robinson v nationstar settlementrobinson v nationstar settlement

1024.41(a). On November 21, 2014, the Robinsons filed suit against Nationstar on behalf of themselves and a class of similarly situated individuals nationwide. 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. 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." At least one court has found a similar expert report by Oliver to meet the Daubert standard. Nationstar further argues that the Robinsons cannot show that they suffered economic damages as a result of the violation of section 13-316. At this juncture, this allegation plausibly supports a finding of willful noncompliance. Although she has worked as a bookkeeper for various companies, she was not employed between March and September 2014. 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. More Information R. Civ. Nationstar's failings resulted in "substantial consumer harm," CFPB Director Kathleen Kraninger said in a statement. Robinson v. Nationstar Mortgage, LLC: Complaint with jury demand Rather than rendering the testimony inadmissible, the fee arrangement is relevant to the expert's credibility. Nationstar Mortgage TCPA Class Action Settlement 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. In approving such a modification, Nationstar made a mistake: the underwriter working on the Robinsons' loan had erroneously double-counted their income. The Court may rely only on facts supported in the record, not simply assertions in the pleadings. Ins. Id. 1 . Id. 1024.41(b)(2)(i)(B) and Md. Thus, a loan servicer could not have complied with Regulation X for a loss mitigation application submitted before January 10, 2014 because there was no regulation in effect with which to comply. 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. Id. v. Windsor, 521 U.S. 591, 623-24 (1997). 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. 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 et al v. Nationstar Mortgage LLC, No. Johnson, 374 F. App'x at 873; Keen v. Ocwen Loan Servicing, LLC, No. 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. Finally, the named plaintiff must "fairly and adequately protect the interests of class" without a conflict of interest with the absent class members. 1024.41(b)(1). After March 2014, Mrs. Robinson was primarily responsible for communicating with Nationstar and PaCE. A class action may be maintained under Rule 23(b)(3) if common questions of law or fact "predominate over any questions affecting only individual members" and a "class action is superior to other available methods for fairly and efficiently adjudicating the controversy." 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. The Nationwide Class and the Maryland Subclass are ascertainable and satisfy the Rule 23(a) factors. Several states also fined Nationstar in 2018 over failing to have proper procedures in place and "unfair and deceptive" mortgage modification policies. 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. 1024.41(f), (g), and (h), and Md. The Robinsons have not made any mortgage payments since January 2014 and have not been assessed any late fees since February 2014. From January 2014 to the present, the Robinsons have not pursued other loss mitigation options, such as a short sale. 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. ("MCC") 2, ECF No. Law 13-316(c) are triggered upon the submission of a loss mitigation application, while 12 C.F.R. McLean I, 595 F. Supp. Regulation X went into effect on January 10, 2014. 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. Similarly, since Mr. Robinson has not suffered injury under these provisions, he may not bring those claims on behalf of the class. This argument runs contrary to the plain language of Nationstar's own procedures, which describe the application as "complete" based on the processor's determination, leading to the referral of the complete package to an underwriter. 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. Nationstar's Motion will be denied as to this claim. Fed. . "); cf. Id. Id. Since Mrs. Robinson may not bring a claim under Regulation X, she may not be a named class representative. See McGraw, 646 F.2d at 176. 15-0925, 2015 WL 5165415, at *4 (D. Md. Because such a common question would have to be resolved in many if not all individual cases, it advances, rather than undermines, the argument in favor of predominance. Nelson, 2017 WL 1167230, at *3 (collecting cases). Reg. Am. UNITED STATES DISTRICT COURT DISTRICT OF MARYLAND. 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. 09-08213, 2011 WL 11651320 (C.D. Fla. 2009), aff'd, 398 F. App'x 467, 471 (11th Cir. 2015) (holding that Regulation X did not apply to loss mitigation applications submitted before the effective date). Mrs. Robinson was the primary point of contact for the Robinsons in interacting with Nationstar. See Farmer v. Ramsay, 159 F. Supp. 