James Lee Franklin, Jr. and Addie Christine Franklin v. Lakeview Loan Servicing, LLC

Summary

The United States District Court for the Southern District of Illinois granted Lakeview Loan Servicing, LLC’s motion to dismiss claims arising from alleged escrow mismanagement, improper property-tax charges, and foreclosure proceedings. The court dismissed without prejudice claims under RESPA, TILA, Illinois fraudulent misrepresentation law, and unjust enrichment, as well as unsupported references to the FDCPA, FCRA, and FTCA. Plaintiffs were granted leave to amend by February 6, 2026.

Holdings

1. Plaintiffs failed to state a claim under RESPA because they did not allege that Lakeview failed to make tax or insurance payments from the escrow account in a timely manner or failed to return an escrow balance after payoff of the loan.
2. A plaintiff may not recover damages under TILA from a mortgage loan servicer that is not a creditor.
3. Plaintiffs failed to state a fraudulent misrepresentation claim because they did not plead the alleged fraud with the particularity required by Rule 9(b).
4. The unjust-enrichment claim failed because it was based on the same alleged conduct as the dismissed RESPA, TILA, and fraudulent misrepresentation claims.
5. Bare references to the FDCPA, FCRA, and FTCA, without supporting factual allegations or identification of an actionable provision, failed to state claims.

Questions Presented

1. Whether Plaintiffs adequately pleaded a RESPA claim based on alleged escrow-account and property-tax mismanagement.
2. Whether Plaintiffs could maintain a damages claim under TILA against Lakeview, a mortgage loan servicer rather than a creditor.
3. Whether Plaintiffs pleaded fraudulent misrepresentation with the particularity required by Federal Rule of Civil Procedure 9(b).
4. Whether Plaintiffs' unjust-enrichment claim could proceed when it rested on the same conduct underlying dismissed claims.
5. Whether bare references to the FDCPA, FCRA, and FTCA, without supporting factual allegations or identification of an actionable statutory provision, stated claims for relief.

Disposition

dismissed