Opinion ID: 2318998
Heading Depth: 1
Heading Rank: 4

Heading: Kinsey v. J.P. Morgan Chase, N.A.

Text: On 16 May 2000, John W. and Denise Kinsey (the Kinseys) closed on a secondary mortgage loan, secured by their residence, from BAMC. The principal of the loan was $30,000.00. At closing, the note and deed of trust were assigned to Banc One. J.P. Morgan Chase is the successor to Banc One. The last scheduled payment under the loan would have been due 22 May 2020. The Kinseys repaid the loan early and, on 1 April 2004, Banc One recorded a certificate of satisfaction. The HUD-1 form provided to the Kinseys at their closing did not have any charge for the line item origination fee, but rather a number of individual, itemized fees were charged and collected. [9] On 9 August 2010, the Kinseys filed, in the Circuit Court for Baltimore City, a complaint against BAMC and J.P. Morgan Chase alleging violations of the SMLL. The Kinseys alleged that, at the loan closing, they were charged excessive fees (because no single origination fee was charged, but instead multiple other fees were charged) and were not provided the § 12-407.1 mandatory disclosure. An amended complaint asserted that J.P. Morgan Chase was not a holder-in-due-course and, therefore, was liable directly and derivatively for all the claims against BAMC. The Kinseys requested treble damages for knowing violations of the SMLL based on information contained in the HUD-1 form, allegedly received by J.P. Morgan Chase through assignment of the loan. Defendants filed a motion to dismiss on 19 November 2010. A hearing, combined with the Dinnis case as noted, occurred before Judge Cannon on 31 January 2011. As discussed supra, the motion to dismiss was granted for the same reasons explicated by Judge Cannon in the Polek case. The Kinseys filed timely an appeal to the Court of Special Appeals, but we issued a writ of certiorari, Kinsey v. J.P. Morgan Chase Bank, N.A., 420 Md. 81, 21 A.3d 1063 (2011), before the intermediate appellate court decided the appeal.