### IN THE UNITED STATES COURT OF APPEALS FOR THE FIFTH CIRCUIT

No. 14

- 20019 Summary Calendar

ROGER LAW , Plaintiff

- Appellant

v.
OCWEN LOAN SERVICING , L.L.C.,

Defendant

- Appellee

Appeal from the United States District Court for the Southern District of Texas USDC No. 4:13

- CV

- 2172

Before REAVLEY , DENNIS , and SOUTHWICK, Circuit Judges. PER CURIAM: * Roger Law appeals the dismissal of his claims arising out of a foreclosure on his property. He also argues that he should have been allowed to amend his complaint in lieu of its di s missal . We AFFIRM the dismissal , thereby denying Law’s request for a remand and leave to amend.

* Pursuant to 5 TH C IR . R. 47.5, the court has determined that this opinion should not be published and is not precedent except under the limited circumstances set forth in 5 TH C IR . R. 47.5.4. United States Court of Appeals Fifth Circuit 

### FILED October 16, 2014

Lyle W. Cayce Clerk Case: 14-20019 Document: 00512805760 Page: 1 Date Filed: 10/16/2014No. 14

- 20019

FACTS AND PROCEDURAL BACKGROUND In September 2005 , Roger Law purchased property located in Missouri City, Texas for $284,800 . He financed the purchase through a promissory note made payable to AAMES Funding Co rporation. As security for the note, Law executed a purchase money deed of trust encumbering the property

. The deed of trust provided that, should Law fail to make payments on the note when due, the servicer could enforce the deed of trust by selling the property in accordance with the law and the provisions set out in the deed of trust

. After Ocwen Loan Servicing, L

. L

. C

. became the service r of Law’s note in
2010 , Law cont acted Ocwen to request a loan modification because he was having difficulty making his monthly payments. In January 2011 , Ocwen sent Law a modification agreement that Ocwen had not signed

. Acceptance was condi tioned upon Law’s faxing a signed copy of the agreement to Ocwen and making a down payment by February 3, 2011. Law sign ed the agreement on February 7 , and faxed it to Ocwen on February 9

. He made the down payment on February 8

. In April 2012, Law brough t suit against Oc wen after it initiated foreclosure proce edings . Law asserted causes of action for violations of the Texas Property Code, breach of contract, violations of the Real Estate Settlement Procedures Act ( “ RESPA” ), and negligence. 1 He obtained a
t emporary restraining order against Ocwen in May 2012. In August 2013, Ocwen moved to dismiss the claims under Rule 12(b)(6). The district court granted the motion in December 2013

. La w timely appealed to this court, arguing that his pleadings were sufficient to survive dismissal and, in the alternative, that he should be granted leave to amend his complaint

.

1 Law also claimed violations of the Texas Debt Collection Practices Act and requested injunctive relief . He does not contest the dismissal of these claims on appeal. 2 Case: 14-20019 Document: 00512805760 Page: 2 Date Filed: 10/16/2014No. 14

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DISCUSSION We review a dismissal under Rule 12(b)(6) de novo , “accepting all well

pleaded fact s as true and viewing those facts in the light mo st favorable to the plaintiff.” Stokes v. Gann , 498 F.3d 483, 484 (5th Cir. 2007). A pleading must contain “a short and plain statement of the claim showing that the pleader is entitled to relief.” F ED

. R. C IV

. P. 8(a)(2). This does not require “‘ detai led factual allegations ,’ but it demands more than an unadorned, the

- defendant

unlawfully

- harmed

- me accusation.” Ashcroft v. Iqbal , 556 U.S. 662, 678 (2009) (quoting Bell Atl. Corp. v. Twombly , 550 U.S. 544, 555 (2007)). A pleading will be judged insuffi cient if it offers “a formulaic recitation of the elements of a cause of action” or “a naked assertion” without “further factual enhancement.” Twombly , 550 U.S. at 555, 557. 2 I. Texas Property Code § 51.002 Law argues that Ocwen violated the Texas Property C ode’s notice provisions regarding foreclosure. Those provisions require a mortgagee to: (1) notify the mortgagor of a default and afford him 20 days to cure and (2) notify the mortgagor at least 21 days before a foreclosure sale. T EX

