robinson v nationstar settlement

The Robinsons and Nationstar then engaged in a series of tortured exchanges over the next several months. He asserted that the amount of fees was calculated based on Nationstar's statements, but he could not specify the nature of the fees. 1024.41(b)(1), which requires reasonable diligence in obtaining documents and information to complete a loss mitigation application; and Md. 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. P. 23(a)(2); Wal-Mart Stores, Inc. v. Dukes, 564 U.S. 338, 350 (2011). 17-0982, 2018 WL 4111938, at *5-6 (M.D. Since the MCPA and Regulation X allow recovery only of "economic damages," Md. 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 fact that each borrower must individually show damages under 12 U.S.C. 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. Code Ann., Com. Although she has worked as a bookkeeper for various companies, she was not employed between March and September 2014. See Baby Neal for and by Kanter v. Casey, 43 F.3d 48, 56-57 (3d Cir. Certification will also be denied as to the claim under 12 C.F.R. Many impacted consumers have already received refunds and more will be contacted by the settlement administrator in the coming weeks. . Some courts have held that administrative costs that predate the alleged RESPA violation cannot constitute "actual damages." Mar. 222. Joint Record ("MCC JR") 0907. After this missed payment, Nationstar assessed a late fee. 1024.41(i). Marais v. Chase Home Fin., LLC, 24 F. Supp. Before the error was discovered, Mr. Robinson appealed this offer as insufficient on April 10, 2014. 2012). During this time and up until September 25, 2017, Nationstar had not begun any foreclosure proceedings on the Robinsons' home. 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. Nationstar to Pay $110 Million to Settle Borrower Claims at *2. 1024.41(b)(1), (b)(2)(i)(B), and (c)(1)(ii) and Md. For the requirements that hinge on the timing of a communication or response, Oliver's methodology consists of using Nationstar's data from the LSAMS and FileNet software applications relating to a sample of 400 loans to identify the dates when certain events occurredsuch as the filing of a loan modification application, when a loan modification application became complete, and the sending of an acknowledgment or decision letter to a borrowerand then counting the days between the dates to assess whether a RESPA timing requirement was satisfied. P. 56(a); Celotex Corp. v. Catrett, 477 U.S. 317, 322 (1986). Lembach v. Bierman, 528 F. App'x 297 (4th Cir. 2005))). The Nationstar Mortgage Unwanted Phone Calls Class Action Lawsuit is Wright, et al. Proof of these claims requires a showing of the dates that an application was received, an acknowledgment letter was sent, an application became complete, Nationstar sent a decision letter to the borrower, and a foreclosure sale is scheduled. Make your practice more effective and efficient with Casetexts legal research suite. 15-3960, 2017 WL 623465, at *8 (D. Md. The comments to that rule state that the "common law rule in most jurisdictions is . Based on his experience and review of deposition transcripts of Nationstar employees, Oliver asserts that Nationstar has computerized data from which RESPA violations may be identified, not least because Nationstar must be able to demonstrate its compliance with RESPA to regulators. Fed. Accordingly, a loan servicer must comply with Regulation X as to the first loss mitigation application submitted after the effective date. J. 2002) (affirming without addressing the propriety of the striking of the expert testimony). 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. Specifically, if a loss mitigation application is received "45 days or more before a foreclosure sale," the loan servicer must provide a notice to the borrower "in writing within 5 days" of receiving it in which the servicer acknowledges receipt of the application and states whether the "application is either complete or incomplete." Marchese v. JPMorgan Chase Bank, N.A., 917 F. Supp. 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. Indeed, Mr. Robinson testified that Mrs. Robinson did not sign the Note because she did not purchase the property with him. . Id. 89, 90, ECF No. When considering whether expert testimony is reliable or should be excluded, the court considers the following factors: "When an expert's report or testimony is 'critical to class certification,'" the district court "must make a conclusive ruling on any challenge to that expert's qualifications or submissions before it may rule on a motion for class certification." 