U.S. Bank Natl. Assn. v. Bobo
2014 Ohio 4975
Ohio Ct. App.2014Background
- In 2003 Bobo executed a promissory note to New Century secured by a mortgage on Athens County property; she later defaulted.
- New Century indorsed the original note in blank; U.S. Bank filed a foreclosure complaint on March 27, 2012 and attached a copy of the note indorsed in blank.
- An assignment of the mortgage to U.S. Bank was executed and recorded the same day the complaint was filed.
- Months later New Century executed an allonge purporting to transfer the note to U.S. Bank.
- U.S. Bank moved for summary judgment supported by a servicer employee’s affidavit and business records; Bobo opposed with a self‑serving affidavit claiming her signature on the original note was inauthentic and attaching portions of the trust PSA.
- The trial court granted summary judgment for U.S. Bank; the Fourth District affirmed.
Issues
| Issue | Plaintiff's Argument (U.S. Bank) | Defendant's Argument (Bobo) | Held |
|---|---|---|---|
| Whether Bobo’s affidavit disputing authenticity of her signature creates a genuine issue of fact | Bank relied on the original note indorsed in blank and servicer records showing possession and amount due | Bobo testified her inspection showed the signature/paper were not authentic | Court: Self‑serving, uncorroborated affidavit insufficient to defeat summary judgment |
| Whether alleged PSA noncompliance (post‑closing transfers) undermines bank’s title/standing | Possession of a note indorsed in blank makes the bank a holder entitled to enforce regardless of PSA compliance | PSA excerpts show transfers occurred after trust closing and thus were improper | Court: PSA compliance irrelevant to holder status; borrower lacks standing to challenge inter‑assignee transfer |
| Effect of allonge executed after filing and New Century’s bankruptcy on transfer validity | Bank had possession of the indorsed‑in‑blank original at filing, so later allonge is unnecessary | Allonge shows the note was transferred after bankruptcy and after filing, so standing was lacking | Court: Allonge irrelevant because bank already held the bearer paper at filing; holder status established standing |
| Adequacy of servicer affidavit (personal knowledge/business records) | Affiant explained her role, review of loan servicing records, and attached true copies; records were made in ordinary course | Affiant lacked demonstrated personal knowledge, didn't attach originals, and didn’t state she compared original to copy | Court: Affidavit satisfied Civ.R. 56(E); personal knowledge may be inferred from affiant’s job and statements; copies verified in affidavit |
Key Cases Cited
- Fed. Home Loan Mtge. Corp. v. Schwartzwald, 979 N.E.2d 1214 (Ohio 2012) (standing for foreclosure must be evaluated based on interest in note or mortgage at time suit is filed)
- Kernohan v. Manass, 41 N.E. 258 (Ohio 1895) (transfer/negotiation of the note operates as an equitable assignment of the mortgage)
- State ex rel. Corrigan v. Seminatore, 423 N.E.2d 105 (Ohio 1981) (affidavit attachment and certification of copies satisfies Civ.R. 56(E) when affidavit averrs copies are true)