Where the deed of trust explicitly states that Mrs. Robinson is not obligated on the loan, the Court finds that she is not a borrower under RESPA and cannot bring the claim against Nationstar under Regulation X. Appellate Win Affirms $3 Million Settlement in Class Action against Nationstar Mortgage - Tycko & Zavareei LLP Contact Us We look forward to hearing from you. Since the Court already considered and ruled on these issues, see supra part I.B, it will not revisit those arguments here. 1024.41(b)(1). 2002), is misplaced. The Robinsons' expert had written the scripts using data dictionaries and without accessing the databases. Ohio 2014). If the settlements are approved by the D.C. district court, Nationstar will be required to immediately set aside about $15.6 million to pay borrowers it has not yet remediated. Finally, while Nationstar presented arguments for why the Robinsons have not shown damages as to most of the asserted categories, it did not advance any argument for why the interest damages claimed by the Robinsons were not attributable to Nationstar's Regulation X violations and thus is not entitled to summary judgment on that issue. Since the MCPA and Regulation X allow recovery only of "economic damages," Md. 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." As a result, the Robinsons' claim that Nationstar violated certain Regulation X procedures with respect to their loan modification application and those of the class members. 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. Specifically, the application itself would have to be reviewed to determine when it was stamped as received by Nationstar. If more documents are required, then the same Remedy Star substatus and LSAMS code that denote missing documents are entered. 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. Stewart v. Bierman, 859 F. Supp. The Robinsons' Motion for Class Certification will be GRANTED IN PART and DENIED IN PART. 218. v. Nationstar Mortgage LLC, Case No. 1024.41(d). LLCNo. However, the burden is on the plaintiffs to show that other class members exist and that their joinder is impracticable; a court may not rely on mere speculation that numerosity has been satisfied. 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." Nationstar also argues that Oliver's report should be stricken as unreliable under the Federal Rules of Evidence and Daubert. These rights and optionsand the deadlines to exercise themare explained further on the Frequently Asked Questions page of this website and in the Notice. The Court may rely only on facts supported in the record, not simply assertions in the pleadings. 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. 2016) (dicta). A code is entered in Remedy Star when the letter is sent. Code Ann., Com. Id. 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. Since the parties do not argue that the Nationwide Class and the Maryland Subclass differ for the purposes of the class certification analysis, the Court will analyze them together. Id. 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. Law 13-316(e), for the reasons stated above, see supra part I.B.4, the Robinsons have provided sufficient evidence to create a genuine issue of material fact whether they have suffered economic damages, in the form of administrative costs, fees, and interest. Once the documents are received, the Remedy Star substatus and LSAMS code are changed again to mark the application complete. J. Id. Nationstar claims that manual review of each file would take about 60 to 90 minutes per file. 10696, 10708 (Feb. 14, 2013) (codified at 12 C.F.R. Because Oliver's methodology is reliable within the meaning of Federal Rule of Civil Procedure 702 and Daubert, Nationstar's Motion to Strike will be denied. If the Court approves the Settlement and it becomes final and effective, and you remain in the Settlement Class, you will receive a payment. Sept. 9, 2019), there were multiple other claims at issue, for which Oliver's expert report seemed better suited to address. Code Ann., Com. 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. 1 . As of November 22, about 2.8 million homeowners were in a forbearance plan, according to the latest research from the Mortgage Bankers Association. Nationstar's failings resulted in "substantial consumer harm," CFPB Director Kathleen Kraninger said in a statement. 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. Code Ann., Com. To satisfy the numerosity requirement, the proposed class must be so numerous that "joinder of all members is impracticable." 1024.41(a). ; 78 Fed. Summ. Tenn. Aug. 28, 2018) (holding that a spouse who signed a deed of trust stating that a person who did not sign the promissory note was not obligated on the security instrument, but did not sign the promissory note, was not a borrower under RESPA). 1024.41(c) and (d) impose obligations on a loan servicer once it receives a "complete loss mitigation application" and once the completed application is denied. that it is improper to pay an expert witness a contingent fee." 1024.41(f), (g), and (h), and Md. 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." Regulation X, which became effective on January 10, 2014, 78 Fed. EQT Prod. 3d 1011, 1015 (W.D. Many impacted consumers have already received refunds and more will be contacted by the settlement administrator in the coming weeks. Ballard v. Blue Shield of S.W. This assertion mischaracterizes the burden of proof in a civil case. (quoting 7AA Charles Allan Wright et al., Federal Practice and Procedure 1778 (3d ed. That is not so here. Id. They do not seek damages in the Amended Complaint for emotional distress or include such a claim in their itemized list of damages submitted in discovery. As for typicality, the named plaintiff must be "typical" of the class, such that that the class representative's claim and defenses are "typical of the claims or defenses of the class" in that prosecution of the claim will "simultaneously tend to advance the interests of the absent class members." If the application is denied, a notice to that effect is sent to the borrower. Subsequent to the Court's approval, one of the objectors to the settlement filed an appeal. See Broussard, 155 F.3d at 344. The Class Action Administrator would then begin distribution of the settlement funds. See Tagatz, 861 F.2d at 1042. Some courts have held that administrative costs that predate the alleged RESPA violation cannot constitute "actual damages." See id. Id. 2605(f)(1). 2605(f). This abandoned high school was converted into a 31-unit apartment building, number of unlawful practices in handling mortgages following the Great Recession. 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. Actual damages may also include "non-pecuniary damages, such as emotional distress and pain and suffering." Congress enacted RESPA to protect consumers from "unnecessarily high settlement charges caused by certain abusive practices" in the real estate mortgage industry, and to ensure "that consumers throughout the Nation are provided with greater and more timely information on the nature and costs of the settlement process." . Although similar to Rule 23(a)'s commonality requirement, the test for predominance under Rule 23(b)(3) is "far more demanding" and "tests whether proposed classes are sufficiently cohesive to warrant adjudication by representation." 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." at *5. 1998). 2d 1360, 1366 (S.D. Fed. R. Evid. 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. Fed. After attempts to modify the loan failed, the Robinsons filed a class action Complaint against Defendant Nationstar Mortgage, LLC ("Nationstar") for alleged violations of the Real Estate Settlement Procedures Act ("RESPA"), 12 U.S.C. 1024.41(f), (g), and (h); and (4) there is no evidence of actual damages from any RESPA violation. 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. Mrs. Robinson was the primary point of contact for the Robinsons in interacting with Nationstar. 2010). In assessing this element, "numbers alone are not controlling" and a district court should consider "all of the circumstances of the case." 12 C.F.R. Parties, docket activity and news coverage of federal case Robinson et al v. Nationstar Mortgage LLC, case number 8:14-cv-03667, from Maryland Court. 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. "); see also 1 William Rubenstein et al., Newberg on Class Actions 2:3 (5th ed. 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. 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. If the application is complete "more than 37 days before a foreclosure sale," the servicer may not move for a foreclosure judgment or conduct a foreclosure sale, but instead must first "[e]valuate the borrower for all loss mitigation options available to the borrower," send to the borrower "a notice in writing stating the servicer's determination of which loss mitigation options, if any, it will offer," and include a statement of applicable appeal rights. Tagatz, 861 F.2d at 1042; cf. 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." Sept. 29, 2021). Questions? MCC JR 318, 530-531. 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. 2605(f). Finally, the named plaintiff must "fairly and adequately protect the interests of class" without a conflict of interest with the absent class members. 19-303.4 cmt.3. 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.