Ruben Palazzo v. Bayview Loan Servicing, LLC

CourtCourt of Appeals for the Fourth Circuit
DecidedMarch 20, 2026
Docket24-2169
StatusPublished

This text of Ruben Palazzo v. Bayview Loan Servicing, LLC (Ruben Palazzo v. Bayview Loan Servicing, LLC) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ruben Palazzo v. Bayview Loan Servicing, LLC, (4th Cir. 2026).

Opinion

USCA4 Appeal: 24-2169 Doc: 54 Filed: 03/20/2026 Pg: 1 of 23

PUBLISHED

UNITED STATES COURT OF APPEALS FOR THE FOURTH CIRCUIT

No. 24-2169

RUBEN PALAZZO,

Plaintiff - Appellant,

v.

BAYVIEW LOAN SERVICING, LLC, now known as Community Loan Servicing LLC; MANUFACTURERS AND TRADERS TRUST COMPANY, d/b/a M&T Bank,

Defendants - Appellees.

Appeal from the United States District Court for the District of Maryland, at Greenbelt. Deborah L. Boardman, District Judge. (8:20-cv-02392-DLB)

Argued: January 27, 2026 Decided: March 20, 2026

Before KING, WYNN, and THACKER, Circuit Judges.

Affirmed by published opinion. Judge Thacker wrote the opinion in which Judge King and Judge Wynn joined.

ARGUED: Phillip R. Robinson, CONSUMER LAW CENTER LLC, Silver Spring, Maryland, for Appellant. Patricia B. Jefferson, Baltimore, Maryland, Bradford Scott Bernstein, MILES & STOCKBRIDGE P.C., North Bethesda, Maryland, for Appellees. ON BRIEF: Ariana K. DeJan-Lenoir, MILES & STOCKBRIDGE, P.C., Rockville, Maryland, for Appellees. USCA4 Appeal: 24-2169 Doc: 54 Filed: 03/20/2026 Pg: 2 of 23

THACKER, Circuit Judge:

While in Chapter 13 bankruptcy proceedings, Ruben Palazzo (“Appellant”)

received various documents from his mortgage servicers concerning his mortgage

obligation. Appellant sued the servicers, alleging that these communications amounted to

debt collection activities, which were prohibited during his bankruptcy proceedings. He

also claimed that the calculations included in those documents were inaccurate and

therefore violated federal and state consumer protection laws.

After analyzing each document in detail, the district court concluded that none

represented an effort to collect a debt. On that basis, the district court granted summary

judgment to the servicers on Appellant’s federal claims and declined to exercise

supplemental jurisdiction over his state law claims. Discerning no error, we affirm.

I.

A.

In 2007, Appellant obtained a mortgage through SunTrust Mortgage, Inc.

(“SunTrust”). Appellant later fell behind on the mortgage payments, which led to him

entering into a repayment agreement with SunTrust in 2010. A few years after that, in

December 2013, SunTrust transferred servicing of the loan to Bayview Loan Servicing

LLC (“Bayview”), with Manufacturing and Traders Trust Company (“M&T”) (collectively

“Appellees”) servicing the loan on Bayview’s behalf.

Ultimately, Appellant filed Chapter 13 bankruptcy in February 2016, which resulted

in an automatic stay of debt collections against him. Bayview filed a proof of claim,

seeking $150,548.06, which was the remaining amount on the mortgage, and another

2 USCA4 Appeal: 24-2169 Doc: 54 Filed: 03/20/2026 Pg: 3 of 23

$25,971.98 for pre-petition arrearages. 1 Appellant objected to the amount claimed for pre-

petition arrearages. The bankruptcy court sustained Appellant’s objection and limited

Bayview’s recoverable pre-petition arrearages to $11,816.21. Appellant filed his operative

Chapter 13 plan in April 2018, and the bankruptcy court approved the plan on July 6, 2018.

Appellant made all of the payments called for by his plan by January 2021, and the case

was closed on July 10, 2022.

