Clinton
Clinton v. Select Portfolio Servicing, Inc.
Opinion
Lead Opinion
Orrick, J.
ORDER DENYING MOTION TO DISMISS
INTRODUCTION
Defendants Select Portfolio Servicing, Inc, (“SPS”) and National Default Servic *1171 ing Corporation (“NDS”) (collectively, “defendants”) move to dismiss plaintiff Lewis Clinton, Jr.’s (“Clinton”) first cause of action for negligence, second cause of action for violation of California Civil Code section 2923.6(c), and fourth cause of action for violation of California Civil Code section 2924.10, all based on defendants’ handling of Clinton’s application for a loan modification for Clinton’s residence at 1169 Songwood Road, Vallejo, California, 94591 (the “Property”). The central issue I must decide is whether a lender has a duty of reasonable care when it processes a loan application. Under the facts alleged here, defendants did have such a duty and Clinton has plausibly pleaded his claims. Defendants’ motion to dismiss is DENIED. They shall answer within ten days.
BACKGROUND
On February 15, 2005, Clinton borrowed $655,000 from lender Town and Country Credit Corporation and secured the transaction with a first-lien Deed of Trust (“DOT”) against the Property. Compl. ¶ 39 (Dkt. No. 1). In 2012, he began experiencing financial…