Facts

On October 27, 2004, plaintiffs Lowell and Gina Smith obtained a mortgage loan from defendant Flagstar Bank, FSB secured by their home in Contra Costa County. Plaintiff filed a class action lawsuit against defendant Flagstar Bank, FSB for non-payment of interest on escrows as required under Section 2954.8(a) of California's Civil Code.

PLAINTIFF'S CONTENTIONS: Plaintiff contended that during the time defendant serviced plaintiff's mortgage, defendant created an escrow account and held plaintiff's money in that account but failed to pay plaintiff the interest in those funds as required by Section 2954.8(a). Plaintiff contended that defendant's non-payment of interest on the escrow account created for plaintiff violated California's Unfair Competition Law and was a breach of the Deed of Trust.

DEFENDANT'S CONTENTIONS: Defendant denied plaintiff's contentions.

Result

The court granted plaintiff's motion for summary judgment. The court awarded plaintiff $8,101,175.64 in restitution as well as prejudgment interest of two percent.