. P ROP

. C ODE § 51.002(b)(3), (d).
Law asserts that foreclosure was “premature” because he “raised issues regarding the executed modification agreement and escalations in his escr ow account . . . .” T he Property Code ’s notice requirements, however, make no mention of a mortgagee ’s duty to forestall foreclosure so long as the mortgagor

2 On appeal, L aw asserts various legal theories and factual allegations in support of his claims that were not expressed in his complaint

. We decline to consider them . R eview of a Rule 12(b)(6) dismissal is , by its very nature, limited to the allegations and theories set forth in the complaint that the district court had before it when grant ing the motion to dismiss . Moreover, this approach accords with our general practice of not considering issues raised f or the first time on appeal. See Celanese Corp. v. Martin K. Eby Const. Co. , 620 F.3d 529, 531 (5th Cir. 2010). 3 Case: 14-20019 Document: 00512805760 Page: 3 Date Filed: 10/16/2014No. 14

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seek s a modification

. W e also see no basis for reading such requirements into the Property Code. The Property Code provides debtors an opportunity to cure a default after receiving notic e. Law does not allege that Ocwen failed to provide proper notices, that his loan was not in default, or that he att empted to cure his default . Consequently , Law has not alleged facts demonstrating that he is entitled to relief under the Texas Property C ode

. II. Breach of Contract Law asserts numerous grounds for breach of contract . These include Ocwen’s alleged failure to h onor the loan modification proposal and its alleged failure to comply with United States Department of Housing and Urban Development ( “ HUD ” ) and Home Affordable Modification Program ( “ HAMP ” ) regulations. We examine each of these claims

.

a

. Loan Modification Agreement
T o prove breach, a party must first demonstrate the existence of a valid
contract. Mullins v. TestAmerica, Inc. , 564 F.3d 386, 418 (5th Cir. 2009) (citing Ag u iar v. Segal , 167 S.W.3d 443, 450 (Tex. App.

— Houston [14th Dist.] 2005, pet. denied)). It follows that , to prove breach of a modified contract, a party must first demonstrate the existence of a valid modification. I n his complaint, Law maintains that Ocwen breached the February 2011 loan modification agreement

. For two reasons, we conclude that the loan modification agreement

was ineffective. Ocwen therefore could not have breached the agreement. First, to accept Ocw en’s loan modification proposal, Law was required to comply with all conditions placed upon the time and manner of acceptance. See Padilla v. LaFrance , 907 S.W.2d 454, 460 (Tex. 1995). Those conditions included Law’s signing and faxing the agreement to Ocwen and making a down payment by February 3, 2011. Law, however, did not sign the agreement until

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February 7 , and he did not fax the agre ement to Ocwen until February 9

. Furthermore, he did not send the required payment until February 8

. B ecause Law f ailed to meet the se conditions, we conclude that he never accepted Ocwen’s offer to modify the loan

. Second , the agreement did not satisfy the Texas Statute of Frauds , which requires that certain contracts be : (1) reduced to writing and (2) signed by the

p arty to be bound by the agreement. T EX

. B US

. & C OM

. C ODE § 26.01(a). It is undisputed that Ocwen did not sign the proposed modification agreement. Thus, the only question is whether the modification agreement was subject to the Statute of Frauds. In Te xas, a n agreement materially altering a contract
must satisfy the Statute of Frauds when the underlying contract was subject to the Statute of Frauds

. See Hondo Oil & Gas Co. v. Tex. Crude Operator, Inc. , 970 F.2d 1433, 1438 (5th Cir. 1992); Garcia v. Kar am , 276 S.W.2 d 255, 257 (Tex. 1955). In Texas, loan agreements for sums exceeding $50,000 must satisfy the Statute of Frauds

. T EX

. B US

. & C OM

. C ODE § 26.02(b). Thus, because the loan agreement between Law and Ocwen for $284,000 was required to satisfy the Statute of Frauds , so too was the pr o posed modification agreement. Because t he loan modification proposal failed to do so, it was not a valid contract upon which a claim of a breach can be based

. b

. HUD and HAMP Regulations We have previously held tha t the HUD Handbook do es not afford a private cause of action. Roberts v. Cameron

- Brown Co. , 556 F.2d 356, 360

- 61 (5th Cir. 1977). This circuit has not precedentially resolved whether there is a private cause of action under the HAMP regulations . W e have held in an unpublished opinion that there is not

