Trust Loans Settlement

August 21, 2012


WRRSV is pleased to announce that the Court has preliminarily approved a $68,300,000.00 class action settlement in Beaver v. U.S. Bank National Association, Case No. 1216-CV21345. U.S. Bank National Association and Wilmington Trust Company, trustees of  26 trusts and the 26 trusts (collectively “Trust Parties”) have agreed to pay $68,300,000 to settle the claims of over 3,000 class members who obtained approximately 1,800 second mortgage loans that were purchased by, assigned to, or serviced by the Trust Parties.  Class Members who do not exclude themselves from the settlement will receive a substantial payment ranging from an estimated $250 to $86,000 ($20,303 on average).


The claims asserted against the Trust Parties in the Beaver case were originally asserted in eight separate class action lawsuits, and this settlement will resolve the “Released Claims” against the Trust Parties in each of those cases. Because the Missouri law claims filed against the other defendants in those eight class action lawsuits have yet to be resolved, those eight lawsuits will remain pending. For more information about those underlying lawsuits, you can click on the case names below:

Baker v. Century Financial Group, Inc.
Couch v. SMC Lending, Inc.
Gilmor v. Preferred Credit Corporation
Hall v. American West Financial
Thomas v. German American Capital Corporation
Beaver v. First Consumers Mortgage, Inc.
Wong v. Bann-Cor Mortgage
Smith v. Premiere Associates Mortgage Company


Class Members can see what we currently estimate the amount of their settlement payment to be by accessing the Proposed Distribution Schedule. To access the Proposed Distribution Schedule for your settlement benefit, click here.


November 26, 2012 


The Circuit Court of Jackson County has entered its order giving final approval to the Settlement Agreement reached with U.S. Bank in Jack L. and Hilda M. Beaver, et al. v. U.S. Bank National Association, et al. The judgment will become final on January 7, 2013, and we anticipate sending distribution checks to Settlement Class Members beginning in late February/March 2013.


April 18, 2014


 On April 17, 2014 and April 18, 2014, we appeared before Judge Charles H. McKenzie and presented oral arguments in support of Plaintiffs’ Motions to Enforce Settlement Agreement and Judgment on the Active loans issue.  Defendants U.S. Bank NA and U.S. Bank NA ND offered arguments in opposition.  Judge McKenzie stated that he was taking the matter under advisement and asked for hard copies of all of the exhibits.  In addition, both sides must draft proposed Orders and submit them to the Court for review.


November 4, 2015


On November 4, 2015, the Court of Appeals for the Western District of Missouri issued its Mandate affirming the Judgment of the Circuit Court of Jackson County, Missouri, relating to Plaintiffs’ Motion to Enforce Settlement Agreement and Judgment on the Active Loans issue.  The underlying Judgment entered by the Circuit Court rejected our argument that the term “Active Loan” as used in the Settlement Agreement was ambiguous and should be read to exclude those loans that had ceased to be paid and were no longer “active.”


Under the Circuit Court’s decision, as affirmed by the Court of Appeals, the Settling Defendants are entitled to offset and reduce the amount of any Valid Claim by the “principal indebtedness outstanding,” which refers to the principal amount of the loan that was never repaid.  While the outcome of the Motion to Enforce and the subsequent appeal are disappointing, the decision is consistent with Missouri law that a violation of the MSMLA does not relieve the borrower from the obligation to repay the loan principal.  However, under the terms of the Settlement, the Settling Defendants must acknowledge that the unpaid loan principal for each Active Loan has been paid in full and file a release of any mortgage lien associated with each Active Loan.


A detailed letter is being sent to all affected class members to provide more information regarding the Circuit Court’s Judgment and the Mandate of the Court of Appeals.


Affected class members can see the amount that the Settling Defendants assert to be still owed and outstanding on their respective loans by clicking here and typing in their social security number.  Affected class members will also be able to see the net amount, if any, that they will receive if the amount of the offset that the Settling Defendants are claiming for the unpaid principal debt does not change.


Links to Settlement Documents:

Back to Class Action Settlements

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