News + updates + recent press
With the recent decision in Federal Home Loan Mortgage Corporation v. Zepeda, No19-0712, the Texas Supreme Court issued a significant decision in favor of home equity lenders in, answering the question, “Is a lender entitled to equitable subrogation, where it failed to correct a curable constitutional defect in the loan documents under §50 of the Texas Constitution?” Or more specifically, “If the party seeking equitable subrogation could have satisfied the requirements of §50(a)(6)(Q)(ix) but failed to do so, does that failure preclude it from invoking equitable subrogation?”
On April 20, 2020, the United States Court of Appeals for the Fourth Circuit in the Western District of Virginia, in Stepp v. U.S. Bank Trust National Association, Case No. 19-1067 held that “a bank office that conducts no mortgage related business does not qualify as a branch office of a mortgagee under the regulatory exception.
“According to Stepp, U.S. Bank improperly initiated foreclosure without first offering her a face to face meeting as required by 24 CFR 203.604(b). U.S. Bank argued that it was exempt from the face to face meeting requirement under 24 CFR 203.604(c)(2) which excuses the meeting when the mortgaged property is not within 200 miles of the mortgagee, its servicer, or a branch office of either.” Because U.S. Bank’s Richmond office, the only one within 200 miles of Stepp’s home, conducted no mortgage related business and was not open to the public, U.S. Bank contended it did not qualify as a branch office of a mortgagee and so the exception applied.
The Fourth District Court of Appeal held that the text of 24 CFR 203.604(c)(2) cannot be read to encompass an office at which no mortgage related business is conducted. An office that does not mortgage related business at all, even if within 200 miles of a mortgagor’s home, will be poorly positioned to discuss the mortgage specific loss mitigation options. Note: this is a decision out of the Western District of Virginia and is not binding in all jurisdictions.
ProChamps Registration Updates
Servicers operating in Ohio and Florida should consider these recent property registration updates from ProChamps:
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