Pereira v. Rushmore Loan Management Services LLC

CourtDistrict Court, D. Massachusetts
DecidedFebruary 3, 2025
Docket1:24-cv-10979
StatusUnknown

This text of Pereira v. Rushmore Loan Management Services LLC (Pereira v. Rushmore Loan Management Services LLC) 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
Pereira v. Rushmore Loan Management Services LLC, (D. Mass. 2025).

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF MASSACHUSETTS

) ROBERT PEREIRA, ) ) Plaintiff, ) ) v. ) No. 1:24-cv-10979-JEK ) RUSHMORE LOAN MANAGEMENT ) SERVICES LLC and J.P. MORGAN ) MORTGAGE ACQUISITION CORP., ) ) Defendants. ) )

MEMORANDUM AND ORDER ON DEFENDANTS’ MOTION TO DISMISS

KOBICK, J. Plaintiff Robert Pereira filed this action against defendants Rushmore Loan Management Services LLC and J.P. Morgan Mortgage Acquisition Corp., seeking to avert foreclosure of his property in Peabody, Massachusetts. He claims that the defendants are not valid mortgagees of his property because of an allegedly void assignment in the chain of title. He also contends that Rushmore, as J.P. Morgan’s loan servicer, sent him a defective cure notice that did not strictly comply with Massachusetts law or the terms of his mortgage contract. Pending before the Court is the defendants’ motion to dismiss the complaint for failure to state a claim under Federal Rule of Civil Procedure 12(b)(6). Because the mortgage was validly assigned and the notice is contractually and statutorily compliant, the motion to dismiss will be granted. BACKGROUND The Court recounts the facts based on the allegations in the complaint and “the content of documents . . . sufficiently referenced in the complaint.” Bazinet v. Beth Israel Lahey Health, Inc., 113 F.4th 9, 15 (1st Cir. 2024). The documents incorporated by reference in the complaint include the mortgage, certain assignments of that mortgage, and the cure notice. See ECF 9, at 6-9, 13, ¶¶ 13-23, 30, 41 (“Complaint”);1 ECF 11-1 through 11-5. Pereira has owned property at 26A Endicott Street in Peabody, Massachusetts since July 2003. Complaint ¶¶ 5, 10-11. On July 14, 2003, he granted a mortgage on the property to secure a

$250,000 loan. Id. ¶ 12; ECF 11-1, at 1-3. The mortgage identified Fleet National Bank as the lender and Mortgage Electronic Registration Systems (“MERS”), as nominee for Fleet, as the mortgagee. Complaint ¶ 12; ECF 11-1, at 1-2. Paragraph 22 of the mortgage, which applies in the event of a default on loan payments, specifies the contents of the notice that must be given before the mortgagee can accelerate the loan and begin foreclosure proceedings. ECF 11-1, ¶ 22. From 2010 to 2023, eight assignments of Pereira’s mortgage were recorded in the Essex County Registry of Deeds. Complaint ¶¶ 15-23. In September 2010 and again in April 2013, MERS assigned the mortgage to PHH Mortgage Corporation. Id. ¶¶ 15-16. In November 2017, PHH Mortgage assigned the mortgage to New Residential Mortgage, LLC, which assigned it back to PHH Mortgage one month later. Id. ¶¶ 17-18. After PHH Mortgage again assigned the mortgage

to New Residential Mortgage, LLC in November 2020, New Residential Mortgage LLC, by NewRez LLC f/k/a New Penn Financial, LLC d/b/a Shellpoint Mortgage Servicing, assigned the mortgage to NewRez LLC d/b/a Shellpoint Mortgage Servicing in March 2021. Id. ¶¶ 19-20; ECF 11-2. In June 2022, NewRez LLC f/k/a New Penn Financial, LLC d/b/a Shellpoint Mortgage Servicing assigned the mortgage to U.S. Bank Trust National Association. Complaint ¶ 21; ECF 11-3. Pereira alleges that this assignment is “null and void” because the prior assignee is allegedly different from the assignor, given the assignment’s inclusion of “f/k/a New Penn Financial, LLC.”

