Fannie Mae v. Trahey
2013 Ohio 3071
Ohio Ct. App.2013Background
- In May 2008, Robert and Kelly Trahey executed a promissory note for a North Ridgeville property to Sirva Mortgage, Inc., with a mortgage in favor of MERS as nominee for Sirva.
- In May 2011, MERS assigned the mortgage to Federal National Mortgage Association (Fannie Mae).
- Fannie Mae filed a foreclosure complaint in June 2011 against the Traheys and Waterbury HOA, attaching the note and an assignment from MERS to Fannie Mae.
- Sirva indorsed the original note in blank; a later amended complaint attached a different note showing indorsements to CitiMortgage and then blank, with no dates.
- Fannie Mae moved for summary judgment; a magistrate and then the trial court recommended and granted judgment before trial, leading to this appeal.
- The appellate court sustained Trahey’s first assignment of error, reversed the judgment, and remanded for further proceedings.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Fannie Mae had standing to foreclose | Trahey argues Fannie Mae lacked standing at filing. | Fannie Mae contends it was the holder of the note/mortgage. | Genuine issue of material fact on holder status; summary judgment improper. |
| Whether conditions precedent were satisfied (notice/acceleration) | Trahey asserts failure to prove notice and acceleration. | Fannie Mae asserts it fulfilled prerequisites. | Issue deemed not ripe; remanded after resolving standing. |
Key Cases Cited
- Grafton v. Ohio Edison Co., 77 Ohio St.3d 102 (Ohio 1996) (standard for summary judgment burden)
- Fed. Home Loan Mortgage Corp. v. Schwartzwald, 134 Ohio St.3d 13 (Ohio 2012) (standing and real party in interest in foreclosure)
- U.S. Bank, N.A. v. Richards, 189 Ohio App.3d 276 (Ohio Ct. App. 9th Dist. 2010) (holder status required at filing)
- Everhome Mortgage Co. v. Rowland, 2008-Ohio-1282 (Ohio App. Dist. Franklin No. 07AP-615) (holder/assignment mechanics in foreclosure)