robinson v nationstar settlement check

Class Action Rebates | June 2022 - Top Class Actions Nationstar's criticism that Oliver failed to use the correct data field to identify the date when a loss mitigation application was complete, and failed to consider the timing of application relative to the date of scheduled foreclosure sale, ring hollow because Nationstar provided to Oliver only limited data fields, which did not contain clear field names or definitions. Oliver's expert report focuses on the use of Nationstar's internal databases to determine whether Nationstar has systematically failed to comply with various requirements of Regulation X. The commonality requirement is also met. Current Outline Item. 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. 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. . See 12 C.F.R. 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. v. W.R. Grace & Co., 6 F.3d 177, 188 (4th Cir. If the application is denied, a notice to that effect is sent to the borrower. Id. See Broussard, 155 F.3d at 344. Nationstar's failings resulted in "substantial consumer harm," CFPB Director Kathleen Kraninger said in a statement. 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. Robinson v. Nationstar Mortgage, LLC Complaint with jury demand against Nationstar Mortgage, LLC. Id. 1024.41(c)(1)(i). "There are going to be a lot of homeowners who need a home loan modification or other assistance," Raoul says. 2605(f)(2) is not fatal to the predominance inquiry. Universal Athletic Sales Co. v. Am. Cf. Joint Record ("MCC JR") 0907. 702, 703. Nationstar to pay $91 million to settle claims of it harmed - CNBC Lembach v. Bierman, 528 F. App'x 297 (4th Cir. Every mortgage has a unique loan number that can be used to identify the borrower and the loan in each of the four databases. 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. 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. 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. TDC-14-3667 (D. Md. 2018). 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. P. 23(b)(3). Indeed, Nationstar does not seriously contest the commonality prong. R. Civ. Here, even though the Robinsons' March 7, 2014 loss mitigation application was not the Robinsons' first such application, it was their first submitted after the effective date of Regulation X. . From this methodology, Oliver concluded that Nationstar failed to inform borrowers of their appeal rights in 39 percent of the sampled loans and failed to exercise reasonable diligence by improperly requested the same documentation already provided in 18 percent of the loans. 2d 754, 768-69 (D. Md. 2d 452, 468 (D. Md. QSF Settlement Administrator. Ward, 595 F.3d at 180 (quoting Gunnells, 348 F.3d at 430). . Robinson v. Nationstar Mortg. LLC, Civil Action No. TDC-14-3667 P. 23(a)(4); Ward v. Dixie Nat'l Life Ins. Delaware Attorney General Kathleen Jennings said the settlements, Several states also fined Nationstar in 2018, Kwame Raoul, attorney general of Illinois, latest research from the Mortgage Bankers Association. Co, 445 F.3d 311, 318 (4th Cir. The next day, Nationstar sent a letter noting that the August 25 application had been received and requesting additional information. See MCC JR0529-31. Fed. 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. Years later, the parties filed a notice of settlement. 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. 2012). Back To Top. . Law 13-316(c), which requires a response to a mortgage servicing complaint or inquiry within 15 days. Whether an application is complete depends on the requirements of the investor who holds the loan. Prior to distributing Settlement Shares, the Settlement Administrator will attempt to update . at 359-60. White setting Settlement Conference for 10/3/2023 at 9:00 AM in Chambers, Room 327, US Courthouse, . Because of the manner in which class discovery was conducted, see supra part II.A, Oliver did not have access to all of Nationstar's data fields for the representative sample of loans. Id. 2004). 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. The Robinsons, however, have not identified any evidence that Nationstar did not intend to, and did not, conduct such evaluations. 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. After March 2014, Mrs. Robinson was primarily responsible for communicating with Nationstar and PaCE. 19-303.4 cmt.3. Actual damages may also include "non-pecuniary damages, such as emotional distress and pain and suffering." Robinson v. Nationstar Mortgage, LLC 1:2021cv00452 | US District Court for the Northern District of Ohio | Justia Log In Sign Up Find a Lawyer Ask a Lawyer Research the Law Law Schools Laws & Regs Newsletters Marketing Solutions Justia Dockets & Filings Sixth Circuit Ohio Northern District Robinson v. Nationstar Mortgage, LLC Robinson v. 12 C.F.R. PDF United States District Court District of Maryland The Motion will be otherwise denied. Therefore, Nationstar was required to comply with section 1024.41 in processing it. hbbd```b``63@$urD29 NIL5 "#>9$ 0 3 Robinson v. Nationstar Mortg. LLC - Casetext However, Nationstar did not comply with all requirements of Regulation X, which became effective on January 10, 2014. 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. Tagatz, 861 F.2d at 1042; cf. In order of priority, the parties proposed that the $3,000,000 settlement fund pay for administrative expenses up to $300,000, attorneys' fees, a class representative award, and . In contrast, the Court finds that there is a genuine issue of material fact whether the administrative costs and fees incurred by the Robinsons resulted from Nationstar's RESPA violations. Since Mrs. Robinson may not bring a claim under Regulation X, she may not be a named class representative. That's one reason why the settlement, particularly the provisions requiring Nationstar to adhere to enhanced standards, is crucial. Day to address discovery issues. 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. Make your practice more effective and efficient with Casetexts legal research suite. In support of this argument, Nationstar contends that the ethical rules for attorneys prohibit contingency fee arrangements with expert witnesses. Id. All but $28.6 million of its. 