United States District Court, Eastern District of Michigan, Northern Division
May 20, 2015
TAMIKA SCHMIDT, Plaintiff,
PENNYMAC LOAN SERVICES, LLC, and BANK OF AMERICA, NA, Defendant.
Patricia T. Morris Magistrate Judge
ORDER ADOPTING REPORT AND RECOMMENDATION, GRANTING DEFENDANT PENNYMAC’S MOTION TO DISMISS, DENYING DEFENDANT BANK OF AMERICA’S MOTION TO DISMISS, AND REMANDING THE CASE TO THE SAGINAW COUNTY CIRCUIT COURT
Thomas L. Ludington, United States District Judge
On October 9, 2014, Plaintiff Tamika Schmidt filed suit against Defendants PennyMac Loan Services, LLC, and Bank of America, NA in connection with the foreclosure of her residence. Specifically, Schmidt claimed that PennyMac violated Regulation X’s continuity of contract requirements, 12 C.F.R. § 1024.40 promulgated by the Consumer Financial Protection Bureau and that Bank of America committed the state law tort of silent fraud. PennyMac removed the case to this Court citing federal question jurisdiction.
On January 12, 2015, each Defendant filed a motion to dismiss Schmidt’s claim against them. On May 1, 2015, Magistrate Judge Patricia T. Morris issued a report recommending that Defendant PennyMac’s motion to dismiss be granted because Regulation X did not provide a private right of action. And because the alleged violation of Regulation X was the sole basis for federal jurisdiction, Judge Morris recommended denying Defendant Bank of America’s motion to dismiss the state law claim and remanding the claim to the Saginaw County Circuit Court.
Although Magistrate Judge Morris’s report explicitly stated that the parties to this action may object to and seek review of the recommendation within fourteen days of service of the report, neither Plaintiff nor Defendants filed any objections. The election not to file objections to the Magistrate Judge’s report releases the Court from its duty to independently review the record. Thomas v. Arn, 474 U.S. 140, 149 (1985). The failure to file objections to the report and recommendation waives any further right to appeal.
Accordingly, it is ORDERED that the magistrate judge’s report and recommendation (ECF No. 19) is ADOPTED.
It is further ORDERED that Defendant PennyMac’s motion to dismiss (ECF No. 8) is GRANTED.
It is further ORDERED that Defendant Bank of America’s motion to dismiss (ECF No. 9) is DENIED WITHOUT PREJUDICE.
It is further ORDERED that this case is REMANDED to the Saginaw County Circuit Court.