Jaime Medrano v. Flagstar Bank, Fsb

MEMORANDUM

Plaintiffs Jaime and Maribel Medrano appeal the district court’s orders dismissing their claims against Defendants Flags-tar Bank, FSB; Exodus Financial Corporation; Jane Fowler Kelleher; Stratham Montecito West; Strategic Sales and Marketing Group; Janis Kim Randazzo; Fernando Cordero; and Dora Senaida Cordero. On appeal, Plaintiffs challenge the dismissal of their federal claim under 12 U.S.C. § 2607 and their state-law claim for reformation and declaratory relief regarding Maribel’s alleged community-property interest. Reviewing de novo, Colony Cove Props., LLC v. City of Carson, 640 F.3d 948, 955 (9th Cir.2011), we affirm.

1. The district court correctly dismissed Plaintiffs’ § 2607 claim because there is no allegation that any defendant received kickbacks or unearned fees. Non-disclosure of the assignment of an interest in a promissory note is not a kickback or unearned fee, and the asserted section of the Real Estate Settlement Procedures Act does not provide a remedy for non-disclosure. 12 U.S.C. § 2607 (a)—(c). Because Plaintiffs’ claim fails on the merits, we need not reach the question of its timeliness.

2. The district court properly dismissed the…