English v. Ryland Mortgage Company, 8:16-cv-03675

Background

Plaintiff Derrick English obtained a $263,950 mortgage on property in Upper Marlboro, MD in September 2006; the Deed of Trust named Ryland as lender and MERS as nominee and included a power-of-sale.
Loan was allegedly securitized (pool/trust 2007-1); MERS assigned the Deed of Trust to Bank of America in 2011, which later assigned to U.S. Bank.
Foreclosure proceedings were initiated by substitute trustees in July 2014 in Prince George’s County; state foreclosure action remained active.
English filed suit in state court (October 2016) asserting 10 counts (lack of standing/wrongful foreclosure; fraud; IIED; quiet title; slander of title; declaratory relief; TILA/HOEPA; RESPA; rescission). Defendants removed to federal court.
Defendants moved to dismiss; the district court granted the motions in full and denied leave to file a surreply.

Issues

Issue	Plaintiff's Argument	Defendant's Argument	Held
Standing / Wrongful foreclosure	Securitization and separation of note from deed voided defendants’ authority to foreclose; MERS lacked corporate authority	Assignments and MERS recordings are valid; mortgagor lacks standing to attack PSA/assignments to which he is not a party	Dismissed — securitization/separation theories are legally insufficient and plaintiff lacks standing to attack assignments
Fraud (concealment / inducement)	Defendants concealed securitization and misrepresented entitlement to exercise power of sale	Fraud claims lack particularized facts and improperly lump defendants together; statute of limitations bars claims	Dismissed — fails Rule 9(b) particularity and is time-barred; underlying securitization theory meritless
IIED, Slander of Title, Quiet Title, Declaratory Relief	IIED from threatened foreclosure; slander/quiet title based on alleged lack of defendants’ title; seeks declaratory judgment on rights to foreclose	Deed of Trust expressly authorizes power of sale; foreclosure pending in state court; plaintiff failed to plead required elements and damages	All dismissed — IIED and slander of title lack required specificity/damages; quiet title barred while foreclosure pending; declaratory relief denied as unnecessary and unsupported
TILA, HOEPA, RESPA, Rescission	Disclosure and rescission claims based on alleged TILA/RESPA violations and fraud	Statutes of limitations: TILA/RESPA claims must be brought within statutory periods measured from loan closing in 2006; no equitable tolling shown	Dismissed — TILA/RESPA/HOEPA and rescission claims are time-barred and/or lack viable factual/legal basis

Key Cases Cited

Colonial Penn Ins. Co. v. Coil, 887 F.2d 1236 (4th Cir. 1989) (judicial notice of court records is appropriate)
Bell Atl. Corp. v. Twombly, 550 U.S. 544 (2007) (pleading must state a plausible claim)
Ashcroft v. Iqbal, 556 U.S. 662 (2009) (legal conclusions not entitled to assumption of truth)
Edwards v. City of Goldsboro, 178 F.3d 231 (4th Cir. 1999) (motions to dismiss do not resolve factual contests)
United Black Firefighters v. Hirst, 604 F.2d 844 (4th Cir. 1979) (conclusory factual allegations insufficient)