Se Habla Español | Nou Pale Kreyòl 888 Fight 13 (344-4813) 844 Fight 13 (344-4813) 954 523-4357
Your Total Debt Solution Law Firm Read Our Blog to Learn from Our Experienced Attorneys.

Pattern or Practice of Noncompliance

Pursuant to Section 2605(f) of the Real Estate Settlement Procedures Act, individuals have a private right of action against loan servicers for violations of Section 2605. A loan servicer that is in violation of Section 2605 is liable to that individual in “an amount equal to the sum of – (A) any actual damages to the borrower as a result of the failure; and (B) any additional damages, as the court may allow, in the case of a pattern or practice of noncompliance with the requirements of this section, in an amount not to exceed $2,000.” 12 U.S.C. § 2605(f)(1).

Case law is sparse regarding what the term “pattern or practice of noncompliance” means. In Almquist v. Nationstar Mortg., LLC., 14-81178-CIV-RYSKAMP/HOPKINS (S.D. Fla. 2014), Judge Ryskamp found that two (2) violations were sufficient allege a pattern or practice of noncompliance. However, in McLean v. GMAC Mortg. Corp., 595 F.Supp.2d 1360 (S.D. Fla. 2009), Magistrate Judge O’Sullivan held that two (2) violations were insufficient to allege a pattern or practice of noncompliance. There is clearly a split of authority.

Some courts have interpreted the term “pattern or practice” to mean a “standard or routine way of operating.” See McLean v. GMAC Mortg. Corp., 595 F.Supp.2d 1360, 1366 (S.D. Fla 2009); In re Maxwell, 281 B.R. 101 (D. Mass. 2002). But even this definition is vague. Very few courts have delved into the actual meaning behind the term. Does it mean a “pattern or practice” of noncompliance specific to an individual borrower or does it reflect more of a widespread way of operating? It remains to be seen what courts are truly looking for in order to award an individual statutory damages under RESPA.