robinson v nationstar settlement

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. Law 13-316(c), which requires a response to a loan modification application within 15 days. 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. Id. Since the Court has already concluded that Nationstar is entitled to summary judgment on the Robinsons' claims under 12 C.F.R. In Robinson v., Under the RESPA, civil liability is limited to "borrowers": "[w]hoever fails to comply with any provision of, Full title:DEMETRIUS ROBINSON and TAMARA ROBINSON, Plaintiffs, v. NATIONSTAR MORTGAGE, Court:UNITED STATES DISTRICT COURT DISTRICT OF MARYLAND. This is not the first time Nationstar has been the subject of federal and state investigations. Id. See id. The fee arrangement will be considered as an issue potentially affecting the credibility, rather than the admissibility, of the expert testimony. 3d 254, 274-75 (S.D.N.Y. Filing fee paid $ 402, Receipt number AOHNDC-10680087. The Robinsons assert that they have paid a total of $6,147.12 in unspecified fees to Nationstar. Distribution of funds to Class Members, however, could not occur because a member of the Class filed an objection to the Settlement and a subsequent appeal to the U.S. Court of Appeals for the Fourth Circuit. Signed by Judge Theodore D. Chuang on 8/18/2015. Contact the Class Action Administrator at 1-855-917-3477 (Toll-Free). 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. Code Ann., Com. Before the error was discovered, Mr. Robinson appealed this offer as insufficient on April 10, 2014. See D. Md. See id. See id. See Farber, 2017 WL 4347826 at 15; Billings, 170 F. Supp. (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"). Ballard v. Blue Shield of S.W. If a class is ascertainable, it must then satisfy all four elements of Rule 23(a): numerosity, commonality, typicality, and adequacy. 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. Nationstar, the fourth-largest mortgage servicer in the U.S., is set to pay $91 million to settle claims brought by the Consumer Financial Protection Bureau and state attorneys general alleging that the company failed to honor mortgage forbearance agreements and unfairly foreclosed on homeowners. Nationstar will need to enhance its policies and processes around how it handles consumer complaints, performs escrow analyses and conducts audits, for example. For example, in EQT, the court concluded that a proposed class of all individuals who owned an interest in a gas estate was not ascertainable because the actual owners could be determined only through an individualized review of land records. 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. An "unfair or deceptive" trade practice includes a "false . See, e.g., Linderman v. U.S. Bank Nat'l Ass'n, 887 F.3d 319, 321 (7th Cir. From January 2012 to December 2016, the CFPB and 50 state attorneys general claim Nationstar, which is now doing business asMr. Cooper, engaged in a number of unlawful practices in handling mortgages following the Great Recession. The servicer "is liable for any economic damages caused by the violation." Plaintiffs "must present specific evidence to establish a causal link between the [servicer's] violation and their injuries." "); cf. Id. 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. Regulation X, which became effective on January 10, 2014, 78 Fed. 222. Furthermore, Oliver states that since Nationstar employees used templates to communicate with borrowers, he could determine whether there were violations of certain RESPA provisions based on entries showing that Nationstar employees used templates that did not comply with RESPA. Auto. The denial letters stated that the loan's principal balance exceeded the limit under HAMP. Id. 2605(f). TDC-14-3667, 2019 WL 4261696 (D. Md. Id. Any additional updates will be posted here. A class action allows representative parties to prosecute not only their own claims, but also the claims of other individuals which present similar issues. 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. 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. Nationstar also argues that Oliver's report should be stricken as unreliable under the Federal Rules of Evidence and Daubert. In Robinson v. Nationstar Mortgage LLC, No. 1024.41(a). The record is undisputed that as of September 25, 2017, Nationstar had neither started foreclosure proceedings nor moved for foreclosure judgment on the Robinsons' home. 702, 703. 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. (kw2s, Deputy Clerk) Download PDF Search this Case Google Scholar Google Books Legal Blogs Google Web Bing Web Google News Google News Archive Yahoo! 1024.41 Sept. 29, 2021). On November 21, 2014, the Robinsons filed suit against Nationstar on behalf of themselves and a class of similarly situated individuals nationwide. The Robinsons' Motion for Class Certification will be GRANTED IN PART and DENIED IN PART. Actual damages may also include "non-pecuniary damages, such as emotional distress and pain and suffering." 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. Marais v. Chase Home Fin., LLC, 24 F. Supp. See Wirtz, 886 F.3d at 719-20. But see Ayres v. Ocwen Loan Servicing, LLC, 129 F. Supp. He is joined by 49 other Attorneys General, the District of Columbia, and other state and federal agencies. 