Deutsche Bank v. Tran, T., Deutsche Bank v. Tran, T. No. 1348 MDA 2016

In 2004 Tuyen and Shelia Tran took out a $207,000 adjustable-rate mortgage from New Century, secured by property in Lancaster County, PA; a recorded mortgage and note were executed.
The Trans executed a 2007 Modification Agreement reflecting a balance and new payment terms with Deutsche Bank as trustee for GSAMP Trust 2004‑NC2.
New Century assigned the mortgage to Deutsche Pooling and Servicing in 2012 (recorded), and Deutsche Pooling and Servicing assigned to Deutsche Bank in 2013 (recorded).
The Trans defaulted in October 2012 and Deutsche Bank filed a mortgage foreclosure complaint in May 2013. The Trans later filed an Amended Answer and New Matter alleging defects in assignments and power of attorney authority.
Deutsche Bank moved for summary judgment; after oral argument the court allowed 90 days for additional discovery (none provided), then granted summary judgment for Deutsche Bank and entered an in rem judgment.
On appeal the Trans argued (1) Deutsche Bank’s late reply to New Matter resulted in deemed admissions creating factual disputes, and (2) Deutsche Bank lacked standing as a valid assignee of the mortgage.

Issue	Plaintiff's Argument (Deutsche Bank)	Defendant's Argument (Tran)	Held
Whether Deutsche Bank’s untimely Reply to Trans’ New Matter caused admissions that create genuine issues of material fact	Reply is a permissible late filing; Trans were not prejudiced; court may allow late pleadings under Pa.R.C.P. 1026/126	Trans argued failure to timely reply to their New Matter resulted in admissions of New Matter allegations, precluding summary judgment	Court held no abuse of discretion: untimely Reply did not prejudice Trans, and New Matter lacked factual averments requiring a response; no admissions created a material factual dispute
Whether Deutsche Bank had standing/was valid assignee of the mortgage	Deutsche Bank produced recorded assignments and powers of attorney showing it (by assignment) was party in interest and entitled to foreclose	Trans argued assignment chain invalid (Ocwen as New Century’s agent lacked authority during New Century’s bankruptcy; Mod Agreement suggests earlier alienation)	Court held Deutsche Bank established prima facie standing by recorded assignments and powers of attorney; Trans produced no evidence raising a genuine issue; summary judgment for Deutsche Bank affirmed

Daley v. A.W. Chesterton, Inc., 37 A.3d 1175 (Pa. 2012) (standard of review for summary judgment)
Bank of America, N.A. v. Gibson, 102 A.3d 462 (Pa. Super. 2014) (mortgagee entitled to summary judgment when mortgagor admits default and recorded mortgage amount)
J.P. Morgan Chase Bank, N.A. v. Murray, 63 A.3d 1258 (Pa. Super. 2013) (ways to prove standing in foreclosure: origination/assignment or holder of the note)
Gerber v. Piergrossi, 142 A.3d 854 (Pa. Super. 2016) (affirming summary judgment where assignee produced valid assignments and opponent offered no contrary evidence)
Gotwalt v. Dellinger, 577 A.2d 623 (Pa. Super. 1990) (new matter that states only legal conclusions requires no reply)
Louis v. Clark, 323 A.2d 298 (Pa. Super. 1974) (court may permit late pleadings when no prejudice and justice requires)