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10/03/25
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Class Action Alleging Deceptive Mortgage Acceleration Notice Language Proceeds
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JD Supra |
Class Action Alleging Deceptive Mortgage Acceleration Notice Language Proceeds
A North Carolina federal court has allowed a putative class case to proceed on a theory that a residential mortgage servicer’s notice that it “may” accelerate is deceptive under the FDCPA and state law. On September, 16, 2025, a judge for the US District Court of the Middle District of North Carolina issued a memorandum opinion and order in the class action proceeding captioned Christel England et al. v. Selene Finance, LP, case number 23-cv-00847, denying the defendant servicer’s motion to dismiss a putative class action complaint. The putative class plaintiffs alleged that the servicer’s default notice is deceptive under the federal Fair Debt Collection Practices Act (FDCPA), the North Carolina Debt Collection Act, and the North Carolina Collection Agencies Act.
The language of the notice at issue is familiar to the residential mortgage servicing industry. Titled Notice of Default and Intent to Accelerate, the notice states that:
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10/02/25
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California Enacts Mortgage Forbearance Act, Effective Immediately; Will Pose Compliance Challenges for Servicers
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National Law Review |
On September 22, 2025, California Gov. Gavin Newsom signed the Mortgage Forbearance Act into law, with an immediate effective date. The law, designed to provide emergency relief to California mortgage loan borrowers impacted by the various wildfires that occurred earlier in 2025, is in many ways reminiscent of the CARES Act forbearance framework from 2020. However, given that it is a state law, it has limitations compared to its predecessor. On the other hand, in situations where it does apply, the Mortgage Forbearance Act imposes additional burdens that will create compliance challenges for servicers.
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