United States District Court, D. Nevada
NATIONSTAR MORTGAGE LLC, FEDERAL HOME LOAN MORTGAGE CORPORATION, Plaintiff(s),
COPPER CREEK HOMEOWNER ASSOCIATION, TRAVERTINE LANE TRUST ATC ASSESMENT COLLECTION GROUP, LLC Defendant(s).
RICHARD F. BOULWARE, II UNITED STATES DISTRICT JUDGE.
the Court is Defendant Travertine Lane Trust’s Second
Motion to Dismiss Complaint, Defendant Travertine Lane
Trust’s Motion for Summary Judgment, and Plaintiffs
Federal Home Loan Mortgage Corporation and National Star
Mortgage LLC’s Counter Motion for Summary Judgment. ECF
Nos. 35, 38, 40. For the following reasons, the Court grants
Plaintiffs’ Motion for Summary Judgment and denies the
Nationstar Mortgage LLC (“Nationstar”) and
Federal Home Loan Mortgage Corporation (“Freddie
Mac”) (collectively “Plaintiffs”) filed
their complaint against Defendants Copper Creek Homeowners
Association, Travertine Lane Trust
(“Travertine”), and ATC Assessment Collection
Group, LLC on October 9, 2017. ECF No. 1. In their complaint,
Plaintiffs stated eight causes of action: 1) declaratory
relief under 12 U.S.C. § 4617(j)(3); 2) quiet title
under 12 U.S.C. § 4617(j)(3); 3) declaratory relief
under the Fifth and Fourteenth Amendments; 4) quiet title
under the Fourth and Fifth Amendments; 5) a declaratory
judgment; 6) breaches of section 116.1113 of the Nevada
Revised Statutes (“NRS”) and Covenants,
Conditions and Restrictions (“CCR&Rs”), 7)
wrongful foreclosure, and 8) injunctive relief. On March 30,
2018, the action was dismissed without prejudice as to ATC
Assessment Collection Group, LLC and Copper Creek Homeowners
Association. ECF No. 20.
filed a motion for summary judgment on May 7, 2018. ECF No.
22. Travertine filed for summary judgment on June 6, 2018.
ECF No. 26. On July 13, 2018 the Court stayed the case
pending the Nevada Supreme Court’s response to a
question this Court certified regarding the notice
requirements of NRS 116. The Court also denied all pending
dispositive motions without prejudice. ECF No. 32. The Court
lifted the stay on August 23, 2018 and ordered that all
dispositive motions be filed no later than September 24,
2018. ECF No. 34. On September 5, 2018, Travertine filed a
second motion to dismiss the complaint. ECF No. 35.
Travertine also filed a motion for summary judgment on
October 3, 2018. ECF No. 38. Plaintiffs filed a counter
motion for summary judgment on October 3, 2018. ECF No. 40.
All motions have been fully briefed. ECF Nos. 39, 41–
43, 45, 46. On July 23, 2019, Movant Federal Housing Finance
Agency filed an amicus curiae brief in support of
Plaintiffs’ counter motion. ECF No. 51.
Court makes the following findings of undisputed and disputed
matter concerns a nonjudicial foreclosure on a property
located at 6777 Travertine Lane, Las Vegas, NV 89122 (the
“property”). The property sits in a community
governed by the Copper Creek Homeowners Association (the
“HOA”). The HOA requires its community members to
pay HOA dues.
about October 18, 2008, nonparty Alberto Marin obtained a
loan from Taylor, Bean & Whittaker Mortgage Corp. in the
amount of $218, 000. The deed of trust was recorded against
the property. The deed listed Alberto Marin as the borrower,
Taylor, Bean & Whittaker Mortgage Corp. as the lender,
and Mortgage Electronic Registration Systems, Inc.
(“MERS”) as the beneficiary.
fell behind on HOA dues. The HOA, through its agent, recorded
a notice of delinquent assessment lien, followed by a notice
of default and election to sell, and finally a notice of
foreclosure sale on October 11, 2012. On or about November 6,
2012, the HOA held a foreclosure sale of the property under
NRS Chapter 116. Travertine purchased the property as
evidenced by a trustee’s deed upon sale recorded on
November 26, 2012.
Freddie Mac previously purchased the note and deed of trust
in November 2007. While its interest was never recorded under
its name, Freddie Mac continued to maintain its ownership of
the note and the deed of trust at the time of the
foreclosure. At the time of the foreclosure sale, Ocwen
served as the record beneficiary of the deed of trust as
servicer for Freddie Mac. Ocwen then assigned the deed of
trust to Nationstar as recorded on June 3, 2013.
relationship between Freddie Mac and its servicers is
governed by Freddie Mac ’s Single-Family Servicing
Guide (“the Guide”). The Guide provides that
servicers may act as record beneficiaries for deeds of trust
owned by Freddie Mac. It also requires that servicers assign
the deeds of trust to Freddie Mac on Freddie Mac ’s
demand. The Guide states:
The Seller/Servicer is not required to prepare an assignment
of the Security Instrument to the Federal Home Loan Mortgage
Corporation (Freddie Mac). However, Freddie Mac may, at its
sole discretion and at any time, require a Seller/Servicer,
at the Seller/Servicer’s expense, to prepare, execute