1 Part of the complaint has duplicative paragraph numbers. This citation is to the second paragraph numbered 41 in the complaint. Complaint ¶¶ 21-22. In January 2023, U.S. Bank assigned the mortgage to defendant J.P. Morgan. Id. ¶ 23; ECF 11-4. On March 6, 2023, Rushmore, as J.P. Morgan’s servicer, sent a “90-Day Right to Cure Your Mortgage Default” notice to Pereira via United States Postal Service certified mail.

Complaint ¶¶ 29-30; ECF 11-5, at 1. The body of the cure notice conformed to the template notice prescribed by the Division of Banks at 209 Code Mass. Regs. 56.04, which implements M.G.L. c. 244, § 35A. Compare ECF 11-5, at 1-3, with 209 Code Mass. Regs. 56.04. It informed Pereira that he had failed to make his monthly loan payments from September 2022 through March 2023, and that he “must pay the past due amount of $8,638.85 on or before 06/04/2023, which is 90 days from the date of this notice.” ECF 11-5, at 1. It stated that “[a]fter 06/04/2023, [Pereira could] still avoid foreclosure by paying the total past due amount before a foreclosure sale takes place.” Id. at 2. And it further provided that “[i]f [Pereira] do[es] not pay the total past due amount of $8,638.85 and any additional payments that may become due by 06/04/2023, [he] may be evicted from [his] home after a foreclosure sale.” Id.

At the end of the cure notice, after the signature block, was an attachment titled “Additional Disclosures.” Id. at 4-5. That attachment, under a “Contractual Disclosures” heading, first stated that “[f]ailure to cure the default on or before the date specified in the notice may result in acceleration of the sums secured by the Security Instrument and sale of the property,” and that Pereira “ha[s] the right to reinstate the loan after acceleration and the right to bring a court action to assert the non-existence of a default or any other defense to acceleration and sale.” Id. at 4. Under the next heading, labeled “Right to Redeem,” it stated that Pereira “may redeem the property by paying the total amount due prior to the foreclosure sale.” Id. Further down, under a heading labeled “Partial Payments,” it added that Rushmore “reserves the right to accept or reject a partial payment of the total amount due without waiving its right to proceed with foreclosure.” Id. This last statement, in Pereira’s view, renders the March 2023 notice defective. In March 2024, Pereira filed this complaint in Essex Superior Court against Rushmore and J.P. Morgan. Although the complaint asserts only one count, it appears to allege two distinct

claims: (1) a claim that a break in the chain of assignments of the mortgage prevents J.P. Morgan from foreclosing on the mortgage as mortgagee, Complaint ¶¶ 38-43, 45;2 and (2) a claim that the cure notice is defective because it does not strictly comply with paragraph 22 of the mortgage, id. ¶¶ 44-45, 40-44.3 The complaint seeks, among other things, damages, injunctive relief, and declaratory relief. Id. ¶¶ 46-50.4 Invoking this Court’s diversity jurisdiction, the defendants timely removed the case in April 2024. ECF 1. After the defendants moved to dismiss the complaint for failure to state a claim and Pereira opposed that motion, the Court held a hearing and took the matter under advisement. ECF 10, 14, 23.

2 This citation is to the first paragraphs numbered 40-43 and the second paragraph numbered 45 in the complaint. 3 This citation is to the first paragraphs numbered 44-45 and the second paragraphs numbered 40-44 in the complaint. 4 Pereira’s claims are ripe for review. A claim is not ripe for resolution if it “‘rests upon contingent future events that may not occur as anticipated, or indeed may not occur at all.’” City of Fall River v. F.E.R.C., 507 F.3d 1, 6 (1st Cir. 2007) (quoting Texas v. United States, 523 U.S. 296, 300 (1998)). The defendants contend that Pereira merely “attempts to manufacture an ambiguity in the Cure Notice by relying on hypothetical events that have not occurred, and likely will never occur.” ECF 26, at 3. But if, as alleged, the cure notice is deficient under the terms of the mortgage, then Pereira could prevent the defendants’ impending foreclosure of his property.

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Pereira v. Rushmore Loan Management Services LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pereira-v-rushmore-loan-management-services-llc-mad-2025.