (9th Cir. (2012), and the Maryland Consumer Protection Act ("MCPA"), Md. 702, 703. 2018); Renfroe v. Nationstar Mortg., LLC, 822 F.3d 1241, 1247 n.4 (11th Cir. The Robinsons have not made any mortgage payments since January 2014 and have not been assessed any late fees since February 2014. 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. Questions? 2013); Poindexter v. Teubert, 462 F.2d 1096, 1097 (4th Cir. 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. Law 13 . v. Nationstar Mortgage LLC. Nationstar Mortgage LLC v. Demetrius Robinson To view the settlement agreement and consent order, please visit the CSBS's website. Mr. Robinson then submitted another loan modification application on August 25, 2014. Although based on imperfect data, Oliver's expert report reveals that such analysis can substantially address whether Nationstar violated 12 C.F.R. 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. 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. While Demetrius Robinson did appeal Nationstar's March 15, 2014 offer of an in-house modification, the requirements of subsection (h) were not triggered because the offer was not a denial of a loan modification application. Robinson v. Nationstar Mortg. LLC - Casetext He was retained by the Robinsons under an arrangement through which he is to be paid a flat fee of $125,000: $62,500 up front, with an additional $62,500 to be paid if a class is certified in this case. When those scripts did not produce data that allowed the Robinsons to conduct the sampling, the Magistrate Judge ordered Nationstar on April 3, 2018 to run certain "structural scripts" on two of its four databases. 2010). Id. Robinson, 2015 WL 4994491, at *4 (citing Marchese v. JPMorgan Chase Bank, N.A., 917 F. Supp. The next day, Nationstar sent a letter noting that the August 25 application had been received and requesting additional information. 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. Aug. 19, 2015). 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. 10696, 10708 (Feb. 14, 2013) (codified at 12 C.F.R. Mortgage Servicing Rules Under the Real Estate Settlement Procedures Act ("Regulation X"), 78 Fed. 16-0307, 2017 WL 1167230, at *3 (E.D.N.C. Nationstar has no process for standardizing file names. While the particulars of Mr. Robinson's application process will not necessarily prove that Nationstar mishandled the applications of other individual class members, these facts fairly encompass the types of claims that would be brought by the members of the class. Mot. In their Motion for Class Certification, the Robinsons seek certification of two classes. P. 56(a); Celotex Corp. v. Catrett, 477 U.S. 317, 322 (1986). 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. "Mortgage servicers are entrusted with handling significant financial transactions for millions of Americans, including struggling homeowners. The ruling serves as a reminder that Florida remains one of the top states for both mortgage fraud and lender errors. "); cf. Nelson, 2017 WL 1167230, at *3 (collecting cases). 1024.41(d). Anderson, 477 U.S. at 248. Mrs. Robinson was the primary point of contact for the Robinsons in interacting with Nationstar. 2605(f), caused by the violation, which likely consist of administrative fees and costs, the individual recovery available for each class member would likely be low, far below the cost of litigating the claims themselves. Gunnells, 348 F.3d at 427-28. 1024.1 to 1024.41 and known as "Regulation X," see 12 C.F.R. After March 2014, Mrs. Robinson was primarily responsible for communicating with Nationstar and PaCE. Casetext, Inc. and Casetext are not a law firm and do not provide legal advice. Likewise, Oliver's expert report provides no analysis on how Nationstar's databases allow for a systematic determination whether Nationstar failed to inform borrowers of the specific reasons for the servicer's decision to deny each loan modification option, in violation of 12 C.F.R. 2015) (holding that Regulation X did not apply to loss mitigation applications submitted before the effective date). 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. See 12 C.F.R. McLean II, 398 F. App'x at 471. 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. Nationstar Mortgage Convenience Fee Class Action Settlement Specifically, if a loss mitigation application is received "45 days or more before a foreclosure sale," the loan servicer must provide a notice to the borrower "in writing within 5 days" of receiving it in which the servicer acknowledges receipt of the application and states whether the "application is either complete or incomplete." Code Ann., Com. Rather than rendering the testimony inadmissible, the fee arrangement is relevant to the expert's credibility. 