Judgement against Rocket Mortgage vacated by Supreme Court

Judgement against Rocket Mortgage vacated by Supreme Court
Written by Publishing Team

The US Supreme Court has overturned a ruling against Rocket Mortgage and its affiliate AMROC, overturning a $9.7 million ruling in favor of 2,769 mortgage borrowers in West Virginia.

“Petition granted. Judgment has been overturned and case re-examined in light of TransUnion LLC v. Ramirez,” the case page on the court’s website reads. The verdict was issued on January 10.

The court statement refers to a case decided in June 2021, in which TransUnion allegedly violated Fair Credit Reporting Act. Lower courts granted the consumers involved the status of class action and damages.

The 5-4 majority decision in this case, written by Justice Brett Kavanaugh, turned around whether the class was “materially harmed” by TransUnion’s actions and because they were not, they did not have the legal status to sue.

Just before TransUnion’s decision was issued, in March 2021, the U.S. Fourth Circuit Court of Appeals issued a 2-to-1 decision that mostly supported a West Virginia federal judge granting class action status and a summary ruling in the case, Alig v. Quicken. A group of refinancing borrowers alleged that the mortgage company, then Quicken Loans, and its appraisal unit, then called Title Issuer, arose inflated property values ​​for the loans between 2004 and 2009.

In the district court’s summary ruling, it imposed a $3,500 Rocket penalty for each of the alleged violations for a total of approximately $9.7 million. However, the Fourth Circuit refused and reinstated pretrial hearing for an additional $969,000 for a breach of contract award.

Rocket asked the Supreme Court to overturn the Fourth Circuit’s ruling in September, citing the TransUnion case regarding the legal situation.

However, in their response, Philip Alleg’s lawyers and the rest of the class said standing was not the problem; Violations of West Virginia law were the only thing to consider.

“The District Court and Fourth Circuit had to anticipate whether the missile exercise was used Biased ratings for inflated mortgages – The exercise has been since then worldwide – amounts to “unreasonable incentive” under the West Virginia Consumer and Credit Act,” the response summary states “West Virginia courts have already concluded that Rocket’s practice violates the WVCCPA. “

This is what makes this case different from TransUnion v. Ramirez, according to registry attorney Deepak Gupta. “Plaintiffs’ claims have always been based on tangible pocket injury – not on the uncertain future risks that followed,” the memo continued. “TransUnion – a case in which the plaintiffs never paid anything to the defendants – does nothing to undermine this stable foundation of…stand.”

But the Supreme Court objected and reinstated the case.

“As the dissenting judge in the now vacated Fourth Circuit opinion has properly conceded,”

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