Every week, courts around the United States issue decisions addressing aspects of civil UDAAP claims.
In an effort to illuminate the UDAAP standards, below is a sampling of some of this week’s UDAAP decisions on the meaning of unfair, deceptive, and abusive.
- A mortgagee was not liable under Consumer Financial Protection Bureau (“CFPB”) regulations when it failed to provide a written explanation of the mortgagor’s ineligibility for a loan modification before initiating foreclosure proceedings. The mortgagee recorded three separate instances of default, and at least several intermittent communications that indicated that the mortgagor was ineligible for a modification. Even though the mortgagor alleged that the modification denials were revoked by the bank, he failed to provide sufficient facts to show a sequence of events that supported his allegations. The court determined that the CFPB’s requirement “to inform the consumer that a loan modification has been denied before initiating the foreclosure process serves to ensure that the consumer is on notice of the pending foreclosure.” Because the mortgagee had informed the mortgagor about his previous defaults on numerous occasions, the court held that mortgagor had sufficient notice before foreclosure. Andre v. Bank of America, N.A., United States District Court for the Northern District of California. Continue reading this entry