Associated Mortgage Bankers, Inc. v Calcon Mutual Mortgage LLC
Associated Mortgage Bankers, Inc. v. Calcon Mutual Mortgage LLC is a recent case in which the plaintiff (AMBI) sued the Defendant (Calcon Mutual Mortgage LLC) for breach of contract. In this article, we’ll explore the case and the claims made by the Defendants.
Associated Mortgage Bankers, Inc. v. Calcon Mutual Mortgage LLC
In the lawsuit Associated Mortgage Bankers, Inc. v. Calcon Mutual Mortgage LLC, the plaintiff is a California mortgage banker. AMB is suing CalCon Mutual Mortgage LLC and One Trust Home Loans over the unwinding of the merger. The plaintiffs’ lawyers have alleged a variety of wrongdoings by CalCon.
The plaintiffs argue that they are entitled to a copy of CalCon’s financial records, as the Rescission Agreement stipulates. AMB argues that this provision provides it sufficient legal authority to compel CalCon to produce such records.
CalCon did not dispute the validity of the AMB loan. But AMB is not willing to pay for its own expenses. It paid for the expenses related to originating, underwriting, and managing the loans. It did so because it believed it was entitled to the proceeds of closing the loans.
Defendant Calcon Mutual Mortgage LLC
The NSBD approved CalCon Mutual Mortgage LLC and its affiliates to operate in California, Hawaii, Wyoming, Colorado, and Nevada. The company had offices in California, Nevada, Hawaii, and Wyoming. Later, it expanded its operations in Utah and Wyoming. This case is a result of allegations that the company breached the terms of its equitable accounting agreement with lenders.
As a result, CalCon Mutual failed to reimburse AMB for its expenses during the Transition Period. During that time, the AMB was required to pay the salaries and benefits of CalCon’s employees.
Plaintiff Associated Mortgage Bankers, Inc.
The U.S. Department of Housing and Urban Development, or HUD, is facing a class action lawsuit over improper foreclosure practices. In one case, HUD improperly sold a piece of property worth $550,000 for just $360,000. This was part of a bulk sale of defaulted notes. According to the plaintiff, this conduct is “outrageous” and should result in compensation for the property owners.
Defendants’ alleged breach of contract
The complaint alleges that Defendants breached their contract with CalCon Mutual Mortgage and, as a result, failed to pay wages and benefits to AMB and other employees during the Transition Period. The Merger Agreement required that AMB pay the salaries and benefits of CalCon employees during the Transition Period. Several employees commenced wage and hour claims against AMB.
In addition to the alleged breach of contract, Defendants allegedly violated the terms of the Reverse Mortgage Agreement, requiring them to submit all accounting records required by law. These records must be provided by CalCon upon request.
Defendants’ alleged unjust enrichment
Defendants’ alleged unjust enrichment in CalCon Mutual Mortgage involves a number of wrongful acts. First, the Defendants’ failure to pay AMB’s employees’ salaries and benefits during the Transition Period, which is the period immediately after the merger, constituted a breach of contract. Secondly, the Defendants failed to provide an accounting to AMB.
The lawsuit was filed by Associated Mortgage Bankers, Inc. in an effort to force the defendants to disclose their expenses associated with originating and underwriting the loans. The defendants, CalCon Mutual Mortgage LLC, and One Trust Home Loans filed counterclaims against Associated Mortgage Bankers, Inc.