12 U.S.C. Ravens Football Club, Inc., 346 F.3d 514, 522 (4th Cir. Code Ann., Com. These letters are based on standard Nationstar templates, and the code reflects the type of letter sent. Rather than striking the testimony, the Court may need to consider permitting supplemental discovery to correct for the lack of relevant data not previously made available to Oliver. The CFPB estimates about 40,000 borrowers were harmed by Nationstar's allegedly unfair and deceptive practices, according to a statement released Monday. Accordingly, Nationstar's Motion for Summary Judgment will be granted as to the MCPA claims under sections 13-301 and 13-303. Mot. This assertion mischaracterizes the burden of proof in a civil case. See Md. Code Ann., Com. or misleading oral or written statement . Hickerson, 882 F.3d at 480 (quoting Cooper, 259 F.3d at 199). Certification will also be denied as to the claim under 12 C.F.R. HealthSystem, 669 F.3d 802, 812 (7th Cir. If the loan servicer denies a loan modification application where the complete application was received more than 90 days before a foreclosure sale, the servicer must allow the borrower to appeal and must respond to the appeal within 30 days of receiving it by stating in writing whether the appeal was granted and a loan modification will be offered. 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. That notice must be provided within 30 days of receiving the complete loss mitigation application. 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. These rights and optionsand the deadlines to exercise themare explained further on the Frequently Asked Questions page of this website and in the Notice. After this missed payment, Nationstar assessed a late fee. 2014))). 2010). Nationstar sent Mr. Robinson two letters denying his loan modification application on July 17, 2014 and September 9, 2014, but there is no evidence in the record that the Robinsons submitted an appeal to either of those letters. Id. . 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. That provision provides, in parallel, that a loan servicer which does not comply with Regulation X is liable "to the borrower." Claim Your Cash Every Week! Nationstar correctly notes that the Robinsons have not identified a false or misleading statement or representation by Nationstar in the record. 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. 12 U.S.C. 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." 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." The relevant rule prohibits an attorney from "offer[ing] an inducement to a witness that is prohibited by law." 1984), and has upheld the certification of a class with as few as 18 members, Cypress v. Newport News Gen. & Nonsectarian Hosp. 2013)). 2019) (noting that the purpose of certifying a class "is not to identify every class member at the time of certification, but to define a class in such a way as to ensure that there will be some administratively feasible [way] for the court to determine whether a particular individual is a member at some point" (internal citation omitted) (quoting EQT Production Co. v. Adair, 764 F.3d 347, 358 (4th Cir. 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. 2018); Renfroe v. Nationstar Mortg., LLC, 822 F.3d 1241, 1247 n.4 (11th Cir. "Since then, we have continued to invest in technology, people, and leadership to ensure that our compliance and risk management programs not only meet our regulators' expectations but also support sustainable growth and maintain our position as an industry leader.". While class members would not be eligible for statutory damages unless actual damages are shown, see 12 U.S.C. Mich. 2016), at least one district court has held that loan servicers need not comply with Regulation X if the borrower had previously submitted a loss mitigation application before the January 10, 2014 effective date, see Trionfo v. Bank of America, N.A., No. R. Civ. In Baez v. Specialized Loan Servicing, LLC, 709 F. App'x 979 (11th Cir. 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. While Mr. Robinson signed the promissory note ("the Note"), the deed of trust ("the Deed"), and the balloon payment rider for the 2007 loan, Tamara Robinson ("Mrs. Robinson") signed only the Deed and balloon payment rider and did not sign the Note. 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. 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. 19-303.4 cmt.3. See Lierboe v. State Farm Mut. 2015) (holding that Regulation X did not apply to loss mitigation applications submitted before the effective date). The Robinsons own a business called Green Earth Services, which provides waste and recycling services to clients. 2017), the United States Court of Appeals for the Eleventh Circuit held that postage costs incurred by the plaintiff to send the "initial request for information is not a cost to the borrower 'as a result of the failure' to comply with a RESPA obligation," because a violation has not occurred and will not "necessarily occur" at the time the plaintiff paid the postage. Some courts have held that administrative costs that predate the alleged RESPA violation cannot constitute "actual damages." 