Cent. 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. That notice must be provided within 30 days of receiving the complete loss mitigation application. Id. Contact Fraudfighters.net Current Class Settlements Search Our Successes Practice Areas Class Actions Financial Services & Economic Justice 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. 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. 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. All but $28.6 million of its. 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. Md. Nationstar employees use four software applications and databases to store and track electronic information relating to loans: (1) Loan Services and Accounting Management System ("LSAMS"), Nationstar's primary loan servicing software, which contains data for loans, including the permanent records of the accounting history, communication logs, and letters documented with codes that were sent to the borrower; (2) Remedy Star, Nationstar's proprietary loss mitigation and loan modification management system, which, among other tasks, tracks the status and timeline of a loan modification and links to documents stored in FileNet; (3) LPS Desktop ("LPS"), an application which Nationstar uses to track and manage foreclosure processes and communicate with outside attorneys; and (4) FileNet, a platform that houses PDF images of documents, including letters sent to borrowers by Nationstar. 2013); Poindexter v. Teubert, 462 F.2d 1096, 1097 (4th Cir. Regulation X, which became effective on January 10, 2014, 78 Fed. The next day, Nationstar sent a letter noting that the August 25 application had been received and requesting additional information. 1024.41(b)(2)(B), (c)(1)(ii); Md. Here, Mrs. Robinson signed the Deed but did not sign the Note. loan" did not have standing to bring a RESPA claim); Nelson v. Nationstar Mortg. Thus, the Court concludes that common computerized analysis can largely answer the question of whether Nationstar violated these RESPA provisions with respect to individual borrowers. Pia McAdams, a class member, objected to the settlement, arguing that the QSF Settlement Administrator. . . But see Ayres v. Ocwen Loan Servicing, LLC, 129 F. Supp. . 1024.41(h)(1), (4). In February 2014, after their income had further decreased, the Robinsons ceased making payments on the mortgage loan. In Robinson v. Nationstar Mortgage LLC, No. 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. Order, ECF No. 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. 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. Because Oliver analyzed proprietary databases and data specifically disclosed for this litigation pursuant to a protective order, such that Oliver's peers lack access to the same information, Oliver's expert testimony is not of the type that ordinarily would be subject to peer review, and it would be unfair to require "general acceptance within a relevant scientific community." For example, in EQT, the court concluded that a proposed class of all individuals who owned an interest in a gas estate was not ascertainable because the actual owners could be determined only through an individualized review of land records. Instead, the Robinsons assert that Nationstar has not affirmatively proven that it conducted such reviews. 2010). Day to address discovery issues. Baez, 709 F. App'x at 983. 2016) (dicta). P. 23(b)(3). In their Motion for Class Certification, the Robinsons seek certification of two classes. Although Monday's case specifically addresses Nationstar's actions following the Great Recession, the outcome can affect today's homeowners, says Kwame Raoul, attorney general of Illinois. Motor Freight System, Inc. v. Rodriguez, 431 U.S. 395, 403 (1977))). "We want to hear from you," Raoul says. TDC-14-3667, 2019 WL 4261696 (D. Md. 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. Law 13-316(c), the Court will grant class certification as to those class members and claims. This Court previously held that a loan modification application can be an inquiry under the MCPA that triggers a duty to respond, and that in the case of the Robinsons, the loan modification application that was "submitted at the request of Nationstar[] necessarily seeks a response." 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. 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. Nationstar also argues that Oliver's report should be stricken as unreliable under the Federal Rules of Evidence and Daubert. Law 13-316(c). Moreover, the conflict must not be "merely speculative or hypothetical." A class action allows representative parties to prosecute not only their own claims, but also the claims of other individuals which present similar issues. While Mr. Robinson sought to reduce his monthly mortgage payment in applying for a loan modification, his deposition testimony reflects that he understands that the present lawsuit contends that Nationstar did not process the Robinsons' loan modification application correctly. On November 21, 2014, the Robinsons filed suit against Nationstar on behalf of themselves and a class of similarly situated individuals nationwide. 