AI Generated Opinion Summaries

This summary was computer-generated without any editorial revision. It is not official, has not been checked for accuracy, and is NOT citable.

Facts

• The case involves Steven Ray Gomez (Appellant) appealing against a default judgment of foreclosure entered against him. The foreclosure was initiated by JPMorgan Chase Bank, National Association (JPMorgan), which claimed to be the holder in due course of the original promissory note (Note) and the assignee of the mortgage through the Mortgage Electronic Registry System (MERS) acting as an agent for Guild Mortgage Company (Guild).

Procedural History

• Appeal from the District Court of Valencia County, Violet Otero, District Judge, denying the Appellant's motion to suspend the writ of assistance and vacate the default judgment of foreclosure.

Parties' Submissions

• Appellant: Argued that the Uniform Commercial Code (UCC) does not fully control the foreclosure of mortgages and questioned the authority of MERS to assign the mortgage and the Note's enforcement rights. Contended that MERS, as an agent, could not properly assign the Note or the right to enforce it and questioned the authority of MERS to act on behalf of Guild in the assignment of the Note and mortgage.
• Appellee (JPMorgan Chase Bank, National Association): Asserted its status as the holder in due course of the Note with the right to enforce it, established by a special indorsement from Guild under the UCC. Argued that the mortgage was properly assigned to JPMorgan by MERS, acting as an agent for Guild, and thus JPMorgan had the standing to foreclose.

Legal Issues

• Whether the Uniform Commercial Code (UCC) controls the foreclosure of mortgages in their entirety or if other laws must be followed.
• Whether MERS had the authority to assign the mortgage and the Note or the right to enforce the Note.
• Whether JPMorgan had sufficient standing at the time the complaint was filed to enforce the foreclosure.

Disposition

• The Court of Appeals affirmed the district court’s order denying the Appellant's motion to suspend the writ of assistance and vacate the default judgment of foreclosure.

Reasons

• Per M. Monica Zamora, Judge (James J. Wechsler, Judge, and Jonathan B. Sutin, Judge, concurring):
  The court found no factual or legal errors in the proposed disposition, affirming the district court's order. It addressed the Appellant's contention regarding the UCC's application to mortgage foreclosures, clarifying that while the UCC governs the security interest in the Note, New Mexico case law governs the perfection of the security interest in the mortgage. The court agreed with the Appellant that the right to enforce a mortgage cannot be assigned under the UCC but noted that the mortgage was assigned to JPMorgan by MERS, not under the UCC, but as an agent for Guild. The court also addressed the Appellant's concerns about MERS's authority, distinguishing between the functions of the Note and the mortgage and confirming that MERS had the authority to assign the mortgage to JPMorgan. The court concluded that JPMorgan had established its standing to foreclose by being in possession of the Note, with the right to enforce it established by a special indorsement from Guild, and by being assigned the mortgage by MERS (paras 1-8).