PDF Order Granting Motion for Final Approval - Robinson v Nationstar Because Nationstar employees used standard templates to communicate with borrowers, Oliver concluded that Regulation X violations can be identified through the existence of noncompliant templates and the dates that those templates were in use. The Magistrate Judge ordered Nationstar to run those scripts and return the electronic data to the Robinsons. Every mortgage has a unique loan number that can be used to identify the borrower and the loan in each of the four databases. the same interest in establishing the liability of defendants." Please check back in late January for updates. The Court will not revisit this determination. . Finally, to the extent that Oliver did not execute his stated methodology for identifying damages, that limitation is again based in part on Nationstar's failure to make relevant data available to him. First, as a threshold matter, the Court notes that in ruling on Nationstar's Motion for Summary Judgment, it will grant judgment in favor of Nationstar as to Mrs. Robinson's claims, Mr. Robinson's RESPA claims under 12 C.F.R. 3d 712, 728 (S.D. The Fourth Circuit has stated that 74 members is "well within the range appropriate for class certification," Brady v. Thurston Motor Lines, 726 F.2d 136, 145 (4th Cir. 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. Here, the Robinsons have not put forward any evidence that Mrs. Robinson has an ownership interest in the home that would specifically obligate her to make payments on the loan. See 12 C.F.R. 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." Based on his experience and review of deposition transcripts of Nationstar employees, Oliver asserts that Nationstar has computerized data from which RESPA violations may be identified, not least because Nationstar must be able to demonstrate its compliance with RESPA to regulators. 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. An "unfair or deceptive" trade practice includes a "false . The Court will therefore deny the Motion for Summary Judgment as to this argument. See Wirtz, 886 F.3d at 719-20. Id. Id. PDF United States District Court District of Maryland To establish an MCPA violation under this provision, a plaintiff must establish that (1) the defendant engaged in an unfair or deceptive practice or misrepresentation; (2) the plaintiff relied upon the representation; and (3) doing so caused the plaintiff actual injury. On November 21, 2014, the Robinsons filed suit against Nationstar on behalf of themselves and a class of similarly situated individuals nationwide. 12 U.S.C. Nationstar also asserts that the Robinsons have not identified evidence sufficient to support their MCPA claims. 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. See Johnson v. Ocwen Loan Servicing, 374 F. App'x 868, 873 (11th Cir. R. Civ. 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. On July 16, 2018, the Court affirmed the Magistrate Judge's ruling and required Nationstar to produce all outstanding "records subject to discovery orders." Customers may call with questions about the settlement or the remediation checks at 1-855-914-4649 Monday-Friday, 9:00 a.m. to 9:00 p.m. except holidays. 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. . 2016) (dicta). 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. Similarly, since Mr. Robinson has not suffered injury under these provisions, he may not bring those claims on behalf of the class. Where Accrued Financial addresses a different scenario with a different remedy, the Court does not find that it requires that the testimony of an expert witness paid on contingency fee basis must be excluded. 2006). 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. Settlement Pool $12,100,000 Settlement Website Nationstar Class Action Settlement Deadline 04/11/2016 Contact Wright et al. See Stillmock v. Weis Markets, Inc., 385 F. App'x 267, 275 (4th Cir. Am. 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. Nationstar asserts that Oliver's testimony should be stricken because this fee arrangement includes an unethical contingency fee. How do I get my check reissued? See, e.g., Ward v. Dixie Nat. LLC, No. 2605(f)(1)(A); see 12 C.F.R. The settlement in the form of a consent judgment, filed in the U.S. District Court for the District of Columbia, resolves allegations that Nationstar, which does business as "Mr. Cooper," violated consumer protection laws. Robinson v. Nationstar Mortgage, LLC - Justia Dockets & Filings That notice must be provided within 30 days of receiving the complete loss mitigation application. P. 23(a)(3); Deiter v. Microsoft Corp., 436 F.3d 461, 466-67 (4th Cir. Md. Likewise, he concluded that for approximately 53 percent of sampled loans, Nationstar failed to comply with the requirement of acknowledging receipt of the application within five days. If the settlements are approved by the D.C. district court, Nationstar will be required to immediately set aside about $15.6 million to pay borrowers it has not yet remediated. 