Arizona Court Holds Insured’s Inability to Subdivide Property Did Not Render It Unmarketable Under Title Policy

The Arizona Court of Appeals recently affirmed a lower court’s decision granting summary judgment to a title insurance company, among others, holding that an insured did not have coverage under a title insurance policy for losses arising after the insured discovered a covenant that prohibited it from selling the property as individual units.  See VACC LLC v. Chicago Title Ins. Co., et al., 2021 WL 710793 (Ariz. Ct. App. Feb. 23, 2021).

New Jersey Federal Court Holds No Discrimination Claim When Bank Declined to Honor PPP Transactions

The United States District Court for the District of New Jersey recently dismissed a suit for racial discrimination and retaliation brought by a bank account holder against a national bank, holding that the account holder had not sufficiently pled facts alleging racial discrimination when the bank ceased to honor checks and electronic payments related to the Paycheck Protection Program (“PPP”). Re Republic Grp. LLC v. Bank of Am., N.A., 2021 WL 321477 (D.N.J. Feb. 1, 2021).

Eighth Circuit Holds Borrower Failed to Demonstrate Alleged Injuries Were Caused by RESPA Violation

The United States Court of Appeals for the Eighth Circuit recently affirmed a District Court’s dismissal of a borrower’s claim under the Real Estate Settlement Procedures Act ("RESPA") and Minnesota Mortgage Originator and Servicer Licensing Act ("MOSLA") when the borrower failed to demonstrate that his alleged injuries were caused by the RESPA violation. See Wirtz v. Specialized Loan Servicing, LLC, 2021 WL 503306 (8th Cir. Feb. 11, 2021).

New York Court of Appeals Finds Loan Decelerated When Voluntary Discontinuance of Foreclosure Filed

In a ground-breaking case for lenders, the New York Court of Appeals recently added critical guidance and comfort for lenders as to what constitutes a proper de-acceleration of a loan after the filing of a foreclosure complaint. Namely, the Court of Appeals held that where the acceleration of a loan is triggered by the filing of a foreclosure complaint, a noteholder’s voluntary discontinuance of that action serves to revoke that acceleration unless it is accompanied by an “express, contemporaneous statement to the contrary,” and resets the six-year statute of limitations period for New York foreclosure actions.

New Jersey Appellate Division Finds Actual Knowledge Does Not Bar Equitable Subrogation

In a decision approved for publication, the New Jersey Appellate Division recently found that actual knowledge is not a bar to the doctrine of equitable subrogation for a lender who paid off a prior mortgage but failed to discharge an intervening lien. See New York Mortg. Tr. 2005-3 Mortg.-Backed Notes, U.S. Bank Nat’l Ass’n as Tr. v. Deely, 2021 WL 520063 (N.J. Super. Ct. App. Div. Feb. 12, 2021).