United States District Court, D. Nevada
FEDERAL NATIONAL MORTGAGE ASSOCIATION; BANK OF AMERICA, N.A. AS SUCCESSOR BY MERGER TO BAC HOME LOANS SERVICING, LP FKA COUNTRYWIDE HOME LOANS SERVICING LP, Plaintiffs,
WINE RIDGE PLACE HOMEOWNERS ASSOCIATION; VENEROSO BPB TRUST; PBB & BPB BUSINESS TRUST; NEVADA ASSOCIATION SERVICES, INC, Defendants.
RICHARD F. BOULWARE, II UNITED STATES DISTRICT JUDGE
the Court are Plaintiff Bank of America, N.A.
(“BANA”) and Federal National Mortgage
Association's (“Fannie Mae”) Motion for
Summary Judgment and Defendant Wine Ridge Place Homeowners
Association's (the HOA) Motion for Summary Judgment. ECF
Nos. 28, 29. For the following reasons, the Court grants
sued Defendants on December 16, 2016. ECF No. 1. Plaintiffs
seek declaratory relief that a nonjudicial foreclosure sale
conducted in 2011 under Chapter 116 of the Nevada Revised
Statutes (“NRS”) did not extinguish Fannie
Mae's interest in a Las Vegas property. Id. To
obtain the relief, Fannie Mae asserts five claims in the
Complaint: (1) declaratory relief under 12 U.S.C. §
4617(j)(3) Defendant PBB & BPB Business Trust
(“PBB”); (2) quiet title under 12 U.S.C. §
4617(j)(3) against PBB; (3) declaratory relief under the
Fifth and the Fourteenth Amendments to the United States
Constitution against all Defendants; (4) quiet title under
the Fifth and the Fourteenth Amendments to the United States
Constitution against PBB; and (5) permanent and preliminary
injunctions against all Defendants. Id. The HOA
filed a motion to dismiss or in the alternative for summary
judgment on February 17, 2017. ECF No. 17. The Court denied
the motion without prejudice and stayed litigation pending
resolution of pertinent Ninth Circuit and Nevada Supreme
Court proceedings. ECF Nos. 20, 21. The Court lifted the stay
on April 10, 2019. ECF No. 27.
17, 2019, Plaintiffs and the HOA both moved for summary
judgment. ECF Nos. 28, 29. Both motions were fully briefed.
ECF Nos. 30-34.
Court makes the following findings of undisputed and disputed
matter concerns a nonjudicial foreclosure on a property
located at 8967 Veneroso Street, Las Vegas, NV 89148 (the
“property”). The property sits in a community
governed by the HOA. The HOA requires its community members
to pay HOA dues.
Dionne Collins borrowed funds from CCSF, LLC dba Greystone
Financial Group to purchase the property in July 2006. To
obtain the loan, Collins executed a promissory note and a
corresponding deed of trust to secure repayment of the note.
The deed of trust, which lists Collins as the borrower, CCSF,
LLC as the lender, and Mortgage Electronic Registration
Systems, Inc., (“MERS”) as the beneficiary, was
recorded on July 28, 2006. MERS recorded an assignment of the
deed of trust BAC Home Loans Servicing (“BAC”),
which merged with BANA in 2011.
fell behind on HOA payments. From November 2009 through
December 2011, the HOA, through its agent, recorded a notice
of delinquent assessment lien, followed by a notice of
default and election to sell and then a notice of foreclosure
sale. On December 16, 2011, the HOA held a foreclosure sale
on the property under NRS Chapter 116. Defendant Veneroso BPB
Trust acquired the property at the foreclosure sale as
recorded in a foreclosure deed on December 21, 2011. All
properties acquired by Veneroso BPB Trust were later
transferred into PBB & BPB Business Trust pursuant to a
Federal National Mortgage Association (“Fannie
Mae”) previously purchased the note and the deed of
trust in August 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. BAC, now BANA through de jure merger,
serviced the note and was listed as the beneficiary of the
deed of trust, on behalf of Fannie Mae, at the time of the
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 ...