Nationstar Mortgage, LLC v. Timothy E. Halfacre

Summary

The Maine Supreme Judicial Court held that Nationstar Mortgage, LLC lacked standing to pursue a foreclosure because the original lender had previously assigned its interest in the mortgage to Fannie Mae. The court vacated the Superior Court’s summary judgment and remanded for dismissal of the action. It left to the trial court whether to impose sanctions under Maine Rule of Civil Procedure 11(a) or address remedies if another foreclosure or collection action is initiated.

Holdings

1. Nationstar lacked standing to foreclose because RMS had previously assigned its interest in the mortgage to Fannie Mae, and Nationstar had actual knowledge of that prior assignment when it received the later purported assignment.
2. Because Nationstar lacked standing in the trial court, the summary judgment had to be vacated and the foreclosure action dismissed.
3. The Supreme Judicial Court did not decide whether Nationstar should be sanctioned and left that determination to the trial court.

Questions Presented

1. Whether Nationstar had standing to maintain the foreclosure action under 14 M.R.S. § 6321 when RMS had previously assigned its interest in the mortgage to Fannie Mae and Nationstar had actual knowledge of that prior assignment.
2. Whether the Superior Court's summary judgment should be vacated and the foreclosure action dismissed because Nationstar lacked standing.
3. Whether the trial court could impose sanctions under Maine Rule of Civil Procedure 11(a) for Nationstar's conduct.

Disposition

vacated