Loan Servicer Met RESPA Obligations
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Loan Servicer Met RESPA Obligations

A mortgagor sued a loan servicer and mortgagee's trustee to prevent foreclosure, alleging promissory estoppel and a violation of the Real Estate Settlement Procedure Act (RESPA), Texas Debt Collection Act (TDCA), and federal Declaratory Judgment Act. The Fifth Circuit affirmed summary judgment for the servicer and trustee holding as a matter of first impression the RESPA provision describing procedures that mortgage servicers had to follow when processing loss mitigation applications was not an affirmative defense; nor was the regulation retroactive. However, the defendants satisfied their duties and did not violate the law.

Germain v US Bank National Association as Trustee for Morgan Stanley Mortgage