By Daniel Edstrom
DTC Systems, Inc.
Thanks to Brian Davies for this one. Prosper Law Group’s complaint in Johnson vs. HSBC Bank USA, NA as Trustee for the Ellington Trust Series 2007-1, Bank of America, NA and does 1 – 10 inclusive contains 7 causes of action. The conclusion and order from Federal Judge Jeffrey T. Miller is:
For the reasons stated above, the motion to dismiss is DENIED. Defendants’ motion has failed to demonstrate that Plaintiff’s claims were implausible or precluded as a matter of law.
The following is an excerpt, but the rest is great reading also.
A. Viability of Attack on Loan Securitization
1. Ability to Challenge Loan Securitization
The threshold issue of whether Plaintiff can make any claim related to the loan’s securitization affects the viability of many of the individual claims discussed below. BOA cites Rodenhurst v. Bank of America, 773 F.Supp.2d 886, 899 (D. Haw. 2011) for its statement that “[t]he overwhelming authority does not support a cause of action based upon improper securitization.” However, the discussion cited in that case centers on plaintiffs who claim that securitization itself violates the agreement between the mortgagor and mortgagee. Here, Plaintiff does not dispute the right to securitize the mortgage, but alleges that as a result of improper procedures, the true owner of his mortgage is unclear. As a result, he has allegedly been paying improper entities an excess amount. Continue reading “All Causes of Action Survive Motion to Dismiss in California Federal Case Against Bank of America”