12 U.S.C. "[A] trial court should consider the specific factors identified in Daubert where they are reasonable measures of the reliability of expert testimony." R. Evid. 2605(f). 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. TDC-14-3667 (D. Md. See Broussard, 155 F.3d at 344. 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. Corp., 546 F.2d 530, 538-39 (3d Cir. Back To Top. McLean v. GMAC Mortg. Class certification will be granted, with Demetrius Robinson as the named plaintiff, as to both the Nationwide Class and the Maryland Class for the claims under 12 C.F.R. The Federal Rules of Evidence do not prohibit these kinds of arrangements. Law 13-303(4)-(5), 13-408. 2018). Id. 1024.41(b)(1), (b)(2)(i)(B), and (c)(1)(ii) and Md. After this missed payment, Nationstar assessed a late fee. 10696, 10708, provides that "[a] servicer is only required to comply with the requirements of this section for a single complete loss mitigation application for a borrower's mortgage loan account." Call Us Today (202) 973-0900Your Call is Confidential. 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." Id. "[A]n evaluation of the merits to determine the strength of plaintiffs' case is not part of a Rule 23 analysis." 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. 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 . 1967). Moreover, Nationstar cites no authority for the proposition that a loss mitigation application would not be deemed "complete" for purposes of RESPA upon such a formal designation, and any rule that would deem such an application incomplete in the event that an underwriter subsequently decided to ask for additional material would be entirely unworkable. In the samples . SETTLEMENT AGREEMENT This Settlement Agreement is entered into between plaintiff Demetrius Robinson ("Plaintiff"), on behalf of himself and the Class Members (as defined below), and defendant Nationstar Mortgage LLC ("Nationstar"). at 300. 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. See D. Md. P. 56(a); Celotex Corp. v. Catrett, 477 U.S. 317, 322 (1986). Mot. 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. Code Ann., Com. See Tagatz, 861 F.2d at 1042. : 1-855-914-4649 (Toll-Free) / 1-855-535-1813 (TTY) Nationstar, d/b/a Mr. Cooper, Consent Order. Mot. . 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). Law 13-316(c). Sept. 2, 2015). 2015) (holding that Regulation X did not apply to loss mitigation applications submitted before the effective date). 1990) (citing Universal Athletic favorably for this proposition). ORDER Scheduling Settlement Conference for Wednesday, October 26, 2016 at 10:30 a.m. Sept. 9, 2019), there were multiple other claims at issue, for which Oliver's expert report seemed better suited to address. Signed by Judge James L Graham on 11/15/12. 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. Compl. See id. Moreover, although the court stated that an arrangement for providing expert testimony for a contingent fee would violate public policy, the court did not address the question of the admissibility of evidence at issue here. Id. 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. Id. 12 C.F.R. 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. Va., Inc., 543 F.2d 1075, 1080 (4th Cir. Reg. 13-316(e)(1). . Regulation X's effective date reflected "an intent not to apply it to conduct occurring prior to that date." Two homeowners have filed suit against Nationstar Mortgage LLC, which does business as Mr. Cooper, after the mortgage servicer allegedly made several unauthorized electronic fund transfers from their account. Presently pending is Nationstar's Motion for Summary Judgment, Nationstar's Motion to Strike, and the Robinsons' Motion for Class Certification. P. 23(b)(3). at *5. 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. 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. He asserts that damages to borrowers can be calculated based on entries in LSAMS and other data showing that fees were assessed, and that it would be possible to identify which fees would not have been assessed but for a RESPA violation. 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. The Court will address the varying claims in turn. Home Loans, No. Co, 445 F.3d 311, 318 (4th Cir. In a victory for borrowers, the Fourth Circuit issued an opinion on Robinson v. Nationstar Mortgage LLC, affirming approval of the settlement. 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. On August 26, 2014, Nationstar mailed another letter acknowledging Hickerson, 882 F.3d at 480 (quoting Cooper, 259 F.3d at 199). (kw2s, Deputy Clerk) Download PDF Specifically, the application itself would have to be reviewed to determine when it was stamped as received by Nationstar. 