. Pennington v. HSBC Bank USA, N.A. , 493 F. App’x 548, 552 (5th Cir. 2012) (cit ing Miller v. Chase Home Fin., LLC , 677 F.3d 1113, 1116 (11th Cir. 2012) )

. We need not answer that question here , 5 Case: 14-20019 Document: 00512805760 Page: 5 Date Filed: 10/16/2014No. 14

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because Law has not presented any argument to suggest that there is a private right of action. Thus, in order to bring suit for violations of HUD or HAMP regu lations, Law must show that the regulations were incorporated into the deed of trust. Law points to no language in the deed of trust that incorporates HAMP. With regard to the HUD regulations, Law’s complaint states that “the Note and Deed of Trust expressly provide that the acceleration and foreclosure on plaintiff[’s] loan are subject to limitation through regulations promulgated by the HUD Secretary.” The only possible source of this contention is the
statement in the deed of trust that its provisions “ shall not limit the applicability of federal law to this Deed of Trust.” T his language does not mention the HUD regulations , much less “ expressly ” incorporate them , as the complaint states

. A deed of trust ’s mere mention that federal law applies can hardly be construed as affording a private cause of action under statutes that do not provide one

. As a result, Law could not assert claims for violations of the HUD and HAMP regulations.
III. Real Estate Settlement Procedures Act Law claims that Ocwen failed to provide him with notice that it had acquired his loan from AAMES Funding Corporation. Under RE SPA , a “transferee servicer to whom the servicing of any federally related mortgage loan is assigned, sold, or transferred shall notify the borrower of any such assignment, sale, or transfer.” 12 U.S.C. § 2605(c)(1). In order to recover for a violation , a borrower must show “actual damages to the borrower as a result of the [ servicer’s ] failure” to comply with RESPA. § 2605(f)(1). Law’s complaint , in addition to alleging a failure by Ocwen to give notice, alleges that Law sustained harm because “ this is his homestead and he will lose all of the money previously invested in the property . . . .” Law does not , 6 Case: 14-20019 Document: 00512805760 Page: 6 Date Filed: 10/16/2014No. 14

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however, allege facts demonstrating that these damages were the result of Ocwen’s failure to provide him with the required notice . He does not alle ge, for example, that as a result of Ocwen’s failure to provide notice, he mistakenly continued sending his payments to AAMES Funding Corporation rather than sending them to Ocwen , resulting in foreclosure by Ocwen. I ndeed, this did
not occur. Because Law alleged no facts upon which his injuries could be viewed as resulting from Ocwen’ s failure to provide him with notice under RESPA , we conclude that the district court correctly dismissed his claim. IV. Negligence Law contends that Ocwen negligently breach ed various duties that it owed to Law, including the duty to provide notice of a transfer, the duty to

manage its loan s properly , the duty to provide proper notices prior to foreclosure , and the duty to protect a mortgagor’s rights when he applies for a lo an modification. For two reasons, we conclude that dismissal of Law’s negligence claims was appropriate. First, the duties Law mentions appear to arise from the statutes upon which he bases his other claim s. More specifically, t he duty to provide notice of a transfer derives from RESPA; the duty to manage loan s properly derives from HUD regulations ; the duty to provide proper notices before foreclosing derives from the Texas Property Code ; and the duty to protect a mortgagor’s rights when he applies for a loan modification derives from the HAMP regula tions

. Perhaps for this reason, Law begins his negligence claim by reiterating his contention that the deed of trust incorporated the HUD regulations, spends the bulk of his argument discussing perceived RESPA violations, and never mentions specific provisions in the deed of trust or

common
- law principles giving rise to the du ties he claims Ocwen violated. Therefore, because Ocwen’s negligence claims are, in essence, reiterations of

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his statutory claims, our grounds for affirming the district court as to the statutory claims apply equally here. Second, even if we were to assume that the duties Law mentions arise from the deed of trust , his negligence claims are barred by the economic loss rule

