California Appellate Court Holds Mortgage Recorded Simultaneously with HELOC Had Priority and Was Not Entitled to Surplus Funds

The California Court of Appeals recently held that a mortgage (the “Mortgage”) recorded simultaneously with a home equity line of credit (the “HELOC”) had priority and was not entitled to any surplus proceedings from the foreclosure of the HELOC, despite the fact that the HELOC’s instrument number was prior to that of the Mortgage.  See MTC Fin., Inc. v. Nationstar Mortg., 19 Cal. App. 5th 811 (Ct. App. 2018).

New York Federal Court Holds Statement That “Settlement Offers May Have Tax Consequences” Did Not Violate FDCPA

The United States District Court for the Western District of New York recently held that defendant debt collector’s letter that offered various settlement options to plaintiff did not violate the Fair Debt Collection Practices Act (“FDCPA”) by stating that the “settlement offers may have tax consequences[.]”  See Church v. Fin. Recovery Servs., Inc., 2018 WL 1383231 (W.D.N.Y. Mar. 19, 2018). 

New Jersey Appellate Court Holds Lender Was Required to Serve a Notice of Intent to Foreclose for a Residential Reverse Mortgage

New Jersey’s Appellate Division recently reversed a lower court and held that a lender erred by not serving a notice of intent to foreclose (“NOI”) before commencing a foreclosure action on a residential reverse mortgage.  See Nationstar Mortg., LLC d/b/a Champion Mortg. Co. v. Armstrong, 2018 WL 1386247 (N.J. Super. Ct. App. Div. March 20, 2018).

Nevada Supreme Court Holds Federal Preemption Bars HOA Lien From Extinguishing Fannie Mae Mortgage

The Nevada Supreme Court recently affirmed a lower court’s decision that a foreclosure under a Nevada statute giving “super priority” to homeowners’ association liens was preempted by the Housing and Economic Recovery Act of 2008 (“HERA”) in a foreclosure in which the Federal National Mortgage Association (“Fannie Mae”) held a mortgage.  See Satico Bay LLC Series 9641 Christine View v. Fed. Nat’l Mortg. Assoc., 2018 WL 1448731 (Nev. Mar. 21, 2018).

Colorado Federal Court Holds That Federal Deposit Insurance Act Does Not Completely Preempt Claims Against Non-Bank Lender

The United States District Court for the District of Colorado recently remanded an action to state court and held that a defendant-lender’s defenses under the Federal Deposit Insurance Act (“FDIA”) do not completely preempt plaintiff’s claims because the FDIA defenses do not apply to non-bank entities and, accordingly, the Court lacked subject matter jurisdiction.

Superior Court of Pennsylvania Affirms Trial Court’s Granting Summary Judgment in Action to Quiet Title Where Subsurface Rights Were Extinguished After Tax Sale

The Superior Court of Pennsylvania recently held that a 1902 tax sale extinguished a party’s subsurface gas, oil, and mineral rights.  See Woodhouse Hunting Club, Inc., v. William Hoyt, et. al., J-A26044-17 (Sup. Ct. Pa. Feb. 2, 2018).  This case involved an action to quiet title of the subsurface oil and gas rights to a tract of land (the “Property”).  In 1891, the Hoyt family acquired title to the Property and subsequently conveyed it to Union Tanning Company, but reserved ownership of the gas, oil, and mineral rights and created a subsurface estate in favor of the Hoyts, their heirs, and assigns. 

Washington D.C. Appellate Court Holds Foreclosure of Condominium Lien Extinguished First Mortgage Despite Condominium Association’s Representations to the Contrary

The District of Columbia Court of Appeals recently held that a condominium’s foreclosure of a “super-priority” condominium lien extinguished an otherwise first-priority mortgage on the property, despite the fact that the association’s notice of sale and deed to the third-party purchaser stated that the sale was “subject to” the mortgage.  See Liu v. U.S. Bank Nat’l Ass’n, 2018 WL 1095503 (D.C. Mar. 1, 2018).