Alcantar v. Flagstar Bank, N.A.

District Court, E.D. California·Decided October 1, 2024·No. 2:23-cv-01609·Unknown

Opinion

1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 FOR THE EASTERN DISTRICT OF CALIFORNIA 10 11 Amanda M. Alcantar, No. 2:23-cv-01609-KJM-CKD 12 Plaintiff, ORDER 13 v. 14 Flagstar Bank, N.A., 1S Defendant. 16 17 Plaintiff Amanda M. Alcantar sued defendant Flagstar Bank, N.A., a mortgage servicing 18 | company, alleging it violated the Real Estate Settlement Procedures Act (““RESPA”). Flagstar 19 | moves for judgment on the pleadings and for a stay pending the resolution of the former. The 20 | court denies Flagstar’s motion and denies the motion to stay as moot. 21 | I. BACKGROUND 22 The court assumes the following allegations are true in response to Flagstar’s motion. See 23 | Hines v. Youseff, 914 F.3d 1218, 1227 (9th Cir. 2019). 24 Flagstar acts as the servicer of Alcantar’s home mortgage loan. See Compl. § 27, ECF 25 | No. 1. After a period of financial difficulties, plaintiff contacted defendant several times between 26 | October 2021 and February 2022, asking for a reduction in her monthly mortgage payments. See 27 | id. 44 29-30. The parties agreed to a “purported new mortgage contract.” /d. §31. But contrary 28 | to plaintiffs request, the monthly mortgage payment increased. See id. Plaintiff requested her