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. That provision provides, in parallel, that a loan servicer which does not comply with Regulation X is liable "to the borrower." Where the results of such an analysis would apply to any individual claim, it would be highly inefficient and wasteful to require duplicative analysis in each such case. During discovery, Oliver revealed that his fee arrangement with the Robinsons includes a flat fee for his expert services, but that a portion of the fee is contingent on the certification of a class in this case. Id. 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. A conflict of interest will not defeat the adequacy requirement when "all class members share common objectives[,] the same factual and legal positions, and . MCC JR 530. Nationstar's Motion will be denied as to this claim. RECITALS Law 13-301(1). 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." Nationstar also asserts that the Robinsons have not identified evidence sufficient to support their MCPA claims. 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. P. 23(b)(3). Under subsection (h), if a loan servicer receives a complete loss mitigation application more than 90 days before a foreclosure sale but then denies the application, the servicer must allow the borrower to appeal and must respond to the appeal within 30 days of receiving it. 2605(f). . 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. Hickerson, 882 F.3d at 480 (quoting Cooper, 259 F.3d at 199). Before the error was discovered, Mr. Robinson appealed this offer as insufficient on April 10, 2014. See Stillmock v. Weis Markets, Inc., 385 F. App'x 267, 275 (4th Cir. A Division of NBC Universal. Filed by Janie Robinson. The Robinsons do not address this argument in their Opposition. 1024.1 to 1024.41 and known as "Regulation X," see 12 C.F.R. Since neither party contends that Oliver's testimony and report are not "critical," the Court must address the Daubert challenge before reaching the question of class certification. 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. 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. Robinson v. Nationstar Mortgage, LLC Complaint with jury demand against Nationstar Mortgage, LLC. Nationstar's failings resulted in "substantial consumer harm," CFPB Director Kathleen Kraninger said in a statement. 2006). Wirtz v. Specialized Loan Servicing, LLC, 886 F.3d 713, 719-20 (8th Cir. In the Amended Complaint, the Robinsons claim that Nationstar's representations that it offered many loss mitigation plans and "would evaluate" borrowers "for eligibility for all these loss mitigation plans" were false. Nationstar Mortgage LLC Filing 18 Robinson et al v. Nationstar Mortgage LLC, No. 1024.41(i). Md. 2010). 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. Indeed, since previous versions of the Maryland rule expressly stated that contingency fee arrangements for experts were forbidden, but that explicit language was removed, it is reasonable to conclude that the amendment changed the rule in Maryland to no longer bar contingency fee arrangements. Ins. Signed by Judge Theodore D. Chuang on 8/18/2015. P. 23(a)(3); Deiter v. Microsoft Corp., 436 F.3d 461, 466-67 (4th Cir. Potentially eligible class members for all of these provisions can be identified through the LSAMS and Remedy data that marks that an application was received, identified as complete, and denied. 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. 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. 1024.41(b)(1), (b)(2)(i)(B), and (c)(1)(ii) and Md. or misleading oral or written statement . v. W.R. Grace & Co., 6 F.3d 177, 188 (4th Cir. Ravens Football Club, Inc., 346 F.3d 514, 522 (4th Cir. These letters are based on standard Nationstar templates, and the code reflects the type of letter sent. at 151. 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. Lembach v. Bierman, 528 F. App'x 297 (4th Cir. Nationstar's reliance on Accrued Financial Services v. Prime Retail, Inc., 298 F.3d 291 (4th Cir. In Frank v. J.P. Morgan Chase Bank, N.A., No. After they became delinquent on their loan, the Robinsons submitted another loan modification application to Nationstar on March 7, 2014. 1024.41(c)(1)(i) and (d), because the Robinsons made no showing that the Rule 23 requirements were met. 26-1. 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.
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