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Home / Opinions / Courts / 8th U.S. Circuit Court of Appeals / Consumer Law: Mortgage Modification – Fraudulent Misrepresentation – Promissory Estoppel

Consumer Law: Mortgage Modification – Fraudulent Misrepresentation – Promissory Estoppel

Where homeowners brought claims of fraudulent misrepresentation against their loan servicer after they attempted to negotiate a mortgage modification and the servicer began foreclosure after they stopped paying on the loan, the district court’s dismissal of the homeowners’ claims is affirmed because they did not state a persuasive reason for relaxing Rule 9(b)’s heightened pleading standards and they did not state a plausible claim for fraudulent misrepresentation, and the court also properly dismissed the claim for promissory estoppel.

Judgment is affirmed.

Freitas v. Wells Fargo Home Mortgage, Inc. (MLW No. 64541/Case No. 11-3751 – 8 pages) (U.S. Court of Appeals, 8th Circuit, Smith, J.) Appealed from U.S. District Court, Western District of Missouri, Dorr, J. (G. Kyle Domann, Springfield, argued for appellant; Grant D. Johnson appeared on the brief) (Eric D. Martin, St. Louis, argued for appellee; Thomas E. Nanney appeared on the brief).

Read the full text of this opinion. (PDF)