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." Id 1024.41(c)(1). Code Ann., Com. Class Action Claims Nationstar Mortgage Unlawfully Failed to Pay 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. More importantly, while a determination of an individual violation would not require extensive analysis, specific proof of a pattern or practice of RESPA violations in any individual case would be a substantial undertaking, likely requiring the same type of complex analysis proposed here: a sampling of Nationstar files, compilation of all relevant data for such files, expert analysis to identify violations, and an assessment whether the identified violations are sufficient to establish a pattern or practice of violations. Subsequent to the Court's approval, one of the objectors to the settlement filed an appeal. Oliver is the Chief Executive Officer of Hilltop Advisors LLC, a financial services consulting, compliance audit, and accounting advisory firm, and has extensive experience conducting compliance reviews for mortgage servicers, including for compliance with loss mitigation procedures. Nationstar has no process for standardizing file names. 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." All but $28.6 million of its. 1998). 1024.41, a regulation of RESPA that outlines loss mitigation procedures. 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. 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. Instead, the Robinsons assert that Nationstar has not affirmatively proven that it conducted such reviews. Order at 2, ECF No. As to the third denial on November 7, 2013, Nationstar informed the Robinsons that the loan modification application was denied because the mortgage loan was not in default. MCC JR 318, 530-531. Robinson v. Nationstar Mortgage, LLC - Justia Dockets & Filings 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. Fed. . Id. Courts have wide discretion to certify a class based on their familiarity with the issues and potential difficulties arising in class action litigation. Whether an application is complete depends on the requirements of the investor who holds the loan. at 358. . Md. Specifically, the application itself would have to be reviewed to determine when it was stamped as received by Nationstar. Law 13-316(c), which requires a response to a loan modification application within 15 days. application to Nationstar after January 10, 2014, and through the date of the Court's . 1024.41(f), (g), and (h), and Mr. Robinson's MCPA claim under sections 13-301 and 13-303. 2601-2617 (2012), specifically RESPA's implementing regulations known as "Regulation X," 12 C.F.R. The first of these prerequisites is that the class must exist and be "readily identifiable" or "ascertainable" by the court through "objective criteria." Notably, Oliver's analysis did not consider foreclosure information because the data produced did not include dates of foreclosure sales. In response, on May 30, 2014, Mr. Robinson sent Nationstar the exact same application that he had submitted on March 7, 2014. Class Cert. 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. Messner v. Northshore Univ. 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. 125. 1024.41(c)(1)(i). Fed. The Fourth Circuit has stated that 74 members is "well within the range appropriate for class certification," Brady v. Thurston Motor Lines, 726 F.2d 136, 145 (4th Cir. Mot. R. Civ. On May 5, 2014, Nationstar asked the Robinsons for additional information to evaluate the appeal, including documents to verify their income. Before relating the facts relevant to the Motion for Class Certification, the Court will highlight the relevant procedural history affecting the record before the Court. Id. Nationstar asserts that Oliver's testimony should be stricken because this fee arrangement includes an unethical contingency fee. McAdams v. Nationstar Mortg. 2006). See 12 C.F.R. In its Motion to Strike, Nationstar moves to strike the report of the Robinsons' expert witness, Geoffrey Oliver, on the grounds that (1) Oliver was hired pursuant to an ethically improper contingency fee agreement; and (2) his testimony does not meet the requirements of Federal Rule of Evidence 702 and Daubert v. Merrell Dow Pharmaceuticals, Inc., 509 U.S. 579 (1993). If you were contacted on your cell phone by a company via an . Thorn v. Jefferson-Pilot Life Ins. Moreover, the conflict must not be "merely speculative or hypothetical." Gariety v. Grant Thornton, LLP, 368 F.3d 356, 366 (4th Cir. Once the documents are received, the Remedy Star substatus and LSAMS code are changed again to mark the application complete. When Nationstar received the application, it prevented late fees from being assessed and put a hold on any foreclosure proceedings. Where Accrued Financial addresses a different scenario with a different remedy, the Court does not find that it requires that the testimony of an expert witness paid on contingency fee basis must be excluded. Thus, Mrs. Robinson is not "obligated" to pay the amount due on the Note and therefore is not a "borrower" for purposes of RESPA. The company has already paid about $57.5 million in restitution to affected consumers, according to the CFPB. 