Wilmington Savings Fund Society, FSB, as Trustee for Brougham Fund I Trust v. Leonard M. Cortellino

CourtSupreme Judicial Court of Maine
DecidedMay 28, 2026
DocketAnd-25-270
StatusPublished
AuthorMEAD, J.

This text of Wilmington Savings Fund Society, FSB, as Trustee for Brougham Fund I Trust v. Leonard M. Cortellino (Wilmington Savings Fund Society, FSB, as Trustee for Brougham Fund I Trust v. Leonard M. Cortellino) is published on Counsel Stack Legal Research, covering Supreme Judicial Court of Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wilmington Savings Fund Society, FSB, as Trustee for Brougham Fund I Trust v. Leonard M. Cortellino, (Me. 2026).

Opinion

MAINE SUPREME JUDICIAL COURT Reporter of Decisions Decision: 2026 ME 49 Docket: And-25-270 Submitted On Briefs: January 21, 2026 Decided: May 28, 2026

Panel: STANFILL, C.J., and MEAD, DOUGLAS, and LIPEZ, JJ, and HJELM, A.R.J. Concurrence: HJELM, A.R.J.

WILMINGTON SAVINGS FUND SOCIETY, FSB, AS TRUSTEE FOR BROUGHAM FUND I TRUST

v.

LEONARD M. CORTELLINO et al.

MEAD, J.

[¶1] Leonard M. Cortellino and Pauline A. Cortellino appeal from a

judgment of foreclosure and sale entered by the Superior Court (Androscoggin

County, Archer, J.), contending that the court erred in determining that, at the

time of the foreclosure action, the mortgage at issue was owned by Wilmington

Savings Fund Society, FSB, as Trustee for Brougham Fund I Trust and that the

court erred in concluding that the right-to-cure notice met the requirements of

14 M.R.S. § 6111 (2025).1 We conclude that the court did not err when it

determined that Wilmington Savings owned the mortgage, but we determine

1 Title 14 M.R.S. § 6111 has since been amended, though not in any way that affects this appeal. See P.L. 2025, ch. 275, §§ 1-3 (effective Jan. 1, 2026) (codified at 14 M.R.S. § 6111 (1-A)(G), (H), (I) (2026)). 2

that, as a matter of law, the notice of right to cure was fatally defective. On that

basis, we vacate the judgment and remand for entry of dismissal.

I. BACKGROUND

[¶2] “The trial court made the following factual findings, which are

supported by the record.” Wuestenberg v. Rancourt, 2020 ME 25, ¶ 2, 226 A.3d

227. On June 20, 2006, the Cortellinos executed a promissory note in the

principal amount of $293,250 in favor of Mortgage Lenders Network USA, Inc.

(MLN) for the purchase of property in Lewiston. That same day, the Cortellinos

executed a mortgage securing the note and encumbering the property. The

mortgage was granted to Mortgage Electronic Registration Systems (MERS)

“solely as nominee for” MLN. In August 2012, MERS purportedly assigned the

mortgage to another entity, and it was later reassigned several more times, with

the final assignment to Wilmington Savings in 2016. The note was endorsed

several times; Wilmington Savings possessed the original note at the time of

trial, permitting Wilmington Savings to enforce it. See Bank of Am., N.A.

v. Greenleaf, 2014 ME 89, ¶¶ 9-10, 96 A.3d 700 (stating that a party that

possesses a promissory note has standing to enforce it).

[¶3] On February 5, 2007, before the first assignment of the Cortellino

mortgage, MLN filed for Chapter 11 bankruptcy. The United States Bankruptcy 3

Court for the District of Delaware entered a final decree and order closing the

case on May 21, 2012. MLN ceased operating after the bankruptcy.

[¶4] In 2014, we issued our decision in Greenleaf, where we made clear

that in order to establish standing to foreclose on a mortgaged property, the

party seeking to foreclose must prove ownership of the mortgage. See id. ¶ 12.

