robinson v nationstar settlement

See Eisen v. Carlisle & Jacquelin, 417 U.S. 156, 178 (1974) ("In determining the propriety of a class action, the question is not whether the plaintiff or plaintiffs have stated a cause of action or will prevail on the merits, but rather whether the requirements of Rule 23 are met."). 2006). Therefore, Nationstar was required to comply with section 1024.41 in processing it. There is no reason to conclude that individual class members have any particular interest in individually controlling the litigation through separate actions, or that this Court is an undesirable forum to host this litigation, since Nationstar services loans in this district, is subject to jurisdiction here, and has presented no argument that Maryland is an inconvenient forum. The "Nationwide Class" is composed of "[a]ll persons in the United States that submitted a loss mitigation application to Nationstar after January 10, 2014, and through the date of the Court's certification order." 2007)), aff'd sub nom. Md. Reg. 125. If the application is denied, a notice to that effect is sent to the borrower. See MCC JR0529-31. Nationstar ultimately became the servicer of the Robinsons' loan. Joint Record ("MSJ JR") 0102. 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. That is not so here. 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. The first of these prerequisites is that the class must exist and be "readily identifiable" or "ascertainable" by the court through "objective criteria." Once the documents are received, the Remedy Star substatus and LSAMS code are changed again to mark the application complete. Code Ann., Com. Although each class member must individually show that they suffered "actual damages" under 12 U.S.C. Code Ann., Com. 2010). Nationstar to Pay $110 Million to Settle Borrower Claims At the time, Nationstar had not completed the process of updating its systems to conform to those requirements. Mot. Fed. Subscribe to our free newsletter right now. 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. 12 C.F.R. loan" did not have standing to bring a RESPA claim); Nelson v. Nationstar Mortg. See id. 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. Certification will not be granted as to the claims under 12 C.F.R. 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. Code Ann., Com. 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. 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. 2d at 1366. Casetext, Inc. and Casetext are not a law firm and do not provide legal advice. After March 2014, Mrs. Robinson was primarily responsible for communicating with Nationstar and PaCE. In 2007, Mr. Robinson obtained a loan with the principal amount of $755,000 to refinance the property. 1024.41(i). at 248-49. Id. 2012). Feb. 14, 2017) (holding that the plaintiff sufficiently pleaded damages under the MCPA where she alleged that the defendant's failures to respond "resulted in the continual assessment of accruing interest, fees and costs on the mortgage account," as well as "stress, physical sickness, headaches, sleep deprivation, worry, and pecuniary expenses"). 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. When Nationstar received the application, it prevented late fees from being assessed and put a hold on any foreclosure proceedings. Moreover, even if the fee arrangement violated the ethical rules for attorneys, "it does not follow that evidence obtained in violation of the rule is inadmissible." He is joined by 49 other Attorneys General, the District of Columbia, and other state and federal agencies. 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. In focusing on whether RESPA violations can be established through computerized analysis rather than individual file review, the parties lose track of the fact that because statutory damages are predicated on a finding that there has been a pattern or practice of RESPA violations, that issue common to almost any individual claim plays an outsized role in the predominance analysis. Life Ins. McAdams v. Nationstar Mortg. Furthermore, to the extent that the Robinsons' claim is that Nationstar falsely stated that it would evaluate the Robinsons for all available loss mitigation plans, the Robinsons point only to statements in letters that the Robinsons "may" be eligible for certain non-HAMP loan modification programs. 