Ocwen Loan Servicing, LLC v. HSBC Bank USA, National Association

CourtSuperior Court of Delaware
DecidedJune 30, 2014
Docket10C-09-071
StatusPublished

This text of Ocwen Loan Servicing, LLC v. HSBC Bank USA, National Association (Ocwen Loan Servicing, LLC v. HSBC Bank USA, National Association) is published on Counsel Stack Legal Research, covering Superior Court of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ocwen Loan Servicing, LLC v. HSBC Bank USA, National Association, (Del. Ct. App. 2014).

Opinion

IN THE SUPERIOR COURT OF THE STATE OF DELAWARE

IN AND FOR NEW CASTLE COUNTY

OCWEN LOAN SERVICING, ) LLC, ) Assignee of Taylor, Bean & ) Whittaker Mortgage Corp., ) C.A. No. N10C-09-071 CLS ) Plaintiff, ) ) v. ) HSBC BANK USA, ) NATIONAL ASSOCIATION ) AS TRUSTEE FOR ) CITIGROP MORTGAGE ) LOAN TRUST INC., ASSET- ) BACKED PASS-THROUGH ) CERTIFICATES, SERIES ) 2007-SHL 1, et al., ) ) Defendants. )

ORDER

On this 30th Day of June and upon consideration of Regions Bank’s

(“Regions”), servicer for HSBC Bank USA, National Association, as

Trustee for Citigroup Mortgage Loan Trust, Inc., Asset-Backed Pass-

Through Certificates, Series 2007 SHL 1, Renewed Motion for Summary

Judgment, it appears to the Court that: 1. On November 14, 2001, Anga N. Goodwin (“Goodwin”)1 granted a

mortgage to Wells Fargo Home Mortgage, Inc. (“Wells Fargo”) in

connection with the purchase of a property for $124,642 (the “WF

Mortgage”). The WF Mortgage was then assigned to the Secretary of

Housing & Urban Development, which later assigned the WF Mortgage to

SFJV-2002-1, LLC (“SFJV”). On May 3, 2007, Regions became the

servicer for the WF Mortgage.

2. On July 14, 2008, Goodwin granted a mortgage to CitiFinancial for

176,029.05 (the “Citi Mortgage”). During the application process for the

Citi Mortgage, a CitiFinancial representative forwarded a Request for

Verification of Mortgage to J&K Servicing Company (“JK”). In June 2008,

JK delivered a payoff statement to CitiFinancial. At the settlement, a

settlement sheet was executed indicating payment to JK in the amount of

$138,455. At closing, the proceeds were paid by a check from Citi to “Anga

N Goodwin and JK Servicing C.”

3. On September 18, 2008, Goodwin delivered a mortgage on the property to

Taylor, Bean and Whitaker Mortgage Group (“TBWMG”) in the amount of

$199,750. TBWMG assigned that mortgage to the plaintiff in this case,

Ocwen Loan Servicing, LLC (“Ocwen”).

1 Goodwin has used different variations of her name. Goodwin Dep. at 9:9-13:19 (Mar. 1, 2012). 2 4. On June 8, 2009, SFJV initiated foreclosure proceedings for the WF

Mortgage.2 Ocwen received notice of the foreclosure and initiated an

investigation regarding the grounds for foreclosure. After instituting the

foreclosure action, SFJV assigned the WF Mortgage to HSBC Bank USA,

National Association (“HSBC”) and HSBC became trustee for Citigroup

Mortgage Loan Trust, Inc., Asset-Backed Pass-Through Certificates, Series

2007-SHL 1.

5. On November 7, 2011, Ocwen filed a three-count Amended Complaint

against the defendants. 3 In Count I, Ocwen sought declaratory relief that the

WF Mortgage was paid in full, that the WF Mortgage must be satisfied of

record, and that Ocwen has the first lien on the property. On March 1, 2012,

Goodwin was deposed. 4 In her deposition, she explained that JK was

servicing the WF Mortgage in 2008, that she had previously corresponded

and sent payments to JK for the WF Mortgage, and that she understood that

proceeds from the Citi Mortgage were paid to JK. Goodwin testified that

she provided JK’s name to CitiFinancial because she had received

paperwork from JK.

