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loanDepot seeks dismissal of West Capital Lending TILA lawsuit
loanDepot says West Capital Lending has not identified any specific borrowers it lost, and that it is now asking only for injunctive and declaratory relief.
loanDepot has asked a California federal judge to dismiss a lawsuit filed by mortgage brokerage West Capital Lending, arguing the Truth in Lending Act, or TILA, loan originator compensation rule is meant to protect borrowers, not competing lenders.
HousingWire reports loanDepot says West Capital Lending lacks standing because it has not shown it lost specific customers or suffered measurable economic injury, pointing to WCL’s narrowed request for relief. The company also argued WCL has not identified a single borrower it claims to have lost due to loanDepot’s practices.
In a reply brief filed Thursday in the U.S. District Court for the Central District of California, loanDepot contended that TILA does not give competitors a private right of action, and that WCL’s allegations amount to a competitive pricing dispute without tying alleged violations to concrete harm.
loanDepot further disputed the basis of WCL’s claims, saying the loan officer compensation rule governs how lenders pay employees, while lenders can still match competitors’ pricing regardless of that compensation rule, undercutting any argument that alleged conduct caused competitive damage.