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 a dispute over a mortgage contract initially signed by a borrower in 2003. The borrowers entered into a real estate contract with third parties in 2009, which did not assign loan rights. After the borrower's death in 2011, issues arose with mortgage servicers improperly handling payments, leading to a loan default. The mortgage was eventually assigned to a new party, who filed a foreclosure action in 2017 (paras 2-5).
Procedural History
- District Court, February 2020: Granted motions to dismiss the counterclaim and third-party claims filed by the appellants (para 4).
Parties' Submissions
- Appellants: Argued that the district court applied the wrong legal standard in dismissing their counterclaims, that the assignment of rights under the mortgage contract was valid, and that there was a genuine issue of material fact regarding their statutory claims (para 1).
- Appellees: Contended that the mortgage agreement only allowed assignment of rights and obligations with written approval from the lender, which was not obtained by the appellants (paras 11-12).
Legal Issues
- Did the district court apply the wrong legal standard in dismissing the appellants' counterclaims?
- Was the assignment of rights under the mortgage contract to the appellants valid?
- Is there a genuine issue of material fact regarding the appellants' statutory claims?
Disposition
- The decision of the district court was reversed and the case was remanded for further proceedings (para 19).
Reasons
Per Hanisee J. (Medina and Yohalem JJ. concurring):
The court found that the district court erred in dismissing the appellants' claims without properly considering whether the statutory claims were independent of the mortgage agreement. The court noted that the district court relied solely on the mortgage agreement's assignment clause without assessing the statutory claims under the New Mexico Unfair Trade Practices Act, the Real Estate Settlement Procedures Act, and the New Mexico Home Loan Protection Act. The court emphasized that statutory claims might not be governed by the mortgage agreement's assignment provisions and remanded the case for further consideration of these claims (paras 8-18).