2 SFJV-2002-I, LLC v. Goodwin, C.A. No. 09L-06-062 CLS (Del. Super.). 3 The Original Complaint was filed on September 10, 2010. 4 Ocwen’s Response to Regions’ Mot. for Summary Judgment, Ex. 2. 3 6. On August 15, 2012, Regions filed its first motion for summary judgment

for Counts I and III of the Amended Complaint. 5 Regions asserted that it

was the servicer of the WF Mortgage and that no proceeds from the Citi

Mortgage were ever paid to Regions or Wells Fargo. Regions also asserted

that there was no evidence showing that JK was a servicer for Wells Fargo

or that JK even existed. On December 21, 2012, the Court denied Regions’

motion because it found that a genuine issue of fact existed as to whether or

not the WF Mortgage was paid when CitiFinancial made a payment to JK.

Although the Court acknowledged there was evidence demonstrating that

Regions was the servicer for the WF Mortgage, the Court also found that

“Ocwen ha[d] presented evidence, mainly through Goodwin’s testimony,

that [] JK servicing was paid with proceeds from the CitiFinancial refinance

in order to pay the WF mortgage.”6

7. On September 3, 2013, Goodwin executed an affidavit in a related

foreclosure proceeding. 7 In it, Goodwin conceded that her assertions in her

Answer in this action, that the WF Mortgage was sold and transferred to JK,

were false. 8 On October 7, 2013, Goodwin was deposed for a second time

5 In the instant motion, Regions seeks summary judgment for only Count I of the Complaint. 6 Order at 8 (Dec. 12, 2012). 7 Trans. ID. 54214531; Regions’ Renewed Mot. at ¶ 7. 8 Id. at ¶¶ 3-4. 4 for the instant matter. 9 Goodwin admitted that “large part of her testimony

[on March 1, 2012] was not accurate.”10 She also admitted that her

testimony that JK was the servicer for the WF Mortgage and that she had

received communications from and sent checks to JK was untrue. 11 During

the deposition, Goodwin’s attorney provided details concerning Goodwin’s

involvement with a man named Thomas Robertson (“Robertson”). Goodwin

confirmed that her attorney’s statements were true. 12 According to her

attorney, Robertson was engaged in the business of “cleaning up credit

reports with false information…” 13 Goodwin and Robertson worked together

to refinance the property at issue through CitiFinancial. 14 The two were

aware that it was not clear to CitiFinancial whether there was a mortgage on

the property. Thereafter, they created documentation showing that JK was

servicing a mortgage against the property. Goodwin testified that JK “was

not a real company” and that it did not receive the payment from

CitiFinancial. 15 Instead, East Coast Remodeling, a company that Robertson

9 Id. at App’x 6. 10 Id. 11 Id. at App’x 9-10 and 13-14. 12 Id. at App’x 20. 13 Id at App’x 16. 14 Id. at App’x 17. 15 Id at App’x 21 and 24. 5 owned, and received the proceeds from the Citi Mortgage and Goodwin also

received a portion. 16

8. Regions has renewed its motion for summary judgment on Count I, arguing

that there is no longer any issue of fact in dispute as to whether the WF

Mortgage was paid through JK servicing due to Goodwin’s admissions in

her affidavit and second deposition. In opposition to Regions’ motion,

Ocwen argues that the inconsistent testimony concerns the weight of the

evidence and demonstrates an issue of fact that should be considered by the

trier of fact.17 Ocwen also argues that the second deposition should not be

given weight over the first because cross-examination was not completed at

the second deposition and Goodwin’s counsel’s objections prevented full

disclosure of the facts. The Court has great concern over counsel’s

objections, instructions to Goodwin not to answer questions, and his

statements directing opposing counsel to file motions.18

9. A motion for summary judgment may not be granted unless “the pleadings,

depositions, answers to interrogatories, and admissions on file, together with

the affidavits, if any, show that there is no genuine issue as to any material

fact and that the moving part is entitled to summary judgment as a matter of 16 Id at App’x 21-22.

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