Bush v. PHH Mortgage Corp. CA4/1

CourtCalifornia Court of Appeal
DecidedMarch 26, 2025
DocketD083411
StatusUnpublished

This text of Bush v. PHH Mortgage Corp. CA4/1 (Bush v. PHH Mortgage Corp. CA4/1) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bush v. PHH Mortgage Corp. CA4/1, (Cal. Ct. App. 2025).

Opinion

Filed 3/26/25 Bush v. PHH Mortgage Corp. CA4/1 NOT TO BE PUBLISHED IN OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

COURT OF APPEAL, FOURTH APPELLATE DISTRICT

DIVISION ONE

STATE OF CALIFORNIA

SHANNA BUSH, D083411

Plaintiff and Appellant,

v. (Super. Ct. No. CIVSB2204756)

PHH MORTGAGE CORPORATION,

Defendant and Respondent.

APPEAL from a judgment of the Superior Court of San Bernardino County, Corey G. Lee, Judge. Affirmed. Law Offices of Charles O. Agege and Charles O. Agege for Plaintiff and Appellant. Wright, Finlay & Zak and Jonathan D. Fink for Defendant and Respondent.

Shanna Bush sued her loan servicer, PHH Mortgage Corporation (PHH), for negligent misrepresentation and wrongful foreclosure in violation of the California Homeowner Bill of Rights (HBOR) (Civ. Code, § 2923.4 et seq.) PHH brought a motion for summary judgment or, in the alternative, a motion for summary adjudication of issues. Bush opposed that motion but, in doing so, failed to address most of PHH’s arguments. Indeed, she did not address her wrongful foreclosure claim whatsoever. Thus, not surprisingly, the superior court granted the motion and entered judgment in favor of PHH. Now on appeal, Bush, for the first time, addresses legal arguments PHH raised below. Specifically, she claims the trial court incorrectly determined that the economic loss rule prohibited her negligent misrepresentation claim. Yet, in making this argument, she fails to address whether, even if we were to agree with her, a triable issue of material fact remains as to the elements of her negligence misrepresentations claim. This omission is fatal to her challenge concerning that cause of action. Bush’s arguments regarding her second cause of action for wrongful foreclosure fare no better. Regarding that claim, the court found that HBOR was preempted by federal law, explicitly noting that Bush did not contest the issue. Now, in somewhat cursory fashion, Bush contends that we should consider her legal argument that HBOR is not preempted. Based on the unique circumstances before us, we decline to exercise our discretion to consider this issue. Bush had the opportunity to address PHH’s preemption argument below. Because she did not do so, we believe it would be patently unfair to both PHH and the superior court to consider Bush’s preemption issue on appeal in the first instance. As we shall explain post, our conclusion is buttressed by Bush’s approach to this issue in her briefs. Finding Bush has either waived her arguments or her contentions lack merit, we affirm the judgment. FACTUAL AND PROCEDURAL BACKGROUND

Around June 22, 2006, Bush and Julia Ferguson1 obtained a loan in the amount of $311,350 (Loan) from IndyMac Bank, F.S.B. (IndyMac), a

1 Ferguson is not a party in this matter. 2 federal savings bank, which was secured by a deed of trust recorded against certain residential property (Property) located in Fontana, California. Bush subsequently modified the Loan a total of three times in 2011, 2013, and 2015. The last of these modifications was entered into between Bush and Ocwen Loan Servicing, LLC (Ocwen). Ocwen was servicing the Loan. PHH is the successor by merger to Ocwen and became the servicer of the Loan. On February 5, 2020, PHH substituted Western Progressive, LLC (Western) as trustee under the applicable deed of trust. Because the Loan, as modified, had fallen into default, Western recorded a notice of default and election to sell under deed of trust (notice of default) on February 13, 2020. The notice of default indicated that Bush had not made payments under the Loan since April 1, 2019, and was $17,421.90 in arrears. Bush did not bring the Loan current; thus, Western recorded a notice of trustee’s sale on February 12, 2021. Five months later, on July 14, 2021, PHH asked Bush to submit a new application for mortgage assistance. Bush applied for a loan modification, which PHH deemed to be complete on August 8, 2021. On August 18, 2021, after completing its review of her application, PHH informed Bush, in writing, that it denied Bush’s request for mortgage assistance. In its denial letter, PHH informed Bush that she had the right to appeal PHH’s decision within 30 days. Bush did not appeal that denial. However, Bush does not recall receiving any such letter from PHH.

3 On August 25, 2021, a PHH representative spoke with Bush and again

informed her of the denial.2 On September 24, 2021, PHH sent Bush a letter informing her that her account was subject to a COVID-19 Temporary Hardship Forbearance Plan (Covid Plan), which would end soon, that PHH “[did] not have a complete application for permanent mortgage assistance,” and that PHH required Bush to submit a complete Mortgage Assistance Application (MAA) along with all supporting documents by October 31, 2021. Three days later, on September 27, 2021, a PHH representative spoke with Bush and informed her that the trustee’s sale was set for October 27, 2021. In turn, Bush informed PHH’s representative that she was working with “somebody that

the state has provided” to bring the Loan current.3 Because PHH had given Bush until October 31, 2021 to submit a complete MAA, on October 19, 2021, PHH postponed the pending trustee’s sale, and, on October 20, 2021, Western sent Bush a letter informing her that the trustee’s sale had been postponed to November 3, 2021. Similar to her approach to other written communications that are in the record, Bush claims that she did not receive the letter from Western. On October 29, 2021, PHH determined that Bush had not submitted a complete MAA to PHH and, that same day, sent a letter to Bush, advising her that it had not received a complete MAA from her.

2 Bush does not recall the August 25, 2021 call with PHH. Nonetheless, PHH submitted a certified transcript of the August 25 call that shows a PHH representative and Bush discussed the denial of Bush’s loan modification application. Bush has not indicated whether she challenged the authenticity of the transcript below. She does not challenge it on appeal. 3 In support of its motion for summary judgment, PHH submitted a certified transcript of this call as well. 4 Bush did not submit a complete MAA to PHH on or before October 31, 2021. Consequently, on November 1, 2021, PHH closed its loss mitigation file and released the foreclosure hold. Thereafter, on November 3, 2021, the Property was sold at a trustee’s sale to third party purchasers for $457,000. At that time, the amount of Bush’s outstanding debt was $443,437.43. PHH did not receive any communications from Bush between September 27, 2021 and December 14, 2021, when, 41 days after the trustee’s sale, Bush, together with a Department of Housing and Urban Development counselor, contacted PHH and was told by PHH that the Property had

already been sold at a trustee’s sale on November 3, 2021.4 Thereafter, Bush spoke with another PHH representative on the same day. During that call, that second PHH representative, apparently not realizing the Property had been sold at a trustee’s sale, informed Bush that PHH could enroll Bush’s account back into the Covid Plan, conducted a financial interview of Bush, and submitted the interview to the modification department for review. However, on December 17, 2021, PHH sent Bush a letter informing her that her account did not qualify for any mortgage assistance options because the Property had been sold at a trustee’s sale. On February 7, 2022, Bush sued PHH, alleging causes of action for negligent misrepresentation and violation of HBOR.

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Bush v. PHH Mortgage Corp. CA4/1, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bush-v-phh-mortgage-corp-ca41-calctapp-2025.