Case Information
*1 UN I TE D S T A TE S D I S T R I C T C OU R T
F O R T H E D I S T R I C T O F N E W J E R S E Y M I C HA EL KAY S E R a nd B A RB A R A : C i v . N o . 13 - 5999 ( K M ) KAY S E R , P l a i n ti ff s , O P I N I ON V. O C W E N L OAN S E R V I C I NG , LL C , M O R GAN S T AN LE Y C A P I T A L HO L D I NG , LL C , a nd H S BC B ANK U S A a s T r u s t ee f o r t h e M o r g a n S t a n l e y M o r t g a g e L o a n T r u s t , 2004 - 2 A R , M o r t g a g e P a ss - T h r ough C e r ti f i ca t e s , S e r i e s 2004 - 2 A R ,
D e f e nd a n t s . K E V I N M C NU LT Y , U . S . D . J . : P l a i n ti ff s M i c h ae l a nd B a r b a r a K a y s e r (f o r s i m p li c it y , “ K a s e r ” )
a r e ho m e o w n e r s / m o r t g a go r s o f a p r op e r t y a t 9 A u t u m n D r i v e , S c o t c h P l a i n s , N e w J e r s e y ( t h e “ P r op e r t y ” ) . K a y s e r h a s f il e d a n A m e nd e d C o m p l a i n t a ll e g i ng t h r ee s t a t e l a w ca u s e s o f ac ti on : “ C oun t O n e - W r ong f u l C o ll ec ti on P r ac ti ce” ; “ C oun t T w o - Q u i e t T itl e” ; a nd “ C oun t T h r ee - F r a ud . ” ( E C F no . 44 ) T h e d e f e nd a n t s a r e M o r g a n S t a n l e y C a p i t a l H o l d i ng , LL C , t h e m o r t g a g ee b a n k ; O c w e n L o a n S e r v i c i ng , LL C , w h i c h s e r v i ce s t h e l o a n ; a nd H S BC B a nk U S A a s t r u s t ee a nd a ss i gn ee o f t h e m o r t g a g e a nd ho l d e r o f t h e no t e ( a lt hough K a y s e r d e n i e s t h i s ) . T h e c o mm on f ea t u r e o f a ll o f K a y s e r’ s ca u s e s o f ac ti on i s a f ac t u a l c l a i m t h a t t h e d e f e nd a n t s a r e no t t h e t r u e o w n e r s o f t h e und e r l y i ng m o r t g a g e a nd no t e . N o w b e f o r e t h e C ou r t i s t h e d e f e nd a n t s ’ m o ti on f o r s u mm a r y j udg m e n t p u r s u a n t t o F e d . R . C i v . P . 5 6 . F o r t h e r ea s o n s s t a t e d h e r e i n , t h e m o ti o n w i l l b e g r a n t e d .
F
*2 A C T S K a y s e r e n t e r e d i n t o a n a d j u s t a b l e r a t e p r o m i ss o r y no t e d a t e d J un e 10,
2003 , in t h e o r i g i n a l p r i n c i p a l a m oun t of $396 , 000 in f a vo r of M o r g a n S t a n l e y D ea n W itt e r C r e d it C o r po r a ti on . (DSMF ¶ 1, c iti ng Note; L u ca s Decl. ¶ 4, c iti ng Note; P1. O pp . 5)1 To s ec u r e t h e no t e , K a y s e r e n t e r e d i n t o a m o r t g a g e d a t e d
C it a ti on s to record items are a bb r e v i a t e d t hu s : AC = Amended Complaint (ECF nos. 44 & 69-1) Def. Br. = Defendants’ brief in s uppo r t of motion for s u mm a r y j udg m e n t (ECF no. 68) DSMF = Defendants’ S t a t e m e n t of Material Facts, s ub m itt e d in c onn ec ti on with prior motion for s u mm a r y j udg m e n t , filed Sept. 14, 2015 (ECF no. 46-4)
The d e f e nd a n t s have no t filed a new Rule 56.1 s t a t e m e n t of m a t e r i a l facts in c onn ec ti on with t h e i r combined renewed motion for j udg m e n t; t h e y rely on the s t a t e m e n t s ub m itt e d in c onn ec ti on s u mm a i with a prior motion for s u mm a r y j udg m e n t , filed Sept. 14, 2015, which was a d m i n i s t r a ti v e l y t e r m i n a t e d .
The p a r ti e s do not r a i s e different facts on t h i s motion; Kayser did not r e s pond to the d e f e nd a n t s ’ previous s t a t e m e n t of m a t e r i a l facts; a nd Kayser does no t now p r o t e s t the d e f e nd a n t s ’ direct reliance on d ec l a r a ti on s a nd e xh i b it s w it hou t s ub m i ss i on of a new s t a t e m e n t of m a t e r i a l facts. Therefore, I occasionally refer to t h e Sept. 14, 2015 S t a t e m e n t of Material F ac t s for pu r po s e s of b ac kg r ound information a nd placing the p a r ti e s ’ e xh i b it s in context.
Lucas Deci. = Declaration of Kyle Lucas, Senior Loan Analyst for Ocwen F i n a n c i a l C o r po r a ti on (ECF no. 68-5) Note = A d j u s t a b l e r a t e p r o m i ss o r y note made J un e 10, 2003 (ECF no. 68-6) Mortgage = Mortgage d a t e d J u n e 10, 2013 (ECF no. 68-7) F i r s t A ss i gn m e n t = A ss i gn m e n t of Mortgage from Morgan Stanley Private Bank, National Association to Morgan S t a n l e y Mortgage Capital Holdings LLC, d a t e d Oct. 18, 2012 (ECFn0. 68-8) Second A ss i gn m e n t = A ss i gn m e n t of Mortgage from Morgan Stanley Mortgage Capital Holdings LLC to HSBC B a nk USA, as T r u s t ee , d a t e d Sept. 19, 2013 (ECF no. 68-9) Servicing T r a n s f e r Notice = Notice of Servicing T r a n s f e r Real E s t a t e S e ttl e m e n t P r o ce d u r e s Act (RESPA) a n d Welcome to Ocwen Loan Servicing LLC, effective Apr. 2 , 2 0 1 2 ( E C F n o . 68-10) M. Kayser Dep. = Excerpt of t r a n s c r i p t of deposition of Michael Kayser (ECF no. 68-11)
*3 June 10, 2003. (Lucas Deci. 9 4—5; M. Kayser Dep. 25—26) The original mortgagee was Morgan Stanley Dean Witter Credit Corporation, which became known as Morgan Stanley Credit Corporation; by merger, that corporation’s successor is Morgan Stanley Private Bank, National Association (“MSPBNA”). (Lucas DecI. ¶ 6)
By the First Assignment, dated October 18, 2012, MSPBNA assigned its entire interest in the loan to Morgan Stanley Capital Holdings, LLC (“MSCH”). The First Assignment was recorded in the Recorder’s Office of Union County, New Jersey, at Book 1402, page 0249. (Lucas Decl. 6, citing First Assignment)
By the Second Assignment, dated September 19, 2013, MSCH assigned its entire interest in the loan to HSBC Bank USA, as Trustee (“HSBC as Trustee”) for Morgan Stanley Mortgage Loan Trust 2004-2AR, Mortgage Pass- Through Certificates, Series 2004-2AR (the “2004-2AR Trust”). The Second Assignment was recorded in the Recorder’s Office of Union County, New Jersey at Book 1411, page 0767, Instrument no. 154238. (Lucas Decl. ¶ 7, citing Second Assignment)
2004-AR Prospectus Cover = Cover page of Prospectus Supplement to a prospectus dated Jan. 28, 2004 for the Morgan Stanley Mortgage Loan Trust 2004-2AR (ECF no. 68-16) Collateral File = Collateral file for the mortgage loan (ECF no. 68-17) M. Kayser Interrog. = Plaintiff’s First Response to Interrogatories (ECF no. 68- 18) P1. Opp. = Plaintiffs’ brief in response to defendants’ motion for summary judgment (ECF no. 69) PSA = Pooling and Serving Agreement, Dated Feb. 1, 2004 for the Morgan Stanley Mortgage Loan Trust 2004-2AR Mortgage Pass-Through Certificates, Series 2004-2AR (ECF no. 69-3) Def. Reply = Reply brief in support of defendants’ combined renewed motion for summary judgment (ECF no. 72) *4 I t i s und i s pu t e d t h a t K a y s e r i s no t c u rr e n t on t h e l o a n , a lt hough t h e r e
m a y b e a d i s pu t e a s t o t h e do ll a r a m oun t o f t h e d e li nqu e n c y . 2 ( L u ca s D ec l . ¶ 10 ; s ee P1. O pp . 8—9) A cc o r d i ng t o O c w e n , t h e s e r v i ce r , no m on t h l y p a y m e n t w a s m a d e on O c t ob e r 11 , 2011 , o r t h e r ea f t e r . (I d . ) A t h i s d e po s iti on on M a y 7 , 2015 , M i c h ae l K a y s e r s t a t e d t h a t h e h a d l a s t m a d e a m on t h l y m o r t g a g e p a y m e n t i n M a r c h 2012 . ( D S M F ¶ J 6—7, c iti ng K a y s e r D e p . 26 ) N o f o r ec l o s u r e ac ti on h a s b ee n i n s tit u t e d , ho w e v e r . ( L u ca s D ec l . ¶ 11 )
O c w e n b e g a n s e r v i c i ng t h e l o a n on A p r il 2 , 2012 . ( L u ca s D ec l . ¶ j J 2 , 8 , c iti ng S e r v i c i ng T r a n s f e r N o ti ce , a / k / a “ H e ll o / G oodby e L e tt e r ” ) . A qu a li f i e d a ff i a n t o f O c w e n , K y l e L u ca s , a tt e s t s t h a t t h e o r i g i n a l no t e a nd m o r t g a g e a r e i n t h e c o ll a t e r a l f il e f o r K a y s e r’ s l o a n , no w i n t h e c u s t ody o f c oun s e l f o r d e f e nd a n t s i n t h i s ac ti on , a nd c oun s e l a tt ac h e s a c opy o f t h e C o ll a t e r a l F il e . ( L u ca s D ec l . ¶ 9 ; C o ll a t e r a l F il e ) LE GA L S T ANDA R D S
I . A . M o ti on t o D i s m i ss f o r L ac k o f S ub j ec t M a tt e r J u r i s d i c ti on M o ti on s t o d i s m i ss f o r l ac k o f s ub j ec t m a tt e r j u r i s d i c ti on pu r s u a n t t o F e d . R . C i v . P . 12 ( b )( 1 ) m a y b e r a i s e d a t a ny ti m e . I w a no w a v. F o r d M o t o r C o ., 67 F . S upp . 2d 424 , 437 - 38 ( D . N . J . 1999 ) . “ j B j eca u s e s ub j ec t m a tt e r j u r i s d i c ti on i s non - w a i v a b l e , c ou r t s h a v e a n i nd e p e nd e n t ob li g a ti on t o s a ti s f y t h e m s e l v e s o f j u r i s d i c ti on i f it i s i n doub t . S ee M t . H ea lt hy C it y S c h . D i s t . B d . o f E du c . v. D oy l e , 429 U . S . 274 , 278 , 97 S . C t . 568 , 50 L . E d . 2d 471 ( 1977 ) . A n ece ss a r y c o r o ll a r y i s t h a t t h e c ou r t ca n r a i s e s u a s pon t e s ub j ec t - m a tt e r j u r i s d i c ti on c on ce r n s . ” N e s b it v. G ea r s U n li m it e d , I n c ., 347 F . 3 d 72 , 76 — 77 ( 3d C i r . 2003 ) .