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. When combined with the state settlements, Nationstar is on the hook to pay a total of $91 million overall: $85 million to harmed consumers and $6 million in civil penalties. A servicer that fails to comply with Regulation X is liable for "any actual damages to the borrower as a result of the failure" to comply. 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. In this photo illustration, the Nationstar Mortgage Holdings Inc. logo seen displayed on a smartphone. Ins. While Demetrius Robinson did appeal Nationstar's March 15, 2014 offer of an in-house modification, the requirements of subsection (h) were not triggered because the offer was not a denial of a loan modification application. See 12 C.F.R. 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. Robinson v. Nationstar Mortgage LLC (8:14-cv-03667) 2006). Order, ECF No. Nationstar Mortgage Robocall Class Action Settlement Checks Mailed 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. Sept. 2, 2015). 2. To view the settlement agreement and consent order, please visit the CSBS's website. 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"). Through both a declaration by a Nationstar Vice President of Default Servicing, Brandon Anderson, and an expert report by Stuart D. Gurrea, Nationstar contests Oliver's analysis and endeavors to establish that the only way to identify RESPA violations using Nationstar's data is through a file-by-file review. Id. 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. 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. 2015) Court Description: MEMORANDUM OPINION. A Division of NBC Universal. 15-05811, 2016 WL 3055901 (N.D. Cal. Portland, OR 97208-3560. These fees allegedly violated the Fair Debt Collection Practices Act and the Washington state Collection Agency Act. The denial letters stated that the loan's principal balance exceeded the limit under HAMP. Furthermore, Nationstar's argument that the Robinsons are not typical largely recycles the same arguments made in the Motion for Summary Judgment. While every class member will have to establish damages, that calculation will not be "particularly complex," as it will require identifying administrative costs and fees that would not have occurred but for the RESPA violation. 2016) (dicta). The Court will address the varying claims in turn. Baez, 709 F. App'x at 983. The Court may rely only on facts supported in the record, not simply assertions in the pleadings. On February 10, 2022, the Court of Appeals issued a decision affirming the Final Approval Order. Code Ann., Com. 2010). 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. 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. 3d 1011, 1015 (W.D. On February 16, 2017, the Court referred the case to United States Magistrate Judge Charles B. 1988) (distinguishing between a rule of professional conduct and admissibility of evidence); cf. See Stillmock v. Weis Markets, Inc., 385 F. App'x 267, 275 (4th Cir. MSJ JR 0284. 2605(f)(1). As a result, on January 29, 2018, the Magistrate Judge granted the Robinsons' Motion to Compel in which the Robinsons had sought to have the Court order Nationstar to accept and run scripts created by the Robinsons' expert to extract the relevant data from Nationstar's databases on the sample of loans from which they could test their methodology for identifying members of the proposed classes. It is the plaintiffs who bear the burden of proving their claims. Certification will not be granted as to the claims under 12 C.F.R. 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." Opp'n Mot. This abandoned high school was converted into a 31-unit apartment building, number of unlawful practices in handling mortgages following the Great Recession. 1024.41(f), (g), and (h), and Md. The Court does not find such a prohibition in the Maryland Attorneys' Rules of Professional Conduct. Robinson et al v. Nationstar Mortgage LLC, No. 1024.41(b)(2)(B), (c)(1)(ii); Md. McLean v. GMAC Mortg. If you are a member of the Settlement Class, you must submit a completed Claim Form to receive a payment. v. Nationstar Mortgage LLC, Case No. 1024.41(b)(2)(i)(B) and Md. 2d 873, 883 (D. Md. 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. Id. P. 23(a)(4); Ward v. Dixie Nat'l Life Ins. Amchem Prods. 2605(f)(2) is not fatal to the predominance inquiry. Neither the rule nor the comment, however, state whether Maryland is one such jurisdiction. 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. Nationstar Call Settlement Administrator. The use of a class action is primarily justified on the grounds of efficiency, because it advances judicial economy to resolve common issues affecting all class members in a single action. Finally, the named plaintiff must "fairly and adequately protect the interests of class" without a conflict of interest with the absent class members. Casetext, Inc. and Casetext are not a law firm and do not provide legal advice. See Fed. ("MCC") 2, ECF No. 2605(f)(1)(A)). v. Nationstar Mortgage LLC. While it is not necessary to identify every class member at the time of certification for a class to be "ascertainable," a class cannot be certified if its membership must be determined through "individualized fact-finding or mini-trials." 