Washington, et al. v. Countrywide Home Loans, Inc., No. 10-1340 (8th Cir. 2011)
Annotate this CasePlaintiffs sued Countrywide Home Loans, Inc. under the Missouri Second Mortgage Loan Act (MSMLA), Mo. Rev. State. 408.231-.241, alleging, for a putative class, that Countrywide charged them unauthorized interest and fees in violation of section 408.233.1. The district court granted summary judgment for Countrywide and plaintiffs appealed. The court held that because interest accrued for the two days before plaintiffs receive the loan discount and settlement/closing fee as a result of the alleged MSMLA violations, plaintiffs have raised a material issue of fact as to whether the alleged violations caused their loss. The court also held that because the document processing/delivery fee was not included in section 408.233's exclusive list of authorized charges, it violated the MSMLA. The court further held that because the document processing/delivery fee violated the MSMLA, the prepaid interest Countrywide collected on plaintiffs' loan was an additional violation of the statute. Accordingly, the court reversed and remanded for further proceedings.
Court Description: Civil case - Consumer law. This opinion vacates the Court's July 28, 2011 opinion. Because interest accrued for two days before the plaintiffs received back improperly assessed fees, they raised a material issue of fact as to whether they suffered a loss as a result of defendant's violation of the Missouri Second Mortgage Loan Act; prepaid interest charge was an additional violation of the statute.
This opinion or order relates to an opinion or order originally issued on July 28, 2011.
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