United States District Court, D. Nevada
NATIONSTAR MORTGAGE, LLC FEDERAL NATIONAL MORTGAGE ASSOCIATION FEDERAL HOUSING FINANCE AGENCY Plaintiff(s),
SFR INVESTMENTS POOL I, LLC TALASERA AND VICANTO HOMEOWNERS ASSOCIATION Defendant(s).
RICHARD F. BOULWARE, II, UNITED STATES DISTRICT JUDGE.
the Court are Plaintiffs Federal Housing Finance Agency
(“FHFA”), Federal National Mortgage Association
(“Fannie Mae”), and Nationstar Mortgage LLC's
(“Nationstar”) Joint Motion for Summary Judgment
and Defendant Talasera and Vicanto Homeowners
Association's Motion for Summary Judgment. ECF Nos. 88,
89. For the following reasons, the Court grants
filed their complaint in this matter on February 13, 2015 and
asserted claims for quiet title and declaratory relief. ECF
No. 1. Defendant SFR Investments Pool I, LLC (SFR) filed a
motion to dismiss on April 17, 2015. ECF No. 30. Defendant
Talasera and Vicanto Homeowners Association
(“HOA”) answered the complaint on that same date.
ECF No. 33. On March 31, 2016, the Court denied SFR's
Motion to Dismiss without prejudice. ECF No. 58. On August
31, 2016, the Court granted a joint stipulation to stay
proceedings in this case pending the issuance of the Ninth
Circuit's mandate in Bourne Valley Court Trust v.
Wells Fargo Bank, NA. 832 F.3d 1154 (9th Cir. 2016),
cert denied 137 S.Ct. 2296 (2017). On April 8, 2019,
the Court lifted the stay. ECF No. 87. Plaintiffs filed their
joint motion for summary judgment on May 13, 2019. ECF No.
88. SFR filed opposition. ECF No. 91. Plaintiffs filed a
reply. ECF No. 92. The HOA filed its motion for summary
judgment on that same date. ECF No. 89. Plaintiffs opposed
the motion and the HOA replied. ECF Nos. 90, 93.
Court makes the following findings of undisputed and disputed
matter concerns a nonjudicial foreclosure on a property
located at 9147 Cantina Creek Court, Las Vegas, NV 89179 (the
“property”). The property sits in a community
governed by the HOA. The HOA requires its community members
to pay HOA dues.
Magdolna Drafi borrowed funds from Ryland Mortgage Company to
purchase the property in 2006. To obtain the loan, Drafi
executed a promissory note and a corresponding deed of trust
to secure repayment of the note. The deed of trust listed
Ryland Mortgage Company as lender and Mortgage Electronic
Registration Systems, Inc. (“MERS”) as
beneficiary and was recorded on March 27, 2006. MERS
subsequently assigned its interest under the Deed of Trust to
BAC Home Loans Servicing, LP, (“BAC”) as recorded
on or about July 16, 2010. On May 15, 2013, all beneficial
interest in the Deed of Trust was assigned from Bank of
America, N.A., (“BANA”)-successor by merger to
BAC Home Loans Servicing, LP-to Nationstar, as recorded on or
about June 5, 2013.
fell behind on HOA payments. From April 13, 2012 through
November 15, 2012, the HOA, through its agent, recorded a
notice of delinquent assessment lien concerning past-due
assessments, followed by a notice of default and election to
sell, and finally a notice of foreclosure sale upon the
property. The foreclosure sale occurred on February 15, 2013,
and SFR purchased the property on that date.
Fannie Mae previously purchased the note and deed of trust in
April 2006. While its interest was never recorded under its
name, Fannie Mae 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, BAC was the servicer of the
loan for Fannie Mae.
relationship between Fannie Mae and its servicers is governed
by Fannie Mae's Single-Family Servicing Guide (“the
Guide”). The Guide provides that servicers may act as
record beneficiaries for deeds of trust owned by Fannie Mae.
It also requires that servicers assign the deeds of trust to
Fannie Mae on Fannie Mae's demand. The Guide states:
The servicer ordinarily appears in the land records as the
mortgagee to facilitate performance of the servicer's
contractual responsibilities, including (but not limited to)
the receipt of legal notices that may impact Fannie Mae's
lien, such as notices of foreclosure, tax, and other liens.
However, Fannie Mae may take any and all action with respect
to the mortgage loan it deems necessary to protect its ...
ownership of the mortgage loan, including recordation of a
mortgage assignment, or its legal equivalent, from the
servicer to Fannie Mae or its designee. In the event that
Fannie Mae determines it necessary to record such an
instrument, the servicer must assist Fannie Mae by [ ]
preparing and ...