877-683-9363. THEODORE D. CHUANG United States District Judge. Universal Athletic Sales Co. v. Am. Nationstar filed a notice of settlement and a joint motion to proceed before a magistrate . Since Regulation X explicitly does not require a loan servicer to provide a loan modification, the Robinsons' claim that they suffered damages because they did not receive a loan modification is not cognizable under the statute. Since Mrs. Robinson may not bring a claim under Regulation X, she may not be a named class representative. "[A] trial court should consider the specific factors identified in Daubert where they are reasonable measures of the reliability of expert testimony." . Cal. Amchem Prods. Law 13-301 and 13-303, and that Mr. Robinson therefore may not assert such claims on behalf of the class, Mr. Robinson's remaining claims and defenses are typical of the class members. See supra parts I.B.1, I.B.3, I.C.1. A Scheduling Order was first entered on November 24, 2015, and the period for discovery was extended four times between November 2015 and January 2017. v. DEMETRIUS ROBINSON; TAMARA ROBINSON, Plaintiffs - Appellees, v. . Here, Mrs. Robinson signed the Deed but did not sign the Note. First, to the extent that there was a period of time during which Nationstar failed to implement procedures to comply with RESPA, the facts establishing such a gap would be highly relevant to a pattern or practice determination and would be common in every case. Nationstar's Motion for Summary Judgment will be granted as to Tamara Robinson. Thus, Mrs. Robinson is not "obligated" to pay the amount due on the Note and therefore is not a "borrower" for purposes of RESPA. Id. Law 13-301(1). United States v. Valona, 834 F.2d 1334, 1344 (7th Cir. Moreover, whether Nationstar engaged in a "pattern or practice" of Regulation X violations, within the meaning of 12 U.S.C. 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. Petitioner: NATIONSTAR MORTGAGE, LLC: Respondent: TAMARA ROBINSON and DEMETRIUS ROBINSON: Case Number: 19-379: Filed: September 24, 2019: Court: U.S. Court of Appeals . Id. EQT Prod. See MCC JR0529-31. Appellate Win Affirms $3 Million Settlement in Class Action against Nationstar Mortgage - Tycko & Zavareei LLP Contact Us We look forward to hearing from you. 3d 249, 266 (D. Md. 2003). J. 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. Sept. 9, 2019), there were multiple other claims at issue, for which Oliver's expert report seemed better suited to address. 2d 754, 768-69 (D. Md. Fed. See Robinson v. Nationstar Mortg. The Robinsons have not made any mortgage payments since January 2014 and have not been assessed any late fees since February 2014. 2605(f)(1)(B), a borrower cannot recover these additional damages "without first recovering actual damages." Similarly, since Mr. Robinson has not suffered injury under these provisions, he may not bring those claims on behalf of the class. Law 13-316(c). 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. An expert's testimony is "critical" where it is "important to an issue decisive for the motion for class certification." Aug. 19, 2015). Fed. Nationstar further argues that the Robinsons cannot show that they suffered economic damages as a result of the violation of section 13-316. When those scripts did not produce data that allowed the Robinsons to conduct the sampling, the Magistrate Judge ordered Nationstar on April 3, 2018 to run certain "structural scripts" on two of its four databases. See 12 C.F.R. In its complaint, filed in federal district court in the District of Columbia, the Bureau alleges that Nationstar engaged in unfair and deceptive acts and practices in violation of the Consumer Financial Protection Act of 2010, violated the Real Estate Settlement Procedures Act (RESPA), and violated the Homeowner's Protection Act of 1998 (HPA). Code Ann., Com. FCRA). Plaintiff and Class Representative Demetrius Robinson, along with Class Counsel Tycko & Zavareei LLP and The Bestor Law Firm, respectfully move this Court for an award of $1,300,000 in reasonable attorneys' fees and expenses, as well as a $5,000 service award for Mr. Robinson. Nationstar's claim that the above-described coding is not dispositive, because an underwriter could subsequently determine that more information was needed after all, is not persuasive. 2605(f)(2). If you are a member of the Settlement Class, you must submit a completed Claim Form to receive a payment. which has the capacity, tendency, or effect of deceiving or misleading consumers." Specifically, the loan servicer failed to honor borrowers' loan modification agreements. At the time, Nationstar had not completed the process of updating its systems to conform to those requirements. Under Count I, the Robinsons allege a violation of 12 C.F.R. v. W.R. Grace & Co., 6 F.3d 177, 188 (4th Cir. 1024.41(i). P. 23(b)(3). For a class action brought for violations of Regulation X, a servicer is liable for "actual damages to each of the borrowers in the class" and, upon a finding of a "pattern or practice" of noncompliance, statutory damages amounting to a maximum of $2,000 per class member up to a total of the lesser of $1 million or one percent of the servicer's net worth. . These fees allegedly violated the Fair Debt Collection Practices Act and the Washington state Collection Agency Act. 1998). Your Email Please enter your email. 15-05811, 2016 WL 3055901 (N.D. Cal. 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. Opp'n Mot. 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. Although the parties have not offered specific details on the nature and timing of those costs and fees, it is reasonable to infer that at least some portion of them were incurred after they submitted their March 7, 2014 loan modification application and after Nationstar had violated Regulation X. 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. 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. Law 13 . v. Nationstar Mortgage LLC. at *5. Ins. Id. Sept. 2, 2015). 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. Nelson, 2017 WL 1167230, at *3 (collecting cases). See Tyson Foods, 136 S. Ct. at 1046-47 (holding that representative sampling was a permissible method to prove whether time spent donning and doffing gear resulted in violations of the Fair Labor Standards Act).

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