Silvas

ORDER GRANTING DEFENDANT’S MOTION TO DISMISS

In this putative class action Plaintiffs Edna and Rodolfo Silvas (“Plaintiffs”) seek a declaration that one of Defendant E*TRADE Mortgage Corporation’s (“Defendant” or “E*Trade”) lending practices violates California’s Unfair Competition Law (“UCL”). Plaintiffs also request disgorgement and attorney fees and costs. Defendant now moves to dismiss based on federal preemption. All parties are represented by counsel. The Court decides the matter on the papers submitted and without oral argument pursuant to Civil Local Rule 7.1(d.l). For the reasons discussed below, the Court GRANTS Defendant’s motion.

I. Background

The following facts are taken from Plaintiffs’ complaint and for the purposes of this motion, the Court assumes them to be true. In October 2001 Plaintiffs decid ed to refinance their mortgage with Defendant. During the refinancing process, Plaintiffs paid Defendant a $400.00 fee to lock-in the interest rate Defendant offered them (“Lock-in Fee”). In November 2001, after Plaintiffs received a notice of their right to cancel the transaction under the Truth in Lending Act (“TILA”), they elected to rescind the mortgage…