Ohio’s Governor Kasich has proposed a two-year budget plan for Ohio that focuses on cutting income tax, while broadening the scope of the state sales tax. The proposal would impose a tax on formerly exempt services, such as accounting and legal services. Governor Kasich’s budget plan would reduce the sales tax rate from the current 5.5% to 5%, but would ultimately increase the state’s revenue from sales tax by widening the scope of taxable services. Read more
William M. LeRoy: A New PHOENIX Rises
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PERSON OF THE WEEK: By all accounts, William M. LeRoy has the right to rest on his laurels: A 23-year industry veteran and founding CEO of the American Legal & Financial Network, he is one of the most respected leaders in the mortgage banking world. But LeRoy doesn’t have time to rest on his laurels – he recently launched a new national attorney organization called The PHOENIX Group Network LLC, which serves the mortgage servicing industry. MortgageOrb spoke with LeRoy about this new undertaking and the state of mortgage servicing….”
Read More: MortgageOrb — A New Phoenix Rises
Prevailing Debt Collector Can Recover Costs in FDCPA Suit Without A Finding of Bad Faith
In what some have characterized as a defeat for the Consumer Financial Protection Bureau (CFPB), the United States Supreme Court has ruled that a prevailing defendant in a FDCPA suit can recover costs without having to show that the suit was filed in bad faith or for the purpose of harassment. This decision not only represents a rejection of the position that was taken by the CFPB and the FTC in a jointly filed amicus brief, but it should also serve to discourage frivolous nuisance suits claiming violations of the FDCPA. Read more
Mortgage foreclosure is debt collection under the FDCPA
Last June, the Sixth Circuit decided that a law firm could be liable, under the Fair Debt Collection Practices Act (“FDCPA”), for stating the wrong identity of the mortgage owner in a foreclosure complaint. In effect, the Sixth Circuit held that a pre-assignment foreclosure filing could violate the FDCPA. Earlier this month, the same court decided another case involving the application of the FDCPA to judicial foreclosure proceedings. This latest case strongly suggests that misstatements in a foreclosure complaint, and presumably other court filings, subject not only the plaintiff’s attorney to the FDCPA, but the loan servicer client as well.
Pre-assignment foreclosure filing may violate the Fair Debt Collection Practices Act
The Sixth Circuit Court of Appeals, in Wallace v. Washington Mutual, recently announced that filing a foreclosure complaint, before the note and mortgage have been transferred and assigned to the Plaintiff, may violate the Fair Debt Collection Practices Act (the “FDCPA”). More importantly, the court noted that the FDCPA may be violated even if state law permits the Plaintiff to cure a real-party in interest defect after the complaint is filed. Finally, although the defendant in this case was the law firm that represented the foreclosure plaintiff, depending on the circumstances, a servicer may be liable under the same theory that was announced by this court.
Homeowners Can Sue Over HAMP Denial
A homeowner who was denied a permanent loan modification can sue her lender for fraud and other state law claims. According to the Seventh Circuit Court of Appeals, while HAMP does not provide for a private right of action, it does not preempt valid state law claims that a borrower may otherwise be able to raise.
Two New Ordinances Impact REO Properties in Cleveland, Ohio
Cleveland City Council recently enacted two ordinances that impact REO properties located in Cleveland, Ohio. These ordinances took effect November 16, 2011.
Ordinance 1519.11 amends existing sections 3103.09 (k) and 367.08 (b) of the Codified Ordinances of Cleveland.
Cuyahoga County Requires Attorney Affidavits
I am writing to let you know that, as a consequence of the robo-signing allegations that have recently come to light, the Common Pleas Court for Cuyahoga County, Ohio is in the final stages of formulating new rules that will apply to all mortgage foreclosure cases.
Update Regarding Title Report Showdown in Cuyahoga County
Last November our office sent a bulletin advising of a dispute regarding title report endorsements that arose in Cuyahoga County. At that time, the Ohio Title Insurance Ratings Bureau announced a change to its policy regarding judicial title report forms and strictly forbid the use of title report endorsements previously used in Cuyahoga County.
Cuyahoga County, Ohio Judge Nancy Margaret Russo Requires Property Status Report
Cuyahoga County Common Pleas Judge Nancy Margaret Russo recently implemented a new policy requiring something called a Property Status Report Form (“PSRF”) be filed in every foreclosure assigned to her docket. The PSRF was prepared by Judge Russo and has been circulated to creditors’ foreclosure counsel. A copy of the same is included as an attachment to this Bulletin. Failure to file a completed PSRF within twenty (20) days of the filing of the foreclosure may result in a dismissal without prejudice.