Francisco Rosario, on behalf of himself and all others so similarly situated v. Nationstar Mortgage, LLC NKA Mr. Cooper

Syllabus

The named plaintiff, in an uncertified class action brought by Francisco Rosario (Rosario), appealed from a Superior Court order dismissing his breach of contract complaint against the defendants, Nationstar Mortgage, LLC NKA Mr. Cooper and Bank of New York Mellon, as trustee for First Horizon Alternative Mortgage Securities Trust 2006-AA1 (defendants). On appeal, Rosario argued that the Superior Court erred by determining that G.L. 1956 § 19 14 26.1 does not provide a private right of action for borrowers to recoup fees collected by a third party servicer while the servicer was not properly licensed in Rhode Island. Rosario pointed to a number of decisions by the Rhode Island Superior Court and the United States District Court for the District of Rhode Island interpreting the statute to permit borrowers to sue for illegally collected fees. The Supreme Court analyzed the key provisions of the contract and determined that the plaintiff's claims were barred as a matter of law because § 19-14-26.1(b) applied only to lenders and loan brokers, not loan servicers. Further, the Court determined that the statute did not confer a private right of action on the borrower. Accordingly, the Supreme Court affirmed the order of the Superior Court.