Wells Fargo Bank, National Association, as Trustee for the Pooling and Servicing Agreement Dated as of July 1, 2006 Securitized Asset Backed Receivables LLC Trust 2006-FR3 Mortgage Pass-Through Certificates, Series 2006-FR3 v. Rehm

Summary

The Montana Supreme Court affirmed summary judgment for Wells Fargo in a quiet title action arising from a mortgage foreclosure and trustee’s sale. The court held that the borrowers’ attempted rescission under the Truth in Lending Act was untimely, that the district court had subject matter jurisdiction, and that Wells Fargo had standing to pursue the quiet title claim. The court also rejected challenges to the assignments of the deed of trust and Wells Fargo’s authority to conduct business in Montana.

Holdings

1. The District Court had subject matter jurisdiction over the quiet title action and the Rehms' attempted rescission claim under the Truth in Lending Act.
2. The Rehms' attempted rescission was untimely and had no legal effect because the notice was sent more than three years after consummation of the loan.
3. Wells Fargo had standing to seek adjudication of the quiet title issue because it purchased the property at a valid trustee's sale and was an interested owner.
4. The deed-of-trust assignments did not violate § 31-2-210, MCA, because the assignments were not initiated by a debtor and were not assignments governed by Montana's statutory scheme concerning insolvent debtors' assignments to creditors.
5. Wells Fargo was not barred from enforcing the mortgage and acquiring the property merely because the Rehms alleged it lacked a certificate of authority to transact business in Montana.
6. Summary judgment for Wells Fargo was proper because no genuine issue of material fact was in dispute and Wells Fargo was entitled to judgment as a matter of law.

Questions Presented

1. Whether the District Court had subject matter jurisdiction over Wells Fargo's quiet title action and the Rehms' attempted TILA rescission claim.
2. Whether the Rehms' October 2009 notice of intent to rescind was timely under the Truth in Lending Act.
3. Whether Wells Fargo had standing to bring the quiet title action after purchasing the property at the trustee's sale.
4. Whether assignments of the deed of trust violated Montana's statutory provisions governing assignments by insolvent debtors.
5. Whether Wells Fargo was barred from conducting business in Montana because it lacked a certificate of authority.
6. Whether summary judgment was properly granted to Wells Fargo.

Disposition

affirmed