48 Pa. D. & C.5th 491
Pennsylvania Court of Common P...2015Background
- Nationstar Mortgage, LLC moved for summary judgment in a Pennsylvania mortgage foreclosure; hearing held May 26, 2015; motion granted.
- Defendants Angel L. Martinez and Maria C. Martinez are mortgagors and record owners of 25 East Coleman Street, Allentown, PA.
- Mortgage executed October 31, 2006 to MERS as nominee for K. Hovanian American Mortgage, LLC.
- A Loan Modification Agreement dated August 28, 2012 amended and supplemented the original mortgage and was between Bank of America, N.A. and the Defendants.
- April 23, 2014 assignment to Nationstar; modification referenced in Exhibit C was not separately referenced in the assignment.
- Court held Nationstar has standing to enforce the mortgage as amended by the Loan Modification Agreement, despite lack of a separate assignment of the modification.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does Nationstar have standing to enforce the loan as amended? | Nationstar as assignee stands in assignor’s shoes and may enforce the amended mortgage. | Standing requires explicit assignment of the modification agreement separate from the mortgage. | Nationstar has standing to enforce the mortgage as amended. |
| Does modification alter the status of the mortgage such that the assignment covers the modified terms? | Modification substitutes for the original mortgage; terms are integrated into the assigned mortgage. | Modification effects were not expressly assigned, so enforcement of modified terms is improper. | Modification is integrated into the mortgage; assignment covers the amended terms. |
| Is pretrial summary judgment appropriate where the mortgage amount, default, and nonpayment are undisputed? | Threshold requirements for summary judgment are satisfied since there is no genuine dispute on those elements. | No challenge noted to elements; argues other issues about standing. | Summary judgment proper on the undisputed foreclosure elements. |
Key Cases Cited
- Swartley v. Hoffner, 734 A.2d 915 (Pa. Super. 1999) (pretrial disposition standard for summary judgment in mortgage foreclosures)
- Younginger v. Heckler, 410 A.2d 340 (Pa. Super. 1979) (genuine issues of material fact required for trial)
- Cunningham v. McWilliams, 714 A.2d 1054 (Pa. Super. 1998) (standing and summary judgment in mortgage actions; default rules)
- Mallory (US Bank N.A. v. Mallory), 982 A.2d 986 (Pa. Super. 2009) (real party in interest; assignee stands in assignor’s shoes)
- Murray (JP Morgan Chase Bank N.A. v. Murray), 63 A.3d 1258 (Pa. Super. 2013) (standing to enforce a note; assignee authority)
- CitiMortgage, Inc. v. Davis, 2014-Ohio-3292 (Ohio 2014) (loan modification does not change party status absent specific provision)
- Melat v. Melat, 602 A.2d 380 (Pa. Super. 1992) (modification substitutes for original contract to extent altered)
- Knight v. Gulf Refining Co., 166 A.2d 880 (Pa. 1933) (contract modification principles in Pennsylvania)