2605(f)(1)(B), a borrower cannot recover these additional damages "without first recovering actual damages." Law 13-316(c), which requires a response to a mortgage servicing complaint or inquiry within 15 days. R. Evid. Commonality requires that a class have "questions of law or fact common to the class" which are capable of classwide resolution, such that the determination of the truth or falsity of the common issue "will resolve an issue that is central to the validity of each one of the claims in one stroke." at 152. "We will be watching the mortgage interest industry to ensure they are treating homeowners fairly and fulfilling their obligations.". A class action allows representative parties to prosecute not only their own claims, but also the claims of other individuals which present similar issues. Nationstar to pay $91 million to settle claims of it harmed - CNBC 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." But where the broad methodology is sound, the lack of consideration of unproduced data cannot provide a basis to strike the expert witness's testimony. It follows that only borrowers may bring a claim that a loan servicer has violated Regulation X. "There are going to be a lot of homeowners who need a home loan modification or other assistance," Raoul says. UNITED STATES DISTRICT COURT DISTRICT OF MARYLAND. 19-303.4 cmt.3. The language of the regulation states not that a loan servicer must comply with Regulation X's requirements only for a borrower's first loss mitigation application, but that a loan servicer must "comply with the requirements" only "for a single complete loss mitigation application." On May 5, 2014, Nationstar asked the Robinsons for additional information to evaluate the appeal, including documents to verify their income. TDC-14-3667, 2019 WL 4261696 (D. Md. Under Federal Rule of Civil Procedure 56(a), the Court grants summary judgment if the moving party demonstrates that there is no genuine issue as to any material fact, and that the moving party is entitled to judgment as a matter of law. Robinson v. Nationstar Mortg. LLC - Casetext 2605(f)(1). 2605(f)(1)(A); see 12 C.F.R. The next day, Nationstar sent a letter noting that the August 25 application had been received and requesting additional information. But, Nationstar is correct that Owens-Benniefield may 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. 2013). A code is also added to LSAMS to put a hold on foreclosure proceedings. 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 argues that it should be granted summary judgment on all of the RESPA claims because Nationstar was required to comply with Regulation X only as to a borrower's first loss mitigation application, and the Robinsons' March 7, 2014 application was not their first loan modification application. See 12 C.F.R. The proposed settlement with the CFPB requires Nationstar to pay $73 million in restitution to affected borrowers, as well as a $1.5 million civil penalty to the agency. The one-time consulting fee was paid in August 2013 to PaCE, a forensic loan auditor, to advise the Robinsons on how to communicate with Nationstar and to handle their loan. 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. "We want to hear from you," Raoul says. PDF NATIONSTAR MORTGAGE LLC, D/B/A MR. COOPER, Defendant. Sep. 9, 2019). Co., 350 F.3d 1018, 1023 (9th Cir. Appellate Win Affirms $3 Million Settlement in Class Action against Nationstar Mortgage - Tycko & Zavareei LLP Contact Us We look forward to hearing from you. See D. Md. 1024.1, prescribe additional duties and responsibilities of mortgage servicers under RESPA. LLCNo. The MCPA prohibits the use of an "unfair or deceptive trade practice" in the "[t]he extension of consumer credit" or "[t]he collection of consumer debts" and provides for a private right of action. Accordingly, Nationstar's Motion for Summary Judgment will be granted as to the MCPA claims under sections 13-301 and 13-303. On July 16, 2018, the Court affirmed the Magistrate Judge's ruling and required Nationstar to produce all outstanding "records subject to discovery orders." Id. Mr. Robinson then submitted another loan modification application on August 25, 2014. 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. 1024.41(c)(1)(i) and (d), because the Robinsons made no showing that the Rule 23 requirements were met. 10696, 10708 (Feb. 14, 2013) (codified at 12 C.F.R. . At a minimum, the question of when a loss mitigation application is "complete" under RESPA within the workflow of Nationstarwhether at the time of the processor's designation of the file as complete or at a later stageis a significant unresolved question of law and fact that would be common to all RESPA claims against Nationstar. They have a home in Damascus, Maryland purchased by Demetrius Robinson ("Mr. Robinson"). You will receive no benefits from the Settlement, but will retain any rights you currently have to sue Nationstar about the same claims in this case. Through both a declaration by a Nationstar Vice President of Default Servicing, Brandon Anderson, and an expert report by Stuart D. Gurrea, Nationstar contests Oliver's analysis and endeavors to establish that the only way to identify RESPA violations using Nationstar's data is through a file-by-file review. 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." 16-0117, 2017 WL 4347826, at *15 (D. Md. The Final Approval Order, approving the Class-wide Settlement, was entered December 11, 2020. The fee arrangement will be considered as an issue potentially affecting the credibility, rather than the admissibility, of the expert testimony. 