Conroy v. Wells Fargo Bank, N.A.

A loan servicer owes a borrower no duty of care in handling his home loan modification application; also, unless the borrower documents a change in financial circumstances, dual tracking prohibitions do not apply to second/subsequent loan modification requests, even if the lender accepts, processes, and reviews the later loan applications.  This decision holds that a…

Crossroads Investors, L.P. v. Federal National Mortgage Assn.

Lender’s alleged failure to (1) provide reinstatement amounts in response to a defaulted borrower’s request or (2) respond to plaintiff’s claimed tender of arrearages under the deed of trust, were protected activity under the Anti-SLAPP statute, but only because they occurred in the context of the borrower’s bankruptcy proceeding.  In this case, the Court of…

Berman v. HSBC Bank USA, N.A.

A loan servicer violates Civil Code section 2923.6 by sending the borrower a loan modification denial letter erroneously stating that the borrower has only 15 days to appeal the denial.  Civil Code 2923.6 proscribes dual tracking—proceeding with foreclosure while a complete loan modification application is under review.  The section also requires a loan servicer to…

Nautilus, Inc. v. Yang

A creditor seeking to void a transfer under the Uniform Fraudulent Transfer Act loses if the transferee proves that it gave reasonably equivalent value for the transfer and lacked fraudulent intent and actual, not constructive, knowledge of the transferor’s fraudulent intent.  Under the Uniform Fraudulent Transfer Act, a conveyance made without receipt of reasonably equivalent…

Mastan v. Salamon (In re Salamon)

If a junior lien securing a non-recourse debt is wiped out by a senior creditor’s foreclosure sale before the debtor files a Chapter 11 bankruptcy petition, the sold-out junior lienholder is not entitled to a recourse claim against the Chapter 11 bankruptcy estate.  Under 11 USC 1114(b), a creditor that holds a nonrecourse debt secured…

Dowers v. Nationstar Mortgage LLC

Borrowers’ Fair Debt Collection Practices Act claims arising from non-judicial foreclosure actions were properly dismissed, except for claim under 15 USC § 1692f(6) for threatening foreclosure when no right to foreclose existed.  Following Ho v. ReconTrust Co. (9th Cir. 2016) 840 F.3d 618, this decision holds that a borrower failed to state FDCPA claims for…

Oskoui v. J.P.Morgan Chase Bank, N.A.

A home loan borrower could survive summary judgment on her claims for breach of contract and violation of the unfair competition law based on deceptive processing and denial of the borrower’s loan modification applications, since servicer should have known from the beginning that borrower’s loan exceeded eligibility guidelines yet reviewed her three times anyway.  A…

Kalnoki v. First American Trustee Servicing Solutions, LLC

Home loan borrower failed to allege viable claims for fraud, violation of the UCL or Rosenthal Act, or wrongful foreclosure based on alleged late transfer of loan to a securitized trust or flaws in the nonjudicial foreclosure process.  Following Fontenot v. Wells Fargo Bank, N.A. (2011) 198 Cal.App.4th 256, the same court that decided Herrera…

Gillies v. JP Morgan Chase Bank, N.A.

The dismissal of a borrower’s fourth foreclosure delay lawsuit is affirmed based on res judicata and a lack of merit in the borrower’s securitization arguments.  In a short, tartly worded opinion, the court affirms dismissal of a borrower/attorney’s fourth lawsuit trying to stall foreclosure of his defaulted home loan.  It holds plaintiff had no viable…

Mendoza v. JPMorgan Chase Bank, N.A.

A home loan borrower lacks standing to challenge a post-closing transfer of his loan into a securitized trust.  Like Saterbak v. JP Morgan Chase Bank, N.A., 245 Cal. App. 4th 808  (2016)  and Yhudai v. Impac Funding Corp., 1 Cal. App. 5th 1252 (2016), this decision holds that a borrower lacks standing to challenge a…

Ho v. ReconTrust Co.

Enforcement of a security interest is not collection of a debt under the Fair Debt Collection Practices Act, so a deed of trust trustee does not act as a debt collector, subject to that Act, in taking steps to nonjudicially foreclose the deed of trust.  A deed of trust trustee is not a “debt collector”…

Sese v. Wells Fargo Bank, N.A.

An order denying an interim award of attorney’s fees under the Homeowner’s Bill of Rights after the borrower/plaintiff was successful in obtaining issuance of a preliminary injunction to prevent foreclosure, is interlocutory and therefore non-appealable.  An order denying an interim award of attorney fees under Civ. Code 2924.12(i) after the borrower/plaintiff was successful in obtaining…