Leyva v. National Default Servicing Corp.
127 Nev. 470
| Nev. | 2011Background
- Leyva recorded a 2007 quitclaim deed transferring title to Leyva but the mortgage note remained in Ramos’s name; Leyva paid 25 months of mortgage to Wells Fargo’s servicing unit and defaulted later.
- Leyva elected Foreclosure Mediation along with Ramos, mediation held Sept. 23, 2009, with Wells Fargo failing to provide all statutorily required documents; Ramos attended by phone and Leyva attended in person.
- Mediation produced a certified deed of trust and a mortgage note listing MortgageIT as lender, plus a Wells Fargo employee affidavit but no assignments; the mediator noted missing essential documents.
- The district court found no bad faith by Wells Fargo and declined to sanction; Leyva petitioned for judicial review seeking sanctions based on failure to provide required documents.
- Nevada Foreclosure Mediation Program requires strict compliance with document production; Pasillas v. HSBC Bank USA later held sanctions required for such failures; this case reverses and remands for sanctions against Wells Fargo for noncompliance.
- Court held Leyva could participate in mediation as the title holder, and Wells Fargo must be sanctioned for failing to produce required documents and to prove proper assignment/endorsement of the note.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Leyva, as title holder, could mediate | Leyva was the record title holder eligible to mediate | Leyva was not the named mortgagor and thus not a proper mediator | Leyva proper party to mediate |
| Whether Wells Fargo complied with document production requirements | Plaintiff argues strict production of documents was required | Wells Fargo substantially complied with production | Strict compliance required; sanctions warranted for failure to produce all documents |
| Whether Wells Fargo had standing to enforce the note and thus to mediate | MortgageIT endorsed or transferred the note to Wells Fargo | No proper endorsement or valid transfer shown; Wells Fargo lacked authority | No valid assignment/endorsement; Wells Fargo lacked standing to enforce the note |
Key Cases Cited
- Pasillas v. HSBC Bank USA, 127 Nev. _ (Nev. 2011) (sanctions for failure to produce required documents in mediation)
- Ray v. Hawkins, 76 Nev. 164 (Nev. 1960) (deed of trust as a land conveyance; strict transfer requirements under statute of frauds)
- S.N.E.A. v. Daines, 108 Nev. 15 (Nev. 1992) (mandatory language of statute regarded as strict compliance)