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. 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 to its customers mortgage servicing complaints. If a class is ascertainable, it must then satisfy all four elements of Rule 23(a): numerosity, commonality, typicality, and adequacy. 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. McLean I, 595 F. Supp. Ward, 595 F.3d at 180 (quoting Gunnells, 348 F.3d at 430). J. 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"). 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. 1024.41(i). Because such information is stored electronically and based on objective criteria, the members of the class will be ascertainable without significant administrative burden. See Robinson v. Nationstar Mortg. 2605(f). 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. 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. 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. Marais v. Chase Home Fin., LLC, 24 F. Supp. Sept. 9, 2019), there were multiple other claims at issue, for which Oliver's expert report seemed better suited to address. 2013) (holding that the plaintiff sufficiently pleaded actual injury or loss under the MCPA where he alleged that he suffered "bogus late fees," damage to his credit, and attorney's fees); see also Cole v. Fed'l Nat'l Mortg. 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. Id. 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. Throughout discovery, Nationstar repeatedly stated that it could not produce the data on loss mitigation or loan modification applications from its databases in the form requested by the Robinsons. See Stillmock v. Weis Markets, Inc., 385 F. App'x 267, 275 (4th Cir. cause[d] damages retroactively" and "transmogrifie[d]" the costs that predate the RESPA violation into damages. 1024.41. Since Mrs. Robinson may not bring a claim under Regulation X, she may not be a named class representative. PDF Motion for Fees - Robinson v Nationstar - Home 3d 249, 266 (D. Md. 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. That provision provides, in parallel, that a loan servicer which does not comply with Regulation X is liable "to the borrower." Tagatz v. Marquette Univ., 861 F.2d 1040, 1042 (7th Cir. 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. News Ask a Lawyer For the requirements that hinge on the timing of a communication or response, Oliver's methodology consists of using Nationstar's data from the LSAMS and FileNet software applications relating to a sample of 400 loans to identify the dates when certain events occurredsuch as the filing of a loan modification application, when a loan modification application became complete, and the sending of an acknowledgment or decision letter to a borrowerand then counting the days between the dates to assess whether a RESPA timing requirement was satisfied. 2d 1360, 1366 (S.D. . application to Nationstar after January 10, 2014, and through the date of the Court's . Md. Before relating the facts relevant to the Motion for Class Certification, the Court will highlight the relevant procedural history affecting the record before the Court. R. Civ. 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." . 1024.1 to 1024.41 and known as "Regulation X," see 12 C.F.R. Compl. at 983 (quoting 12 U.S.C. 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. Nationstar Call Settlement Administrator. 2016) ("[F]ortuitous non-injury to a subset of class members does not necessarily defeat certification of the entire class, particularly as the district court is well situated to winnow out those non-injured members at the damages phase of the litigation, or to refine the class definition. Before the error was discovered, Mr. Robinson appealed this offer as insufficient on April 10, 2014. Reg. 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. The CFPB estimates about 40,000 borrowers were harmed by Nationstar's allegedly unfair and deceptive practices, according to a statement released Monday. Id. 2005))). A conflict of interest will not defeat the adequacy requirement when "all class members share common objectives[,] the same factual and legal positions, and . 3d 712, 728 (S.D. 1990) (citing Universal Athletic favorably for this proposition). 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. See Broussard, 155 F.3d at 344. MSJ JR 0284. The Court may rely only on facts supported in the record, not simply assertions in the pleadings. These rights and optionsand the deadlines to exercise themare explained further on the Frequently Asked Questions page of this website and in the Notice. Since the Court already considered and ruled on these issues, see supra part I.B, it will not revisit those arguments here. 2605(f)(2). Portland, OR 97208-3560. Id. 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.").

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