Ocwen Loan Servicing, LLC v. Berry

The lender, Ocwen Loan Servicing, filed suit against the borrower. The borrower asserted affirmative defenses and a counterclaim alleging numerous violations of the Texas Constitution's home equity loan provisions. The district court granted summary judgment for the lender. The court concluded that the district court erred in finding that the borrower's affirmative defenses and counterclaims alleging violations of section 50(a)(6) of the Texas Constitution were barred by a four-year statute of limitations. The court explained that it must follow the Texas Supreme Court's recent holding in Wood v. HSBC Bank USA, N.A. that no statute of limitations applies to a borrower's allegations of violations of section 50(a)(6) of the Texas Constitution in a quiet title action, rather than the court's prior holding in Priester v. JP Morgan Chase Bank, N.A. The court reasoned that, although Wood concerned a borrower's quiet title action, Ocwen has not argued that Wood's statute of limitations holding should not be applied to the borrower's arguments simply because they were asserted as affirmative defenses and as a counterclaim. Accordingly, the court vacated and remanded. View "Ocwen Loan Servicing, LLC v. Berry" on Justia Law