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. 8:2014cv03667 - Document 18 (D. Md. Factors "pertinent" to the predominance and superiority requirements include the "class members' interests in individually controlling" the litigation, whether litigation on the matter has already been begun by other class members, whether concentrating the litigation in one forum is desirable or undesirable, and the potential difficulties managing the class action presents. 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. The trial court granted the motion over the Robinsons' objection, noting in its order that Nationstar had now waived its claim for attorney feesthe claim that had been the sole impediment to a final judgment being entered after the trial court granted Nationstar's request to reopen the evidence after entry of the initial final judgment. 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"). 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. For the Regulation X provisions that require the servicer to communicate specific information to a borrower, Oliver's methodology involves reviewing a sample of loan files and identifying a specific communication to a borrower based on the file name. 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." or other representation . In contrast, Nationstar maintains that there is no way to reliably identify when a loss mitigation application is submitted or complete using codes and status change entries in its existing software, and that the only way to make those determinations is through a file-by-file review. A complete loss mitigation application is "an application in connection with which a servicer has received all the information that the servicer requires from a borrower in evaluating applications for the loss mitigation options available to the borrower." Bouchat v. Balt. 2006). 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. Nationstar argues that summary judgment should be entered on the Robinsons' MCPA claim under section 13-316 because the Robinsons have not shown that they submitted a complaint or inquiry that triggers a duty to respond. Robinson et al v. Nationstar Mortgage LLC, No. 8:2014cv03667 - Justia Law Law 13-316(c), the Court will grant class certification as to those class members and claims. Because of the need to protect the rights of absent plaintiffs to assert different claims and of defendants to assert facts and defenses specific to individual class members, courts must conduct a "rigorous analysis" of whether a proposed class action meets the requirements of Federal Rule of Civil Procedure 23 before certifying a class. 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 TCPA Class Action Lawsuit Settlement "We want to hear from you," Raoul says. at 152. 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. ("MCC") 2, ECF No. 1988) (distinguishing between a rule of professional conduct and admissibility of evidence); cf. 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 Nationstar's Motion for Summary Judgment will be granted as to Tamara Robinson. 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. 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"). The Complaint asserts two claims. Although this data was not provided to Oliver, there is no reason it could not be produced and used to make determinations on the timeliness of decisions on loss mitigation applications. A "borrower" may enforce the provisions of Regulation X pursuant to 12 U.S.C. Additional facts relevant to the pending motions are set forth below. Cent. 1024.41(f), (g), and (h) and Md. CFPB V. Nationstar - Frequently Asked Questions Home Loans, No. A separate Order shall issue. In the samples . 1024.41(f), (g), and (h), and Md. See 12 C.F.R. Co., 595 F.3d 164, 179 (4th Cir. 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. A borrower may enforce violations of these provisions through a private cause of action pursuant to 12 U.S.C. McLean II, 398 F. App'x at 471. 2. Id. Several states also fined Nationstar in 2018 over failing to have proper procedures in place and "unfair and deceptive" mortgage modification policies. 2601-2617 (2012), specifically RESPA's implementing regulations known as "Regulation X," 12 C.F.R. On November 21, 2014, the Robinsons filed suit against Nationstar on behalf of themselves and a class of similarly situated individuals nationwide. Courts have held that a person who did not sign the promissory note is not a "borrower" for the purposes of RESPA because that individual has not "assumed the loan." Because such information is stored electronically and based on objective criteria, the members of the class will be ascertainable without significant administrative burden. McLean I, 595 F. Supp. Id. In 2007, Mr. Robinson obtained a loan with the principal amount of $755,000 to refinance the property. Id. As of November 22, about 2.8 million homeowners were in a forbearance plan, according to the latest research from the Mortgage Bankers Association. It follows that only borrowers may bring a claim that a loan servicer has violated Regulation X. May 31, 2016), the plaintiff had signed the deed of trust but not the promissory note but was nevertheless deemed to have standing because she had owned the home with a right of survivorship with her deceased husband, who had signed the note. Finally, where Nationstar has offered no specific argument in its brief, beyond those addressed above, to refute Oliver's proffered analysis for identifying RESPA violations arising from the failure to notify borrowers of their appeal rights or the failure to exercise diligence in requesting documents based on repeated requests for the same documents, 12 C.F.R. Code Ann., Com. 1024.41 (2019), and the Maryland Consumer Protection Act ("MCPA"), Md. 12 U.S.C. Thus, based on his report and experience, Oliver concludes that Nationstar "failed to comply" with Regulation X and that it is possible to "identify violations" of Regulation X "using the methodologies" he described, without the necessity of a file-by-file review. 