June 1, 2017

Today, a Deschutes County, Oregon Judge issued a directive to counsel for the homeowner to prepare an Order denying a Motion for Summary Judgment filed by PennyMac Corp. Jeff Barnes, Esq. represents the homeowner and is admitted PHV into the case, working with local Oregon counsel Philip Anderson, Esq. Mr. Barnes prepared the opposition brief and personally argued the case in court in Bend, Oregon  last week.

The case involves an origination by a lender who, somehow, claims to have transferred the loan to Washington Mutual in connection with a loan modification which was entered into less than 8 weeks before WaMu failed and filed for bankruptcy. JPMorgan Chase claimed to have inherited the loan, which it allegedly transferred to PennyMac.

Mr. Barnes filed and argued the sworn deposition testimony of Lawrence Nardi, former mortgage management employee of WaMu, who has testified in a Florida case that there was never any schedule of mortgage loans purchased by JPM from the FDIC in connection with the failure of WaMu and its FDIC Receivership; that Mr. Nardi testified that there were no assignments, allonges, or endorsements as to any Notes; and the fact that JPM had previously filed a Motion for Summary Judgment in a Federal case where it took the position that it was not the successor in interest to WaMu. Thus, the “blank endorsement” theory advanced by PennyMac was shown to have genuine issues of material fact as to who actually is the “PETE” (person entitled to enforce) the Note and Deed of Trust.

Counsel for PennyMac argued that the recent decisions in the Wamsley  and Peper cases from Oregon’s appellate court, which hold that a holder in possession of a Note has the right to enforce it, supported summary judgment. The Judge disagreed. Significantly, neither Wamsley nor Peper have the facts of this case.

The case now proceeds further into discovery and trial absent any settlement.

Jeff Barnes, Esq.,