1 mortgage be placed in partial claim status, as allowed by the Secretary of Housing and Urban 2 Development. See id. ¶ 32; Mem. at 2. 3 In March 2022, defendant sent plaintiff a contract to place her mortgage in partial claim 4 status, which plaintiff signed and returned. See Compl. ¶ 33. Defendant informed plaintiff the 5 new mortgage terms would take effect and appear on her May 2022 payment. See id. ¶ 34. But 6 when plaintiff received her monthly statement, the new loan terms “were nowhere to be found.” 7 Id. ¶ 36. Instead, the statement informed plaintiff she was now delinquent on her loan and more 8 than $90,000 was due immediately. See id. ¶ 37. That same day, plaintiff filed a complaint with 9 the Consumer Financial Protection Bureau. See id. ¶ 38. Flagstar responded to the complaint and 10 explained there had been an error. See id. ¶¶ 39–40. 11 Plaintiff then mailed Flagstar a qualified written request (“QWR”). See id. ¶ 41. In the 12 request, plaintiff “included her name, her home address, her loan account number, a statement 13 disputing the validity of her debt, and requests for documents and information associated with her 14 account,” which included a “copy of any and all [audio] recordings of [Plaintiff] or any other 15 person concerning [Plaintiff’s] account” as well as a “copy of any and all transcripts of 16 conversations with [Plaintiff] or any other person concerning [Plaintiff’s] account[.]” Id. ¶ 43. 17 Defendant received the request on October 5 but did not respond within five days, as required by 18 12 U.S.C. § 2605(e)(1)(A). See id. ¶¶ 45–46. Defendant eventually provided information in 19 response to the request, but it denied the request for audio recordings or transcripts of the 20 recordings because defendant deemed it “overbroad or unduly burdensome to provide[.]” Id. ¶¶ 21 48–50. 22 In a follow up letter on November 16, plaintiff again requested the same audio recordings. 23 See id. ¶¶ 52–53. She mailed the letter through the United States Postal Service, which cost her 24 $8.62. See id. ¶ 54. Defendant again denied the request, stating the audio recording and 25 transcripts are “confidential, proprietary, and/or privileged[.]” Id. ¶ 57. 26 Plaintiff then filed this suit for violation of RESPA and California’s Unfair Competition 27 Law (UCL). See id. ¶¶ 89–120. Defendant seeks judgment on the pleadings under Federal Rule 28 of Civil Procedure 12(c). See generally Mem. Plaintiff opposes the motion. See Opp’n., ECF 1 No. 22. She asks the court for leave to amend the complaint under Federal Rule of Civil 2 Procedure 15 if the complaint is deficient. See id. at 20. Defendant has replied. See Reply, ECF 3 No. 23. The court submitted the motion without a hearing. See Min. Order, ECF No. 26. 4 Defendant also has moved to stay discovery while its motion for judgment on the pleadings is 5 pending, see Mot. Stay, ECF No. 39, which motion plaintiff also opposes, see Opp’n, ECF No. 6 31, and defendant has replied, see Stay Reply, ECF No. 32. The court submitted the motion to 7 stay without a hearing as well. See Min. Order Mot. Stay, ECF No. 34. 8 II. LEGAL STANDARD 9 Rule 12(c) allows a party to move for judgment on the pleadings “[a]fter the pleadings are 10 closed—but early enough not to delay trial[.]” Fed. R. Civ. P. 12(c). The “same standard of 11 review applicable to a Rule 12(b)(6) motion applies to a Rule 12(c) motion.” Howell v. Leprino 12 Foods Co., No. 18-01404, 2020 WL 704778 at *1 (E.D. Cal. Feb. 12, 2020) (citing Dworkin v. 13 Hustler Magazine, Inc., 867 F.2d 1188, 1192 (9th Cir. 1989)). The court draws reasonable 14 inferences in the non-moving party’s favor and accepts the complaint’s allegations as true. See 15 Hines, 914 F.3d at 1227. Courts may grant a Rule 12(c) motion with or without leave to amend. 16 See Gregg v. Dep’t of Pub. Safety, 870 F.3d 883, 889 (9th Cir. 2017) (while Rule 15 provides for 17 granting leave to amend freely when justice requires, leave may be denied where futile). As 18 required by Rule 12(c), the court looks only to the pleadings and does not assess any factual 19 record developed through summary judgment practice. 20 III. ANALYSIS 21 Under RESPA, a loan servicer “of a federally related mortgage loan” must respond to a 22 “qualified written request from the borrower . . . for information relating to the servicing of such 23 loan” within five days. 12 U.S.C. § 2605(e). A loan servicer’s obligation to respond under 24 RESPA is triggered if the request “(1) reasonably identifies the borrower’s name and account, (2) 25 either states the borrower’s ‘reasons for the belief . . . that the account is in error’ or ‘provides 26 sufficient detail to the servicer regarding other information sought by the borrower,’ and (3) seeks 27 ‘information relating to the servicing of [the] loan.’” Medrano v. Flagstar Bank, FSB, 704 F.3d 28 661, 666 (9th Cir. 2012) (quoting 12 U.S.C. § 2605(e)(1)(A)–(B)) (alterations in original). 1 “Servicing” is defined as “receiving any scheduled periodic payments from a borrower 2 pursuant to the terms of any loan, [ ] and making the payments of principal and interest and such 3 other payments with respect to the amounts received from the borrower as may be required 4 pursuant to the terms of the loan.” 12 U.S.C. § 2605(i)(3). Under RESPA, “servicing . . . does 5 not include the transactions and circumstances surrounding a loan’s origination—facts that would 6 be relevant to a challenge to the validity of an underlying debt or the terms of a loan agreement,” 7 because “[s]uch events precede the servicer’s role in receiving the borrower’s payments and 8 making payments to the borrower’s creditors.” Medrano, 704 F.3d at 666–67 (emphasis omitted). 9 Thus, “letters challenging only a loan’s validity or its terms are not qualified written requests that 10 give rise to a duty to respond under § 2605(e).” Id. at 667.

Free access — add to your briefcase to read the full text and ask questions with AI

Alcantar v. Flagstar Bank, N.A., (E.D. Cal. 2024).

Alcantar v. Flagstar Bank, N.A. (Alcantar v. Flagstar Bank, N.A.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Yorkey v. Diab
605 F.3d 1297 (Federal Circuit, 2010)
Murray v. United States
704 F.3d 23 (First Circuit, 2013)
Alexandria Gregg v. Hawaii Dept. of Public Safety
870 F.3d 883 (Ninth Circuit, 2017)
Darnell Hines v. Ashrafe Youseff
914 F.3d 1218 (Ninth Circuit, 2019)