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. 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. P. 23(a)(3); Deiter v. Microsoft Corp., 436 F.3d 461, 466-67 (4th Cir. Since it is the plaintiff's burden to establish that the requirements of Rule 23 have been met and Mr. Robinson has failed to do so, the Motion for Class Certification will be denied as to any claims that Nationstar violated 12 C.F.R. In support of this argument, Nationstar contends that the ethical rules for attorneys prohibit contingency fee arrangements with expert witnesses. Amchem Prods. Nationstar Mortgage Agrees to $91M Settlement with the CFPB Accordingly, Nationstar did not send the Robinsons an acknowledgment letter within five days stating that it had received the application, as required by Regulation X. P. 23(a)(4); Ward v. Dixie Nat'l Life Ins. 2010). The Class Action Administrator would then begin distribution of the settlement funds. 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. 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. 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. See, e.g. The Magistrate Judge ordered Nationstar to run those scripts and return the electronic data to the Robinsons. Filed by Janie Robinson. 1024.41(d). Md. P. 23(b)(3). 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." The Court will address the varying claims in turn. PDF United States District Court Middle District of Florida Tampa Division A conflict of interest will not defeat the adequacy requirement when "all class members share common objectives[,] the same factual and legal positions, and . 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. Baez, 709 F. App'x at 983. Subscribe to our free newsletter right now. See Hayes v. Wal-Mart Stores, Inc., 725 F.3d 349, 356-57 (3d Cir. 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. 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. The denial letters stated that the loan's principal balance exceeded the limit under HAMP. 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. Portland, OR 97208-3560. Finally, the Court finds that common issues of law and fact predominate. 2018). Code Ann., Com. 1024.1, prescribe additional duties and responsibilities of mortgage servicers under RESPA. Law 13-101 to 13-411 (West 2015). 1024.41(h)(1). 10696, 10708 (Feb. 14, 2013) (codified at 12 C.F.R. Code Ann., Com. Law 13-316(c), the Court will grant class certification as to those class members and claims. at 358. 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. 1024.41(c)(1)(ii), which requires a servicer to respond to a completed loan modification application; or Md. Corp. ("McLean I"), 595 F. Supp. Docket for Robinson v. Nationstar Mortgage LLC, 8:14-cv-03667 Brought to you by the RECAP Initiative and Free Law Project, a non-profit dedicated to creating high quality open legal information. While the date that Nationstar's systems came into compliance, is unknown, Nationstar's systematic noncompliance presents common questions of law and fact for all class members. A letter noting receipt of the application is automatically generated and sent to the borrower, and a Nationstar employee checks the application's documentation to determine if it is complete based on a checklist. 1024.41(f), (g), and (h) because there is no evidence in the record that Nationstar violated those provisions. The commonality requirement is also met. Gariety v. Grant Thornton, LLP, 368 F.3d 356, 366 (4th Cir. Compl. application to Nationstar after January 10, 2014, and through the date of the Court's . 2. WASHINGTON, D.C. The Consumer Financial Protection Bureau (CFPB) today ordered Nationstar Mortgage LLC to pay a $1.75 million civil penalty for violating the Home Mortgage Disclosure Act (HMDA) by consistently failing to report accurate data about mortgage transactions for 2012 through 2014. Contact the Class Action Administrator at 1-855-917-3477 (Toll-Free). 1024.41(c)(1)(i). The lawsuit alleges, however, that Nationstar has not made interest payments to the plaintiffs, nor provided any record that interest was accruing and due to the homeowners, at any time during or after December 1, 2018 to March 22, 2019 or May 1, 2020 through the present. Mar. Moreover, the conflict must not be "merely speculative or hypothetical." 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. Finally, a loan servicer "is only required to comply with the requirements" of section 1024.41 "for a single complete loss mitigation application for a borrower's mortgage loan account." 