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 Eatons executed a promissory note and mortgage with Countrywide Home Loans, Inc., which were later transferred to The Bank of New York Mellon (BNYM). The Eatons failed to make payments due on the note, leading BNYM to file a foreclosure complaint against them. The Eatons responded pro se to the complaint. BNYM filed a motion for summary judgment supported by affidavits, asserting its standing to foreclose based on possession of the note and mortgage (paras 2-4).

Procedural History

• Appeal from the District Court of Sandoval County, John F. Davis, District Judge, which granted summary judgment in favor of BNYM.

Parties' Submissions

• BNYM: Argued that it had standing to foreclose as it was in possession of the note and mortgage, which were properly assigned and indorsed to it. BNYM supported its motion for summary judgment with three affidavits demonstrating its possession of the note and the validity of the mortgage assignment (paras 3-4, 16-17, 24-26).
• The Eatons: Contended that BNYM lacked standing to foreclose for several reasons: BNYM was not the holder of the note as it contained no indorsement making BNYM the holder; the third affidavit submitted by BNYM was deficient in proving standing; the assignment of the mortgage by MERS to BNYM was invalid; and BNYM’s complaint failed to state a cause of action (paras 1, 6).

Legal Issues

• Whether BNYM had standing to foreclose on the note and mortgage without being the holder of the note and without a valid assignment of the mortgage (paras 6, 24).
• Whether the affidavits submitted by BNYM, particularly the third affidavit, were sufficient to establish BNYM's standing to foreclose (paras 6, 18).
• Whether the assignment of the mortgage by MERS to BNYM was valid to establish BNYM's standing to foreclose (para 24).

Disposition

• The Court of Appeals affirmed the district court’s grant of summary judgment in favor of BNYM (para 27).

Reasons

• Per Henry M. Bohnhoff, J. (J. Miles Hanisee, J., and Stephen G. French, J., concurring):
  BNYM demonstrated its standing to foreclose by providing evidence of its possession of the note before filing the complaint and attaching a copy of the original note with a Countrywide indorsement in blank to an affidavit. This established BNYM as the holder of the note (paras 16-17).
  The Court found Ms. Brown’s affidavit, an attorney for BNYM, to be sufficient evidence of BNYM’s possession of the note pre-complaint. The affidavit did not state any legal conclusions and was based on personal knowledge, making it admissible to prove BNYM's standing (paras 18-23).
  The assignment of the mortgage by MERS to BNYM was valid. Both the Supreme Court and the Court of Appeals have previously ruled that MERS, as a nominee for a lender, can assign a mortgage on behalf of such lender. The assignment document and the mortgage itself supported the validity of the assignment to BNYM, giving it the right to foreclose (paras 24-26).