R u l e 12 ( b )( 1 ) c h a ll e ng e s m a y b e e it h e r f ac i a l o r f ac t u a l a tt ac k s . S ee 2 M oo r e ’ s F e d e r a l P r ac ti ce § 12 . 30 [ 41 ( 3d e d . 2007 ) ; M o r t e n s e n v. F i r s t F e d . S a t , ’ . & L o a n A s s ’ n , 549 F . 2d 884 , 891 ( 3d C i r . 1977 ) . A f ac i a l c h a ll e ng e a ss e r t s t h a t t h e c o m p l a i n t do e s no t a ll e g e s u ff i c i e n t g r ound s t o e s t a b li s h s ub j ec t m a tt e r
F o r r ea s on s e xp l a i n e d i n fr a , a n y d i s pu t e a s t o t h e e x t e n t o f d e li nqu e n c y i s [2] i mm a t e r i a l t o K a y s e r’ s c l a i m s a n d t h e r e f o r e w i l l no t p r ec l ud e s u mm a r y j udg m e n t . *5 j u r i s d i c ti on . I w a no w a , 67 F. S upp . 2d a t 438 . A c ou r t c on s i d e r i ng s u c h a f ac i a l c h a ll e ng e a ss u m e s t h a t t h e a ll e g a ti on s in t h e c o m p l a i n t a r e t r u e . Cardio—Med. A ss o c ., Ltd. v. Crozer—Chesterlvied. Ctr., 721 F . 2d 68 , 75 (3d Cir. 1983); I w a no w a , 67 F. S upp . 2d a t 438 . A f ac t u a l a tt ac k , on t h e o t h e r h a nd , p e r m it s t h e C ou r t to c on s i d e r e v i d e n ce e x t r i n s i c to t h e p l ea d i ng s . Gould E l ec s . Inc. v. U n it e d S t a t e s , 220 F . 3d 169 , 178 (3d Cir. 2000 ) , ho l d i ng m od i f i e d on o t h e r g r ound s by S i m on v. U n it e d S t a t e s , 341 F . 3d 193 (3d Cir. 2003 ) . T hu s “Rule 12(b)(1) do e s no t p r ov i d e p l a i n ti ff s t h e p r o ce du r a l s a f e gu a r d s of R u l e 12(b)(6), s u c h a s a ss u m i ng t h e t r u t h of t h e p l a i n ti ff s a ll e g a ti on s . ” CNA v. United S t a t e s , 535 F . 3d 132, 144 (3d Cir. 2008 ) .
T h e bu r d e n of e s t a b li s h i ng f e d e r a l j u r i s d i c ti on r e s t s w it h t h e p a r t y a ss e r ti ng it s e x i s t e n ce . [ c iti ng D a i m l e r C h r y s l e r Corp. v. Cuno, 547 U.S. 332 , 342 n. 3, 126 5. Ct. 1854 , 164 L . E d . 2d 589 (2006).] “ C h a ll e ng e s to s ub j ec t m a tt e r j u r i s d i c ti on und e r R u l e 12(b)(1) m a y be f ac i a l o r f ac t u a l . ” [ c iti ng C o mm on C a u s e o f Pa. v. P e nn s y l v a n i a , 558 F . 3d 249 , 257 (3d Cir. 2009 ) ( quo ti ng T a li a f e rr o v. D a r by Twp. Z on i ng Bd., 458 F . 3d 181, 188 (3d Cir. 2006 )) . ] A f ac i a l a tt ac k “c on ce r n s ‘an a ll e g e d p l ea d i ng d e f i c i e n c y ’ w h e r ea s a f ac t u a l a tt ac k c on ce r n s ‘the ac t u a l f a il u r e of [a p l a i n ti ff s ] c l a i m s to c o m po r t [f ac t u a ll y ] w it h t h e j u r i s d i c ti on a l p r e r e qu i s it e s . ’ ” [ c iti ng CNA v. U n it e d S t a t e s , 535 F . 3d 132, 139 (3d Cir. 2008 ) ( a lt e r a ti on s in o r i g i n a l ) ( quo ti ng United S t a t e s a t rel. A t k i n s on v. Pa. S h i pbu il d i ng Co., 473 F . 3d 506 , 514 (3d C i r . 2007 )) . ] “In r e v i e w i ng a f ac i a l a tt ac k , t h e c ou r t m u s t on l y c on s i d e r t h e a ll e g a ti on s of t h e c o m p l a i n t a nd do c u m e n t s r e f e r e n ce d t h e r e i n a nd a tt ac h e d t h e r e t o , in t h e li gh t m o s t f a vo r a b l e to t h e p l a i n ti ff . ” [ c iti ng Gould E l ec s . Inc. v. U n it e d S t a t e s , 220 F . 3d 169 , 176 (3d Cir. 2000 ) . ] By c on t r a s t , i n r e v i e w i ng a f ac t u a l a tt ac k , “ t h e c ou r t m u s t p e r m it t h e p l a i n ti ff to r e s pond w it h r e bu tt a l e v i d e n ce in s uppo r t of j u r i s d i c ti on , a nd t h e c ou r t t h e n d ec i d e s t h e j u r i s d i c ti on a l i s s u e by w e i gh i ng t h e e v i d e n ce . If t h e r e is a d i s pu t e of a m a t e r i a l f ac t , t h e c o u r t m u s t c o nd u c t a p l e n a r y h ea r i n g o n t h e c o n t e s t e d i ss u e s p r i o r to d e t e r m i n i ng j u r i s d i c ti on . ” [ c iti ng M c C a nn v. N e w m a n Irr e vo ca b l e T r u s t , 458 F . 3d 281 , 290 (3d Cir. 2006 ) ( c it a ti on s o m itt e d ) . ]
*6 Lincoln Ben. Life Co. v. A F I Life, LLC, 800 F . 3d 99 , 105 (3d Cir. 2015 ) (f oo t no t e s o m itt e d ; ca s e c it a ti on s in f oo t no t e s i n s e r t e d in t e x t ) .
H e r e , t h e c r ux of t h e d e f e nd a n t s ’ j u r i s d i c ti on a j c h a ll e ng e is t h a t no d e f e nd a n t h a s c o mm e n ce d a f o r ec l o s u r e ac ti on i n s t a t e c ou r t a g a i n s t K a y s e r . T h e d e f e nd a n t s s ub m it a d ec l a r a ti on of a s u it a b l e p e r s on w it h kno w l e dg e to t h a t effect ( L u ca s Deci. ¶ 11), a nd K a y s e r s ub m it s no t h i ng s ho w i ng e v e n t h e i mm i n e n t t h r ea t of a f o r ec l o s u r e ac ti on . T h e r e is li k e w i s e no a ll e g a ti on t h a t a ny d e f e nd a n t h a s i n iti a t e d f o r ec l o s u r e p r o cee d i ng s in K a y s e r’ s A m e nd e d C o m p l a i n t . A cc o r d i ng l y , no e x t r i n s i c p r oo f s a r e p r o ff e r e d o r r e qu i r e d to r e s o l v e t h e j u r i s d i c ti on a l qu e s ti on ; w h e t h e r I c on s i d e r t h e d e f e nd a n t s ’ 12(b)(1) a tt ac k to be f ac i a l o r f ac t u a l , m y a n a l y s i s is t h e s a m e .
B. S u mm a r y J udg m e n t S t a nd a r d a nd P r o ce du r e s F e d e r a l R u l e of Civil P r o ce du r e 56(a) p r ov i d e s t h a t s u mm a n ’ j udg m e n t s hou l d be g r a n t e d “if t h e m ov a n t s ho w s t h a t t h e r e is no g e nu i n e d i s pu t e a s to a ny m a t e r i a l f ac t a nd t h e m ov a n t is e n titl e d to j udg m e n t a s a m a tt e r of law.” F e d . R. Civ. p. 56(a); s ee a l s o A nd e r s on v. L i b e r t y Lobby, Inc., 477 U.S. 242 , 248 ( 1986 ) ; K r e s c ho f l e k u. S. S t e v e do r i ng Co., 223 F . 3d 202 , 204 (3d Cir. 2000 ) . In d ec i d i ng a m o ti on for s u mm a r y j udg m e n t , a c ou r t m u s t c on s t r u e all f ac t s a nd i n f e r e n ce s in t h e li gh t m o s t f a vo r a b l e to t h e non m ov i ng p a r t y . S ee B oy l e v. C oun t y o f A ll e gh e ny P a ., 139 F . 3d 386 , 393 (3d Cir. 1998). T h e m ov i ng p a r t y h a s t h e bu r d e n of e s t a b li s h i ng t h a t no g e nu i n e i ss u e of m a t e r i a l f ac t r e m a i n s . S ee C e l o t e x Corp. v. C a t r e tt , 477 U.S. 317 , 322—23 ( 1986 ) . “[Wjith r e s p ec t to a n i s s u e on w h i c h t h e non m ov i ng p a r t y b ea r s t h e bu r d e n of p r oo f ... t h e bu r d e n on t h e m ov i ng p a r t y m a y be d i s c h a r g e d by ‘ s ho w i ng ’ — t h a t is, po i n ti ng ou t to t h e d i s t r i c t c ou r t — t h a t t h e r e is a n a b s e n ce of e v i d e n ce to s uppo r t t h e non m ov i ng p a r t y ’ s ca s e . ” Celotex, 477 U.S. a t 325 .
