MATTHEW DWOSKIN; RANDI DWOSKIN; JENNIFER DECKER; TERESA BUTLER; LINDA CAMPBELL; LINDA CUADRA; ALFRED FIGLEY; KELLY DILLS; STEFANI DILLS; MICHAEL WALSH; JENNIFER WALSH; PHILLIP WERTHEIMER; JOANN WOODS; SHAWN WOODS; KERRIE ZIPPRICH, Plaintiffs - Appellants,
BANK OF AMERICA, N.A. Defendant-Appellee. SEAN DECKER, Intervenor/Plaintiff - Appellant,
Argued: March 21, 2018
from the United States District Court for the District of
Maryland, at Baltimore. Catherine C. Blake, District Judge.
C. White, PARRY TYNDALL WHITE, Chapel Hill, North Carolina,
Bradley R. Kutrow, MCGUIREWOODS LLP, Charlotte, North
Carolina, for Appellee.
Dhamian Blue, BLUE LLP, Raleigh, North Carolina; Richard D.
Heideman, Noel J. Nudelman, Tracy Reichman Kalik, HEIDEMAN
NUDELMAN & KALIK P.C., Washington, D.C.; Richard S.
Wayne, STRAUSS & TROY, LPA, Cincinnati, Ohio; Leonard B.
Simon, LAW OFFICES OF LEONARD B. SIMON, P.C., San Diego,
California, for Appellants.
P. Troutman, Wm. Grayson Lambert, Charlotte, North Carolina,
Brian D. Schmalzbach, MCGUIREWOODS LLP, Richmond, Virginia,
WILKINSON, MOTZ, and KING, Circuit Judges.
WILKINSON, CIRCUIT JUDGE.
brought suit against the defendant Bank of America under the
Homeowners Protection Act. They claimed that the bank failed
to make certain required disclosures in connection with their
residential mortgage loans. The statute is clear, however,
that these mortgage insurance disclosures are mandated only
if lender-paid mortgage insurance is a condition of obtaining
a loan. See 12 U.S.C. § 4905(c). Because no
such conditions applied to the plaintiffs' loans,
nondisclosure was not a Homeowners Protection Act violation.
plaintiff in this case obtained a thirty-year, fixed-rate
mortgage loan between June 2007 and December 2008 through
Bank of America's "No Fee Mortgage Plus"
program. The No Fee Mortgage Plus loans were advertised as
charging no fees in connection with closing and requiring no
private mortgage insurance.
after launching this product nationwide in 2007, Bank of
America began obtaining lender-paid mortgage insurance (LPMI)
on certain pools of closed and funded No Fee Mortgage Plus
loans. Bank of America explained that this decision was made
to increase liquidity during the financial crisis that began
to affect the housing market that year. That is, while Bank
of America initially planned to keep the No Fee Mortgage Plus
loans on its own books, purchasing LPMI gave it the option to
sell the loans on the secondary market. LPMI was eventually
purchased on a significant proportion of the No Fee Mortgage
Plus loans, including on each of the ...