loanDepot asks judge to toss West Capital Lending complaint
loanDepot says WCL lacks standing under TILA and shows no lost customers, urging dismissal with prejudice in California federal court.
loanDepot is seeking to have a complaint filed by West Capital Lending (WCL) dismissed with prejudice in a California federal court. The company argues that WCL lacks standing under the Truth in Lending Act (TILA) and fails to show any evidence of lost customers. This move by loanDepot suggests that the company is looking to avoid a potentially costly and time-consuming lawsuit.
The complaint by WCL appears to be related to allegations of unfair business practices, but loanDepot's request for dismissal with prejudice indicates that the company believes there is no merit to the claims. If the court grants the request, it would mean that WCL would not be able to refile the complaint. This development is worth watching for companies in the mortgage industry, as it could set a precedent for similar cases.
What's next to watch is how the court responds to loanDepot's request for dismissal. If the judge grants the request, it could limit the ability of WCL and other companies to bring similar complaints under TILA. On the other hand, if the court denies the request, it could allow WCL to continue pursuing its claims, potentially leading to further litigation and industry-wide implications.
Originally reported by housingwire.com. ASIDNews adds analysis for real estate & property readers.