O n ce t h e m ov i ng p a r t y h a s m e t t h a t t h r e s ho l d bu r d e n , t h e non - m ov i ng p a r t y “ m u s t do m o r e t h a n s i m p l y s ho w t h a t t h e r e is s o m e m e t a phy s i ca l doub t a s to m a t e r i a l f ac t s . ” M a t s u s h it a Elec. I ndu s . Co., Ltd. v. Z e n it h R a d i o Corp., 475 U.S. 574 , 586 ( 1986 ) . T h e oppo s i ng p a r t y m u s t p r e s e n t ac t u a l e v i d e n ce t h a t *7 c r ea t e s a g e nu i n e i ss u e a s t o a m a t e r i a l f ac t f o r t r i a l . A nd e r s on , 477 U . S . a t 248 ; s ee a l s o F e d . R . C i v . P . 56 ( c ) ( s e tti ng f o r t h t yp e s o f e v i d e n ce on w h i c h non m ov i ng p a r t y m a y r e l y t o s uppo r t it s a ss e r ti on t h a t g e nu i n e i ss u e s o f m a t e r i a l f ac t e x i s t ) ; s ee a l s o G l ea s on v . N onv e s t M o r t g ., I n c ., 243 F . 3d 130 , 138 ( 3d C i r . 2001 ) ( “ A non m ov i ng p a r t y h a s c r ea t e d a g e nu i n e i ss u e o f m a t e r i a l f ac t i f it h a s p r ov i d e d s u ff i c i e n t e v i d e n ce t o a ll o w a j u r y t o f i nd i n it s f a vo r a t t r i a l . ” ) . If t h e non m ov i ng p a r t y h a s f a il e d “ t o m a k e a s ho w i ng s u ff i c i e n t t o e s t a b li s h t h e e x i s t e n ce o f a n e l e m e n t e ss e n ti a l t o t h a t p a r t y ’ s ca s e , a nd on w h i c h t h a t p a r t y w ill b ea r t h e bu r d e n o f p r oo f a t t r i a l , ... t h e r e ca n b e ‘ no g e nu i n e i ss u e o f m a t e r i a l f ac t , ’ s i n ce a c o m p l e t e f a il u r e o f p r oo f c on ce r n i ng a n e ss e n ti a l e l e m e n t o f t h e non m ov i ng p a r t y ’ s ca s e n ece ss a r il y r e nd e r s a ll o t h e r f ac t s i mm a t e r i a l . ” K a t z v . A e t n a C a s . & S ti r . C o ., 972 F . 2d 53 , 55 ( 3d C i r . 1992 ) ( quo ti ng C e l o t e x , 477 U . S . a t 322 — 23 ) .
I n d ec i d i ng a m o ti on f o r s u mm a n ’ j udg m e n t , t h e c ou r t • ’ s r o l e i s no t t o e v a l u a t e t h e e v i d e n ce a nd d ec i d e t h e t r u t h o f t h e m a tt e r , bu t t o d e t e r m i n e w h e t h e r t h e r e i s a g e nu i n e i ss u e f o r t r i a l . A nd e r s on , 477 U . S . a t 249 , 106 S . C t . 2505 . C r e d i b ilit y d e t e r m i n a ti on s a r e t h e p r ov i n ce o f t h e f ac t f i nd e r . B i g A pp l e B M W , I n c . u . B M W o f N . A m ., I n c ., 974 F . 2d 1358 , 1363 ( 3d C i r . 1992 ) .
R u l e 56 a nd t h e ca s e l a w i n t e r p r e ti ng it , t h e n , r e qu i r e t h a t a p a r t y s ub m it a ff i d a v it s a nd e v i d e n ce s u ff i c i e n t t o p e r s u a d e t h e c ou r t t h a t t h e r e i s o r i s no t a n i ss u e o f f ac t . D e f e nd a n t s , a s m ov a n t s , h a v e don e s o . T h e i r p a p e r s i n c l ud e t w o d ec l a r a ti on s , a s w e ll a s p r op e r l y s pon s o r e d m o r t g a g e do c u m e n t s , a ss i gn m e n t s , d e po s iti on a nd i n t e rr og a t o r y a n s w e r s . D e f e nd a n t s a l s o p r e v i ou s l y s ub m itt e d t h e S t a t e m e n t o f U nd i s pu t e d M a t e r i a l F ac t s , c iti ng t o t h e s uppo r ti ng e v i d e n ce , t h a t i s r e qu i r e d by t h e L o ca l R u l e s o f t h i s D i s t r i c t . L o c . R . 56 . 1 ( a ) . ( S ee D S M F ; d i s c u ss i on o f D S M F a t n . 1 )
K a y s e r , ho w e v e r , h a s m a d e littl e e ff o r t t o c o m p l y w it h t h e r e qu i r e m e n t s o f R u l e 56 . H e h a s s ub m itt e d a b r i e f i n oppo s iti on , acc o m p a n i e d by : ( A ) a c opy o f t h e A m e nd e d C o m p l a i n t ( E C F no . 69 - 1 ) ; ( B ) a l e tt e r fr o m d e f e nd a n t s ’ c o un s e l *8 r e s pond i ng to a r e v i s e d i n t e rr og a t o r y r e qu e s t; 3 a nd (C) a P oo li ng a nd S e r v i c i ng A g r ee m e n t for t h e 2004 - 2 A R T r u s t ( t h e “PSA”) (ECF no. 69 - 3 ) . K a y s e r h a s no t s ub m itt e d a ny a ff i d a v it , d ec l a r a ti on , o r ce r ti f i ca ti on . I n s t ea d , K a y s e r’ s b r i e f c it e s r e p ea t e d l y to t h e un s uppo r t e d a ll e g a ti on s of h i s A m e nd e d C o m p l a i n t . (See, e.g., P1. O pp . 4 (“The r e l e v a n t f ac t s a r e g l ea m e d [sic] fr o m t h e A m e nd e d C o m p l a i n t . ” ) The c o m p l a i n t , h e s a y s , c o m p li e s w it h t h e p l ea d i ng r e qu i r e m e n t s “ s e t f o r t h by t h e S up r e m e C ou r t i n Bell At!. Corp. v. Twombly, 550 U.S. 544 , 570 (2007).” B eca u s e , K a y s e r c on ti nu e s , “ [ n ] o t h i ng in t h e D e po s iti on o r do c u m e n t d i s c ov e r y c on t r a d i c t [ s ] a ny of t h e a ll e g a ti on s in t h e A m e nd e d
. t h e A m e nd e d C o m p l a i n t is no t m e r e l y a m a tt e r of law, bu t h a s C o m p l a i n tj , 1 . . all of t h e f ac t s a ll e g e d t h a t r e m a i n und i s pu t e d by D e f e nd a n t s ’ D i s c ov e r y r e s pon s e s . ” (P1. O pp . 10) T h a t is a p a t e n tl y i n c o rr ec t a pp li ca ti on of t h e r e l e v a n t s t a nd a r d s on a s u mm a r y j udg m e n t m o ti on .
T h e d e f e nd a n t s ’ m e r it s - b a s e d a r gu m e n t s a r e b r ough t on a m o ti on for s u mm a r y j udg m e n t — no t a m o ti on to d i s m i ss . S u c h a m o ti on r e qu i r e s e v i d e n ce . A p l a i n ti ff ca nno t b ea t b ac k a d e f e nd a n t ’ s m o ti on for s u mm a r y j udg m e n t by r e p ea ti ng t h e a ll e g a ti on s of t h e c o m p l a i n t . “ [ U j n s uppo r t e d
. a nd p l ea d i ng s a r e i n s u ff i c i e n t to r e p e l s u mm a r y j udg m e n t . ” a ll e g a ti on s . . S c ho c h v. F i r s t Fid. B a n c o r po r a ti on , 912 F . 2d 654 , 657 (3d Cir. 1990 ) . N e v e r t h e l e ss , I r e v i e w t h e e n ti r e r ec o r d of t h e ca s e a nd view K a v s e r’ s li m it e d s ub m i ss i on s in t h e c on t e x t of t h e ov e r a r c h i ng c o mm a nd of R u l e 56 t h a t t h e C ou r t , if it is to g r a n t s u mm a r y j udg m e n t , m u s t s a ti s f y it s e l f b a s e d on t h e r ec o r d of t h e ca s e t h a t t h e r e e x i s t s no g e nu i n e , m a t e r i a l i s s u e of f ac t . See, e.g., A n c ho r a g e A s s o c s . v. Virgin I s l a nd s Bd. o f Tax R e v i e w , 922 F . 2d 168, 175 (3d Cir. 1990) ( ho l d i ng t h a t e v e n w h e r e a l o ca l r u l e d ee m i ng unoppo s e d m o ti on s to be c on ce d e d , t h e c ou r t w a s s till r e qu i r e d to a n a l y ze t h e m ov a n t ’ s s u mm a r y j udg m e n t m o ti on und e r t h e s t a nd a r d p r e s c r i b e d by Fed. R. Civ. P. 56(e)); s ee
In t h i s letter, t h e d e f e n d a n t s simply deny p o ss e s s i o n of any record to i n d i ca t e [3] t h a n an i n s u r e r h a s “paid ou t on a Kayser loan” to any of the d e f e nd a n t s or any p r e v i ou s holder of Kayser’s note or mortgage. (ECF no. 69-2) The l e tt e r h a s no p r ob a ti v e value for pu r po s e s of Kayser’s claims. *9 a l s o H ou s t on ii. R a ndo l ph T w p ., 934 F . S upp . 2d 711 , 723 ( D . N . J . 2013 ) , a ff’ d , 559 F . A pp5 c 139 ( 3d C i r . 2014 ) .
