United States District Court, W.D. Washington, Seattle
LEVI A. LAKE, Plaintiff,
MTGLQ INVESTORS, L.P., et al., Defendants.
ORDER ON CROSS MOTIONS FOR SUMMARY JUDGMENT
L. ROBART, United States District Judge
the court are Defendant MTGLQ Investors, L.P.'s
(“MTGLQ”) motion for summary judgment (Def. Mot.
(Dkt. # 33)), and Plaintiff Levi A. Lake's cross-motion
for summary judgment (Pltf. Mot. (Dkt. # 37)). Defendant New
York Community Bank as Servicer for the Federal Deposit
Insurance Corporation (“FDIC”) as Receiver for
Ohio Savings Bank AKA Amtrust Bank (“NYCB”) joins
MTGLQ's motion for summary judgment. (Joinder (Dkt. #
court has considered the parties' submissions, the
relevant portions of the record, the judicially noticed
public records as described in this order, and the applicable
law. Being fully advised,  the court GRANTS MTGLQ and NYCB's
(collectively, “Defendants”) motion for summary
judgment and DENIES Mr. Lake's cross-motion for summary
case arises from a nonjudicial foreclosure. Mr. Lake seeks to
quiet title to the property in question. (SAC (Dkt. # 28)
¶ 37.) On November 7, 2005, Mr. Lake refinanced the
existing promissory note on his home with a loan from Premier
Financial Services, Inc. (“Premier”).
(Id. ¶ 6.) The loan is secured by a deed of
trust encumbering Mr. Lake's residence (the
“Property”). (1st McIntosh Decl. (Dkt. # 9), Ex.
A (attaching the deed of trust).) The deed of trust lists Mr.
Lake as the borrower, Premier as the lender, and Fidelity
National Title as the trustee. (Id. at
In addition, the deed of trust lists MERS as the beneficiary,
solely as nominee of the lender and the lender's
successors and heirs. (Id.)
promissory note was subsequently transferred. (See
Sahyers Decl. (Dkt. # 20), Ex. A (attaching Mr. Lake's
promissory note).) The note bears two indorsements: (1) from
Premier to Ohio Savings Bank, without recourse, dated
November 7, 2005, and (2) a blank indorsement, without
recourse, executed by Robert Diamond, an Ohio Savings Bank
authorized agent. (Id.) The deed of trust was also
subsequently assigned. The deed of trust was assigned from
MERS to New York Community Bank on October 25, 2010. (SAC
¶ 8; Lake Decl., Ex. C.)) NYCB assigned the deed of
trust to Nationstar Mortgage LLC (“Nationstar”)
on August 25, 2011. (SAC ¶ 9; Lake Decl., Ex. D.)
Nationstar assigned the deed of trust to MTGLQ on January 17,
2017. (SAC ¶ 11; Lake Decl., Ex. E.)
occupying the Property, Mr. Lake ceased payments on his loan
in 2010. (SAC ¶ 7.) On August 5, 2010, AmTrust Bank, as
servicer of the loan, notified Mr. Lake that he was in
default and that AmTrust would accelerate the remainder of
the amount owed if Mr. Lake did not make a payment within 30
days. (Id. ¶ 14.) Mr. Lake made no payments.
2015, Nationstar, which was now the servicer of the loan for
Fannie Mae, hired Quality Loan Service Corporation of
Washington (“Quality”) to advance a non-judicial
foreclosure of the Property. (See Herbert-West Decl.
(Dkt. # 34) ¶ 4; SAC, Ex. E (“Not. of
Default”) at 1.) In December 2015, Nationstar appointed
Quality as successor trustee and provided Quality with a
declaration stating that Nationstar was now the holder of Mr.
Lake's promissory note. (See Herbert-West Decl.,
Ex. A (“Successor Appointment”), Ex. B
(“Nationstar Beneficiary Decl.”).) On January 29,
2016, Quality served a notice of default on the Property.
(Not. of Default). The notice identifies Fannie Mae as the
owner and Nationstar as the loan servicer. (Id.) In
April 2017, Quality obtained a declaration stating that MTGLQ
was now the holder of Mr. Lake's note, and issued a
notice of trustee's sale identifying MTGLQ as the
beneficiary. (See Herbert-West Decl., Ex. C
(“MTGQL Beneficiary Decl.”); 2nd McIntosh Decl.
¶ 2, Ex. A (“Notice of Tr. Sale”).)
Lake filed this action in King County Superior Court on March
15, 2017. (See Compl. (Dkt. # 1-1).) MTGLQ removed
the action to this court and filed a motion to dismiss the
complaint. (Not. of Rem. (Dkt. # 1); MTD (Dkt. # 8).) Before
the court ruled on that motion, Mr. Lake filed an amended
complaint. (See FAC (Dkt. # 13).) The court granted
MTGLQ's motion to dismiss and dismissed Mr. Lake's
first amended complaint with leave to amend. (See
6/12/2017 Order (Dkt. # 25).)
30, 2017, Mr. Lake timely filed a second amended complaint,
naming MTGLQ and NYCB as defendants. (See SAC
¶¶ 2-3.) Mr. Lake seeks to quiet title on the
theory that Quality lacked authority to issue the notice of
default, and any foreclosure action is now time-barred.
(See id.) On July 20, 2017, MTGQL filed a motion for
summary judgement. (See Def. Mot.) On July 28, 2017,
NYCB filed a joinder to MTGLQ's motion for summary
judgment. (See Joinder.) On August 4, 2017, Mr. Lake
filed a cross-motion for summary judgment. (See
Pltf. Mot.) The cross-motions for summary judgment and the
motion to join are now before the court.