. Under this doctrine , “ a claim sounds in contract when the only injury is economic loss to the subject of the contract itself.” 1/2 Price Checks Cashed v. United Auto. Ins. Co. , 344 S.W.3d 378, 387 (Tex. 2011). In applying the rule , courts consider whether the defe ndant’s conduct “would give rise to liability independent of the fact that a contract exists between the parties.” Sw. Bell Tel. Co. v. DeLanney , 809 S.W.2d 493, 494 (Tex. 1991). When no independent basis for liability exists, the rule applies. Id. In this case, Law’s complaint asserts no basis for the duties Ocwen owed to Law other than the deed of trust and various statutes, the latter of which we have already addressed. Because Law has not alleged non

- economic damages resulting independently of the deed of trust , the economic loss doctrine bars Law’s negligence claims. V. Leave to Amend As an alternative position, Law requests leave to amend his complaint and also contends that the district court should have construed the new factual allegations set for th in his response to Ocwen’s Rule 12(b)(6) motion as a request for leave to amend. Under Rule 15(a), a court should “freely give leave [to amend a complaint ] when justice so requires.” F ED

. R. C IV

. P. 15(a)(2). Nevertheless, a party must “expressly request ” leave to amend. United States ex rel. Willard v. Humana Health Plan of Tex. Inc. , 336 F.3d 375, 387 (5th Cir. 2003) . “A party who neglects to ask the district court for leave to amend cannot expect to receive such dispensation from the court of appeals.” Id. Although this request need not be contained in a formal motion , “[a] bare request in an opposition to a motion to dismiss

– without any indication of the particular

8 Case: 14-20019 Document: 00512805760 Page: 8 Date Filed: 10/16/2014No. 14

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grounds on which the amendment is sought

– does not constitute a motion wit hin the contemplation of Rule 15(a).” Id. (quotation s and citation omitted).
In Willard , we held the following language in a plaintiff’s response to a Rule 12(b)(6) motion insufficient to constitute a request for leave to amend: “[T]he only relief possibl y available to [the defendant] at this stage of the case is that [the plaintiff] replead. ” Id. (quotation s omitted). We have also held, in an unpublished opinion, that a district court’s sua sponte discussion of whether to allow a defendant to amend his complaint did not constitute a request by the defendant for leave to amend. McClaine v. Boeing Co. , 544 F. App’x 474, 478 (5th Cir. 2013). Law’s response to Ocwen’s motion to dismiss , while containing new factual allegations, contained no language that might be construed as a request for leave to amend his complaint, let alone express language requesting leave and indicating the particular grounds on which the amendment was sought

. Moreover, the district judge did not discuss granting Law leave to amend at any point . In short, there is nothing in the record that would allow us to conclude that Law requested leave to amend his complaint prior to this appeal. Law cites several of our cases for the proposition that a claim raised for the first time in resp onse to a dispositive motion should be treated as a request for leave to amend. See Stover v. Hattiesburg Pub. Sch. Dist. , 549 F.3d 985, 989 n.2 ( 5th Cir. 2008); Sherman v. Hallbauer , 455 F.2d 1236, 1242 (5th Cir. 1972) ; Riley v. Sch. Bd. Union Parish , 37 9 F. App’x 335, 341 (5th Cir. 2010)

. T hese cases , however, did not involve defendants who sought to raise new factual allegations in response to motions to dismiss , as did Willard and McClaine

. See Willard , 336 F.3d at 387 ; McClaine , 544 F. App’x at 478

. Instead, they in volved defendants who sought to raise new claims in response to motions for summary judgment. See Stover , 549 F.3d at 989 n.2; Sherman , 9 Case: 14-20019 Document: 00512805760 Page: 9 Date Filed: 10/16/2014No. 14

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455 F.2d at 1242 ; Riley , 379 F. App’x at 341

. Because we are faced with the former situation and not the latter , the cases cited by Law are inapposite. Accordingly, we conclude that Law did not request leave to amend his complaint at the district court and is not entitled to such relief from this court. 3 AFFIRMED.

3 Because we find that Law’s response to Ocwen’s Rule 12(b)(6) motion did not constitute a request for leave to amend his petition, we do not consider whether an amendment containing the additional factual allegations would be “futile” and thus within the di strict court’s discretion to deny. See Rio Grande Royalty Co. v. Energy Transfer Partners, L.P. , 620 F.3d 465, 468 (5th Cir. 2010). 10 Case: 14-20019 Document: 00512805760 Page: 10 Date Filed: 10/16/2014