Brewster v. Sun Trust Mortgage

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Plaintiff appealed the district court's dismissal of his claim under Rule 12(b)(6), alleging that Nationstar violated section 533 of the Servicemembers Civil Relief Act (SCRA), 50 U.S.C. app. 533, when it maintained certain fees related to a rescinded Notice of Default on his account while he was on active duty. Because the state-law statutory definition of foreclosure contemplates the inclusion of specified fees as part of the foreclosure proceeding, and because the Supreme Court has unambiguously required courts to give a broad construction to the statutory language of the SCRA to effectuate the Congressional purpose of granting active-duty members of the armed forces repose from some of the trials and tribulations of civilian life, the court held that the attempted collection of fees related to a Notice of Default on a California property constituted a violation of section 533. In this case, plaintiff has pled sufficient facts to allege that Nationstar's continuing failure to remove the fees incidental to the Notice of Default was a continuation of that foreclosure proceeding while plaintiff was on active duty service in violation of section 533. Accordingly, the court reversed and remanded. View "Brewster v. Sun Trust Mortgage" on Justia Law