Renfroe v. Nationstar Mortg., LLC, No. 15-10582 (11th Cir. 2016)Annotate this Case
Plaintiff, a retired bank manager, filed suit against Nationstar under the Real Estate Settlement Procedures Act (RESPA), 12 U.S.C. 2601 et seq., a consumer-protection statute geared toward mortgagors. Plaintiff claimed that her mortgage payment incorrectly increased after Nationstar began servicing the loan. The district court granted Nationstar's motion to dismiss. The court concluded that plaintiff has plausibly alleged that Nationstar did not offer a written explanation stating the reason or reasons for its determination, in violation of section 2605(e)(2)(B) and 12 C.F.R. 1024.35(e)(1)(i)(B); that this failure indicated Nationstar's investigation was unreasonable; and that Nationstar’s unreasonable investigation prevented it from discovering and appropriately correcting the account error. The court concluded that the district court improperly elevated Nationstar's allegations over those of plaintiff at the motion-to-dismiss stage, and that plaintiff adequately pleaded damages. Accordingly, the court reversed and remanded.