2010) (considering consistency of results that provide finality to the defendant as favoring a finding of superiority). (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"). 19-303.4 cmt.3. 1024.41(b)(1). Compl. . 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. See supra parts I.B.1, I.B.3, I.C.1. Motor Freight System, Inc. v. Rodriguez, 431 U.S. 395, 403 (1977))). A code is also added to LSAMS to put a hold on foreclosure proceedings. R. Civ. Id. Rather than rendering the testimony inadmissible, the fee arrangement is relevant to the expert's credibility. . Nationstar ultimately became the servicer of the Robinsons' loan. 2014))). Code Ann., Com. 1024.41(b)(2)(i)(B) and Md. AG Shapiro Secures $2.75 Million for Pennsylvania Mortgage Loan Code Ann., Com. 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. And given that the class includes all borrowers who have submitted an application since January 10, 2014, joinder of all members is eminently impractical. Because Oliver's methodology is reliable within the meaning of Federal Rule of Civil Procedure 702 and Daubert, Nationstar's Motion to Strike will be denied. Corp. ("McLean II"), 398 F. App'x 467, 471 (11th Cir. Moreover, the conflict must not be "merely speculative or hypothetical." Sept. 29, 2017); Billings v. Seterus, Inc., 170 F. Supp. J. 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."). 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. To satisfy the numerosity requirement, the proposed class must be so numerous that "joinder of all members is impracticable." Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 255 (1986). When each event occurseither the mailing of a letter or the changing of a code or substatusthe date is recorded in the databases. 1024.41(d). "[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.'" 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 2d 452, 468 (D. Md. Code Ann., Com. 1993) (quoting Blum v. Yaretsky, 457 U.S. 991, 1001 n.13 (1982)). 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." This case arises from a class action alleging that Nationstar Mortgage LLC violated federal and state consumer-protection laws in servicing the class members' mortgage loans. In 2020, the Robinsons and Nationstar filed a notice of settlement and a joint motion to proceed before a magistrate "A loss mitigation application is a request from a borrower to change the terms of their payment obligations to avoid delinquency or foreclosure." J.A. 125. During this time and up until September 25, 2017, Nationstar had not begun any foreclosure proceedings on the Robinsons' home. Since Mrs. Robinson may not bring a claim under Regulation X, she may not be a named class representative. 1024.41(f), (g). The Court may rely only on facts supported in the record, not simply assertions in the pleadings. Make your practice more effective and efficient with Casetexts legal research suite. Oliver's expert report focuses on the use of Nationstar's internal databases to determine whether Nationstar has systematically failed to comply with various requirements of Regulation X. While she is trained as a bookkeeper, at the time of the Robinsons' 2014 application for a loan modification and in the subsequent months, Mrs. Robinson was not employed in any capacity. Md. 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. Although Monday's case specifically addresses Nationstar's actions following the Great Recession, the outcome can affect today's homeowners, says Kwame Raoul, attorney general of Illinois. 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"). A class action allows representative parties to prosecute not only their own claims, but also the claims of other individuals which present similar issues. A fact is "material" if it "might affect the outcome of the suit under the governing law." HARRISBURG, Pa. (WHTM) Attorney General Josh Shapiro announced Monday, that his office obtained an $86.3 million settlement from Nationstar Mortgage, the country's fourth-largest mortgage . 702, 703. Nationstar's reliance on Accrued Financial Services v. Prime Retail, Inc., 298 F.3d 291 (4th Cir. 2015) Court Description: MEMORANDUM OPINION. 2d 1360, 1366 (S.D. Baez, 709 F. App'x at 983. Before the error was discovered, Mr. Robinson appealed this offer as insufficient on April 10, 2014. Law 13-316(c), the Court will grant class certification as to those class members and claims. Courts have held that a person who did not sign the promissory note is not a "borrower" for the purposes of RESPA because that individual has not "assumed the loan." 1024.41. Cf. 