Harris v. Nationstar Mortgage LLC
MEMORANDUM Opinion and Order: Signed by the Honorable Milton I. Shadur on 12/20/2016. Mailed notice(ks, )
IN THE UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF ILLINOIS
350 Highland Dr.
Lewisville, TX 75067
Sean Harris ("Harris") has brought this action against Nationstar Mortgage ("Nationstar")
via an Amended Complaint ("AC") that charges Nationstar with having violated the federal Fair
Debt Collection Practices Act
("Act"). According to AC fl 5, Nationstar
operates as a collection
agency and is a "debt collector" as defined in the Act.
Although this Court is required to credit a plaintiffs allegations in evaluating the
sufficiency of a complaint, Harris' allegations in AC fl 5 pose a troubling problem. Nationstar's
corporate name is of the type normally used by the actual owner of a mortgage indebtedness,
rather than an entity that simply acts as a collection agency serving the actual owner. In that
respect AC fltT 9 and 12 reflect total uncertainty on that score.
Specifically, Plaintiff had her mortgage transferred to Defendant at a time
when Defendant was in default for her mortgage.
At some point, the original creditor transferred this loan to Defendant,
while Plaintiff was in default with original creditor.
14 states that Nationstar's
first contact with Harris was to advise him that he was in
arrearage on the mortgage and the mortgage was "currently'in foreclosure."'
If Nationstar's effort described in the AC has been to collect an obligation owed to it, the
Complaint's characterization of its being a "debt collector" for statutory purposes is obviously
inaccurate. At a minimum the allegations drafted by Harris'counsel create an ambiguity -- at
worst they may plead him out of court. Accordingly Harris' counsel is ordered to provide more
enlightenment on that subject on or before January 6,2017 so that this Court can determine
whether this action can go forward under the Act.
Milton I. Shadur
Senior United States District Judge
Date: December 19,2016
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