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Tag: mortgage

No Right for Third Party to Assume Mortgage; No Right of Action Under 1024.17

Link: Cybulski v. Nationstar Mortgage LLC, No. 17-cv-03711 (N.D. Ill., Aug. 30 2018)

Plaintiff filed a complaint alleging that Nationstar improperly serviced a mortgage loan by failing to allow a third party to assume the note and mortgage under the Real Estate Settlement Procedures Act, failing to properly manage their escrow account, and failing to give them appropriate notices under the Truth in Lending Act.

Judge Andrea R. Wood dismissed the complaint under Rule 12(b)(6). The court found that a party does not have the right to unilaterally modify a contract, and as such a third party cannot just come in and demanded to be “added” to a mortgage loan. The court similarly found there is no claim under RESPA’s implementing Regulation X, 12 C.F.R. § 1024.17, because Congress did not intend consumers to have a private right of action for a failure to give an appropriate refund from an escrow account. The court rejected Plaintiff’s argument they were suing under 2605(f) of RESPA which relates to responding to a notice of error or request for information.

As to the TILA claim, the court found it does not require a payment coupon and that it was acceptable under TILA for a mortgage servicer to send statements to the Plaintiff’s lawyer.