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. Co., 595 F.3d 164, 179-80 (4th Cir. The Robinsons' expert had written the scripts using data dictionaries and without accessing the databases. At this stage of the proceedings, the Court must rely on facts in the record, and not assertions in the pleadings. Mot. It will be otherwise denied. In February 2014, after their income had further decreased, the Robinsons ceased making payments on the mortgage loan. Id. After March 2014, Mrs. Robinson was primarily responsible for communicating with Nationstar and PaCE. 2d 873, 883 (D. Md. . 1024.41(c)(1)(i) and (d), because the Robinsons made no showing that the Rule 23 requirements were met. 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. The economic challenges and burdens that homeowners currently face are similar to the ones experienced following the Great Recession. 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). After this missed payment, Nationstar assessed a late fee. Summ. Id. Broussard v. Meineke Discount Muffler Shops, Inc., 155 F.3d 331, 344 (4th Cir. 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. 1998). : 1-855-914-4649 (Toll-Free) / 1-855-535-1813 (TTY) Nationstar, d/b/a Mr. Cooper, Consent Order. Settlement Website www.AutomatedPhoneCallSettlement.com Claims Administrator Wright et al. 2601-2617 (2012), specifically RESPA's implementing regulations known as "Regulation X," 12 C.F.R. See 12 C.F.R. The public policy interest at issue was one against "stirring up litigation or promoting litigating for the benefit of the promoter rather than for the benefit of the litigant or the public," an interest not implicated in the same manner by the fee arrangement with the particular expert witness in this case. In support of these claims, Mr. Robinson testified in his deposition that the $141,000 in interest represents the amount that the Robinsons have been overcharged over the life of the loan. Nelson, 2017 WL 1167230, at *3 (collecting cases). PDF SETTLEMENT AGREEMENT Nationstar Mortgage LLC ("Nationstar"). See Keen, 2018 WL 4111938, at *5-6. EQT Prod. As of November 22, about 2.8 million homeowners were in a forbearance plan, according to the latest research from the Mortgage Bankers Association. (kw2s, Deputy Clerk) Download PDF Accordingly, the Motion is denied as to such claims. Plaintiffs Demetrius and Tamara Robinson (the "Robinsons") have resided in a home in Damascus, Maryland that has been subject to a mortgage loan. 1024.41(i). 1024.1, prescribe additional duties and responsibilities of mortgage servicers under RESPA. "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. Oliver is the Chief Executive Officer of Hilltop Advisors LLC, a financial services consulting, compliance audit, and accounting advisory firm, and has extensive experience conducting compliance reviews for mortgage servicers, including for compliance with loss mitigation procedures. Universal Athletic Sales Co. v. Am. Fed. Gariety v. Grant Thornton, LLP, 368 F.3d 356, 366 (4th Cir. ROBINSON v. NATIONSTAR MO | Civil Action No. TDC - Leagle Rules 19-303.4(b) (2018). Instead, he analyzed certain data fields that were returned by the scripts written by a different expert. Courts have wide discretion to certify a class based on their familiarity with the issues and potential difficulties arising in class action litigation. Bouchat v. Balt. Joint Record ("MCC JR") 0907. Law 13-101 to 13-411 (West 2015). 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." 12 C.F.R. Ins. In approving such a modification, Nationstar made a mistake: the underwriter working on the Robinsons' loan had erroneously double-counted their income. This is not the first time Nationstar has been the subject of federal and state investigations. at 983. 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." Although the Robinsons contend that they would have pursued other loss mitigation options in the absence of the RESPA violations, they have not identified any such options in a way that would permit a calculation of damages associated with any lost opportunity. Reg. Gym, Recreational & Athletic Equip. . 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. 12) is GRANTED with respect to Count V and Count III against Nationstar; it is DENIED with respect to Counts I, II, and VI, and Count III against NSM. 2013). Finally, the Court finds that Mr. Robinson will adequately represent the absent class members. 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. 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." 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. 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. The Robinsons assert, and Nationstar does not argue otherwise, that litigation regarding Regulation X is not proceeding against Nationstar in another forum. 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. 