Morales

PROCEEDINGS: Order Granting Motion to Dismiss and Remanding Action to State Court (In Chambers)

On November 20, 2007, Defendant filed both a Motion to Dismiss and a Motion to Strike Class Allegations. The Court finds these Motions appropriate for decision without hearing. L.R. 7-15.

Plaintiffs’ present class action alleges that Defendant Countrywide Home Loans (“Defendant” or “CHL”) charged consumers improperly for services related to mortgages. Plaintiff alleges that these charges violated section 8(b) of the Real Estate Settlement Procedures Act (“RES-PA”), 12 U.S.C. § 2607 (b); Regulation X, 24 C.F.R. § 3500.1 ; and California Financial Code section 50505. Based on these facts, Plaintiff makes claims for violation of California’s Unfair Competition Law (“UCL”), breach of contract, and fraud.

This case was removed under federal question jurisdiction because the unlawful prong of Plaintiffs UCL claim necessarily turns on the construction of RE SPA and Regulation X. See Franchise Tax Board v. Constr. Laborers Vacation Trust, 463 U.S. 1 , 103 S.Ct. 2841 , 77 L.Ed.2d 420 (1983) (holding that state law claims are treated as ones “arising under federal law” where it is based on a…