D'Anello v. Select Portfolio Servicing

CourtDistrict Court, D. Massachusetts
DecidedFebruary 11, 2025
Docket1:23-cv-10149
StatusUnknown

This text of D'Anello v. Select Portfolio Servicing (D'Anello v. Select Portfolio Servicing) is published on Counsel Stack Legal Research, covering District Court, D. Massachusetts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
D'Anello v. Select Portfolio Servicing, (D. Mass. 2025).

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF MASSACHUSETTS

) MATTEO D’ANELLO, ) ) Plaintiff, ) ) v. ) ) No. 1:23-cv-10149-JEK SELECT PORTFOLIO SERVICING and ) THE BANK OF NEW YORK MELLON ) TRUST COMPANY N.A., ) ) Defendants. ) )

MEMORANDUM AND ORDER ON DEFENDANTS’ MOTION FOR SUMMARY JUDGMENT

KOBICK, J. Plaintiff Matteo D’Anello filed this action against defendants Select Portfolio Servicing, Inc. (“SPS”) and The Bank of New York Mellon Trust Company, N.A. f/k/a The Bank of New York Trust Company, N.A., as successor to JPMorgan Chase Bank, N.A., as Trustee, in Trust, for the Holders of Truman Mortgage Loan Trust, 2002-1, Asset-Backed Certificates, 2002-1 (the “Trust”), seeking mainly to forestall foreclosure proceedings on his property in Holliston, Massachusetts. D’Anello alleges that SPS, as the Trust’s loan servicer, sent him defective default notices that did not strictly comply with Massachusetts law or the terms of the mortgage contract. He also claims that the Trust is not a valid mortgagee of his property because of an allegedly void assignment in the chain of title. Pending before this Court is the defendants’ motion for summary judgment under Federal Rule of Civil Procedure 56. Because the operative default notice is contractually and statutorily compliant and no evidence exists of an invalid assignment, the defendants’ motion will be granted. BACKGROUND The following facts, unless otherwise noted, are either undisputed or recounted in the light most favorable to D’Anello, as the non-moving party. Dixon-Tribou v. McDonough, 86 F.4th 453, 458 (1st Cir. 2023).

In September 1996, D’Anello secured a $267,750.00 loan from Fairfield Mortgage Corporation through a mortgage on his property at 684 Adams Street in Holliston, Massachusetts. ECF 23, ¶¶ 1, 2, 4; ECF 17-3; ECF 19-1. Paragraph 21 of the mortgage, which bears on D’Anello’s claims in this case, provides in pertinent part: 21. Acceleration; Remedies. Lender shall give notice to Borrower prior to acceleration following Borrower’s breach of any covenant or agreement in this Security Instrument (but not prior to acceleration under Section 17 unless Applicable Law provides otherwise). The notice shall specify: (a) the default; (b) the action required to cure the default; (c) a date, not less than 30 days from the date the notice is given to Borrower, by which the default must be cured; and (d) that failure to cure the default on or before the date specified in the notice may result in acceleration of the sums secured by this Security Instrument and sale of the Property. The notice shall further inform Borrower of the right to reinstate after acceleration and the right to bring a court action to assert the nonexistence of a default or any other defense of Borrower to acceleration and sale.

ECF 23, ¶ 3. In the years that followed, four assignments of D’Anello’s mortgage were recorded in the Middlesex County Registry of Deeds. ECF 19, ¶ 4. First, on September 12, 1996, Fairfield Mortgage Corporation assigned the mortgage to Norwest Bank Minnesota, National Association as Trustee. ECF 19-2. Second, on December 31, 1996, Norwest Bank Minnesota, National Association as Trustee, assigned the mortgage to The Chase Manhattan Bank, as Trustee. ECF 19- 3. Third, on July 30, 2001, The Chase Manhattan Bank, as Trustee for Access Financial Mortgage Loan Trust 1996-4—under the Pooling and Servicing Agreement, dated as of November 1, 1996 by and among Access Financial Lending Corp. as Seller and Master Servicer, Access Financial Receivables Corp as Transferor, and The Chase Manhattan Bank as Trustee—assigned the mortgage to JPMorgan Chase Bank, as Trustee in Trust for the Holders of Truman Mortgage Loan Trust 2002-1, Asset-Backed Certificates, Series 2002-1. ECF 19-4. Fourth, on February 20, 2017, JPMorgan Chase Bank, as Trustee in Trust for the Holders of Truman Mortgage Loan Trust 2002-