2007)), aff'd sub nom. v. Nationstar Mortgage LLC Nationstar Call Settlement Administrator PO Box 3560 Code Ann., Com. Tagatz, 861 F.2d at 1042; cf. at *2. However, if the costs are shown to have been incurred in response to the RESPA violation, the Court finds that they would be actual damages within the meaning of 12 U.S.C. Bouchat, 346 F.3d at 522. "We want to hear from you," Raoul says. 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. If more documents are required, then the same Remedy Star substatus and LSAMS code that denote missing documents are entered. Nationstar Mortgage TCPA Class Action Settlement The cases cited by the Robinsons do not alter the Court's conclusion. 89, 90, ECF No. Id. The servicer "is liable for any economic damages caused by the violation." More importantly, while a determination of an individual violation would not require extensive analysis, specific proof of a pattern or practice of RESPA violations in any individual case would be a substantial undertaking, likely requiring the same type of complex analysis proposed here: a sampling of Nationstar files, compilation of all relevant data for such files, expert analysis to identify violations, and an assessment whether the identified violations are sufficient to establish a pattern or practice of violations. 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. 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. P. 23(b)(3). 1024.41(c)(1)(i)-(ii), (g). 2605(f). According to Oliver, if he used incorrect data, that was a result of the limited data fields and definitions provided to him. 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. See Md. A conflict of interest will not defeat the adequacy requirement when "all class members share common objectives[,] the same factual and legal positions, and . Code Ann., Com. Furthermore, the Robinsons have made a sufficient showing that a central computerized analysis of Nationstar data would substantially, if not completely, resolve questions of whether RESPA violations occurred. The fact that Oliver's methodology has not been subjected to peer review and that he has not published any articles about it does not invalidate it. When Nationstar received the application, it prevented late fees from being assessed and put a hold on any foreclosure proceedings. The Robinsons and Nationstar then engaged in a series of tortured exchanges over the next several months. Under subsections (f) and (g), a loan servicer is not permitted to begin foreclosure proceedings or move for foreclosure judgment if "a borrower submits a complete loss mitigation application" except in certain circumstances. 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 settlement will benefit a Class of consumers who purchased a 600-or 900-watt Nutribullet blender in the US between June 1, 2017 and March 15, 2022. MCC JR 318, 530-531. 2605(f)(2) is not fatal to the predominance inquiry. Nationstar Id. 13-316(e)(1). The Robinsons also claim as damages interest overcharges of approximately $141,000. Va., Inc., 543 F.2d 1075, 1080 (4th Cir. In Baez v. Specialized Loan Servicing, LLC, 709 F. App'x 979 (11th Cir. Filing fee paid $ 402, Receipt number AOHNDC-10680087. 2. MCC JR 530. Nationstar also does not argue that the class is not numerous, as there approximately 33,855 members who submitted loss mitigation applications from January 10, 2014 to March 30, 2014. All Rights Reserved. "); see also 1 William Rubenstein et al., Newberg on Class Actions 2:3 (5th ed. 1024.41(a). Several states also fined Nationstar in 2018 over failing to have proper procedures in place and "unfair and deceptive" mortgage modification policies. Current Outline Item. Mr. Robinson's counsel is experienced in complex civil litigation and class action litigation. Sep. 9, 2019). 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." 218. The Robinsons own a business called Green Earth Services, which provides waste and recycling services to clients. Law 13-316(c). If a borrower is experiencing issues or not getting the help needed, contact your state attorneys general. The Robinsons assert that they have suffered damages in the lost opportunity to have their mortgage loan modified and to pursue other loss mitigation options; in the fees, late fees, and interest that Nationstar has assessed since they became delinquent on their loan; in the lost "time and effort" which they expended in "pursuing the loss mitigation process with Nationstar" rather than trying to improve their business; and in administrative costs, including "postage, travel expenses, photocopying, scanning, and facsimile expenses." Corp., 546 F.2d 530, 538-39 (3d Cir. 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.
Jb Bickerstaff Salary,
Dave's Killer Bread Glyphosate,
Purdue Basketball Injury Report,
Articles R
