The demurrer to first amended complaint ("FAC"), filed by defendants Federal National Mortgage Association ("FNMA") and DiTech Financial LLC, is sustained without leave to amend the second cause of action for quiet title, and overruled as to the remaining causes of action. Defendants have 20 days to file an answer.

Preliminary Matters

Defendants' unopposed request for judicial notice is granted.


Background

Plaintiff Carolota Torres filed suit against her home loan lender (FNMA) and loan servicer (DiTech) following the foreclosure of her home. The FAC alleges claims for (1) wrongful foreclosure; (2) quiet title; (3) violation of the Homeowners' Bill of Rights ("HBOR"); (4) negligence; and (5) violation of Business and Professions Code section 17200 (the Unfair Competition Law or "UCL").

Defendants demur on the grounds that the FAC fails to state facts sufficient to constitute any cause of action.

Discussion

3rd Cause of Action for Violation of HBOR

The Court addresses the HBOR