United States District Court, D. Nevada
before the court is plaintiff Federal National Mortgage
Association's (“Fannie Mae”) motion for
summary judgment. (ECF No. 9). Defendant KK Real Estate
Investment Fund, LLC (“KK Real Estate”) filed a
response (ECF No. 11), to which Fannie Mae replied (ECF No.
case involves a dispute over real property located at 4670
Spitfire Street, Las Vegas, Nevada 89115 (the
“property”). (ECF No. 9 at 4). A deed of trust
listing Genita B. Taylor as the borrower
(“borrower”), Meridias Capital, Inc. as the
lender (“lender”), and Mortgage Electronic
Registration Systems, Inc. (“MERS”) as
beneficiary solely as nominee for lender and lender's
successors and assigns, was recorded on July 28, 2005.
deed of trust granted lender a security interest in the
property to secure the repayment of a loan originally in the
amount of $134, 500.00 to the borrower (the note and deed of
trust are referred to together as the “loan”).
Id. In September 2005, Fannie Mae purchased the
loan, thereby obtaining a property interest in the deed of
trust. Id. On January 23, 2013, the date of the HOA
sale, Fannie Mae maintained its property interest in the deed
of trust. Id.
around April 2, 2012, MERS, as nominee for lender and
lender's successors and assigns, recorded an assignment
of the deed of trust to Fannie Mae. Id.
January 24, 2013, the trustee's deed upon sale was
recorded against the property. Id. The trustee's
deed upon sale states that the property was sold in an HOA
foreclosure sale on January 23, 2013 to KK Real Estate with a
purchase price of $4, 351.00 (the “HOA sale”).
September 6, 2008, pursuant to the Housing Economic Recovery
Act of 2008, 12 U.S.C. § 4617 et seq.
(“HERA”), Federal Housing Finance Agency's
(“FHFA”) director placed Fannie Mae into
conservatorship. Id. at 5.
time did FHFA consent to any purported extinguishment of
Fannie Mae's ownership interest in the property.
Id. at 4.
13, 2017, Fannie Mae filed the underlying complaint against
KK Real Estate, alleging two claims for relief: (1)
declaratory relief; and (2) quiet title. (ECF No. 1). Fannie
Mae seeks declaratory judgment that its deed of trust is
valid and continues to encumber the property, despite the HOA
foreclosure sale. (ECF No. 1).
22, 2017, KK Real Estate filed an answer and counterclaim for
quiet title relief and for a preliminary and permanent
injunction that Fannie Mae and its successors, assigns and
agents are prohibited from initiating or continuing
foreclosure proceedings and from selling or transferring the
property. (ECF No. 7).
instant motion, Fannie Mae moves for summary judgment in its
favor as to its claims for declaratory relief quiet title
pertaining to 12 U.S.C. § 4617(j)(3) and challenging the
constitutionality of the non-judicial foreclosure provisions
of NRS 116. (ECF No. 9).
Federal Rules of Civil Procedure allow summary judgment when
the pleadings, depositions, answers to interrogatories, and
admissions on file, together with the affidavits, if any,
show that “there is no genuine dispute as to any
material fact and the movant is entitled to a judgment as a
matter of law.” Fed.R.Civ.P. 56(a). A principal purpose
of summary judgment is “to isolate and dispose of
factually unsupported claims.” Celotex Corp. v.
Catrett, 477 U.S. 317, 323-24 (1986).
purposes of summary judgment, disputed factual issues should
be construed in favor of the non-moving party. Lujan v.
Nat'l Wildlife Fed., 497 U.S. 871, 888 (1990).
However, to be entitled to a denial of summary judgment, the
nonmoving party must “set ...