The United States District Court for the District of New Jersey has declined a remand request and dismissed a putative class action filed by homeowners against HSBC Mortgage Services Inc. and Mortgage Electronic Registration Systems, Inc. In Napoli v. HSBC Mortgage Servs., Inc., Case No. 12-CV-222 (D. N.J. 2012), the plaintiffs alleged that HSBC and MERS fraudulently overcharged them and similarly situated foreclosed-upon borrowers by overstating the payoff amounts due on their home loans, and asserted claims for breach of contract and violations of the New Jersey Consumer Fraud Act, the Truth-In-Consumer Contract, the Warranty and Notice Act, and the Uniform Commercial Code. The case was originally filed in New Jersey Superior Court and was removed by the defendants pursuant to the Class Action Fairness Act (CAFA). The plaintiffs had been foreclosed upon and were facing the sale of their properties following judgment when they refinanced their properties immediately prior to sale. Plaintiffs alleged in their complaint that the loan payoff amounts that were ultimately refinanced had been overstated by the defendants by more than $6,000. They sought to recover their damages, trebled under the state statutes forming the basis for their claims. For more, read the full story.