Christine Marais v. Chase Home Finance LLC
736 F.3d 711
6th Cir.2013Background
- Mortgage loan in 2006; Chase serviced after financing by Residential Finance Corp.; January 2011 QWR to Chase requesting loan details, owner identity, and charges; Chase provided some documents but failed to identify the loan owner and provided limited contact info; Plaintiff alleged misapplied payments and uncredited credits; Plaintiff filed suit April 12, 2011 alleging TILA, RESPA, Ohio law, and conversion; district court granted judgment on the pleadings against TILA/RESPA and dismissed state claims; on appeal, court held TILA claim should be affirmed as to servicer liability, RESPA claim reinstated for damages under pleadings; Fannie Mae later identified as holder.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether servicer can be liable under TILA despite not being the creditor | Marais argues 1640(a) cross-reference creates servicer liability | Chase argues servicers are not creditors or assignees under 1641(f) and thus not liable | Servicer not liable; TILA liability rests with creditors/assignees only |
| Whether MARAIS sufficiently pleaded RESPA damages from a deficient QWR response | Complaint links misapplied payments to RESPA violation and seeks actual damages | District court required a tighter causation link; damages must be pleaded with plausibility | RESPA claims reinstated; damages may flow from deficient QWR response; remand for further factual development |
| Whether the district court erred in dismissing RESPA claims on causation without considering post-pleading decisions | Unpublished decisions support damages pleading under RESPA 2605(e) | Prevailing law required more explicit causation | RESPA damages claims viable; remanded for proceedings consistent with this opinion |
Key Cases Cited
- Mourad v. Homeward Residential, Inc., 517 F. App’x 360 (6th Cir. 2013) (TILA servicer liability rejected; servicer not liable unless owner)
- Coyer v. HSBC Mortg. Servs., Inc., 701 F.3d 1104 (6th Cir. 2012) (TILA liability rests with creditors/assignees; servicer not liable)
- Cenat v. U.S. Bank, N.A., 930 F. Supp. 2d 1347 (S.D. Fla. 2013) (disclosure scope can include post-assignment RESPA disclosures; private actions allowed)