II . ANA L Y S I S A . K a y s e r’ s C l a i m s A s I h a v e no t p r e v i ou s l y w r itt e n on t h i s ca s e , 4 I r e v i e w t h e ca u s e s o f
ac ti on a ss e r t e d . K a y s e r a ll e g e s i n C oun t O n e — ” w r ong f u l c o ll ec ti on p r ac ti ce” — t h a t t h e “ N o t e a nd M o r t g a g e i n t h i s m a tt e r n e v e r l e g a ll y t r a n s f e rr e d t o t h e T r u s t . ” ( A C ¶ 60 ) T h e r e f o r e , K a y s e r a ll e g e s t h a t d e f e nd a n t M S C H “ h a s no r i gh t s t o e n f o r ce c o ll ec ti on , ” a nd “ca nno t s u e P l a i n ti ff f o r f o r ec l o s u r e o r c o ll ec t on t h e no t e o r a u t ho r i ze D e f e nd a n t O c w e n t o do s o . ” ( A C ¶ ) 62 , 63 ) . I und e r s t a nd C oun t O n e t o c h a ll e ng e t h e d e f e nd a n t s ’ s t a nd i ng t o e n f o r ce t h e no t e a nd m o r t g a g e t h r ough c o ll ec ti on e ff o r t s o r i n f o r ec l o s u r e p r o cee d i ng s .
C oun t T w o a s k s f o r a n i n j un c ti on t o qu i e t titl e on t h e no t e a nd m o r t g a g e . K a y s e r a ll e g e s t h a t “ [ a ] s t h e T r u s t c l o s e d i n 2004 a nd / o r 2005 y ea r s b e f o r e t h e N o t e a nd m o r t g a g e w e r e c r ea t e d , t h e qu e s ti on a bou t l e g a l titl e r e m a i n s . ” ( A C ¶ 65 ) T h e r e f o r e , K a y s e r c on c l ud e s , titl e “ n e v e r t r a n s f e rr e d t o D e f e nd a n t s . ” ( A C ¶ 66 ) M o r e ov e r , K a y s e r s a y s , “ D e f e nd a n t s ca nno t p r odu ce t h e phy s i ca l a nd o r i g i n a l N o t e a nd M o r t g a g e . ” ( A C 1 65 ) K a y s e r a l s o c on t e nd s t h a t b eca u s e t h e 2004 - 2 A R - T r u s t h a d a F e b r u a r y 2004 c l o s i ng d a t e , h i s no t e a nd m o r t g a g e c ou l d no t h a v e b ee n a ss i gn e d t o t h e 2004 - 2 A R T r u s t i n 2013 . ( A C ¶ J 32 — 33 , 55 ) 5
O f t h e d e f e nd a n t s , on l y M SP B NA m ov e d t o d i s m i ss . K a y s e r c on s e n t e d , a nd by o r d e r d a t e d M a r c h 3 , 2014 , I o r d e r e d t h e c o m p l a i n t d i s m i ss e d a g a i n s t M SP B NA a nd h e l d it s m o ti on t o d i s m i ss m oo t . ( E C F no . 21 )
I d i s m i ss t h i s p a r ti c u l a r a ll e g a ti on w it hou t f u r t h e r c on s i d e r a ti on , a s it s ee m s t o b e b a s e d on K a y s e r’ s f a il u r e t o a pp r ec i a t e t h a t m o r t g a g e l o a n s ca n b e a ll o ca t e d t o m o r t g a g e l o a n t r u s t s e v e n a f t e r t h e “c l o s i ng d a t e” o f t h e t r u s t s . S ee , e . g ., PS A a t 17 ( d e f i n i ng “ M o r t g a g e L o a n S c h e du l e” , no ti ng “ s u c h s c h e du l e m a y b e a m e nd e d ... fr o m ti m e t o ti m e t o r e f l ec t t h e a dd iti on o f R e p l ace m e n t M o r t g a g e L o a n s t o , o r t h e d e l e ti on o f D e l e t e d M o r t g a g e L o a n s fr o m , t h e T r u s t F u nd . ” ) ; i d . 2 5 ( d e f i n i n g “ R e p l ace m e n t M o r t g a g e L o a n ” a s “[aJ m o r t g a g e l o a n s u b s t i t u t e d ... f o r a D e l e t e d M o r t g a g e L o a n . .“); Id. 3 9 — 4 0 § 2 . 0 4 (r e p a n d w a rr a n t y r e qu i r i n g r e pu r c h a s e o r s u b s t i t u t i o n o f m o r t g a g e l o a n s , u p on d i s c o v e r y o f b r e ac h p o s t - c l o s i n g d a t e ) .
*10 C oun t T h r ee a ll e g e s t h a t “ D e f e nd a n t kn e w o r s hou l d h a v e kno w n it do e s no t po ss e ss t r u e , l e g a l titl e t o t h e c o ll ec ti on on t h e s ub j ec t m o r t g a g e , ” bu t n e v e r t h e l e ss m a d e t e l e phon e ca ll s a nd s e n t l e tt e r s p r e ss i ng K a y s e r t o p a y . ( A C ¶ 1 67 — 69 ) K a v s e r a ll e g e s t h i s a m oun t s t o fr a ud . W it h i n C oun t T h r ee , K a y s e r a l s o a ll e g e s t h a t O c w e n m a d e “ f a l s e p r o m i s e s i n r e g a r d s t o m od i f y i ng t h e m o r t g a g e , ” w h i c h l e d K a y s e r t o s p e nd “ m o r e t h a n $100 , 000 ,,, a nd t h a t t h e s e ac ti on s v i o l a t e d t h e F e d e r a l D e b t C o ll ec ti on P r ac ti ce s A c t ( “ F D C P A ” ) , 15 U . S . C . § 1692 e t s e q . ( A C ¶ j 73 — 74 ) K a y s e r do e s no t i nd i ca t e w h i c h p r ov i s i on s o f t h e F D C P A h e s ee k s t o e n f o r ce , s o I w ill c on s i d e r t h e m o s t li k e l y ca nd i d a t e s : S ec ti on 1692 e , w h i c h p r oh i b it s v a r i ou s f o r m s o f f a l s e o r m i s l ea d i ng r e p r e s e n t a ti on s , s u c h a s f a l s e l y r e p r e s e n ti ng t h e “c h a r ac t e r , a m oun t o r l e g a l s t a t u s o f a ny d e b t ” “ w it h t h e c o ll ec ti on o f a ny d e b t , ” 15 U . S . C . § 1692 e , §1692 e ( 2 )( a ) , a nd S ec ti on 1692 f , w h i c h p r oh i b it s a d e b t c o ll ec t o r fr o m u s i ng “ un f a i r o r un c on s c i on a b l e m ea n s t o c o ll ec t o r a tt e m p t t o c o ll ec t a ny d e b t , ” 15 U . S . C . § 1692 f .
F i n a ll y , K a y s e r c on t e nd s i n h i s b r i e f t h a t h e h a s b r ough t c l a i m s f o r m i s a pp li ca ti on o f f und s a nd un j u s t e n r i c h m e n t . (P1. O pp . 10 ) T h e s e t h e o r i e s a r e m e n ti on e d i n t h e A m e nd e d C o m p l a i n t on l y i n p a ss i ng . O n l y t h e t h r ee c oun t s d e s c r i b e d s up r a c on t a i n f ac t u a l a ll e g a ti on s e v e n po t e n ti a ll y s u ff i c i e n t t o s a ti s f y f e d e r a l p l ea d i ng s t a nd a r d s . A tt e m p ti ng t o r a i s e n e w c l a i m s i n a b r i e f i n oppo s iti on t o s u mm a r y j udg m e n t i s p r o ce du r a ll y i m p e r m i ss i b l e . S ee F e d . R . C i v . P . 15 ( a ) . T h e r e f o r e , I s e t a s i d e t h e s e t w o m i s ce ll a n e ou s s t a t e - l a w c l a i m s .
B . A r ti c l e III J u r i s d i c ti on A n a l y s i s 1. C l a i m s C on ce r n i ng F o r ec l o s u r e D e f e nd a n t s i n iti a ll y c on t e nd t h a t t h i s C ou r t l ac k s s ub j ec t m a tt e r
j u r i s d i c ti on b eca u s e t h e r e i s no ac t u a l ca s e o r c on t r ov e r s y , a s A r ti c l e III o f t h e U n it e d S t a t e s C on s tit u ti on r e qu i r e s . U . S . C on s t . A r t . III ; s ee R od r i qu ez u. 32nd L e g i s l a t u r e o f V i r g i n I s l a nd s , 859 F . 3d 199 , 207 ( 3d C i r . 2017 ) ( “ U nd e r A r ti c l e . j ud i c i a l po w e r ov e r on l y III o f t h e C on s tit u ti on , a f e d e r a l c ou r t m a y e x e r c i s e .
. .“ ( i n t e r n a l quo t a ti on m a r k s a nd ac t u a l , ongo i ng ca s e s o r c on t r ov e r s i e s . . . *11 c it a ti on s o m itt e d )) . T h e d e f e nd a n t s a r gu e K a y s e r is p r ee m p ti v e l y d e f e nd i ng a g a i n s t a m o r t g a g e f o r ec l o s u r e ac ti on no t y e t flied, e ff ec ti v e l y s ee k i ng d ec l a r a t o r y j udg m e n t a nd i n j un c ti v e r e li e f to p r e v e n t f o r ec l o s u r e . B u t “ [ t ] o s a ti s f y t h e A r ti c l e III ca s e o r c on t r ov e r s y r e qu i r e m e n t , a p l a i n ti ff m u s t e s t a b li s h t h a t h e or s h e h a s s u ff e r e d a n ‘ i n j u r y in fact’ t h a t is bo t h ‘ c on c r e t e a nd p a r ti c u l a r i ze d ’ a nd ‘ ac t u a l o r i mm i n e n t , no t c on j ec t u r a l or hypo t h e ti ca l . ” ’ Doe e x r e l . Doe v. L o w e r Merion Sch. D i s t ., 665 F . 3d 524 , 542 (3d Cir. 2011 ) ( quo ti ng L u j a n v. D e f e nd e r s o f Wildlife, 504 U.S. 555 , 560 , 112 S. Ct. 2130 (1992)).