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. Fed. While class members would not be eligible for statutory damages unless actual damages are shown, see 12 U.S.C. Section 13-316(c) governs "mortgage servicing" and, among other requirements, provides that a "servicer shall designate a contact to whom mortgagors may direct complaints and inquiries" and that the "contact shall respond in writing to each written complaint or inquiry within 15 days if requested." Gunnells, 348 F.3d at 429 ("[T]he need for individualized proof of damages alone will not defeat class certification."). See id. R. Civ. 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. Individual damages would be below the cost of litigation even if each class member could establish that Nationstar's conduct consisted of a pattern or practice of violating Regulation X, because the statute limits such damages to $2,000 per borrower. The Robinsons allege that Nationstar has assessed $256 per month in late fees, interest, and other fees due to the delinquency, and that they have spent considerable time and effort pursuing the loss mitigation process, time which they otherwise would have devoted to their struggling small business. . 2605(f)(2); Wirtz, 886 F.3d at 719-20, that the individualized damages inquiry would need to precede the award of statutory damages based on a finding of a pattern-or-practice of RESPA violations is a distinction without a difference: whether individual damages are shown before or after the pattern-or-practice liability, the common issues of liability predominate over the individualized questions of damages. Aug. 19, 2015). Since the Rule 23(a) factors are satisfied, the Court will now consider whether the Rule 23(b)(3) predominance and superiority considerations are met. See Keen, 2018 WL 4111938, at *5-6. 2001) (striking expert testimony because of a contingent fee arrangement), aff'd, 43 F. App'x 547 (4th Cir. PDF Order Granting Motion for Final Approval - Robinson v Nationstar Rule 702 permits an expert to testify if the testimony "will help the trier of fact to understand the evidence or to determine a fact in issue," "is based on sufficient facts or data," and "is the product of reliable principles and methods," and if the expert has "reliably applied the principles and methods to the facts of the case." Mr. Robinson then submitted another loan modification application on August 25, 2014. The comments to that rule state that the "common law rule in most jurisdictions is . Code Ann., Com. The relevant rule prohibits an attorney from "offer[ing] an inducement to a witness that is prohibited by law." Notably, Oliver's analysis did not consider foreclosure information because the data produced did not include dates of foreclosure sales. Customers may call with questions about the settlement or the remediation checks at 1-855-914-4649 Monday-Friday, 9:00 a.m. to 9:00 p.m. except holidays. 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 Robinsons assert that they have suffered damages in the lost opportunity to have their mortgage loan modified and to pursue other loss mitigation options; in the fees, late fees, and interest that Nationstar has assessed since they became delinquent on their loan; in the lost "time and effort" which they expended in "pursuing the loss mitigation process with Nationstar" rather than trying to improve their business; and in administrative costs, including "postage, travel expenses, photocopying, scanning, and facsimile expenses." 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. 15-0925, 2015 WL 5165415, at *4 (D. Md. 2605(f). 3d 1011, 1015 (W.D. 2017) (holding that "incidental costs related to the sending of correspondence" to the servicer, including "postage and travel," are not actual damages under RESPA because such a rule "would transform virtually all unsatisfactory borrower inquiries into RESPA lawsuits"). See Baby Neal for and by Kanter v. Casey, 43 F.3d 48, 56-57 (3d Cir. In December 2020, Nationstar (d/b/a Mr. Cooper) reached a settlement with the CFPB, the State Attorneys General, and certain state mortgage regulators to resolve old regulatory matters. Here, Mrs. Robinson signed the Deed but did not sign the Note. Summary judgment will therefore be entered for Nationstar on the claims that Nationstar violated subsections (f) and (g). . 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. Finally, to the extent that Oliver did not execute his stated methodology for identifying damages, that limitation is again based in part on Nationstar's failure to make relevant data available to him. See Farber, 2017 WL 4347826 at 15; Billings, 170 F. Supp. 1024.41(h)(1). Id. Am. 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. Since the Court already considered and ruled on these issues, see supra part I.B, it will not revisit those arguments here. Law 13-316(c), which requires a response to a loan modification application within 15 days. Mar. Jennings' office said that these new standards are more robust than existing law and will be in place for three years starting in January 2021. Marchese v. JPMorgan Chase Bank, N.A., 917 F. Supp. 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. Corp., 546 F.2d 530, 538-39 (3d Cir. Class Action Settlement Checks Mailed - Top Class Actions 1024.41(i). 1024.41(b)(2)(i)(B), which requires that an acknowledgment letter be sent within five days of receipt of a loss mitigation application; 12 C.F.R. Id. (ds) Download PDF Search this Case Code Ann., Com. 16-0117, 2017 WL 4347826, at *15 (D. Md. See Robinson v. Nationstar Mortg. Some courts have held that administrative costs that predate the alleged RESPA violation cannot constitute "actual damages." Fla. 2009), aff'd, 398 F. App'x 467, 471 (11th Cir. . In February 2014, after their income had further decreased, the Robinsons ceased making payments on the mortgage loan. 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. 1024.41(a). These events will be represented by discrete data points in Nationstar's databases, such that these violations may be proved through that data. Instead, he analyzed certain data fields that were returned by the scripts written by a different expert. 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.

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