If the Court approves the Settlement and it becomes final and effective, and you remain in the Settlement Class, you will receive a payment. Portland, OR 97208-3560. These rights and optionsand the deadlines to exercise themare explained further on the Frequently Asked Questions page of this website and in the Notice. A conflict of interest will not defeat the adequacy requirement when "all class members share common objectives[,] the same factual and legal positions, and . 12 U.S.C. Law 13-316(c), which requires a response to a loan modification application within 15 days. Subscribe to our free newsletter right now. P. 23(a)(4); Ward v. Dixie Nat'l Life Ins. (quoting East Tex. Code Ann., Com. 1987) (holding, in the context of an informant who is paid a contingent fee, that the fee should be treated "as a credibility factor"). ; 78 Fed. Robinson v. Nationstar Mortg. LLC - Casetext The Robinsons assert that they have paid a total of $6,147.12 in unspecified fees to Nationstar. 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. The economic challenges and burdens that homeowners currently face are similar to the ones experienced following the Great Recession. A Division of NBC Universal. 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. LLCNo. Id. Before the error was discovered, Mr. Robinson appealed this offer as insufficient on April 10, 2014. CFPB Director Kathleen Kraninger said in a statement. Fed. ORDER Scheduling Settlement Conference for Wednesday, October 26, 2016 at 10:30 a.m. Petitioner: NATIONSTAR MORTGAGE, LLC: Respondent: TAMARA ROBINSON and DEMETRIUS ROBINSON: Case Number: 19-379: Filed: September 24, 2019: Court: U.S. Court of Appeals . 2605(f)(1). James Robinson v. National Student Clearinghouse Toggle navigation Home Commonly Asked Questions Documents The Court approved the settlement at the July 7, 2020 Fairness Hearing. (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"). 15-3960, 2017 WL 623465, at *8 (D. Md. CFPB Takes Action Against Nationstar Mortgage for Flawed Mortgage Loan 2605(f)(1)(B), a borrower cannot recover these additional damages "without first recovering actual damages." Gunnells, 348 F.3d at 424 (quoting Amchem, 521 U.S. at 615). 877-683-9363. 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. That claim will be subject to common proof, namely sampling and analysis of loan files along the lines suggested by Oliver. Since Mr. Robinson has the same goal as the other class members of establishing that Nationstar violated Regulation X with respect to his loan, he will adequately protect their interests. Cal. Nationstar Mortgage LLC v. Demetrius Robinson 2014). Nationstar also asserts that the Robinsons have not identified evidence sufficient to support their MCPA claims. 1024.41(d). The court, however, did not explain how in the absence of any obligation to pay back to the Note, the plaintiff qualified as a "borrower" under the RESPA statute. In its Motion to Strike, Nationstar argues that Oliver's methodology has not been peer reviewed, has a high error rate because he used the wrong data fields to identify the dates of events, failed to consider the timing of foreclosure sales relative to the dates of the submission of loan modification applications, and did not propose a specific methodology for calculating damages. R. Civ. Law 13-303(4)-(5), 13-408. 1024.41(c)(1)(i)-(ii), (g). After they became delinquent on their loan, the Robinsons submitted another loan modification application to Nationstar on March 7, 2014. Eligible consumers will be contacted by Nationstar or the settlement administrator about refunds under the settlement. 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. 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. 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. But see Sutton v. CitiMortgage, Inc., 228 F. Supp. Id. Broussard v. Meineke Discount Muffler Shops, Inc., 155 F.3d 331, 344 (4th Cir. Ass'n, 375 F.2d 648, 653 (4th Cir. Nationstar ultimately became the servicer of the Robinsons' loan. For purposes of ascertainability, the requirements of 12 C.F.R. The Robinsons have not made any mortgage payments since January 2014 and have not been assessed any late fees since February 2014. But see Ayres v. Ocwen Loan Servicing, LLC, 129 F. Supp. Maryland's Commissioner of Financial Regulation Announces Settlement . 1024.41(b)(2)(B), (c)(1)(ii); Md. 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. R. Civ. The comments to that rule state that the "common law rule in most jurisdictions is . 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. 14-3667, 2015 WL 4994491, at *1-2 (D. Md. 1024.41(f), (g), and (h) because there is no evidence in the record that Nationstar violated those provisions. Particularly where a class may be certified even if individualized damages calculations would be necessary, the incomplete nature of the damages analysis does not provide a basis for striking Oliver's expert testimony. R. Civ. At least one court has found a similar expert report by Oliver to meet the Daubert standard. R. Evid. Signed by Judge Theodore D. Chuang on 8/18/2015. 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 Court may rely only on facts supported in the record, not simply assertions in the pleadings. 2018). Presently pending is Nationstar's Motion for Summary Judgment, Nationstar's Motion to Strike, and the Robinsons' Motion for Class Certification. "There are going to be a lot of homeowners who need a home loan modification or other assistance," Raoul says. Therefore, the Court will grant in part and deny in part the Motion for Class Certification. See, e.g., Ward v. Dixie Nat. MSJ JR 0284. In Frank, due to the state's community property laws, the mortgage was "a community debt," and after her husband died, the plaintiff "was therefore obligated to make the loan payments" because of her interest in the home. 