As t h e d e f e nd a n t s po i n t ou t , o t h e r j udg e s in t h i s d i s t r i c t h a v e c on s i s t e n tl y d i s m i ss e d c l a i m s t h a t p r ee m p ti v e l y c h a ll e ng e m o r t g a g ee s ’ a b ilit y to f o r ec l o s e on t h e b a s i s of i nv a li d titl e w h e r e no f o r ec l o s u r e p r o cee d i ng s h a v e b ee n i n iti a t e d , w h e t h e r und e r a R u l e 12(b)(6) s t a nd a r d (with r e s p ec t to c l a i m s for i n j un c ti v e relief) o r for l ac k of a n “ac t u a l c on t r ov e r s y ” und e r t h e D ec l a r a t o r y J udg m e n t Act, 28 U . S . C . § 220 1(a).6 See, e.g., E s p a ill a t v. D e u t s c h e B a nk Nat. Ti-. Co., No. 2 :l 5 - C V - 00314 - S D W - S C , 2015 WL 2412153 , a t *2 (D.N.J. May 21 , 2015 ) ( “ [ D j ec l a r a t o r y r e li e f r e qu i r e s a live c on t r ov e r s y of s u ff i c i e n t i mm e d i ac y b e t w ee n t h e p a r ti e s . I n c on t r a s t , h e r e , t h e r e is no p e nd i ng f o r ec l o s u r e ac ti on to . F u r t h e r , t h e r e is no f o r ec l o s u r e ac ti on for m a k e t h e s e a ll e g a ti on s r e l e v a n t . .
. t h i s C ou r t to e n j o i n . ” ( c iti ng Z i mm e r m a n u. HBO A ff ili a t e Qrp., 834 F . 2d 1163 , 1170 (3d Cir. 1987)); C o l e m a n u. D e u t s c h e B a nk Nat. Tr. Co., No. CIV.A. 15- 1080 J LL , 2015 WL 2226022 , a t *3 ( D . N . J . May 12, 2015 ) (r ea s on i ng “ t h e r e is no i mm e d i a t e c on t r ov e r s y w a rr a n ti ng d ec l a r a t o r y j udg m e n t a s t h e r e is no ac ti v e f o r ec l o s u r e ac ti on ” a nd a l s o no ti ng t h e l ac k of a n ac ti v e f o r ec l o s u r e ac ti on in a ss e ss i ng li k e li hood of s u cce s s for i n j un c ti v e relief); acc o r d A ndu j a r v. D e u t s c h e B a nk Nat. Tr. Co., No. CIV.A. 14 - 7836 , 2015 WL 4094637 , a t *2_s
“The jU.S. S up r e m e l Court h a s ... held t h a t the D ec l a r a t o r y J udg m e n t Act [6] r e qu i r e m e n t of an “actual controversy” is i d e n t i ca l to the c o n s t i t u t i on a l r e qu i r e m e n t of ‘cases’ a nd ‘controversies.”’ C u t a i a r u. Marshall, 590 F.2d 523, 527 (3d Cir. 1979) (citing A e t n a L i f e I n s u r a n ce Co. v. Haworth, 300 U.S. 227, 239 - 40 , 57 S . Ct. 461 (1937)). *12 ( D . N , J . J u l y 7 , 2015 ) ; G on za l ez v. U S . B a nk N a t . A ss ’ n , N o . C I V . A . 14 - 7855 , 2015 W L 3648984 , a t *3_4 ( D . N . J . J un e 11 , 2015 ) .
T o t h e e x t e n t K a y s e r c h a ll e ng e s t h e d e f e nd a n t s ’ a b ilit y t o f o r ec l o s e on h i s m o r t g a g e d p r op e r t y ( a nd C oun t O n e a pp ea r s t o c on t a i n s u c h a n a tt e m p t ) , I j o i n t h e o t h e r j udg e s i n t h i s d i s t r i c t a nd f i nd t h a t t h i s p a r ti c u l a r c l a i m f a il s .
I und e r s t a nd K a y s e r’ s c l a i m s t o c on ce r n m o r e t h a n j u s t t h e t h r ea t o f f o r ec l o s u r e , ho w e v e r . I nd ee d , a s i d e fr o m r e qu e s ti ng “a n i n j un c ti v e O r d e r o f Q u i e t T itl e o f t h e N o t e a nd M o r t g a g e” ( A C ¶ 67 ) , K a y s e r n e v e r a s k s f o r r e li e f i n r e l a ti on t o a n a n ti c i p a t e d f o r ec l o s u r e . R a t h e r , t h e p r i m a r y pu r po s e o f C oun t s O n e a nd T h r ee , a s I s ee it , i s t o s t op t h e d e f e nd a n t s fr o m t r y i ng t o c o ll ec t m o r t g a g e p a y m e n t s o r t o p e n a li ze t h e m f o r do i ng s o . I und e r s t a nd C oun t T w o a s K a y s e r’ s a tt e m p t t o h a v e h i s m o r t g a g e d e b t d i s c h a r g e d e n ti r e l y . ( S ee P1. O pp . 11 )
2 . C l a i m s C on ce r n i ng C o ll ec ti on a nd T itl e K a y s e r’ s c l a i m s , s o und e r s t ood , a r e n e v e r t h e l e ss j u r i s d i c ti on a ll y i n f i r m .
C oun t s O n e a nd T h r ee a ll e g e i n j u r y by w a y o f t h e d e f e nd a n t s ’ un l a w f u l c o ll ec ti on ( o r a tt e m p t e d c o ll ec ti on ) o f l o a n p a y m e n t s . K a y s e r , ho w e v e r , do e s no t d i s pu t e t h a t h e o w e d l o a n p a y m e n t s t o s o m e p a r t y . H e a ll e g e s on l y t h a t ce r t a i n a ss i gn m e n t s w e r e i nv a li d , a nd t h a t t h e pu r po r t e d a ss i gn ee s t h e r e f o r e do no t po ss e ss t h e r i gh t s o f c r e d it o r s und e r t h e no t e a nd m o r t g a g e . T h a t a ll e g a ti on , w it hou t m o r e , i s no t e nough t o c on f e r s t a nd i ng . A r u l e o f t e n a pp li e d by c ou r t s i n t h i s d i s t r i c t i s t h a t “a m o r t g a go r , o r bo rr o w e r , do e s no t h a v e s t a nd i ng t o a ll e g e t h a t a n a ss i gn m e n t b e t w ee n t w o t h i r d p a r ti e s i s i nv a li d . ” E ng li s h v. F e d . N a t . M ong . A s s ’ n , N o . C I V . A . 13 - 2028 CCC , 2013 W L 6188572 , a t *4 ( D . N . J . N ov . 26 , 2013 ) ( d i s m i ss i ng qu i e t titl e c l a i m on 12 ( b )( 6 ) m o ti on bu t a l s o f i nd i ng no “ i n j u r y i n f ac t ” f o r s t a nd i ng ) ; s ee a l s o , e . g ., P e r ez v. J p m o r g a n C h a s e B a nk , N . A ., N o . C A 14 - 2279 ( CCC ) , 2016 W L 816752 , a t *3 ( D . N . J . F e b . 29 , 2016 ) ( “ P l a i n ti ff s do no t c l a i m t h e y a r e p a r ti e s t o o r t h i r d - p a r t y b e n e f i c i a r i e s o f t h e PS A o r a ss i gn m e n t s o f t h e i r N o t e o r M o r t g a g e . A cc o r d i ng l y , t h e C ou r t f i nd s P l a i n ti ff s l ac k s t a nd i ng t o b r i ng c l a i m s on t ho s e b a s e s . ” ) , a pp ea l d i s m i ss e d *13 ( J un e 6 , 2016 ) ; I n r e : 5 t h , N o . A P 11 - 1436 , 2015 W L 9462089 , a t *9 ( D . N . J . D ec . 28 , 2015 ) ( ob li go r s d i d no t h a v e s t a nd i ng t o c h a ll e ng e t h e v a li d it y o f t h e a ss i gn m e n t o f a n ob li g a ti on b e t w ee n t w o t h i r d p a r ti e s ) ; A ndu j a r , 2015 W L 4094637 , a t *5 ( “ M e r e l y a ll e g i ng . .
. t h a t t h e l o a n do c u m e n t s a r e i nv a li d o r i m p r op e r l y a ss i gn e d do e s no t s t a t e a c l a i m f o r a n ac ti on t o qu i e t titl e . ” ( c it a ti on o m itt e d )) ; S c h i a no v . M B NA , N o . C I V . A . 05 - 1771 J LL , 2013 W L 2452681 , a t *26 ( D . N . J . F e b . 11 , 2013 ) (f i nd i ng no i n j u r y i n f ac t , a l s o no ti ng t h a t p l a i n ti ff f a il e d t o e xp l a i n ho w “a ll e g e d i rr e gu l a r iti e s i n t h e a ss i gn m e n t s b e t w ee n t h i r d p a r ti e s s o m e ho w c l oud titl e i n t h e m o r t g a g e it s e l f’) , a ff d , N o . C I V . A . 05 - 177 1 I LL , 2013 W L 2455933 ( D . N . J . J un e 3 , 2013 ) .
