18 April 2013
Deadly Clear, KingCast and Mortgage Movies Celebrate as Northwest Trustee Services is Sanctioned and Twice Loses FDCPA Summary Judgment Arguments.
So much for "Proudly servicing the needs of mortgage lenders in the West."
Deadly Clear reports on Beaton v. J.P. Morgan and NWTS here:
“To the extent that Chase acquired Beaton’s loan in 2008 before she defaulted, it falls within the section 1692a(6)(F) exemption of “debt collector.” NWTS was appointed as successor trustee on November 29, 2010. However, Beaton had been in default since approximately July 1, 2010. Accordingly, NWTS does not fall within the same exemption. Beaton alleges that the identity of the “Note Bearer/Creditor remains unknown[,]” that it remains undetermined if Chase is the actual beneficiary pursuant to RCW 61.24.005(2), and that NWTS violated FDCPA and damaged the Plaintiff by foreclosing her property.
Liberally construed, the court finds that Beaton has plausibly alleged that NWTS attempted to collect on a debt that may not have been owed to Chase, which may have violated the FDCPA. See McDonald II, 2013 WL 858178 at *12 (“At the time [NWTS began the foreclosure process], NWTS had not been appointed successor trustee and was not acting on behalf of the entity that had actual physical possession of the note: it therefore lacked the right to effect dispossession of plaintiff’s property. Plaintiff has established that NWTS violated § 1692f(6)(A) of the FDCPA.”); Michelson v. Chase Home Finance, LLC, Case No. C11-1445MJP, 2012 WL 3240241, *5 (W.D. Wash. Aug. 7, 2012) (“NWTS and RCO may have violated the FDCPA because they did not yet have confirmation of Chase’s right to possess the property, and thus may have violated § 1692f(6)(A)”).
I added McDonald v. Onewest Bank et al. 2013 Lexis 31730 (W.D. Washington March 7, 2013), which I will upload to SCRIBD:
CONCLUSION For all of the foregoing reasons, defendants' motion for summary judgment (Dkt. # 172) and plaintiff's cross motion (Dkt. # 176) are GRANTED in part and DENIED in part. Defendants are hereby enjoined from proceeding with any foreclosure procedure based on the January 12, 2010, notice of [*48] default.
Plaintiff's claim for damages related to the DTA violations is DISMISSED, however, and his request for a permanent injunction against all future foreclosure efforts is DENIED. The jury will be asked to determine whether defendants now possess the original, signed promissory note, in which case they may be able to initiate a new nonjudicial foreclosure under the DTA.
Plaintiff's RESPA claims against MERS and NWTS are DISMISSED. Plaintiff's fraud, fraud-on-the-court, civil conspiracy claims, and slander of title claims are DISMISSED. Plaintiff may, however, proceed to trial on damages related to his FDCPA claim against NWTS, his RESPA claim against OneWest, and his CPA claim against all defendants. Plaintiff may also pursue his claim under 15 U.S.C. § 1681s-2(b)(1) of the FCRA.
Defendants' motion to supplement the record (Dkt. # 204) is GRANTED. Defendant NWTS' motion to supplement the record (Dkt. # 225) is DENIED as moot. Defendants shall, within seven days of the date of this Order, pay $25,000 to plaintiff through his attorney. Dated this 7th day of March, 2013.