Santos

ORDER RE: MOTION TO DISMISS

I. History

Plaintiffs Felipe Santos, Jr. and Gemma Santos purchased a home at 10111 Fitzgerald Drive, Bakersfield, CA 93311 (“Property”). They refinanced their mortgage on the property on February 7, 2007. Defendant Greenpoint Mortgage Funding, Inc. (“Greenpoint”) was the originating lender. Defendant U.S. Bank, N.A. (“US Bank”) was the assignee of the mortgage. Defendant Aurora Loan Services, LLC (“Aurora”) was the loan servicer. Plaintiffs owed $436,206.71 on the prior mortgage, replacing it with a new mortgage for $492,000. The mortgage was a variable rate loan with an initial rate of 7.375% and a maximum rate of 12.375% and minimum rate of 2.750%. As part of the refinance, Plaintiffs paid a number of miscellaneous fees Plaintiffs allege are duplicative and unreasonable. Plaintiffs also allege a number of disclosures were not provided. By April 10, 2009, Plaintiffs fell behind on their mortgage payments.

Plaintiffs filed suit on May 21, 2009 in federal district court. Defendants Green-point and Aurora filed motions to dismiss. Plaintiffs filed a First Amended Complaint (“FAC”) on October 12, 2009. In the FAC, Plaintiffs made four claims against…