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. This assertion mischaracterizes the burden of proof in a civil case. The Robinsons appealed the Magistrate Judge's ruling because it did not require Nationstar to run a structural script for a third database. Several states also fined Nationstar in 2018 over failing to have proper procedures in place and "unfair and deceptive" mortgage modification policies. That claim will be subject to common proof, namely sampling and analysis of loan files along the lines suggested by Oliver. See 12 C.F.R. She alleges Nationstar was sent multiple disputes by both Experian and Equifax with documentation showing the debt was forgiven, yet Nationstar persisted in reporting the debt as valid. Law 13-316(e)(1), and "actual damages," 12 U.S.C. 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. . Marchese v. JPMorgan Chase Bank, N.A., 917 F. Supp. 1024.41(f), (g), and (h), and Mr. Robinson's MCPA claim under sections 13-301 and 13-303. R. Civ. 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. 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. Code Ann., Com. Robinson v. Nationstar Mortgage, LLC - Justia Dockets & Filings 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."). Nationstar to Pay $110 Million to Settle Borrower Claims (quoting East Tex. In Robinson v. Nationstar Mortgage LLC, No. 2012) (citing Lloyd v. Gen. Motors Corp., 916 A.2d 257, 277 (Md. Tagatz v. Marquette Univ., 861 F.2d 1040, 1042 (7th Cir. The Robinsons own a business called Green Earth Services, which provides waste and recycling services to clients. 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." 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. Signed by Magistrate Judge Jillyn K Schulze on 9/9/2016 . Filing fee paid $ 402, Receipt number AOHNDC-10680087. In Frank v. J.P. Morgan Chase Bank, N.A., No. The Magistrate Judge ordered Nationstar to run those scripts and return the electronic data to the Robinsons. 89, 90, ECF No. It follows that only borrowers may bring a claim that a loan servicer has violated Regulation X. The distinction is crucial. This argument runs contrary to the plain language of Nationstar's own procedures, which describe the application as "complete" based on the processor's determination, leading to the referral of the complete package to an underwriter. 3d 249, 266 (D. Md. See, e.g., Linderman v. U.S. Bank Nat'l Ass'n, 887 F.3d 319, 321 (7th Cir. P. 23(a)(1). The Robinsons' Motion for Class Certification will be GRANTED IN PART and DENIED IN PART. A "borrower" may enforce the provisions of Regulation X pursuant to 12 U.S.C. 164. 143. These fees allegedly violated the Fair Debt Collection Practices Act and the Washington state Collection Agency Act. Ass'n, No. 2d 452, 468 (D. Md. Under a provision of Regulation X entitled "Loss mitigation procedures," mortgage servicers must take certain steps when a borrower applies for loss mitigation measures, such as the loan modifications sought in this case. Am. Code Ann., Com. 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. 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. 702. 222. 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. . Nationstar Call Settlement Administrator. Gunnells v. Healthplan Serv., Inc., 348 F.3d 417, 458 (4th Cir. If the named plaintiff satisfies all of the Rule 23(a) requirements and the Rule 23(b)(3) requirements, then class certification is appropriate. . The Robinsons assert that they have paid a total of $6,147.12 in unspecified fees to Nationstar. Since Regulation X explicitly does not require a loan servicer to provide a loan modification, the Robinsons' claim that they suffered damages because they did not receive a loan modification is not cognizable under the statute. Plaintiffs "must present specific evidence to establish a causal link between the [servicer's] violation and their injuries." But see Ayres v. Ocwen Loan Servicing, LLC, 129 F. Supp. 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. Md. ORDER Scheduling Settlement Conference for Wednesday, October 26, 2016 at 10:30 a.m. They have a home in Damascus, Maryland purchased by Demetrius Robinson ("Mr. Robinson"). See Krakauer v. Dish Network, L.L.C., 925 F.3d 643, 658 (4th Cir. Under the terms of the Settlement, if nothing else occurs in the litigation, then the Settlement will become effective 95 days from the date of that decision by the Court of Appeals. See 12 C.F.R. Law 13-316(c), which requires a response to a mortgage servicing complaint or inquiry within 15 days. R. Civ. 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. uniformity of decision as to persons similarly situated, without sacrificing procedural fairness or bringing about other undesirable results." In this photo illustration, the Nationstar Mortgage Holdings Inc. logo seen displayed on a smartphone. 