Bank of Am., N.A. v. McCormick
2014 Ohio 1393
Ohio Ct. App.2014Background
- Bank of America filed a foreclosure complaint on Feb 3, 2012, seeking personal judgment on a promissory note and foreclosure of McCormick’s property; the note and mortgage list KeyCorp Mortgage Inc. d/b/a Society Mortgage Company as the original lender.
- The note attached to the complaint was endorsed in blank; no assignment documents for the mortgage were attached to the complaint.
- McCormick sought a loan modification, amended her answer to generally deny allegations, and raised affirmative defenses.
- A magistrate heard testimony from Heather Pollock (Bank of America representative) who testified Bank of America possessed the original note (endorsed in blank) since Dec 9, 2010, and described a chain of mergers tracing the lender to Bank of America.
- The magistrate ruled for Bank of America; the trial court adopted the decision. McCormick appealed solely arguing Bank of America lacked standing when it filed the complaint because it failed to prove merger/ownership of the mortgage.
- The Ninth District affirmed, holding that courts may consider evidence outside the complaint to determine standing and that, on this record, McCormick’s arguments about credibility and missing documentary merger proof could not be reviewed because the trial transcript was not filed in the trial court record.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Bank of America had standing to file the foreclosure action | Bank of America asserted it possessed the note (endorsed in blank) and traced title via mergers to establish its interest | McCormick argued Bank of America failed to prove standing at filing because merger documents were not attached to the complaint and no documentary proof of possession/mergers was admitted | Court held standing may be proven by evidence outside the complaint; magistrate’s factual findings (possession of endorsed note and chain of mergers) were adopted and, absent a transcript, credibility challenges could not be reviewed — judgment affirmed |
Key Cases Cited
- Fed. Home Loan Mtge. Corp. v. Schwartzwald, 134 Ohio St.3d 13 (Ohio 2012) (a foreclosure plaintiff must have standing at the time the complaint is filed)
- State ex rel. Duncan v. Chippewa Twp. Trustees, 73 Ohio St.3d 728 (Ohio 1995) (appellate review limits where trial transcript is absent from the record)
- Yu v. Zhang, 175 Ohio App.3d 83 (Ohio Ct. App. 2008) (applications of State ex rel. Duncan when transcript or record omissions prevent review)