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. 1024.41(b)(2)(B). 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." If the initial application is complete, the substatus in Remedy Star is changed to refer the application to an underwriter for review, and an additional code is added in LSAMS. . 1 . 1024.41(c)(1)(i)-(ii), (g). Therefore, the Court will grant in part and deny in part the Motion for Class Certification. On July 17, 2014, Nationstar informed Mr. Robinson by letter that he did not qualify for a HAMP modification and that since the March 14 loan modification offer had not been accepted, it was withdrawn. 120. PDF Motion for Fees - Robinson v Nationstar - Home Hickerson, 882 F.3d at 480 (quoting Cooper, 259 F.3d at 199). Maryland's Commissioner of Financial Regulation Announces Settlement . Reg. That's one reason why the settlement, particularly the provisions requiring Nationstar to adhere to enhanced standards, is crucial. 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. Therefore, Nationstar was required to comply with section 1024.41 in processing it. v. W.R. Grace & Co., 6 F.3d 177, 188 (4th Cir. 10696, 10708, provides that "[a] servicer is only required to comply with the requirements of this section for a single complete loss mitigation application for a borrower's mortgage loan account." Plaintiffs "must present specific evidence to establish a causal link between the [servicer's] violation and their injuries." See Krakauer v. Dish Network, L.L.C., 925 F.3d 643, 658 (4th Cir. See Lierboe v. State Farm Mut. 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. 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. 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. As the Supreme Court noted in Kumho Tire Co. v. Carmichael, 526 U.S. 137 (1999), Daubert "made clear that its list of factors was meant to be helpful, not definitive," and it is not always the case that an expert witness's claim will have been subjected to peer review. 1024.41(d). Presently pending is Nationstar's Motion for Summary Judgment, Nationstar's Motion to Strike, and the Robinsons' Motion for Class Certification. at 151. Because all of the Rule 23(a) and (b)(3) requirements are met as to a class asserting violations of 12 C.F.R. State attorneys general are here for homeowners, Raoul adds. . 2003). Id. 1024.41(h)(1). 2d 754, 768-69 (D. Md. is generally unproblematic as the non-injured parties can just be sorted out at the remedies phase of the suit."). RESPA's implementing regulations, codified at 12 C.F.R. at 152. Throughout discovery, Nationstar repeatedly stated that it could not produce the data on loss mitigation or loan modification applications from its databases in the form requested by the Robinsons. . 1967). 1024.41(c)(1)(i). 2015). That claim will be subject to common proof, namely sampling and analysis of loan files along the lines suggested by Oliver. See Farber, 2017 WL 4347826 at 15; Billings, 170 F. Supp. To the extent that, as Nationstar claims, such a determination could not be fully accomplished through computerized analysis alone, the resources needed to resolve this question would be even greater, such that the importance of having it resolved in a common fashion for all claims would be heightened. Questions? Appellate Win Affirms $3 Million Settlement in Class Action against A code is also added to LSAMS to put a hold on foreclosure proceedings. Id. Co v. Adair, 764 F.3d 347, 359-60 (4th Cir. If the named plaintiff satisfies all of the Rule 23(a) requirements and the Rule 23(b)(3) requirements, then class certification is appropriate. Robinson v. Nationstar Mortg. LLC - Casetext 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. R. Civ. See, e.g., Linderman v. U.S. Bank Nat'l Ass'n, 887 F.3d 319, 321 (7th Cir. 3d 254, 274-75 (S.D.N.Y. The Robinsons' designated expert, Geoffrey Oliver, has offered a methodology for identifying class members and when their rights under RESPA and the MCPA have been violated. Since there is no genuine issue of material fact as to whether Nationstar violated subsection (h), summary judgment will be entered for Nationstar on that claim. If the named plaintiff satisfies each of these requirements under Rule 23(a), the Court must still find that the proposed class action fits into one of the categories of class action under Rule 23(b) in order to certify the class. All Rights Reserved. Subscribe to our free newsletter right now. Accordingly, Nationstar's Motion for Summary Judgment will be granted as to the MCPA claims under sections 13-301 and 13-303. 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.

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