We specifically held that the assignment of a mortgage by MERS in that case

was insufficient to transfer ownership of the mortgage. Id. ¶¶ 13-16. It

subsequently became clear to the assignees of the mortgage in this case that

assignment of the mortgage by MERS was similarly insufficient to transfer

ownership of the Cortellino mortgage. Several mortgage lenders involved in

the assignments, such as PHH Mortgage Corporation, were then faced with the

problem of curing the defective assignment because MLN, the original lender,

was no longer in business. On July 29, 2020, PHH petitioned the Chancery Court

of Delaware for an appointment of a receiver for MLN, specifically to address

the Greenleaf issues in Maine and to provide for the enforceability of mortgages

that had been held by MLN. On February 5, 2021, the Court of Chancery

appointed a receiver for MLN. The receiver then assigned the Cortellino

mortgage from MLN to Wilmington Savings; that assignment was recorded on

July 1, 2022. 4

[¶5] In 2014, the Cortellinos breached the terms of the note and

conditions of the mortgage by failing to make payments. On August 12, 2022,

BSI Financial Services, on behalf of Wilmington Savings, sent the Cortellinos a

notice of default and right to cure based on the Cortellinos’ default. On

October 28, 2022, Wilmington Savings filed a complaint against the Cortellinos

seeking a judgment of foreclosure and damages associated with breach of the

note. The court conducted a trial on October 28, 2024, and, after the parties

submitted written arguments and proposed findings, entered a judgment of

foreclosure and sale on April 22, 2025. The court also made written findings of

fact and conclusions of law in support of its judgment. The Cortellinos filed a

motion for findings of fact on April 25, 2025, which was denied on June 1, 2025,

in part because the Cortellinos failed to include proposed findings. See M.R.

Civ. P. 52(b). The Cortellinos timely appealed. See M.R. App. P. 2B(c)(2).

II. DISCUSSION

[¶6] When we review a judgment of foreclosure, we review the trial

court’s factual findings for clear error and its legal conclusions de novo. Wells

Fargo Bank, N.A. v. Burek, 2013 ME 87, ¶ 17, 81 A.3d 330. “When a party’s

motion for further findings has been denied, we cannot infer findings from the

evidence in the record. Instead, the court’s judgment must be supported by 5

express factual findings that are based on record evidence, are sufficient to

support the result, and are sufficient to inform the parties and any reviewing

court of the basis for the decision.” Doe v. Lindahl, 2023 ME 28, ¶ 10, 293 A.3d

439 (citations and quotation marks omitted). However, where—as here—a

party has failed to submit proposed findings as required by M.R. Civ. P. 52(b),

“we will infer that the trial court made any factual inferences needed to support

its ultimate conclusion.” Sullivan v. Tardiff, 2015 ME 121, ¶ 15, 124 A.3d 652

(quotation marks omitted).

[¶7] The Cortellinos argue that the court erred in concluding that

Wilmington Savings owned the mortgage. Ownership of a mortgage is

necessary to establish standing to pursue a foreclosure claim. Greenleaf, 2014

ME 89, ¶ 12, 96 A.3d 700. The parties agree that the rights contained in the

mortgage were property of the MLN Chapter 11 bankruptcy estate. With

support in the record, the court found that the Delaware court’s

post-bankruptcy order appointing a receiver for MLN was valid, enforceable,

and entitled to full faith and credit. See V.L. v. E.L., 577 U.S. 404, 407 (2016).

Further, the court properly determined that the receiver’s assignment of the

mortgage to Wilmington Savings was within the scope of the receiver’s

authority, resulting in an enforceable transfer of the Cortellinos’ mortgage to 6

Wilmington Savings. No evidence was presented to suggest that the mortgage

was sold or otherwise transferred to a third party or that it reverted back to

MLN. As a result, the court committed no error in determining that Wilmington

Savings was the owner of the mortgage. See Bureau v. Gendron, 2001 ME 157,

¶ 11, 783 A.2d 643 (“If the trustee takes no action regarding the scheduled

property during the bankruptcy proceeding, then the asset reverts back to the

debtor by operation of law at the close of the bankruptcy proceeding.”).

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Wilmington Savings Fund Society, FSB, as Trustee for Brougham Fund I Trust v. Leonard M. Cortellino, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wilmington-savings-fund-society-fsb-as-trustee-for-brougham-fund-i-trust-me-2026.