Opinion
No. 80415-COA
01-15-2021
MRT ASSETS, LLC, A NEVADA LIMITED LIABILITY COMPANY, Appellant, v. DITECH FINANCIAL LLC, F/K/A GREEN TREE SERVICING LLC, A PENNSYLVANIA LIMITED LIABILITY COMPANY, Respondent.
ORDER OF AFFIRMANCE
MRT Assets, LLC (MRT), appeals from a district court summary judgment in a quiet title action. Eighth Judicial District Court, Clark County; James Crockett, Judge.
The original owners of the subject property failed to make periodic payments to their homeowners' association (HOA). The HOA recorded a notice of delinquent assessment lien and later a notice of default and election to sell to collect on the past due assessments and other fees pursuant to NRS Chapter 116. MRT purchased the property at the resulting foreclosure sale and filed the underlying action seeking to quiet title against respondent Ditech Financial LLC, f/k/a/ Green Tree Servicing LLC (Ditech), the beneficiary of the first deed of trust on the property. Ditech later moved for summary judgment, which the district court granted, concluding that the Federal National Mortgage Association (Fannie Mae) owned the underlying loan such that 12 U.S.C. § 4617(j)(3) (the Federal Foreclosure Bar) prevented the foreclosure sale from extinguishing Ditech's deed of trust. This appeal followed.
This court reviews a district court's order granting summary judgment de novo. Wood v. Safeway, Inc., 121 Nev. 724, 729, 121 P.3d 1026, 1029 (2005). Summary judgment is proper if the pleadings and all other evidence on file demonstrate that no genuine issue of material fact exists and that the moving party is entitled to judgment as a matter of law. Id. When deciding a summary judgment motion, all evidence must be viewed in a light most favorable to the nonmoving party. Id. General allegations and conclusory statements do not create genuine issues of fact. Id. at 731, 121 P.3d at 1030-31.
MRT presents two arguments on appeal. First, it contends that Fannie Mae did not own the underlying loan at the time of the foreclosure sale—or that there was at least conflicting evidence on this point—because the assignment of the deed of trust to Ditech purported to convey not only the deed of trust, but also the promissory note. But our supreme court recognized in Daisy Trust v. Wells Fargo Bank, N.A., 135 Nev. 230, 234 n.3, 445 P.3d 846, 849 n.3 (2019), that Freddie Mac (or in this case Fannie Mae) obtains its interest in a loan by virtue of the promissory note being negotiated to it. Section A2-1-04 of the Fannie Mae Servicing Guide, of which we take judicial notice, NRS 47.130; NRS 47.170, stands for the same proposition. Consequently, because the promissory note had already been negotiated to Fannie Mae at the time of the assignment of the deed of trust to Ditech, Ditech's predecessor lacked authority to transfer the note, and the language in the assignment purporting to do so had no effect. See 6A C.J.S. Assignments § 111 (2020) ("An assignee stands in the shoes of the assignor and ordinarily obtains only the rights possessed by the assignor at the time of the assignment, and no more.").
MRT argues that the language in the deed amounted to a false representation concerning title under NRS 205.395, a category C felony. Even assuming MRT is correct, it fails to provide any explanation as to how that would entitle it to relief in this civil matter. See Edwards v. Emperor's Garden Rest., 122 Nev. 317, 330 n.38, 130 P.3d 1280, 1288 n.38 (2006) (noting that the appellate courts need not consider claims unsupported by cogent argument or relevant authority).
MRT next argues that Ditech failed to prove that Fannie Mae had an interest in the property that was subject to the Federal Foreclosure Bar. Specifically, MRT contends that Fannie Mae was required to record its interest when it acquired the underlying loan in 2007 because it was not yet under the conservatorship of the Federal Housing Finance Agency (FHFA). From there, MRT reasons that the Federal Foreclosure Bar was not yet in effect and could not have preempted Nevada's recording statutes. But MRT misreads our supreme court's holding in Daisy Trust, which was not that the Federal Foreclosure Bar preempts Nevada's recording statutes, but rather that the recording statutes simply do not apply to the situation at issue here where an entity owns the loan and its agent is the beneficiary of the recorded deed of trust. 135 Nev. at 234, 445 P.3d at 849 (specifically noting that, in light of its disposition, the court "need not address Freddie Mac's argument that the Federal Foreclosure Bar preempts Nevada's recording statutes"). Accordingly, we reject MRT's argument on this point.
Because the testimony and business records produced below were sufficient to prove Fannie Mae's ownership of the note and the agency relationship between it and Ditech in the absence of contrary evidence, see id. at 234-36, 445 P.3d at 849-51, the district court properly concluded that the Federal Foreclosure Bar prevented extinguishment of Ditech's deed of trust and that MRT took the property subject to it. See Saticoy Bay LLC Series 9641 Christine View v. Fed. Nat'l Mortg. Ass'n, 134 Nev. 270, 273-74, 417 P.3d 363, 367-68 (2018) (holding that the Federal Foreclosure Bar preempts NRS 116.3116 such that it prevents extinguishment of the property interests of regulated entities under FHFA conservatorship without affirmative FHFA consent). Consequently, we
ORDER the judgment of the district court AFFIRMED.
We decline to impose sanctions against MRT or its counsel under NRAP 38 as requested by Ditech. Nevertheless, we remind MRT and its counsel of their obligation to provide this court with an adequate appellate record. See NRAP 30(b)(3); Cuzze v. Univ. & Cmty. Coll. Sys. of Nev., 123 Nev. 598, 603, 172 P.3d 131, 135 (2007). We further remind MRT's counsel of his obligations under RPC 3.1 to only advance arguments if there is a basis in law and fact for doing so and, when existing precedent does not align with his clients' interests, to present good-faith arguments for its modification or reversal.
/s/_________, C.J.
Gibbons
/s/_________, J.
Tao
/s/_________, J.
Bulla cc: Chief Judge, Eighth Judicial District Court
Eighth Judicial District Court, Dept. 24
Hong & Hong
Wolfe & Wyman LLP
Eighth District Court Clerk