Mortgages and their servicing are thoroughly regulated, including in the state of Massachusetts. The complaint for this class action alleges that US Bank, NA charges impermissible fees, such as a Payoff Statement Fee and a Discharge Recording Fee, which are included in the Total Amount Due when borrowers request a Payoff Statement for their mortgages.
Three classes have been defined for this action:
- The Payoff Statement Fee Class is all persons who were charged and paid a Payoff Statement Fee relating to a mortgage recorded in Massachusetts.
- The Discharge Recording Fee Class is all persons who were charged and paid a Discharge Recording Fee relating to a discharge of a mortgage recorded in Massachusetts.
- The Payoff Statement Class is all persons who were charged and paid a Payoff Statement Fee or a Discharge Recording Fee that was included as part of the Total Amount Due on a Payoff Statement for a property in Massachusetts.
The plaintiff in this case, Christopher Gillis, held a mortgage for a home in Barnstable County, Massachusetts. It was recorded in the county Registry of Deeds on January 19, 2016. US Bank was “a lender, mortgagee, note holder, and/or third-party loan servicer of” that mortgage.
Gillis requested a Payoff Statement from US Bank. The Payoff Statement was sent on or around May 20, 2021. However, included in the total amount were a “Special Delivery Fee” (which the complaint takes to be a Payoff Statement Fee) and a Recording Fee (which the complaint takes to be a Discharge Recording Fee).
The complaint implies that the mortgage was insured by the Federal Housing Administration (FHA), which is an agency within the Department of Housing and Urban Development (HUD). According to the complaint, the Payoff Statement Fee and Discharge Recording Fee are not on the list of authorized fees or are in excess of the maximum fees permitted by HUD.
Massachusetts law covers the Payoff Statement for a mortgage. A lender, mortgagees, note holder, or third-party loan servicer must give mortgage borrowers “an accurate statement of the total outstanding balance that would be required to pay the borrower’s obligation in full as of a specified date.” The statement must be accurate.
The complaint also claims that Massachusetts law requires that a written discharge be provided for free and that there should be no charge for the first Payoff Statement requested in a six-month period.
The complaint asserts that US Bank charge the fee for sending the Payoff Statement by fax, in which case, it says, federal law requires that US Bank inform Gillis that there are other methods of sending the statement for free. The complaint also alleges that US Bank should not have assessed Gillis a Discharge Recording Fee.
The counts include Unjust Enrichment and violations of the Massachusetts General Laws.
Article Type: LawsuitTopic: Real Estate
Most Recent Case Event
US Bank Improper Fees for Payoff Statement Massachusetts Complaint
September 17, 2021
Mortgages and their servicing are thoroughly regulated, including in the state of Massachusetts. The complaint for this class action alleges that US Bank, NA charges impermissible fees, such as a Payoff Statement Fee and a Discharge Recording Fee, which are included in the Total Amount Due when borrowers request a Payoff Statement for their mortgages.
US Bank Improper Fees for Payoff Statement Massachusetts ComplaintCase Event History
US Bank Improper Fees for Payoff Statement Massachusetts Complaint
September 17, 2021
Mortgages and their servicing are thoroughly regulated, including in the state of Massachusetts. The complaint for this class action alleges that US Bank, NA charges impermissible fees, such as a Payoff Statement Fee and a Discharge Recording Fee, which are included in the Total Amount Due when borrowers request a Payoff Statement for their mortgages.
US Bank Improper Fees for Payoff Statement Massachusetts Complaint