Conway v. CitiMortgage, Inc.

Homeowners filed a claim against Fannie Mae and CitiMortgage (collectively, Defendants) under the Missouri Merchandising Practices Act (MMPA), alleging wrongful foreclosure of a deed of trust. Defendants filed a motion to dismiss on the basis that the alleged wrongful foreclosure of the deed of trust was not “in connection with” the mortgage loan. The trial court dismissed the complaint, concluding that the MMPA did not apply because Defendants were not parties to the original loan transaction and that the MMPA does not apply to post-sale activities that are unrelated to claims or representations made before or at the time of the transaction. At issue before the Supreme Court was whether Homeowners sufficiently pleaded that Defendants’ alleged wrongful foreclosure of the deed of trust was “in connection with” the loan so as to state a claim under the MMPA. The Supreme Court reversed, holding that because the sale of a loan lasts as long as the agreed upon services are being performed, Homeowners’ allegations of fraud and deception must have occurred “in connection with” the “sale” of their loan. Remanded. View "Conway v. CitiMortgage, Inc." on Justia Law