T h a t r u l e d r a w s on t h e “ f und a m e n t a l p r i n c i p l e t h a t a ss i gn m e n t o f a m o r t g a g e g e n e r a ll y h a s no i m p ac t on t h e bo rr o w e r’ s r i gh t s o r ob li g a ti on s . ” A li p e r i o u . B a nk o f A m ., N . A ., N o . 2 : 16 - C V - 01008 - K M - M AH , 2016 W L 7229114 , a t *14 ( D . N . J . D ec . 13 , 2016 ) ; s ee a l s o G il a nno u . U S . B a nk NA a t r e L C S A B M o ti g . B ac k e d T r . 2006 - 1 , 643 F . A pp ’ x 97 , 101 ( 3d C i r . 2016 ) ( non p r ece d e n ti a l ) ( “ ( P l a i n ti ff] i s no t a p a r t y t o t h e PS A no r a t h i r d - p a r t y b e n e f i c i a r y o f t h e PS A , a nd h e r i n j u r i e s a r e hypo t h e ti ca l . S h e a d m it s t h a t s h e t ook ou t t h e l o a n , t h a t s h e i s i n d e f a u lt , a nd s h e do e s no t a r gu e t h a t s h e e v e r p a i d m o r e t h a n t h e a m oun t du e on h e r l o a n , o r t h a t s h e r ece i v e d a b ill o r d e m a nd fr o m a ny e n tit y o t h e r t h a n t h e d e f e nd a n t s . ” ) ; B a u e r u . M ong . E l ec . R e g i s t r a ti on S y s ., I n c ., 618 F . A pp ’ x 147 , 149 ( 3d C i r . 2015 ) ( non - p r ece d e n ti a l ) ( no s t a nd i ng t o c h a ll e ng e t r a n s f e r o f m o r t g a g e f o r s a m e r ea s on s ) ; M a r c h i v . H ud s on C it y S a y . B a nk , N o . C V 15 - 5725 ( K M ) , 2017 W L 628476 , a t *5 ( D . N . J . F e b . 15 , 20 17 ) ( “ I n s ho r t , t h e c o m p l a i n t f a il s t o p l ea d t h a t t h e m e r g e r h a s h a d a ny r ea l - w o r l d c on s e qu e n ce s a t a ll , fr o m [ p l a i n ti ff’ s } po i n t o f v i e w . I t s e t s f o r t h no f ac t u a l b a s i s f o r a fr a ud c l a i m f o r d a m a g e s . ” ) ; U . S . B a nk N a t . A s s ’ n v . R a d i s i c , N o . A - 4160 - 13 T 3 , 2015 W L 4275977 , a t *4 ( N . J . S up e r . C t . A pp . D i v . J u l y 16 , 2015 ) ( “ D e f e nd a n t s do no t d e ny t h e d e b t a nd do no t a ss e r t t h a t t h e y f ace c on f li c ti ng c l a i m s a s t o w ho m t h e y o w e t h e m on e y . T h e r e f o r e , t h e y h a v e no s t a nd i n g t o c h a ll e ng e t h e a ss i gn m e n t . ” ) .
*14 T h e s a m e p r i n c i p l e a pp li e s to t h e e x t e n t K a y s e r is a tt e m p ti ng to c h a ll e ng e t h e a ss i gn m e n t s o r c on t e s t o w n e r s h i p of t h e no t e a nd m o r t g a g e b a s e d on t h e d e f e nd a n t s ’ b r eac h of t h e PSA, a s to w h i c h K a y s e r is no t a p a r t y o r b e n e f i c i a r y ( s ee PSA; P1. O pp . 8 & AC ¶IJ 34—38 ( s ugg e s ti ng D e f e nd a n t s ’ non c o m p li a n ce w it h PSA by f a ili ng to r e g i s t e r a t r u s t w it h t h e S ec u r iti e s a nd E x c h a ng e C o mm i ss i on )) . See, e.g., G il a nno , s up r a ; In re: 5th, 2015 WL 9462089 , a t *9 (“[T]he b a nk r up t c y c ou r t c o rr ec tl y h e l d t h a t D e b t o r s d i d no t h a v e s t a nd i ng . T h e y w e r e n e it h e r a p a r t y to t h e PSA no r t h i r d p a r t y b e n e f i c i a r i e s of t h e a g r ee m e n t . ” ) ; In re Walker, 466 B.R. 271 , 285 ( B a nk r . E . D . P a . 2012 ) (“[Ijt a pp ea r s t h a t a j ud i c i a l c on s e n s u s h a s d e v e l op e d ho l d i ng t h a t a bo rr o w e r l ac k s s t a nd i ng to (1) c h a ll e ng e t h e v a li d it y of a m o r t g a g e s ec u r iti za ti on o r (2) r e qu e s t a j ud i c i a l d e t e r m i n a ti on t h a t a l o a n a ss i gn m e n t is i nv a li d du e to non c o m p li a n ce w it h a poo li ng a nd s e n ’ i c i ng a g r ee m e n t , w h e n t h e bo rr o w e r is n e it h e r a p a r t y to no r a t h i r d p a r t y b e n e f i c i a r y of t h e s ec u r iti za ti on a g r ee m e n t . ” ) ; DeL R e p l y 11—12 ( c o ll ec ti ng ca s e s a pp l y i ng t h i s p r i n c i p l e ) . 7
W h e r e a p l a i n ti ff h a s no t e v e n a ll e g e d t h a t e rr o r s in a ss i gn m e n t ca u s e d it to ov e r p a y o r t h a t t h e d e f e nd a n t s f a il e d to c r e d it m o r t g a g e p a y m e n t s , 8 o r “ t h a t Even if Kayser is merely s ub m itti ng t h e PSA as evidence t h a t , for example, t h e Plaintiffs do no t know which t r u s t the note a nd mortgage are in a nd t hu s ca nno t po ss e ss the original do c u m e n t s (P1. Opp. 8, 12) or t h a t an i n s u r e r h a s already satisfied Kayser’s debt (Id. 12), his effort is p r e m i s e d on a f und a m e n t a l m i s und e r s t a nd i ng of PSAs a nd the r e s i d e n ti a l mortgage b ac k e d s ec u r iti e s (“RMBS”) t h e y govern.
PSAs govern the r i g h t s a nd r e s p on s i b iliti e s between p a r ti e s involved in the creation a nd m a i n t e n a n ce of a t r u s t comprised of mortgage loans, pooled for the pu r po s e of p ac k a g i ng ca s h flows g e n e r a t e d by mortgage p a y m e n t s . See generally PSA; Investopedia, Residential Mortgage-Backed Security, a v a il a b l e at h tt p :// www . i nv e s t op e d i a . c o m /t e r m s / r / r m b s . a s p . By t h e i r n a t u r e , PSAs do not g r a n t r i gh t s to the individual m o r t g a go r s whose p r op e r ti e s collateralize the loan pool a nd they do no t i m p ac t the c on t r ac t u a l r e l a ti on s h i p s between mortgagees a nd individual mortgagors.
Kayser does d i s pu t e t h e d e f e nd a n t s ’ ca l c u l a ti on of m i ss i ng p a y m e n t s bu t claims
S
. Lost A ss i gn m e n t a nd the recorded A ss i gn m e n t s in only t h a t “[tihe timing of the . . 2013 s u s p i c i o u s l y coincide” with Kayser’s r e qu e s t for “payoff a n d r e i n s t a t e m e n t figures from Ocwen.” (P1. Opp. 69) These s t a t e m e n t s lack e v i d e n t i w y s u pp o r t a n d at any r a t e do not p l a u s i b l y c o nn ec t t h e alleged e rr o r s in a s s i g n m e n t to Kayser’s alleged i n j u r i e s . *15 a ny e n titi e s o t h e r t h a n t h e d e f e nd a n t s h a v e e v e r t r i e d t o c o ll ec t p a y m e n t o r t o i n s tit u t e f o r ec l o s u r e p r o cee d i ng s , ” I h a v e d ec li n e d t o f i nd A r ti c l e III i n j u r y - i n f ac t . A li p e r i o , 2016 W L 7229114 , a t *13_16 ; s ee a l s o G il a nno , 643 F . A pp ’ x a t 101 ; c f S pok e o , I n c . v . R ob i n s , 136 S . C t . 1540 , 1549 , 194 L . E d . 2d 635 ( 2016 ) , a s r e v i s e d M a y 24 , 2016 ( a p l a i n ti ff ca nno t “a ll e g e a b a r e p r o ce du r a l v i o l a ti on , d i vo r ce d fr o m a ny c on c r e t e h a r m , a nd s a ti s f y t h e i n j u r y - i n -f ac t r e qu i r e m e n t o f A r ti c l e III . ” ) . K a y s e r f a il s e v e n t o a ll e g e , l e t a l on e c r ea t e a t r i a b l e i ss u e , t h a t h e h a s b ee n s ub j ec t e d t o c on f li c ti ng d e m a nd s o r t h a t h i s m o r t g a g e p a y m e n t s ( w h i c h a t a ny r a t e h e cea s e d m a k i ng i n 2011 o r 2012 ) w e r e no t c r e d it e d t o h i s acc oun t .
A cc o r d i ng l y , I a g r ee w it h D e f e nd a n t s t h a t t h i s C ou r t l ac k s s ub j ec t m a tt e r j u r i s d i c ti on ov e r K a y s e r’ s c l a i m s . B . M e r it s A n a l y s i s I n t h e a lt e r n a ti v e , ho w e v e r , a nd t o f ac ilit a t e a pp e ll a t e r e v i e w , I c on s i d e r
t h e a r gu m e n t s on t h e m e r it s . D e f e nd a n t s a l s o c on t e nd t h a t t h e c l a i m s a ss e r t e d i n t h e A m e nd e d C o m p l a i n t a r e c on t r a r y t o t h e e v i d e n ce t h e y h a v e s ub m itt e d , a nd a r e no t s uppo r t e d by a ny i nd e p e nd e n t e v i d e n ce , a nd I a g r ee . E ss e n ti a l t o eac h o f t h e f ou r ca u s e s o f ac ti on b e f o r e m e (( 1 ) w r ong f u l c o ll ec ti on p r ac ti ce , ( 2 ) qu i e t titl e , ( 3 ) fr a ud , a nd ( 4 ) v i o l a ti on o f t h e F D C P A ) i s on e f ac t u a l c on t e n ti on : t h a t t h e d e f e nd a n t s a r e no t t h e t r u e o w n e r s o f t h e no t e a nd m o r t g a g e a nd t h e r e f o r e ca nno t c o ll ec t on it . D e f e nd a n t s h a v e s e t f o r t h a w e ll - do c u m e n t e d
S i m il a r l y , K a y s e r’ s un s uppo r t e d a ll e g a ti on s t h a t O c w e n m a d e “ f a l s e p r o m i s e s i n r e g a r d s t o m od i f y i ng t h e m o r t g a g e , ” w h i c h l e d K a y s e r t o s p e nd “ m o r e t h a n $100 , 000 ” ( A C ¶ 73 ; P 1 . O pp . 9 ) m a y b e a r e f e r e n ce t o p a y i ng o ff a s ec ond m o r t g a g e , no t t h e s ub j ec t o f t h i s ac ti on . A t a ny r a t e , t h e s e non - s p ec i f i c a ll e g a ti on s w ou l d f a il und e r a R u l e 8 p l ea d i ng s t a nd a r d , l e t a l on e a R u l e 56 s u mm a r y j udg m e n t s t a nd a r d . T h e r e f o r e , I s e t t h e m a s i d e .
