Washington Court Dismisses Fair Debt Collection Practices Act and Washington Deed of Trust Act Violation Claims

Posted by & filed under 2014, Bankruptcy litigation, Downstream litigation, Downstream litigation by date, Downstream litigation by state, Downstream litigation commentary, Equity, MERS/Bank has standing, MERS/Bank lacks standing, Note ownership litigation, Washington.

The court in deciding Dietz v. Quality Loan Serv. Corp., 2014 U.S. Dist. (W.D. Wash. Jan. 3, 2014) granted Wells Fargo and MERS’ motion to dismiss. This action involved is a post-sale wrongful foreclosure case. Plaintiff Timothy Dietz alleged causes of action for violation of the Fair Debt Collection Practices Act (FDCPA)(Counts I and IV)… Read more »

Southern District of California Bankruptcy Court Holds that MERS’ Role as Beneficiary Does Not Provide Protection Against Foreclosure Deficiencies

Posted by & filed under 2011, Bankruptcy litigation, California, Downstream litigation, MERS/Bank lacks standing.

In In re Doble , BK 10-11296-MM13, 2011 WL 1465559 (Bankr. S.D. Cal. Apr. 14, 2011), the court held that MERS’ limited role as beneficiary of the deed of trust did not provide protection against foreclosure deficiencies. MERS’ role did not provide the banks with the authority to enforce the deed of trust, the ability… Read more »

Bankruptcy Court Rules MERS Has Standing and the Customary Rights of a Mortgagee Under a Mass. Mortgage and May Act Under the Mortgage

Posted by & filed under 2006, Bankruptcy litigation, Downstream litigation, Foreclosures, Massachusetts, MERS/Bank has standing, Note ownership litigation.

The Massachusetts bankruptcy court hearing In re Sonya D. Huggins f/k/a SONYA D. HICKS, Debtor Chapter 13, Case No. 05-18826-RS overruled the Huggins’ objection to the standing of the nominee to seek relief from the automatic stay and ordered an evidentiary hearing on the motion for stay relief. After Huggins commenced her Chapter 13 case,… Read more »

Nevada Court Finds MERS Lacked Standing to Bring Foreclosure Action as it Failed to Establish Itself as a Real Party in Interest and Failed to Provide Sufficient Evidence of it Authority

Posted by & filed under 2011, Bankruptcy litigation, Downstream litigation, Foreclosures, MERS/Bank lacks standing, Nevada, Note ownership litigation.

In MERS v. Chong, No. 09-661 (D. Nev. 2011) the court affirmed the order from the bankruptcy court holding that MERS lacked standing to bring an action. In the underlying bankruptcy action, MERS filed its motion for relief from stay, seeking to have the automatic stay lifted so that MERS could conduct a non-judicial foreclosure… Read more »

Massachusetts Bankruptcy Court Grants Assignee Bank’s Motion For Relief, Denies Debtor’s Assignment Challenges and Home Affordable Modification Program Claim

Posted by & filed under 2011, Bankruptcy litigation, Downstream litigation, Massachusetts, MERS/Bank has standing, Note ownership litigation.

Aurora, as an assignee of a Chapter 13 debtor’s mortgage, moved for relief from stay to exercise its rights in property, and debtor objected to assignee’s standing and on the ground that his post petition payment default was the result of an improper refusal to modify his mortgage under the government’s Home Affordable Modification Program… Read more »

Fieldstone Mortgage Company’s Bankruptcy Won’t Impact HSBC’s Right to Foreclose in Massachusetts

Posted by & filed under 2012, Bankruptcy litigation, Downstream litigation, Massachusetts, MERS/Bank has standing.

In Marron v. HSBC Bank USA, N.A., Bankruptcy Appeal No. 11-40191-NMG (D. Mass. September 26, 2012), the District Court denied homeowners’ request for certification regarding MERS’s authority to assign their mortgage, and dismissed homeowners’ bankruptcy appeal holding that the Bankruptcy Court properly lifted the automatic stay allowing HSBC to foreclose. The homeowners procured a loan… Read more »

REMIC Armageddon on the Horizon?

Posted by & filed under 2013, Bankruptcy litigation, MERS/Bank lacks standing, Note ownership litigation, REMICs, Texas.

Brad Borden and I have warned that an unanticipated tax consequence of the sloppy mortgage origination practices that characterized the boom is that MBS pools may fail to qualify as REMICs.  This would have massively negative tax consequences for MBS investors and should trigger lawsuits against the professionals who structured these transactions. Courts deciding upstream… Read more »