TAMPA, Fla., Feb. 27, 2017 (GLOBE NEWSWIRE) -- LM Funding America, Inc. (NASDAQ:LMFA), a specialty finance company offering unique funding solutions to community associations, received a favorable ruling from a Federal District Court judge in Florida regarding a proposed class action lawsuit filed by Wilmington Savings Fund Society, FSB (Wilmington).

"This is a significant win for homeowners associations and every person who pays their fees and mortgages on time each and every month," said R. Dean Akers, Chief Operating Officer of LM Funding. "There are a number of investors trying to profit from expanding a limited exception to paying association dues reserved for legitimate holders of first mortgages. They do this by trying to coerce associations into accepting reduced payments. If associations are forced to accept smaller payments, they have to look to the remaining, responsible home and condo owners in their association to make up the difference."

In the lawsuit, Wilmington claimed that in two specific instances LM Funding's association clients, through their lawyers paid for by LM Funding, were attempting to collect fees that were greater than what was owed. Florida's "safe harbor" law limits the amount owed by a first mortgage owner to 12 months of association fees or one percent of the mortgage, whichever is smaller. However, many bulk mortgage buyers improperly claim eligibility for the "safe harbor" exception, so the association requires its collection lawyers to require proof. In the Wilmington case, LM Funding's client association requested full payments, but Wilmington claimed "safe harbor."

LM Funding America, Inc., together with its subsidiaries, is a specialty finance company that provides funding to nonprofit community associations (Associations) primarily located in the state of Florida, as well as in the states of Washington, Colorado and Illinois. The company offers funding to Associations by purchasing a certain portion of the Associations' rights to delinquent accounts that are selected by the Associations arising from unpaid Association assessments. It is also involved in the business of purchasing delinquent accounts on various terms tailored to suit each Association's financial needs, including under its New Neighbor Guaranty™ program. The company was founded in 2008 and is based in Tampa, Florida. The company's common shares and warrants trade on the NASDAQ Capital Market under the symbols "LMFA" and "LMFAW".

This press release may contain forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995.  Words such as "anticipate," "estimate," "expect," "intend," "plan," and "project" and other similar words and expressions are intended to signify forward-looking statements.  Forward-looking statements are not guarantees of future results and conditions but rather are subject to various risks and uncertainties.  Some of these risks and uncertainties are identified in the company's filings with the SEC.  The occurrence of any of these risks and uncertainties could have a material adverse effect on the company's business, financial condition, and results of operations.