DAVID H. HENNESSY, Magistrate Judge.
On March 3, 2014, Defendant Wells Fargo Bank, N.A. ("Wells Fargo") filed a Motion to Dismiss Plaintiffs Nancy Amorello and Peter Amorello's Complaint. (Docket #18). Plaintiffs then filed an Amended Complaint on March 17, 2014. (Docket #20). On March 25, 2014, Wells Fargo filed a Motion to Dismiss the Amended Complaint. (Docket #22). Plaintiffs filed an opposition to the Motion to Dismiss the Amended Complaint on April 7, 2014. (Docket #24). These matters are now ripe for adjudication. For the reasons that follow, Wells Fargo's Motion to Dismiss (Docket #18) is DENIED AS MOOT and Wells Fargo's Motion to Dismiss the Amended Complaint (Docket #22) is ALLOWED.
On October 12, 2005 or October 14, 2005, the Plaintiffs granted a mortgage to New Century Mortgage Corporation ("New Century") secured by property located in Sutton, Massachusetts. (Docket #20 at ¶¶ 4, 6). On October 12, 2005, Peter Amorello executed an adjustable rate note in favor of New Century agreeing to pay the sum of $315,000. (
On March 13, 2007, the Commonwealth of Massachusetts issued a cease and desist order directing New Century to immediately cease engaging in mortgage lending and brokerage activities within the Commonwealth. (
Plaintiffs filed suit in Worcester Superior Court on November 4, 2013. (Docket #1 at 1; Docket #1-1 at 3-5). On January 27, 2014, Wells Fargo removed the action to this Court. (Docket #1). Plaintiffs' Amended Complaint contains three counts. In Count I, Plaintiffs seek damages, asserting that the terms of the mortgage constitute predatory lending. (Docket #20 at ¶¶ 13-19). In Count II, Plaintiffs assert that New Century's transfer of their mortgage to Wells Fargo violated the California Department of Corporations order of October 4, 2007, and thus the mortgage should be declared null and void. (
Rule 8 of the Federal Rules of Civil Procedure provides, in relevant part, that "[a] pleading that states a claim for relief must contain . . . a short and plain statement of the claim showing that the pleader is entitled to relief[.]" Fed. R. Civ. P. 8(a)(2). The statement must "give the defendant fair notice of what the plaintiff's claim is and the grounds upon which it rests."
On a motion to dismiss under Fed. R. Civ. P. 12(b)(6), the court "must assume the truth of all well-plead[ed] facts and give the plaintiff the benefit of all reasonable inferences therefrom."
Although the complaint need not provide "detailed factual allegations,"
Although most motions to dismiss pursuant to Federal Rule of Civil Procedure 12(b)(6) are "premised on a plaintiff's putative failure to state an actionable claim, such a motion may sometimes be premised on the inevitable success of an affirmative defense."
In Count I of their Complaint, entitled "Predatory Lending," Plaintiffs allege that their mortgage, which was for more than 97 percent of the value of their home, adjusted a little after two years from the date of signing with the introductory loan rate being at least 3 percent lower than the first adjusted rate. (
The Massachusetts Predatory Home Loans Practices Act prohibits a lender from making a high-cost home mortgage loan
A borrower may bring an original action for violation of the Predatory Home Loans Practices Act within five years of the closing of a high-cost home mortgage loan. Mass. Gen. Laws. ch. 183C, § 15(b)(1). Plaintiffs allege that the mortgage was executed on either October 12, 2005 or October 14, 2005. (Docket #20 at ¶ 6). Plaintiffs filed suit on November 4, 2013, more than eight years after they executed the mortgage. (Docket #1 at 1). Plaintiffs assert that the Predatory Home Loans Practices Act is not time-barred as Plaintiffs continue to suffer ongoing harm as a result of predatory lending which continues on to this day; however, Plaintiffs cite to no authority, nor does this Court find any, allowing Plaintiffs to bring an original action under this Act once the statute of limitations has run. Moreover, the Court is confident that the Massachusetts legislature recognized the possibility that borrowers could face ongoing harm from predatory loan practices, lasting more than five years, when it chose this limitations period. Hence, Plaintiffs' claim under the Predatory Home Loans Practices Act is time-barred.
To the extent that Plaintiffs base any part of their claim in Count I on Massachusetts General Laws chapter 93A, that claim is time-barred as well. Claims brought under chapter 93A are subject to a four-year statute of limitations. Mass. Gen. Laws ch. 260, § 5A. The four year statute of limitations expired in October of 2009 and, therefore, any claim under chapter 93A is untimely.
Therefore, Count I of the Amended Complaint is dismissed for failure to state a claim upon which relief can be granted.
In Count II of their Amended Complaint, Plaintiffs assert that New Century violated the California Department of Corporations order of October 4, 2007 when it transferred the Plaintiffs' mortgage to Wells Fargo. (Docket #20 at ¶¶ 21). Plaintiffs assert that the mortgage should be declared null and void under the Full Faith and Credit Clause of the Constitution. (
The California Department of Corporations order of October 4, 2007 required New Century to New Century to transfer its existing service accounts, including Plaintiffs' account, within sixty days. New Century did not transfer Plaintiffs' mortgage to Wells Fargo until December 28, 2006, approximately eighty-five days after the California Department of Corporations' order. However, Plaintiffs have failed to allege any harm suffered as a result of the transfer taking place eighty-five days after the California Department of Corporations' order as opposed to sixty days. Moreover, Plaintiffs cite no case law, nor could the Court find any, holding that failure to transfer the mortgage within the requisite time period would result in the mortgage being declared null and void.
Therefore, Count II of the Amended Complaint is dismissed for failure to state a claim upon which relief can be granted.
In Count III, Plaintiffs seek a declaratory judgment that their mortgage is null and void due to Wells Fargo's ongoing predatory lending. For the same reasons that Count I is dismissed, Count III is also dismissed.
For the foregoing reasons, Wells Fargo's Motion to Dismiss (Docket #18) is DENIED AS MOOT and Wells Fargo's Motion to Dismiss the Amended Complaint (Docket #22) is ALLOWED.