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. Although each class member must individually show that they suffered "actual damages" under 12 U.S.C. The fact that each borrower must individually show damages under 12 U.S.C. (ds) Download PDF Search this Case While class members would not be eligible for statutory damages unless actual damages are shown, see 12 U.S.C. Life Ins. A code is entered in Remedy Star when the letter is sent. 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. 19-303.4 cmt.3. Order at 2, ECF No. 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. 1024.1, prescribe additional duties and responsibilities of mortgage servicers under RESPA. TDC-14-3667, 2019 WL 4261696 (D. Md. If the named plaintiff satisfies each of these requirements under Rule 23(a), the Court must still find that the proposed class action fits into one of the categories of class action under Rule 23(b) in order to certify the class. In Washington v. Am. 1024.41(b)(1). %PDF-1.6 % Where the deed of trust explicitly states that Mrs. Robinson is not obligated on the loan, the Court finds that she is not a borrower under RESPA and cannot bring the claim against Nationstar under Regulation X. "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. Nationstar also asserts that the Robinsons have not identified evidence sufficient to support their MCPA claims. Settlement. 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. The Court will not revisit this determination. However, the burden is on the plaintiffs to show that other class members exist and that their joinder is impracticable; a court may not rely on mere speculation that numerosity has been satisfied. See id. 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. If you want a reissue with no changes to the check, simply email, phone, or write us at: : info@NationstarConsentOrder.com. 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. Signed by Judge Theodore D. Chuang on 8/18/2015. UNITED STATES DISTRICT COURT DISTRICT OF MARYLAND. Id. 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. 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. It is the plaintiffs who bear the burden of proving their claims. . Gunnells, 348 F.3d at 424 (quoting Amchem, 521 U.S. at 615). The plaintiff's claim "cannot be so different from the claims of absent class members that their claims will not be advanced by" proof of the plaintiff's own individual claim. Code Ann., Com. 2012). Although based on imperfect data, Oliver's expert report reveals that such analysis can substantially address whether Nationstar violated 12 C.F.R. 2002), is misplaced. The loan is then evaluated for loan modification options. 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. In addition, Nationstar asserts that not all loan modification applications referred to an underwriter are complete. At the time, Nationstar had not completed the process of updating its systems to conform to those requirements. 2004). 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. Id. MSJ JR 0284. The commonality requirement is also met. R. Civ. Filed by Janie Robinson. R. Civ. Moreover, whether Nationstar engaged in a "pattern or practice" of Regulation X violations, within the meaning of 12 U.S.C. See Baby Neal for and by Kanter v. Casey, 43 F.3d 48, 56-57 (3d Cir. From January 2014 to the present, the Robinsons have not pursued other loss mitigation options, such as a short sale. 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. Nationstar's reliance on Accrued Financial Services v. Prime Retail, Inc., 298 F.3d 291 (4th Cir. hbbd```b``63@$urD29 NIL5 "#>9$ 0 3 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. Nationstar further argues that the Robinsons cannot show that they suffered economic damages as a result of the violation of section 13-316. 2605(f)(1)(A)). They have claimed $141,000 in interest; $6,147.12 in fees assessed by Nationstar; $2,275 in consulting fees; $50.58 in administrative costs; and lost time and labor of approximately 120 hours; as well as punitive and statutory damages. Furthermore, according to Nationstar, to identify the content of a letter sent to a borrower, the letter itself must be viewed. Class litigation would also promote consistent results on the common question whether Nationstar engaged in a pattern or practice of violating Regulation X and would provide Nationstar with finality and closure on that issue. Motor Freight System, Inc. v. Rodriguez, 431 U.S. 395, 403 (1977))). hb```f&A G PX@$]55:q3bbf00dYaiDuVLt3C5X;:48:@A (400 @ H*brIe I1@ ]" $30yy"MXg3?Yar=`fB@EH32 R~ }9 Anderson, 477 U.S. at 248. StubHub, Apple, other class action settlement checks in the mail Old Navy, Nissan, Equifax, other class action settlement payments in the mail Postmates, 1-800 Contacts, other settlement checks on the way Since Mrs. Robinson may not bring a claim under Regulation X, she may not be a named class representative. 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." 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.
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