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. Bouchat, 346 F.3d at 522. The Robinsons' expert had written the scripts using data dictionaries and without accessing the databases. 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. The company has already paid about $57.5 million in restitution to affected consumers, according to the CFPB. Robinson, 2015 WL 4994491, at *4 (citing Marchese v. JPMorgan Chase Bank, N.A., 917 F. Supp. 1024.41 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. Co., 350 F.3d 1018, 1023 (9th Cir. A plaintiff has the burden to show that all of the necessary prerequisites for a class action have been met. 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. Robinson et al v. Nationstar Mortgage LLC, No. 8:2014cv03667 - Justia Law 2003) ("[I]f Lierboe has no stacking claim, she cannot represent others who may have such a claim, and her bid to serve as a class representative must fail. Rather, the Court finds, based on the reasoning of Tagatz and Universal Athletic Sales, that the potential violation of an ethical rule does not itself make Oliver's testimony inadmissible. Nationstar also argues that Oliver's report should be stricken as unreliable under the Federal Rules of Evidence and Daubert. Id. Where it is now apparent, in hindsight, that Nationstar was permitted to withhold relevant and necessary data in the discovery process, it is unsurprising that Nationstar employees would then review loan files, with their complete data, and identify problems. 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. Law 13-301 and 13-303, because the Robinsons do not have standing to bring those claims. However, Nationstar did not comply with all requirements of Regulation X, which became effective on January 10, 2014. Although each class member must individually show that they suffered "actual damages" under 12 U.S.C. If the initial application is not complete, a different Remedy Star substatus notation and LSAMS code are entered, and a letter is created and sent to the borrower asking for the required documents. 2014))). The relevant rule prohibits an attorney from "offer[ing] an inducement to a witness that is prohibited by law." First, as a threshold matter, the Court notes that in ruling on Nationstar's Motion for Summary Judgment, it will grant judgment in favor of Nationstar as to Mrs. Robinson's claims, Mr. Robinson's RESPA claims under 12 C.F.R. Where the Robinsons, after discovery, cannot point to evidence that Nationstar did not even consider or evaluate the Robinsons for loss mitigation options, they have not established the existence of a genuine issue of material fact on the issue of false or misleading statements. 1024.41(f), (g), and (h); and (4) there is no evidence of actual damages from any RESPA violation. 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. Where the PaCE consulting fee was a one-time fee to advise the Robinsons in their interactions with Nationstar paid in August 2013, several months before they first submitted the March 2014 loan modification application, this cost was incurred "whether or not [Nationstar] complied with its obligations." Ask to speak in court about the fairness of the Settlement. "); see also 1 William Rubenstein et al., Newberg on Class Actions 2:3 (5th ed. Class Cert. 2601(a). 2605(f)(2). While class members would not be eligible for statutory damages unless actual damages are shown, see 12 U.S.C. . An "unfair or deceptive" trade practice includes a "false . 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. See id. 1024.41(a). 12 C.F.R. DEMETRIUS ROBINSON and TAMARA ROBINSON, Plaintiffs, v. NATIONSTAR MORTGAGE LLC, Defendant. 2015) Court Description: MEMORANDUM OPINION. 2003). 2605(f)(1)(A)). . 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. at 983 (quoting 12 U.S.C. Marais v. Chase Home Fin., LLC, 24 F. Supp. Md. 2013)). Ass'n, 375 F.2d 648, 653 (4th Cir. In assessing the Motion, the Court views the facts in the light most favorable to the nonmoving party, with all justifiable inferences drawn in its favor. 2010). After an additional period of expert discovery relating to the class certification motion, discovery closed on December 30, 2018. It will be otherwise denied. That claim will be subject to common proof, namely sampling and analysis of loan files along the lines suggested by Oliver. The Nationstar Mortgage Unwanted Phone Calls Class Action Lawsuit is Wright, et al. Co., 595 F.3d 164, 179-80 (4th Cir. Where the Robinsons may be able to show that they have suffered actual damages, their claim for statutory damages, upon a showing that Nationstar has engaged in a pattern or practice of violating Regulation X, remains viable. R. Civ. 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."

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