Tag: Lender Petitions

A Major Mortgage Lender Petitions Ninth Circuit To Reconsider Ruling Reviving FCRA Suit A major mortgage provider has petitioned the Court of Appeals for the Ninth Circuit to reconsider its ruling to revive a lawsuit that alleges the company violated the Fair Credit Reporting Act. The company’s petition claims that the panel of three Ninth Circuit judges failed to adhere to established precedent for this type of case in its ruling. In the case in question, the lender had been accused of violating the FCRA by failing to perform an investigation regarding a customer’s dispute of the debt and that it reported inaccurate information to credit reporting agencies. According to the plaintiff’s claims, he had taken out a junior mortgage with the bank, which, after suffering financial issues, had been defaulted on. Upon going into foreclosure, the home was sold, but the proceeds fell short of providing the junior lender with any proceeds. However, Arizona’s law prohibits a lender from pursuing any additional recovery after a foreclosure sale is performed, regardless of how much of the debt is recovered. Due to this, the lender could not legally demand repayment for the debt. According to the plaintiff, regardless of this, the lender continued to furnish information regarding this debt to consumer reporting agencies. The district court granted the defendant summary judgment that the plaintiff appealed, upon which the panel of Ninth Circuit judges reversed the trial court’s ruling. The mortgage provider claims that the panel should remain consistent with other courts in their decision by ruling that a consumer cannot claim that a lender is reporting inaccurate information by proving that they have no legal obligation to pay the debt. The mortgage company stated that the plaintiff could not claim that its report is inaccurate since the credit report accurately states the default, including the balance due as well as the number of payments that were late. According to the mortgage company, the panel needed to decide whether or not the plaintiff’s lack of legal liability for the debt caused the credit report to be misleading to any potential creditors. The panel did not evaluate the given facts using the correct legal standard. The plaintiff claimed that he could not obtain a mortgage in 2017 because the mortgage company continued to report the mortgage as being past due, along with the late fees and missed payments. However, the mortgage company claims that one potential creditor looked at the credit report and properly understood it; yet, the potential creditor still gave credit to the plaintiff. Additionally, the mortgage company said that the plaintiff did not show any evidence that the credit report had misled any other potential creditors. The company said that it couldn’t have misled lenders since it reported that the account in question was a mortgage, along with the fact that the anti-deficiency statute could apply. The mortgage company also stated that if a consumer defaults on a mortgage, the information is relevant for potential creditors and should be included in a credit report. Though the ruling, in this case, applies most strongly to consumer reports for use in credit decisions, it may provide some indication as to how courts will interpret the suitability of the information included in a report. As always, it is important for both furnishers and consumer reporting agencies to apply caution when deciding what information to include in a consumer report and for employers to choose wisely who to partner with when acquiring a background check. Background checks are made easy and reliable with Pre-employ Talk to a sales representative today Source

Tag: Lender Petitions

A Major Mortgage Lender Petitions Ninth Circuit To Reconsider Ruling Reviving FCRA Suit

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