Tips for Loan Servicers on Defending Consumer Claims in Federal Court and Making Successful Article III Standing Challenges

Loan servicers and their counsel are often sued by consumers during contested mortgage foreclosure proceedings. The United States Supreme Court’s opinions in Spokeo, Inc. v. Robins[1] and TransUnion v. Ramirez[2] continue to be an important precedent in defending consumer claims. More ›

No RESPA Claim for Violation of Written Acknowledgement Requirement under Regulation X

Last summer, the Consumer Financial Protection Bureau (CFPB) published its final rule amending existing mortgage servicer rules in Regulation X of the Real Estate Settlement Procedures Act (RESPA). Recently, the Eleventh Circuit Court of Appeals had the opportunity to determine what kind of damages might arise from a violation of Regulation X’s written acknowledgment requirement.

The answer in this case was no concrete harm, with the Court affirming dismissal of a borrower's claim for violations of the 5 day written response acknowledgment provision of 12 C.F.R. § 1024.36(c). The borrower had sued his mortgage loan servicer for RESPA violations after his lawyer sent the servicer a Request for Information certified mail return receipt requested, and the servicer responded by returning the certified mail green card and by providing a substantive response 9 days later. More ›