C oun t I ( “ w r ong f u l c o ll ec ti on ” ) a ll e g e s littl e m o r e t h a n t h i s . P u r s u a n t t o N e w J e r s e y ’ s qu i e t titl e s t a t u t e ( C oun t II) , “a p l a i n ti ff m a y m a i n t a i n
a n ac t i o n t o ‘ c l ea r u p a l l d o ub t s a n d d i s pu t e s c o n ce r n i n g ’ c o m p e t i ng c l a i m s t o l a nd . ” C o l e m a n , 2 0 15 W L 2 2 26 0 2 2 , a t * 3 ( q uo t i n g N . J . S t a t . A nn . 2 A : 6 2 — 1 ) ; s ee a l s o E s p a i l l a t , 2 0 15 W L 2 4 12 1 5 3 , a t * 3 ( “ T h e p u r p o s e o f a n ac t i o n t o q u i e t t i t l e i s t o p u t w i t h i n t h e p o w e r o f a p e r s o n , w ho i s i n p ea cea b l e p o ss e s s i o n o f r ea l t y a s a n o w n e r , a m e a n s t o c o m p e l a ny o t h e r p e r s o n , w ho a s s e r t s a h o s t i l e r i g h t o r c l a i m , o r w ho i s *16 ca s e w h i c h , i f un r e bu tt e d , e s t a b li s h e s a s a m a tt e r o f l a w t h a t t h a t t h e y a r e t h e o w n e r s by a ss i gn m e n t o f t h e no t e a nd m o r t g a g e .
K a y s e r do e s no t d i s pu t e t h a t on J un e 10 , 2003 , h e e n t e r e d i n t o t h e no t e a nd m o r t g a g e , s ec u r e d by t h e S c o t c h P l a i n s p r op e r t y . ( L u ca s D cc l . ¶ ) 4 , 5 , c iti ng no t e a nd M o r t g a g e , M . K a y s e r D e p . 25 — 26 )
I n a dd iti on t o a c opy o f t h e m o r t g a g e , D e f e nd a n t s h a v e p r odu ce d a c opy o f t h e no t e , s i gn e d by K a y s e r on J un e 10 , 2003 , w h i c h s t a t e s : “I und e r s t a nd t h a t t h e L e nd e r m a y t r a n s f e r t h i s N o t e . T h e L e nd e r o r a nyon e w ho t a k e s t h i s N o t e by t r a n s f e r a nd w ho i s e n titl e d t o r ece i v e p a y m e n t s und e r t h i s N o t e i s ca ll e d t h e ‘ N o t e H o l d e r . ” ’ ( N o t e C 1) A pp e nd e d t o t h e no t e i s a n “ E ndo r s e m e n t A ll ong e” ( N o t e p . 5 ) , w h i c h c on t a i n s t h e w o r d s “ P a y T o T h e O r d e r o r a t t h e bo tt o m o f t h e p a g e , f o ll o w e d by a b l a nk f i e l d . J u s t b e l o w “ P a y T o T h e O r d e r O f’ i s t h e s i gn a t u r e o f a S e n i o r V i ce P r e s i d e n t o f M o r g a n S t a n l e y D ea n W itt e r C r e d it C o r po r a ti on , t h e o r i g i n a l m o r t g a g ee . T h i s i s a “ b l a nk i ndo r s e m e n t , ” w h i c h ca rr i e s a s p ec i a l l e g a l s i gn i f i ca n ce . S ee N . J . S t a t . A nn . § 12 A : 3 - 205 ( b ) ; . w r it e s t h e w o r d s ‘ P a y t o t h e i d . C o mm e n t 2 ( i f “ t h e ho l d e r o f a n i n s t r u m e n t , .
. o r d e r o f w it hou t c o m p l e ti ng t h e i ndo r s e m e n t by w r iti ng t h e n a m e o f t h e i ndo r s ee [ , a nd ] [ t ] h e ho l d e r’ s s i gn a t u r e a pp ea r s und e r t h e quo t e d w o r d s , ” t h e i ndo r s e m e n t “ i s a b l a nk i ndo r s e m e n t a nd t h e i n s t r u m e n t i s p a y a b l e t o b ea r e r . ” ) . r e pu t e d t o ho l d s u c h a r i g h t o r c l a i m , t o c o m e f o r w a r d a nd e it h e r d i s c l a i m o r s ho w h i s r i gh t o r c l a i m , a nd s ub m it it t o j ud i c i a l d e t e r m i n a ti on . ” ( quo ti ng E ng li s h v. F e d e r a l N a t . M ong . A ss ’ n , N o . 13 — 2028 , 2013 W L 6188572 , *3 ( D . N . J . N ov . 26 , 2013 )) . If t h e d e f e nd a n t s a r e t h e r i gh t f u l o w n e r s o f t h e no t e a nd m o r t g a g e , t h e n t h e r e i s no c o m p e ti ng c l a i m t o K a y s e r’ s e n c u m b e r e d p r op e r t y .
T h e e l e m e n t s o f a fr a ud c l a i m und e r N e w J e r s e y c o mm on l a w a r e “(1) a m a t e r i a l m i s r e p r e s e n t a ti on o f a p r e s e n tl y e x i s ti ng o r p a s t f ac t; (2) kno w l e dg e o r b e li e f by t h e d e f e nd a n t o f it s f a l s it y ; (3) a n i n t e n ti on t h a t t h e o t h e r p e r s on r e l y on it; (4) r ea s on a b l e r e li a n ce t h e r e on by t h e o t h e r p e r s on ; a nd (5) r e s u lti ng d a m a g e s . ” G e nn a r i u. W e i c h e d Co. R ea lt o r s , 148 N . J . 582 , 610 , 691 A . 2d 350 , 367 ( 1997 ) . T h e m a t e r i a l m i s r e p r e s e n t a t i o n K a y s e r a l l e g e s h e r e c o n ce r n s t h e d e f e n d a n t s ’ t i t l e t o t h e n o t e a n d m o r t g a g e a n d t h e r e b y t h e i r l e g a i b a s i s f o r s ee k i n g t o c o ll ec t m o r t g a g e p a y m e n t s ; t h i s i s t h e s a n t e a l l e g a t i o n a t t h e h ea r t o f K a y s e r’ s F D C P A S ec t i o n s 1 6 92 e a n d 1 6 92 f c l a i m s .
*17 Defendants have also produced a recorded First Assignment, dated October 18, 2012. By that assignment, the mortgagee’s corporate successor, MSPBNA, conveyed its entire interest in the loan to MSCH. (DSMF ¶ 4, citing First Assignment with stamp showing recordation)
Additionally, Defendants have produced a recorded Second Assignment, dated September 19, 2013. By that assignment, MSCH assigned its entire interest in the loan to HSBC as Trustee for the 2004-2AR Trust. (Lucas Decl. ¶ 7, citing Second Assignment with stamp showing recordation)
Further, Defendants have introduced affidavit and documentary evidence that Ocwen began servicing the loan on April 2, 2012. (DSMF ¶ 12, citing “Hello/Goodbye Letter”; Lucas Decl. ¶ 2).”’
This evidence sufficiently establishes Defendants’ ability to enforce the note and mortgage. Mortgages on real estate in New Jersey, including all of their stipulations and covenants, are “assignable at law by writing, whether sealed or not, and any such assignment shall pass and convey the estate of the assignor in the mortgaged premises, and the assignee may sue thereon in his own name. . .“ N.J. Stat. Ann. § 46:9-9. Still, “[a]s a general proposition, a
. party seeking to foreclose a mortgage must own or control the underlying debt.” Wells Fargo Bank, N.A. v. Ford, 418 N.J. Super. 592, 597, 15 A.3d 327, 329—30 (App. Div. 2011) (quoting Bank of N.Y. v. Raftogianis, 418 N.J. Super. 323, 327— 28, 13 A.3d 435 (Ch. Div. 2010)). Ownership or control of the underlying debt equates to the ability to enforce the underlying note. New Jersey’s version of the Uniform Commercial Code (the “NJUCC”) governs the transfer of negotiable instruments, including mortgages, and thus determines whether the defendants can enforce the note. HSBC USA, N.A. v. Dennis, No. A-5522-l4T2, 2017 WL 541463, at *5 (N.J. Super. Ct. App. Div. Feb. 9, 2017) (unpublished) (citing N.JS.A. 12A:3—104).
Kayser was notified pursuant to the Real Estate Settlement Procedures Act (“RESPA”), 12 U.S.C.A. § 2605(b), that Ocwen was made the servicer for Kayser’s mortgage loan (See Servicing Transfer Notice). Kayser does not allege any RESPA violation or ineffective transfer of servicing rights.
