Mortgage Servicing 101

March 7, 2018

A recent opinion in a real estate foreclosure dispute summarizes the current state of the law on some key principles:

When a national bank is sued as trustee in such a case, its citizenship contrrols the analysis of diversity, not that of the investors in the trust (applying and distinguishing Americold Realty Trust v. ConAgra Foods, 136 S. Ct. 1012 (2016));
Because “Texas follows the common-law maxim that the mortage follows the note,” the trustee was “entitled to foreclosre on the property as holder of the note even if the assignment of the Deed of Trust was void.oserves as trustee of a real estate investment trust”; and
A fraud claim failed when the aggrieved party “did not allege that he initially intended to bid on the property before learning of a potential buyer and changed his position after speaking with U.S. Bank’s representatives.”