U.S. DISTRICT COURT, WDNY
Truth in Lending Act
Sufficiency of Pleadings
Owens v. Aspen Funding LLC, et al
Background: The plaintiff alleged that she was defrauded into taking out mortgage loans that she could not afford. Shortly after her husband died, the plaintiff started receiving telephone solicitations from the defendants urging her to refinance her home in order to lower her monthly payments. According to the plaintiff, she executed two loans, the terms of which were not disclosed to her. The plaintiff alleged she never received notice informing her right to cancel the loans prior to the execution of the loan documents. The defendants moved to dismiss the plaintiff’s second amended complaint.
Ruling: The district court granted the defendant GMAC motion to dismiss as it was not liable under any cause of action as it was only the servicer of the loan. In addition, the court denied in part the plaintiff’s cross-motion to keep the defendant GMAC in the case as a necessary party as the plaintiff did not articulate a reason why the defendant was necessary. The defendant Greenpoint motion to dismiss was granted as the court found, inter alia, the plaintiff knowingly signed the mortgage documents without an attorney present and the documents accurately reflected the mortgage rate.
Jane Marie Gabriele, Bryan D. Hetherington, Rebecca Case-Grammatico, Alexander Karsten for the plaintiff; Gail M. Eckstein and Harry Rimm of Reed Smith LLP for defendant Greenpoint Mortgage Funding LLC, Kenneth J. Flickinger and Melanie Finkel of Knuckles Komosinski & Elliot, LLP for defendant GMAC, Aurora Bank, FDB and Mortgage Electronic Servicing