Legal Update 2020
Instructor: John Henderson
Rights of Mortgage Company Regarding Foreclosure
Newsom v. Branch Banking & Tr. Co., et al., 2019 DIST LEXIS 13979 (2019)
United States District Court for the Eastern District of North Carolina, Eastern Division
Facts: Newsom obtained a $249,000 mortgage loan from BB&T in 2005. In 2018, Newsom filed suit pro se to enjoin foreclosure on the property, alleging improprieties in lending practices and foreclosure proceedings. Newsom contended defendants, who are originators, servicers, or holders of the mortgage loan on the property, violated state and federal regulations, that defendants had no owner- ship interest in the property and should not be al- lowed to sell, auction, foreclose on, or otherwise transfer ownership. Newsom alleged multiple assignments of deed of trust were fraudulently signed and were unlawful, void transfers, and violated RESPA regarding payments between Defendants.
Issue: Which Defendants, if any, violated RESPA based on Plaintiff's contention that the Defendants' payments were misleading, deceptive, and self-serving?
Held: Dismissed, in part. Newsom's claims to enjoin the foreclosure all arise from the state proceeding and more properly challenged in the state forum. Newsom's RESPA claims fail because she failed to adequately allege facts regarding which Defendants violation RESPA and in what way.