Opinion
34390.
ARGUED FEBRUARY 20, 1979.
DECIDED APRIL 17, 1979. REHEARING DENIED MAY 8, 1979.
Certiorari to the Court of Appeals of Georgia — 147 Ga. App. 573 ( 249 S.E.2d 626) (1978).
Nixon, Yow, Waller Capers, Regnald Maxwell, Jr., John B. Long. for appellants.
Dye, Miller, Bowen Tucker, A. Rowland Dye, Thomas W. Tucker, for appellee.
Certiorari was granted to review the decision of the Court of Appeals in Hanover Ins. Co. v. Federal Nat. Mtg. Assn., 147 Ga. App. 573 ( 249 S.E.2d 626) (1978).
Hanover sought a declaratory judgment determining its liability, if any, under an insurance policy that named Fickling Walker, the mortgage-servicing agent for Federal National Mortgage Association, as mortgagee. Fickling Walker originally had been the lender but has assigned the loan and security deed to FNMA. The debtor had defaulted FNMA had bought the property in after exercise of the power in the security deed, and a deed to FNMA had been recorded on November 7, 1973. The fire loss had occurred on November 11, 1973. The trial court ruled in favor of FNMA and Fickling Walker, and the Court of Appeals reversed. This court reverses the Court of Appeals.
The Court of Appeals ruled in favor of Hanover under a policy clause requiring the mortgagee to notify the insurer "of any change of ownership or occupancy or increase of hazard, which shall come to the knowledge of said mortgagee..." No opinion was expressed by the Court of Appeals as to the meaning and effect of the policy clause providing that "... this insurance ... shall not be invalidated by any ... foreclosure or other proceedings or notice of sale relating to the property, nor by any change in the title or ownership of the property..."
This court accepts the view that the mortgagee's interest of Fickling Walker was not terminated by FNMA's buying the property in after exercise of the power in the security deed. The policy language protecting the mortgagee despite foreclosure or other proceedings or notice of sale relating to the property and despite change of title or ownership necessarily implies that the interest of the entity identified as the mortgagee continues regardless of whether the entity's status as mortgagee changes. Buying the property in after sale under power in the deed is not a "change of ownership" such as requires notice to the insurer under the policy. The result of such proceedings is an enlargement or increase of the mortgagee's interest rather than a "change of ownership." See Federal Nat. Mtg. Assn. v. Ohio Casualty Ins. Co., 46 Mich. App. 587 ( 208 N.W.2d 573) (1973); Federal Nat. Mtg. Assn. v. Great American Ins. Co., 157 Ind. App. 347 ( 300 N.E.2d 117) (1973); Southern States Fire c. Ins. Co. v. Napier, 22 Ga. App. 361, 362 (4) ( 96 S.E. 15) (1918). It does not matter that the mortgage-servicing agent, Fickling Walker, was named as mortgagee under the policy, whereas the property was bought in by the principal of Fickling Walker, Federal National Mortgage Association, the lender. See Capital Mtg. Corp. v. Michigan Basic Property Ins. Assn., 78 Mich. App. 570 ( 261 N.W.2d 5) (1978); American Reliable Ins. Co. v. Woodward, 143 Ga. App. 652 ( 239 S.E.2d 543) (1977).
Judgment reversed. All the Justices concur.