Category Archives: Banking Law News

Dismissal Of Wrongful Foreclosure Action Reversed.

The appellate court reversed the sustaining of a demurrer to plaintiff’s complaint for wrongful foreclosure. In support of the demurrer, defendants sought judicial notice, which was granted, of the notice of default, including the attached declaration of someone named Samantha Jones, … Continue reading

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Borrower Must Be Offered A Permanent Loan Modification When They Comply With A Trial Period Plan.

After her home loan went into default, plaintiff agreed to a trial period plan [TPP], a form of temporary loan payment reduction under the Home Affordable Mortgage Program [HAMP]. Plaintiff complied with the TPP, making timely reduced monthly payments. Nonetheless, the … Continue reading

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Summary Judgment Reversed.

Plaintiff entered into a construction loan agreement with a bank, but the bank failed to properly make fund disbursements. As plaintiff attempted to salvage the situation, the bank went into receivership. Later defendant purchased the bank’s assets through a purchase and … Continue reading

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The Holder Rule Permits Action Against A Lender To The Same Extent An Action Could Be Brought Against The Seller Of A Mobile Home.

Plaintiffs bought a motor home that was financed with an installment contract. Shortly after the sale, the contract was assigned by the dealership to a bank. Plaintiffs assert the motor home was defective from the start. After months passed without the … Continue reading

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Written Employment Agreement With Parent Company Does Not Preclude Implied In Fact Employment Agreement With Subsidiary.

The Federal Deposit Insurance Corporation [FDIC] issued a cease and desist order requiring an employer investment and loan company to replace its senior management and take other measures to improve its lending practices. The next month, plaintiff and the parent … Continue reading

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The Law Is For Thee, But Not For Me.

The Fair Credit Reporting Act [15 U.S.C. §1681] is supposed to protect the privacy of consumers. Among other provisions, it says that “no person that accepts credit cards or debit cards for the transaction of business shall print more than … Continue reading

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First In Time, First In Right…uh oh, the preliminary title report didn’t catch something…Equitable Subrogation To The Rescue.

A husband and wife borrowed $3.2 million from Chase Bank to refinance their home and pay off two existing deeds of trust. The escrow instructions expressly stated the loan was to pay off the existing first and second deeds of … Continue reading

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Summary Judgment Reversed In Foreclosure Case.

Plaintiff alleges she realized something was wrong with the loan on her home when she saw her signature was forged on a few of the loan documents. She hired a handwriting expert who confirmed some of the documents were not … Continue reading

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Dispute Against Credit Card Company Promising To Help Rebuild Credit Has To Be Arbitrated.

Credit card was marketed to be used to “rebuild poor credit.”  The company was sued in a class action for misrepresentation.  Credit card users signed arbitration agreement in the application.   But the Credit Repair Organizations Act [CROA; 15 U.S.C. §1679c(a)] … Continue reading

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Guarantors Left Holding The Bag.

Borrowers agreed to pay only interest on a loan until its maturity date.  The loan contained a provision that barring an uncured default outstanding at the time of the maturity date, and in the bank’s sole and absolute opinion and … Continue reading

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