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. In contrast, the Court finds that there is a genuine issue of material fact whether the administrative costs and fees incurred by the Robinsons resulted from Nationstar's RESPA violations. Nationstar said in a statement that its settlements were based on "loan-servicing practices" that the company used between 2010 and 2015 and has since discontinued. Class Cert. 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. Nationstar's Motion will be denied as to this claim. On May 5, 2014, Nationstar asked the Robinsons for additional information to evaluate the appeal, including documents to verify their income. Fed. In addition, Nationstar asserts that not all loan modification applications referred to an underwriter are complete. 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. To the extent that, as Nationstar claims, such a determination could not be fully accomplished through computerized analysis alone, the resources needed to resolve this question would be even greater, such that the importance of having it resolved in a common fashion for all claims would be heightened. Signed by Judge Theodore D. Chuang on 8/18/2015. See id. 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." 1024.41(f), (g), and (h), and Md. See 12 C.F.R. 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." at 983 (quoting 12 U.S.C. R. Evid. Actual damages may include late fees; denial of credit or access to the full amount of a credit line; out-of-pocket expenses incurred in dealing with a RESPA violation, such as expenses for preparing and copying correspondence; and lost time and inconvenience, including time spent away from employment while preparing correspondence "to the extent it resulted in actual pecuniary loss." Deiter, 436 F.3d at 466-67. Robinson v. Nationstar Mortgage, LLC 1:2021cv00452 | US District Court for the Northern District of Ohio | Justia Log In Sign Up Find a Lawyer Ask a Lawyer Research the Law Law Schools Laws & Regs Newsletters Marketing Solutions Justia Dockets & Filings Sixth Circuit Ohio Northern District Robinson v. Nationstar Mortgage, LLC Robinson v. The first of these prerequisites is that the class must exist and be "readily identifiable" or "ascertainable" by the court through "objective criteria." Id. Since it is the plaintiff's burden to establish that the requirements of Rule 23 have been met and Mr. Robinson has failed to do so, the Motion for Class Certification will be denied as to any claims that Nationstar violated 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. 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. Id. 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. Ass'n, 375 F.2d 648, 653 (4th Cir. Where the PaCE consulting fee was a one-time fee to advise the Robinsons in their interactions with Nationstar paid in August 2013, several months before they first submitted the March 2014 loan modification application, this cost was incurred "whether or not [Nationstar] complied with its obligations." Nationstar also seeks summary judgment on the Robinsons' claims under the MCPA, which include claims of misleading statements in connection with the collection of consumer debts, in violation of section 13-301(1), (3) and section 13-303(4)-(5) of the MCPA, and claims that Nationstar did not respond to consumer inquiries within 15 days, in violation of section 13-316(c) of the MCPA. 3d at 1014. Rules Prof'l Conduct 3.4 cmt. See 12 C.F.R. The trial court granted the motion over the Robinsons' objection, noting in its order that Nationstar had now waived its claim for attorney feesthe claim that had been the sole impediment to a final judgment being entered after the trial court granted Nationstar's request to reopen the evidence after entry of the initial final judgment. 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. 1024.41(b)(2)(B), which requires that an acknowledgment letter be sent within five days of receipt of a loan modification application; or 12 C.F.R. 1024.41, a regulation of RESPA that outlines loss mitigation procedures. 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. Nationstar further argues that summary judgment must be entered in its favor on the Robinsons' claims under 12 C.F.R. Code Ann., Com. 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. During this time and up until September 25, 2017, Nationstar had not begun any foreclosure proceedings on the Robinsons' home. Because there are, at a minimum, disputed issues of fact as to what fees, administrative costs, and interest constitute damages, the Court will deny the motion for summary judgment on the issue of actual damages. In approving such a modification, Nationstar made a mistake: the underwriter working on the Robinsons' loan had erroneously double-counted their income. that it is improper to pay an expert witness a contingent fee." Id. Id. Appellate Win Affirms $3 Million Settlement in Class Action against

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