*18 T h e r e a r e t h r ee ca t e go r i e s o f p e r s on s e n titl e d t o e n f o r ce n e go ti a b l e i n s t r u m e n t s : ( 1 ) “ t h e ho l d e r o f t h e i n s t r u m e n t , ” ( 2 ) “a nonho l d e r i n po ss e ss i on o f t h e i n s t r u m e n t w ho h a s t h e r i gh t s o f a ho l d e r , ” o r (3) “a p e r s on no t i n po ss e ss i on o f t h e i n s t r u m e n t w ho i s e n titl e d t o e n f o r ce t h e i n s t r u m e n t pu r s u a n t t o [ N . J S . A . 12 A : 3 — 3091 o r [ N . J S . A . 12 A : 3 — 418 ] . ” N . J S . A . 12 A : 3 — 301 . S ee M it c h e ll , s up r a , 422 N . J S up e r . a t 222 — 23 . U nd e r ca t e go r y on e , t h e s t a t u t e p r ov i d e s “ t h a t f o r a p e r s on o t h e r t h a n t h e on e t o w ho m a n e go ti a b l e i n s t r u m e n t i s m a d e p a y a b l e t o b ec o m e a ‘ ho l d e r , ’ t h e r e m u s t b e a ‘ n e go ti a ti on j . j ’ ” M it c h e ll , s up r a , 422 N . J S up e r . a t 223 ( quo ti ng F o r d , s up r a , 418 N . J S up e r . a t 598 .
I d . ; N . J . S t a t . A n n . § 1 2 A : 3 - 3 0 1 ; s ee a l s o I n r e : S i a , 2 0 15 W L 9 4 62 0 8 9 , a t * 1 0 ; U . S . B a nk N a t ’ l A ss ’ n v. P a r a gon 150 P i e r ce S t ., L . L . C ., N o . C V 09 - 5717 ( E S ) , 2012 W L 12904679 , a t *5 ( D . N . J . O c t . 19 , 2012 ) ; F o r d , 418 N . J . S up e r . a t 597 — 599 ; R a f t og i a n i s , 418 N . J . S up e r . a t 331 — 32 .
W h e r e , a s h e r e , t h e o w n e r s h i p o f a n i n s t r u m e n t i s t r a n s f e rr e d , t h e t r a n s f e r ee ’ s a tt a i n m e n t o f t h e s t a t u s o f “ ho l d e r ” d e p e nd s on t h e n e go ti a ti on o f t h e i n s t r u m e n t t o t h e t r a n s f e r ee . I n r e K e m p , 440 B . R . 624 , 630 ( B a nk r . D . N . J . 2010 ) ( c iti ng N . J . S . A . 12 A : 3 — 20 1 ( a )) . T h e t w o e l e m e n t s r e qu i r e d f o r n e go ti a ti on a r e t h e t r a n s f e r o f po ss e ss i on o f t h e i n s t r u m e n t t o t h e t r a n s f e r ee , a nd it s i ndo r s e m e n t by t h e ho l d e r . I d . ( c iti ng N , J . S . A . 12 A : 3 — 201 ( b )) .
I n r e : S i a , 2015 W L 9462089 , a t *10 . K a y s e r c l a i m s “ t h e no t e p r odu ce d i n d i s c ov e r y i s un s i gn e d a nd un e ndo r s e d r n - i d t h e r e f o r e h a s no p r o b a ti v e v a l u e , ” (91. O p p . 7) bu t t h e no t e c l ea r l y c on t a i n s a s i gn e d - i n - b l a nk i ndo r s e m e n t , w h i c h m ea n s it i s p a y a b l e t o t h e b ea r e r . N . J . S t a t . A nn . § 12 A : 3 - 205 ( b ) ; s ee a l s o P o t o cz ny v. A u r o r a L o a n S e w s ., 636 F . A pp ’ x 115 , 119 ( 3d C i r . 2015 ) ( und e r a n a l ogou s P e nn s y l v a n i a U CC , “ [ D e f e nd a n t ] w a s t h e ho l d e r o f t h e i ndo r s e d - i n - b l a nk no t e , a nd t hu s w a s e n titl e d t o e n f o r ce it i n f o r ec l o s u r e p r o cee d i ng s e v e n i f t h e r e w e r e d e f ec t s i n t h e c h a i n o f a ss i gn m e n t . ” ) ; H S BC U S A , NA . u. D e nn i s , 2 0 17 W L 5 4 14 6 3 , a t * 5 ( ac kno w l e dg i ng l o w e r c ou r t ’ s f i nd i ng t h a t no t e w a s i ndo r s e d i n b l a nk a nd f i nd i ng t h a t d e f e nd a n t b eca m e “ t h e ho l d e r o f t h e i n s t r u m e n t ” upon a ss i gn m e n t *19 of t h e m o r t g a g e a nd t r a n s f e r of po ss e ss i on of t h e o r i g i n a l no t e ) ; c f Wells F a r go B a nk , N.A. v. V e s p r e y , No. A - 1863 - 14 T 4 , 2016 WL 6833199 , a t *2 & n . 3 (N.J. S up e r . Ct. App. Div. Nov. 21 , 2016 ) (“[T]o h a v e s t a nd i ng , a f o r ec l o s i ng p l a i n ti ff e it h e r m u s t h a v e po ss e ss i on of t h e p r o m i ss o r y no t e o r a n a ss i gn m e n t of t h e m o r t g a g e t h a t p r e d a t e d t h e o r i g i n a l c o m p l a i n t . ” ( c iti ng Mitchell, 422 N . J . S up e r . a t 216) ( a l s o no ti ng t h a t no t e w a s i ndo r s e d in b l a nk )) .
K a y s e r a l s o c on t e nd s t h a t “ t h e O r i g i n a l Note is “c l ea r l y no t in [thej po ss e ss i on of a ny of t h e D e f e nd a n t s . ” (P1. O pp . 7) T h i s b a r e c on t e n ti on is no t s uppo r t e d by a ny e v i d e n ce , a nd by it s n a t u r e , it is no t m a d e on K a y s e r’ s p e r s on a l kno w l e dg e . In c on t r a s t , Kyle L u ca s , t h e s e r v i ce r O c w e n ’ s qu a li f i e d a ff i a n t , a tt e s t s t h a t t h e o r i g i n a l no t e a nd m o r t g a g e a r e in t h e c o ll a t e r a l file for t h e K a y s e r l o a n , no w i n t h e c u s t ody of c oun s e l for d e f e nd a n t s in t h i s ac ti on . ( L u ca s Deci. ¶1 1—3, 9) C oun s e l h a v e s ub m itt e d a p r op e r l y - s pon s o r e d c opy of t h a t c o ll a t e r a l file. (See C o ll a t e r a l File 2 ( i nd i ca ti ng o r i g i n a l no t e is i n c l ud e d ) ; id. 6—9 (Note a nd “ E ndo r s e m e n t Allonge”))
T h e on l y “e v i d e n ce” K a y s e r s ub m it s to t h e c on t r a r y is no t e v i d e n ce a t all; it c on s i s t s s o l e l y of a ll e g a ti on s in t h e c o m p l a i n t — e . g ., t h a t t h e a ss i gn m e n t s n e v e r v a li d l y t ook p l ace or t h a t t h e T r u s t d i d no t e x i s t a t t h e ti m e . T h e c on f u s i ng w e lt e r of n ea r l y un i n t e lli g i b l e a ll e g a ti on s a s to p r ob l e m s in t h e c h a i n of a ss i gn m e n t s s ee m to be b a s e d l a r g e l y on s p ec u l a ti on , w it h no s uppo r ti ng f ac t s o r e v i d e n ce , t h a t ce r t a i n of t h e i nvo l v e d e n titi e s cea s e d to e x i s t b e f o r e t h e d a t e s of t h e a ss i gn m e n t s . T h e r e is no t e s ti m ony o r e xh i b it e s t a b li s h i ng a ny t h i ng of t h e k i nd . In s ho r t , K a y s e r h a s r a i s e d no i s s u e of f ac t a s to t h e v a li d it y of t h e a ss i gn m e n t s o r w ho h a s titl e to t h e no t e a nd m o r t g a g e .
T h e r e b e i ng no i s s u e s of m a t e r i a l f ac t r a i s e d a s to t h e a ss i gn m e n t of t h e m o r t g a g e , t h e t r a n s f e r of t h e no t e , o r t h e d e f e nd a n t s ’ po ss e ss i on of t h e o r i g i n a l no t e , I f i nd t h a t t h e d e f e nd a n t s a r e t h e p r op e r o w n e r s of K a y s e r’ s no t e a nd m o r t g a g e . T h e r e f o r e , t h e y w ou l d b e a u t ho r i ze d to c o ll ec t m o r t g a g e p a y m e n t s a nd s hou l d t h e y c hoo s e , f o r ec l o s e . A cc o r d i ng l y , e v e n a ss u m i ng t h e c ou r t po ss e ss e d j u r i s d i c ti on , all f ou r of K a y s e r’ s ca u s e s of ac ti on w ou l d be d i s m i ss e d *20 for failure to submit evidence sufficient to raise a genuine, material issue of fact. [1]
III.
CONCLUSION For the reasons set forth above, the defendants’ motion for summary judgment is GRANTED and the Amended Complaint is dismissed. An appropriate Order follows. Dated: August 18, 2017
HON.
KEVIN MCNULTY, U.S.D.J. Kayser’s FDCPA claim would face further obstacles, such as proof that the It defendants are “debt collectors” subject to the Act. See 15 U.S.C. § l692a(6)(fl; Humphrey v. FennyMac Holdings, LLC, No. CV1S3622KMMAH, 2017 WL 3184467, at *4 (D.N.J. July 26, 2017) (where defendant held note and mortgage securing plaintiffs property by assignment, its attempts to collect the loan did not violate the FDCPA, which “does not apply to persons or businesses collecting debts on their own behalf.’” (quoting Staub v. Harris, 626 F.2d 275, 277 (3d Cir. 1980fl; Schiano u. MBNA, No. CIV.A. 05-1771 JLL, 2013 WL 2452681, at *12 (D.N.J. Feb. 11,2013) (collecting cases holding that “mortgage sen’icers . are exempt from the FDCPA if the mortgage was not in default at the time they began servicing the loan.”), affd, No. CIV.A. 05-177 1 ILL, 2013 XML 2455933 (D.N.J. June 3, 2013); see also See Douglass v. Convergent Outsoureing, 765 F.3d 299, 303 (3d Cir. 2014) (“To prevail on an FDCPA claim, a plaintiff must prove that (1) she is a consumer, (2) the defendant is a debt collector, (3) the defendant’s challenged practice involves an attempt to collect a ‘debt’ as the Act defines it, and (4) the defendant has violated a provision of the FDCPA in attempting to collect the debt.”).