Jaime Medrano v. Flagstar Bank, Fsb

The Real Estate Settlement Procedures Act (“RESPA”) provides an action for damages against mortgage-loan servicers who fail to respond to certain types of inquiries from borrowers. Plaintiffs Jaime and Maribel Medrano allege that Defendant Flagstar Bank, FSB, the servicer of their home loan, violated 12 U.S.C. § 2605 because it did not respond adequately to three letters in which they challenged the monthly payment due on their loan. The district court granted Flagstar’s motion to dismiss the claim because a servicer must receive a valid “qualified written request” to incur the duty to respond under § 2605, and it determined that the letters were not qualified written requests that triggered that statutory duty. Reviewing de novo, Colony Cove Props., LLC v. City of Carson, 640 F.3d 948, 955 (9th Cir.), cert. denied, — U.S.-, 132 S.Ct. 456 , 181 L.Ed.2d 308 (2011), we hold that the letters did not trigger the statutory duty to respond and therefore affirm.

In 2009, Plaintiffs entered into a home loan agreement and purchased a house in Los Angeles County. The loan was secured by a deed of trust and, at all times relevant to this action, was serviced by Flagstar.

The loan…