Smith v. Flagstar Bank, FSB

INTRODUCTION

18 In this certified class action against defendant bank for non-payment of interest on 19 escrows for California borrowers, as required under Section 2954.8(a) of California’s Civil 20 Code, brought under Section 17200 of California’s Business and Professions Code, plaintiffs 21 move for summary judgment, requesting restitution and injunctive relief. A prior order already 22 determined the bank’s liability, finding it in violation of Section 2954.8(a), and thereby liable 23 under the “unlawful” prong of Section 17200. This order grants plaintiffs’ request for 24 restitution of accrued and outstanding interest on escrows that the bank failed to pay to class 25 members. Because its violations of Section 2954.8(a) are ongoing with respect to a subclass of 26 class members whose loans it continues to service, this order certifies a subclass under Rule 27 23(b)(2), appoints subclass representatives, and grants injunctive relief thereunder. To the extent stated herein, therefore, plaintiffs’ motion for summary judgment is GRANTED. STATEMENT Section 2954.8(a) of California’s Civil Code requires:

Every…