Woods v. Wells Fargo Bank, N.A.
875 F. Supp. 2d 85
D. Mass.2012Background
- Plaintiff R. Susan Woods defaulted on a promissory note for $228,000 secured by the Hadley, Massachusetts mortgage.
- Wells Fargo Bank, National Association, as Trustee for Fremont Investment & Loan SABR 2005-FR2, holds the mortgage as successor and foreclose rights holder.
- The mortgage lists Fremont as lender and MERS as mortgagee/nominee, giving MERS foreclosure powers.
- MERS assigned the mortgage and note to Wells Fargo (recorded 2007 and 2009).
- Wells Fargo later assigned its interests to Wells Fargo Bank, National Association, as Trustee for Securitized Asset Backed Receivables LLC 2005-FR2 (recorded 2010).
- Woods, pro se, filed suit in state court seeking injunctive relief and damages; defendant removed to federal court and moved to dismiss; the motion is granted.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Wells Fargo could foreclose without the physical note | Woods argues possession of the note is required. | Wells Fargo possesses the note and could foreclose; pre-Eaton rule בענ precludes need for note. | Yes; Wells Fargo may foreclose despite not proving possession of the note at the time of filing. |
| Whether Woods has standing to challenge the assignments of note/mortgage | Woods challenges assignments to Wells Fargo and predecessors. | Woods lacks standing as she is not a party to the trust or in privity with Fremont's successors. | Woods lacks standing to challenge the assignments. |
| Whether the Massachusetts Consent Decree required notifying the Attorney General or providing Woods with notice copies | Decree mandated AG notice and copies to borrowers. | No private right of action and no provision requiring notice to Woods; compliance admitted. | No private right of action or obligation to copy notices to Woods; decree does not require dismissal of foreclosure. |
Key Cases Cited
- Ibanez v. U.S. Bank, N.A., 458 Mass. 637 (Mass. 2011) (mortgagee need not possess the note to foreclose when the trust owns the mortgage and note)
- Eaton v. Fed. Nat. Mortg. Ass’n, 462 Mass. 569 (Mass. 2012) (pre-Eaton rule on possession of mortgage and note; the rule not retroactive)
- Beddall v. State St. Bank & Trust Co., 137 F.3d 12 (1st Cir. 1998) (merges documents into pleadings for Rule 12(b)(6) review; authenticity of referenced documents)