Recent Articles

A "Loan Workout Plan" Is Not An Agreement To Modify A Loan

Sheppard Mullin
March 13, 2012 20:36

By Alejandro Moreno and Shannon Petersen In Nungaray v. Litton Loan Servicing, LP (2011) 200 Cal.App.4th 1499, the California Court of Appeal held that (i) a Loan Workout Plan is not an enforceable agreement to modify a loan and (ii)...By Alejandro Moreno and Shannon Petersen In Nungaray v. Litton...

Default Judgment Is Not Available In Actions To Quiet Title

Sheppard Mullin
January 09, 2012 23:15

In Harbour Vista, LLC v. HSBC Mortgage Services Inc., 2011 WL 6318525 (Cal.App. 4 Dist. 2011), the California Court of Appeal held that plaintiffs may not obtain default judgments in quiet title actions. Harbour owned a ground lease under a...In Harbour Vista, LLC v. HSBC Mortgage Services Inc.,...

No Need To Record An Assignment Of A Deed Of Trust Prior To Foreclosure

Sheppard Mullin
October 24, 2011 19:14

In Calvo v. HSBC Bank USA, --- Cal.Rptr.3d ----, 2011 WL 4035791 (Cal.App. 2 Dist. 2011), the California Court of Appeal affirmed the longstanding rule that an assignee of a beneficiary under a deed of trust need not record its...In Calvo v. HSBC Bank USA, --- Cal.Rptr.3d ----, 2011 WL 4035791...

Massachusetts Supreme Judicial Court Holds That Bad Foreclosure = Bad Title For Bona Fide Purchaser

Sheppard Mullin
October 24, 2011 18:28

The Massachusetts Supreme Judicial Court ruled this week that owners of property whose titles have been rendered defective due to improper foreclosures cannot bring a court action to clear their titles under the “try title” procedure in the Massachusetts Land...The Massachusetts Supreme...

Dispelling the Myth of MERS as a "Sham" Beneficiary

Sheppard Mullin
October 18, 2011 23:35

In the current flood of mortgage litigation, plaintiffs often rely on myth to avoid paying their debts. One of the most pervasive concerns the Mortgage Electronic Registration System (MERS). Plaintiffs accuse MERS of being a "sham" entity, lacking authority to...In the current flood of...

HUD Revamps FHA Lending Requirements

Sheppard Mullin
October 14, 2011 21:33

On September 23, 2011, HUD issued Mortgagee Letter 2011-34 (the "Letter"). The provisions of the Letter, which became effective immediately upon the Letter's release, dramatically revamp requirements for FHA-approved lenders. Most significantly, HUD has expanded the single family...

Too Little, Too Late For Plaintiff's Fraud-Based Mortgage Lawsuit

Sheppard Mullin
September 20, 2011 16:44

In Vaca v. Wachovia Mortgage Corporation, --- Cal.Rptr.3d ----, 2011 WL 3659938 (Cal.App. 4 Dist. 2011), the California Court of Appeal affirmed the dismissal of a fraud claim on statute of limitations grounds. In 2005, the plaintiff sued her ex-husband,...In Vaca v. Wachovia Mortgage Corporation,...

The California Court Of Appeal Again Rejects A Claim For Wrongful Foreclosure At The Pleading Stage

Sheppard Mullin
September 01, 2011 20:01

The recent published decision of Fontenot v. Wells Fargo Bank, N.A. (Cal.App.1 Dist., August 11, 2011) --- Cal.Rptr.3d ----. 2011 WL 3506177, adds several more arrows to a secured lender's quiver of arguments challenging wrongful foreclosure claims at the pleading...The recent published decision of...

The California Court Of Appeals Weighs In On Option ARM Class Actions

Sheppard Mullin
August 31, 2011 22:08

In a pyrrhic victory for plaintiffs, the California Court of Appeal has held that an Option ARM class action survives the pleading stage. See Boschma v. Home Loan Center, Inc. (August 10, 2011) --- Cal.Rptr.3d ---, 2011 WL 3486440. This...In a pyrrhic victory for plaintiffs, the California Court of...

More Teeth For The Tender Rule

Sheppard Mullin
June 17, 2011 17:47

In the current flood of mortgage litigation, the so-called "tender rule"—that a borrower generally cannot set aside a foreclosure unless he or she tenders the full amount owed on the loan—poses a significant obstacle for many plaintiffs. The rationale behind...In the current...