1, Asset-Backed Certificates, Series 2002-1, by Select Portfolio Servicing, Inc., It’s [sic] Attorney in Fact, assigned the mortgage to The Bank of New York Mellon Trust Company, N.A. f/k/a The Bank of New York Trust Company, N.A., as successor to JPMorgan Chase Bank, N.A., as Trustee, in Trust, for the Holders of Truman Mortgage Loan Trust, 2002-1, Asset-Backed Certificates, 2002-1. ECF 19-5. The assignee of the fourth assignment is the defendant Trust in this case. SPS, the other defendant, is the Trust’s loan servicer. ECF 23, ¶ 6. D’Anello defaulted on his loan payments in 2010. Id. ¶ 7. In March 2016, SPS, on behalf of the Trust, sent him a “150 Day Right to Cure Your Mortgage Default” notice by certified mail, with return receipt requested, and by first class mail. Id. ¶ 8; ECF 17-4. Eighteen months later, in September 2017, D’Anello executed a Lien Modification Agreement with SPS “acting on behalf

of the lien holder” to modify the terms of his loan. ECF 23, ¶¶ 9, 11-12; ECF 17-5, at 2. Under the Lien Modification Agreement, D’Anello agreed that “[t]he Lien Documents, as modified by this Agreement, are duly binding agreements, enforceable in accordance with their terms and are hereby reaffirmed.” ECF 23, ¶ 10; ECF 17-5, § 3(b). He also agreed that “[a]ll terms of the Lien Documents except as expressly modified by this Agreement . . . remain in full force and effect.” ECF 23, ¶ 10; ECF 17-5, § 3(c). The Lien Modification Agreement was between D’Anello and SPS, “acting on behalf of the lien holder,” but it did not identify the Trust as the lien holder. ECF 17-5, at 1. D’Anello had, however, previously signed a Forbearance Agreement specifying that the Trust was the “current holder of the Lien.” ECF 29, Ex. 3, at 1, ¶ B. D’Anello eventually defaulted on the modified loan. ECF 23, ¶ 13. In response, SPS, again on behalf of the Trust, sent him a “Notice of Default” by first class mail and certified mail, with return receipt requested, in June 2018. Id. ¶ 14; ECF 17-6. D’Anello failed to cure the default. ECF 23, ¶ 15. The Trust then commenced a foreclosure sale of the property on December 7, 2022, but

discontinued the sale before it was completed. Id. ¶¶ 15-16. On December 23, 2022, D’Anello filed a complaint in Middlesex Superior Court asserting three claims against the Trust and SPS. ECF 1-1. Count I seeks declaratory judgment that the defendants violated M.G.L. c. 183, § 21 and M.G.L. c. 244, § 35A by failing to provide proper notice of his default prior to foreclosure. Id. ¶¶ 33-59. Count II asserts a breach of contract claim for failure to comply with paragraph 21 of the mortgage, which specifies the contents of the notice that must be given before the mortgagee can accelerate the loan and begin foreclosure proceedings. Id. ¶¶ 60-101. Count III requests a declaration that the Trust’s chain of title to the mortgage is defective. Id. ¶¶ 102-14. In January 2023, the defendants removed the case to this Court on the basis of diversity jurisdiction. ECF 1.1

On July 31, 2023, SPS, once again on behalf of the Trust, sent D’Anello an updated “90- Day Right to Cure Your Mortgage Default” notice by certified mail, with return receipt requested, and by first class mail. ECF 23, ¶ 17; ECF 17-7. The body of the default notice conformed to the template notice prescribed by the Division of Banks at 209 Code Mass. Regs. 56.04, which

1 The Court has diversity jurisdiction over this action under 28 U.S.C. § 1332(a)(1). The amount in controversy exceeds $75,000, as the complaint demands $700,000 and the original principal amount of the mortgage is $267,750. ECF 1-1, at 2; ECF 23, ¶ 1; see McKenna v. Wells Fargo Bank, N.A., 693 F.3d 207, 212-13 (1st Cir. 2012).

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D'Anello v. Select Portfolio Servicing, Counsel Stack Legal Research, https://law.counselstack.com/opinion/danello-v-select-portfolio-servicing-mad-2025.