Facts

Son Nguyen and Hanh Nguyen filed a lawsuit against J.P. Morgan Chase Bank N.A.

PLAINTIFFS' CONTENTIONS:
Plaintiffs alleged that in 2005 they took out a $1,175,000 loan from Washington Mutual Bank, to purchase a home and that such loan was secured by a deed of trust on their property. Plaintiffs further alleged that Washington Mutual sold the beneficial interest in the Deed of Trust in 2005. Plaintiffs also alleged that after Washington Mutual ceased conducting business in 2008, Chase purchased certain assets of Washington Mutual. Plaintiff argued that in 2009, in order to foreclose upon plaintiffs' home, JP Morgan recorded a notice of default under the deed of trust and also recorded an assignment of deed of trust. Plaintiffs contended a wrongful foreclosure and violation of Unfair Competition Law because the deed of trust on their property was not included in the assets assumed by Chase and, therefore, Chase could not enforce an interest in plaintiffs' property.

DEFENDANT'S CONTENTIONS:
Chase argued that Washington Mutual transferred its interest in plaintiffs' loan to Deutsche Bank National Trust Company as trustee, but retained the right to service the loan. Chase further argued that it acquired Washington Mutual's servicing rights in the loan from the FDIC and thereafter, properly initiated foreclosure proceedings following plaintiffs' default.

Result

The court granted Chase's motion for summary judgment. The court held that the genuine issues of material fact raised by plaintiffs stemmed from the securitization process of their loan and that plaintiffs did not have standing to challenge the securitization process.

Other Information

FILING DATE: Aug. 9, 2012.