Tuesday, May 25, 2010

consumer - RESPA - perpetrator of Ponzi scheme is not a "loan servicer"

Jones v. ABN AMRO Mortgage Group, et al. - 3d Circuit - May 25, 2010


Douglas and Andrea Jones (the “Joneses”) filed suit against, inter alia, Appellees SunTrust Mortgage, Inc. and Countrywide Home Loans, Inc., who were the “lenders” that provided mortgage loans to the Joneses. The Joneses asserted claims for a declaratory judgment, negligence, and violation of the Real Estate Settlement Procedures Act (“RESPA”), 12 U.S.C. § 2605. At the heart of the issue before us is a mortgage loan-servicing Ponzi scheme. Of particular interest is whether the perpetrator of the Ponzi scheme can be considered a loan “servicer” under RESPA. The District Court dismissed the Joneses’ Complaint. We will affirm.