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. Moreover, whether Nationstar engaged in a "pattern or practice" of Regulation X violations, within the meaning of 12 U.S.C. 1998). Nationstar's Motion to Strike will be DENIED. 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." Since the Court has already concluded that Nationstar is entitled to summary judgment on the Robinsons' claims under 12 C.F.R. At this juncture, this allegation plausibly supports a finding of willful noncompliance. Joint Record ("MSJ JR") 0102. Motor Freight System, Inc. v. Rodriguez, 431 U.S. 395, 403 (1977))). Law 13-316(c). 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. 1988) (distinguishing between a rule of professional conduct and admissibility of evidence); cf. 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. Law 13-301(1). 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." . Id. 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. 19-303.4 cmt.3. Mr. Robinson then submitted another loan modification application on August 25, 2014. Robinson et al v. Nationstar Mortgage LLC, No. 1024.41(i). Id. Docket for Robinson v. Nationstar Mortgage LLC, 8:14-cv-03667 Brought to you by the RECAP Initiative and Free Law Project, a non-profit dedicated to creating high quality open legal information. The company has already paid about $57.5 million in restitution to affected consumers, according to the CFPB. Rules 19-303.4(b) (2018). The first of these prerequisites is that the class must exist and be "readily identifiable" or "ascertainable" by the court through "objective criteria." 3d 1011, 1015 (W.D. 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. 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." 12 U.S.C. If you were contacted on your cell phone by a company via an . Although section 13-316 provides a remedy only for economic damages arising from a mortgage servicer's failure to respond to an inquiry, see Md. The fact that each borrower must individually show damages under 12 U.S.C. . See 12 C.F.R. 702, 703. If the application is denied, a notice to that effect is sent to the borrower. 2605(f). 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." Once the documents are received, the Remedy Star substatus and LSAMS code are changed again to mark the application complete. 2015) Court Description: MEMORANDUM OPINION. 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. 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. Every mortgage has a unique loan number that can be used to identify the borrower and the loan in each of the four databases. P. 23(b)(3). 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."). Id. 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. It follows that only borrowers may bring a claim that a loan servicer has violated Regulation X. Class Action Claims Nationstar Mortgage Unlawfully Failed to Pay The Borrower Payment Amount shall be used: (1) for payments to borrowers who submit claims and are in either or both of the Service Transfer and Property Preservation Populations set forth below; and (2) for reasonable costs and expenses of the Settlement Administrator, including taxes and fees for tax counsel. 1024.41(c)(1)(ii), which requires a servicer to respond to a loan modification application within 30 days of receipt of a complete loss mitigation application and provide notice of appeal rights; 12 C.F.R. 702. Robinson v. Nationstar Mortgage, LLC: Complaint with jury demand Nationstar to Pay $110 Million to Settle Borrower Claims While the Nationstar employee who conducts the initial processing of an application may refer it to an underwriter based on its facial completeness, the underwriter makes the final determination of whether the application is complete and is responsible for obtaining any additional required documentation. For example, since default fees are often paid by sources other than the borrower, such as in a short sale or refinancing, Nationstar challenges Oliver's assessment that fees identified through LSAMS can be deemed to constitute damages from RESPA violations, because the software does not reflect who paid the fee. 1024.41(b)(1). The Court does not find such a prohibition in the Maryland Attorneys' Rules of Professional Conduct. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 255 (1986). 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 Lierboe v. State Farm Mut. Id. 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. Nationstar Mortgage Robocall Class Action Settlement Checks Mailed Relevant factual and procedural background is set forth in the Court's prior Memorandum Opinion granting in part and denying in part Nationstar's partial Motion to Dismiss. Home [robinsonsettlement.com] He is joined by 49 other Attorneys General, the District of Columbia, and other state and federal agencies. THEODORE D. CHUANG United States District Judge. Nationstar's reliance on Accrued Financial Services v. Prime Retail, Inc., 298 F.3d 291 (4th Cir. An 85-year Harvard study found the No. 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. 2010). 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. 17-0982, 2018 WL 4111938, at *5-6 (M.D. Summ. . P. 23(a)(3); Deiter v. Microsoft Corp., 436 F.3d 461, 466-67 (4th Cir. 143. 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. In their Motion for Class Certification, the Robinsons seek certification of two classes. Aug. 19, 2015). This is not the first time Nationstar has been the subject of federal and state investigations. In addition, Nationstar asserts that not all loan modification applications referred to an underwriter are complete.

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