Collegium Fund Llc Ser. 7 Vs. Ditech Fin., Llc

• Court: Nevada Supreme Court
• Decided: June 24, 2020
• Docket: 76168
• Status: Published

Opinion

IN THE SUPREME COURT OF THE STATE OF NEVADA

COLLEGIUM FUND LLC SERIES 7, A No. 76168 NEVADA LIMITED LIABILITY COMPANY, FILED Appellant, vs. JUN 1 4 2020 DITECH FINANCIAL, LLC, ELIZABETH A. BROWN CLERE.SUPFUUE COURT Res • ondent. BY DEJ7 CLERK

ORDER OF AFFIRMANCE This is an appeal from a district court order granting summary judgment, certified as final under NRCP 54(b), in an action to quiet title. Eighth Judicial District Court, Clark County; Susan Johnson, Judge. Reviewing the summary judgment de novo, Wood v. Safeway, Inc., 121 Nev. 724, 729, 121 P.3d 1026, 1029 (2005), we affirm.' In Saticoy Bay LLC Series 9641 Christine View v. Federal National Mortgage Assn, 134 Nev. 270, 272-74, 417 P.3d 363, 367-68 (2018), this court held that 12 U.S.C. § 4617(j)(3) (2012) (the Federal Foreclosure Bar) preempts NRS 116.3116 and prevents an HOA foreclosure sale from extinguishing a first deed of trust when the subject loan is owned by the Federal Housing Finance Agency (or when the FHFA is acting as conservator of a federal entity such as Freddie Mac or Fannie Mae). And in Nationstar Mortgage, LLC v. SFR Investments Pool 1, LLC, 133 Nev. 247, 250-51, 396 P.3d 754, 757-58 (2017), this court held that loan servicers such as respondent have standing to assert the Federal Foreclosure Bar on behalf of Freddie Mac or Fannie Mae. Consistent with these decisions, the district

'Pursuant to NRAP 3401), we have determined that oral argument is not warranted in this appeal.

jr)--2v42q court correctly determined that respondent had standing to assert the Federal Foreclosure Bar on Freddie Mac's behalf and that the foreclosure sale did not extinguish the first deed of trust because Freddie Mac owned the secured loan at the time of the sale. Appellant contends that it is protected as a bona fide purchaser from the Federal Foreclosure Bar's effect.2 But we recently held that an HOA foreclosure sale purchaser's putative status as a bona fide purchaser is inapposite when the Federal Foreclosure Bar applies because Nevada law does not require Freddie Mac to publicly record its ownership interest in the subject loan. Daisy Tr. v. Wells Fargo Bank, N.A., 135 Nev. 230, 233-34, 445 P.3d 846, 849 (2019).3 Appellant also raises arguments challenging the sufficiency and admissibility of respondent's evidence demonstrating Freddie Mac's interest in the loan and respondent's status as the loan's servicer, but we recently addressed and rejected similar arguments with respect to similar evidence.4 Id. at 234-36, 445 P.3d at 850-51. Accordingly,

2Appellant's reliance on Shadow Wood Homeowners Assn v. New York Community Bancorp, Inc., 132 Nev. 49, 366 P.3d 1105 (2016), is misplaced because the district court in this case did not grant respondent equitable relief. Rather, the district court determined that the deed of trust survived the foreclosure sale by operation of law (i.e., the Federal Foreclosure Bar).

31t logically follows from Daisy Trust that respondent's status as the

recorded deed of trust beneficiary does not create a question of material fact regarding whether Freddie Mac owns the subject loan in this case.

4To the extent that appellant raises arguments that were not expressly addressed in Daisy Trust, we are not persuaded that those arguments warrant reversal.

2 the district court correctly determined that appellant took title to the property subject to the first deed of trust.5 We therefore ORDER the judgment of the district court AFFIRMED.

Parraguirre

-& , J. J. 64-A Hardesty Cadish

cc: Hon. Susan Johnson, District Judge Clark Newberry Law Firm Wright, Finlay & Zak, LLP/Las Vegas Eighth District Court Clerk

5In light of this disposition, we need not consider whether affirming based on 7510 Perla Del Mar Avenue Trust v. Bank of America, N.A., 136 Nev., Adv. Op. 6, 458 P.3d 348 (2020), is warranted.