Deutsche Bank Natl. Trust Co. v. Reynolds
2014 Ohio 2372
Ohio Ct. App.2014Background
- In 2004, Reynolds signed a $150,000 adjustable-rate note payable to GreenPoint Mortgage Funding for property in Stow, secured by a mortgage in favor of MERS as GreenPoint's nominee.
- GreenPoint endorsed the note in blank; a loan modification in 2009 identified Countrywide as the lender, though recording occurred in 2012 with Bank of America/Stewart Lender Services involved in the process.
- In 2012, MERS (as GreenPoint's nominee) assigned Reynolds' mortgage to Deutsche Bank; the assignment was recorded in July 2012.
- Deutsche Bank filed a foreclosure action on September 26, 2012, alleging default at the end of 2009 and entitlement to foreclose based on the note, modification, and mortgage.
- The trial court granted summary judgment for Deutsche Bank in November 2013, but Reynolds argued Deutsche Bank lacked standing and ownership of the note, leading to this appeal.
- The appellate court held that Deutsche Bank failed to prove it was the holder of the note at filing and thus lacked standing, reversing and remanding to dismiss the complaint.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Standing: whether Deutsche Bank had standing to sue | Reynolds | Deutsche Bank | Deutsche Bank failed to prove holder status; standing lacked at filing |
| Notice of default prior to acceleration | Reynolds | Deutsche Bank | Issue deemed moot after standing ruling |
Key Cases Cited
- Federal Home Loan Mortg. Corp. v. Schwartzwald, 134 Ohio St.3d 13 (Ohio 2012) (standing and real party in interest; required to dismiss for lack of standing)
- Haugabrook v. Wells Fargo Bank, N.A., 2013-Ohio-3516 (Ohio Ct. App. Summit 2013) (real party in interest; holder of note governs proper party)
- Horn v. Wells Fargo Bank, N.A., 2013-Ohio-2374 (Ohio Ct. App. Summit 2013) (holder determination and chain of title in foreclosure)
- Bank of America, N.A. v. McCormick, 2014-Ohio-1393 (Ohio Ct. App. Summit 2014) (blank-endorsed note; lack of clear holder creates issues on standing)
- Bank of New York Mellon Trust Co. v. Bowers, 2013-Ohio-5488 (Ohio Ct. App. Lorain 2013) (compliance with contractual notice does not affect jurisdiction)
- Maxum Indemnity Co. v. Selective Ins. Co. of S.C., 2012-Ohio-2115 (Ohio Ct. App. Wayne 2012) (personal knowledge requirement for affidavits; cannot rely on pleadings)