Court rules RESPA errors cannot block a US Bank foreclosure
US Bank filed for foreclosure in May 2023. The homeowner, who handled the appeal herself, raised six arguments: that the bank lacked standing because the assignment chain was defective, including a 2020 transfer she called “fraudulently recorded”; that the bank broke several federal and state lending laws; that it ignored her notices of error and forfeited its right to foreclose; and that its own numbers showed she was never truly in default, with more than $200,000.00 in payments left “unapplied.”
The court rejected each point. Its most useful holding for servicers concerns standing: a borrower cannot attack how a mortgage was assigned unless she shows the transfers actually injured her, and this homeowner could not. She also failed to show US Bank itself lacked standing. Her fraud and duplicate-assignment claims went nowhere – the court noted the duplicate transfer ran to the same company and meant nothing legally.
On RESPA, the ruling matters most. The law lets a borrower sue for damages over servicing errors, but it does not provide a defense against foreclosure in state court. Any claim built on 2017 notices was also past RESPA’s three-year deadline.
The default argument turned on the homeowner’s own record. She had admitted in her court answer that US Bank held the note and could enforce it, and her brief conceded she stopped paying after 2017. Vague complaints about accounting errors, the court said, could not create a genuine dispute for trial. The order was affirmed, and the mortgage’s current holder was substituted into the case.
