In Re Ocwen Mortgage Servicing Litigation

In Re Ocwen Mortgage Servicing Litigation

Amicus brief addressing the scope of state-law claims preempted by the Home Owners Loan Act, (HOLA) and HOLA regulations promulgated by the Office of Thrift Supervision.

Amicus brief addressing the scope of state-law claims preempted by the Home Owners Loan Act, 12 U.S.C. §§ 1461 et seq. (“HOLA”), and HOLA regulations promulgated by the Office of Thrift Supervision (“OTS”), particularly 12 C.F.R. § 560.2.  The district court in Chicago held that two dozen state-law claims that arise from a mortgage company’s disregard of loan terms, including claims predicated on the unfair practices statutes of a number of states, as well as common-law contract and fraud claims, are not preempted by § 560.2.  The defendants are challenging that ruling on appeal.  Public Justice joined an amicus brief that spells out the real-world consequences of failing to limit the scope of preemption under the HOLA regulations. Public Justice Attorney Leslie Brueckner provided input on the brief.