Courts

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In the fight against predatory lending, the courts are a key battleground. CRL monitors cases that could set precedent; submits legal briefs on key legal issues; and works with partners on litigation aimed at strengthening protections against abusive lending.

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  • Nationstar Mortgage, LLC v. Willie E. Knox and Linda M. Knox
    December 22, 2008

    CRL's brief on behalf of the appellees in Nationstar Mortgage, LLC v. Knox. CRL represents Mississippi homeowners whose mortgage lender sought a federal court order staying the homeowners' state court predatory lending lawsuit in this appeal before the U.S. Court of Appeals for the 5th Circuit. The district court refused to order the stay pursuant to the federal Anti-Arbitration Act.

  • Federal courts cannot order halts in state court predatory lending lawsuits
    December 22, 2008

    CRL's brief on behalf of the appellees in Nationstar Mortgage, LLC v. Knox. CRL represents Mississippi homeowners whose mortgage lender sought a federal court order staying the homeowners' state court predatory lending lawsuit in this appeal before the U.S. Court of Appeals for the 5th Circuit. The district court refused to order the stay pursuant to the federal Anti-Arbitration Act.

  • Banks cannot foreclose in New York when evidence shows they didn't own the loan
    October 31, 2008

    CRL's brief on behalf of the appellee in HSBC Bank, USA v. Dammond. CRL represents a New York homeowner who sought relief from a foreclosure judgment because the mortgage assignment filed by the bank showed it lacked standing at the time it filed the foreclosure action in this appeal in the New York Supreme Court Appellate Division, Second Department. The trial court granted the relief.

  • Lenders cannot make loans in Massachusetts that will default without home value appreciation
    September 22, 2008

    CRL's amicus brief in support of the Massachusetts Attorney General in Commonwealth v. Fremont Investment & Loan. CRL, along with a number of other consumer groups, argues in favor of affirming the trial court's injunction of foreclosures by Fremont on loans with a set of characteristics (including "teaser rates" and prepayment penalties) that were unsustainable over the long-term without continued refinancings dependant on continued increases in property values in this appeal before the Massachusetts Supreme Judicial Court. The brief explains the dangers created by each of the problematic loan features identified by the trial court. The Supreme Judicial Court in December 2008 ruled in favor of the Attorney General in an opinion found at 897 N.E.2d 548.

  • Foreclosure rescue scams in Virginia create mortgages under equitable principles (reply)
    July 14, 2008

    CRL's briefs on behalf of the appellants in Johnson v. Washington. CRL represents Virginia homeowners who signed a deed purporting to sell their house to an investor in a foreclosure rescue scam when they went to a mortgage broker to refinance their defaulted loan in this appeal to the U.S. Court of Appeals for the 4th Circuit. The district court held the mortgage rescue transaction neither created an equitable mortgage, in which case the federal Truth in Lending Act and state mortgage broker laws would apply, nor constituted fraud.

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