While Appellant’s bankruptcy was ongoing, Appellees regularly sent Appellant

written communications -- some of which were requested by Appellant -- concerning his

mortgage obligation. These included monthly account statements, payoff statements (sent

at Appellant’s request), and 1098 tax forms. Because Appellant’s claims revolve around

the precise contents of these communications, we discuss each in more detail below.

1.

Monthly Account Statements

During Appellant’s bankruptcy, Appellees regularly sent him monthly account

statements. Those statements listed the outstanding balance on Appellant’s loan, the

interest rate, amount of interest paid, and various fees owed. And, relevant here, the

monthly statements listed the amounts that would be due once the bankruptcy concluded,

the due dates for those post-bankruptcy payments, and attached payment coupons.

1 Pre-petition arrearages are debts or other financial obligations accumulated prior to filing bankruptcy.

3 USCA4 Appeal: 24-2169 Doc: 54 Filed: 03/20/2026 Pg: 4 of 23

Each monthly statement also included the following “Bankruptcy Message,” found

on the top half of the first page of the statement:

Our records show that you are a debtor in bankruptcy. We are sending this statement to you for informational and compliance purposes only. It is not an attempt to collect a debt against you.

If your bankruptcy plan required you to send your regular monthly mortgage payments to the Trustee, you should pay the Trustee instead of us. Please contact your attorney or the Trustee if you have questions.

If you want to stop receiving statements, write to us at [provided address].

J.A. 508 (emphasis in original). 2

2.

Payoff Statements

Appellees also sent two payoff statements to Appellant, both times at his request.

M&T sent the first payoff statement on June 21, 2018, and Bayview sent the second payoff

statement on February 5, 2019. Each payoff statement, as the name suggests, advised

Appellant what it would cost him to pay off the loan in full. The payoff statements also

included payment instructions and a form to be submitted with any payment.

Like the monthly statements, each payoff statement also included a bankruptcy

disclaimer. The June 2018 payoff statement, a three page document, included the

following disclaimer at the bottom of each page:

2 Citations to the “J.A.” refer to the Joint Appendix filed by the parties in this appeal.

4 USCA4 Appeal: 24-2169 Doc: 54 Filed: 03/20/2026 Pg: 5 of 23

This is an attempt to collect a debt and any information obtained will be used for that purpose.

However, if you are currently in bankruptcy, or if you have been granted a bankruptcy discharge, this is not an attempt to collect a debt from you, nor is it an attempt to impose personal liability on you for your debt.

J.A. 514, 515. The February 2019 payoff statement, a two page document, had similar

language, which appeared on the second page under a bold “Disclaimers and Notices”

header:

Bayview Loan Servicing, LLC is a debt collector. This letter is an attempt to collect a debt and any information obtained will be used for that purpose. To the extent that your obligation has been discharged or is subject to an automatic stay of bankruptcy this notice is for compliance and informational purposes only and does not constitute a demand for payment or any attempt to collect such obligation.

Id. 529.

3.

1098 Tax Statements

Bayview also sent Appellant some 1098 tax documents in 2019 and 2020. Those

documents listed the interest Appellant had paid, remaining principal on his loan, property

taxes, and some additional fees. The tax forms made no demand for payment, nor did they

include instructions on how to make a payment.

B.

Appellant filed this lawsuit against Appellees as part of his ongoing bankruptcy

proceedings in 2019. Appellant alleged that Appellees sent him the monthly statements,

payoff statements, and tax forms in an effort to collect payment from him, which was

5 USCA4 Appeal: 24-2169 Doc: 54 Filed: 03/20/2026 Pg: 6 of 23

prohibited by the bankruptcy court’s automatic stay of debt collection activities. Appellant

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Bluebook (online)
Ruben Palazzo v. Bayview Loan Servicing, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ruben-palazzo-v-bayview-loan-servicing-llc-ca4-2026.