Brian O'DOnnell v. Bank of America, National Asso

MEMORANDUM

1. While we lost federal question jurisdiction when plaintiffs voluntarily dismissed their Truth in Lending Act claim, they meet the requirements for diversity jurisdiction. Their unopposed motion to perfect jurisdiction is therefore granted. See 28 U.S.C. § 1653 ; Fidelity & Cas. Co. v. Reserve Ins. Co., 596 F.2d 914 , 918 (9th Cir.1979).

2. Nowhere in the mortgage agreement did Bank of America represent that it would apply monthly payments to principal if borrowers paid an amount insufficient to cover even the accrued interest. Plaintiffs have therefore failed to state a breach of contract claim that’s plausible on its face. See Ashcroft v. Iqbal, 556 U.S. 662 , 129 S.Ct. 1937, 1949 , 173 L.Ed.2d 868 (2009); see also Amparan v. Plaza Home Mortg., Inc., 678 F.Supp.2d 961, 977 (N.D.Cal.2008); Velazquez v. GMAC Mortg. Corp., 605 F.Supp.2d 1049, 1071 (C.D.Cal.2008).

3. The fraud and unfair competition claims would force Bank of America to make additional disclosures, and are thus expressly preempted by the regulation that privileges national banks to make real estate loans “without regard to state law limitations concerning” the terms of credit or required disclosures.…