Madridejos

FACTS

In March 2007 plaintiffs borrowed $696,000 from Provident Funding Associates, L.P. (Provident), to purchase a home in El Dorado Hills. The loan had an adjustable interest rate. Plaintiffs allege defendants misrepresented the terms of what turned out to be a very risky loan defendants intended to resell on the secondary market. The debt was secured by a deed of trust naming First American Title Company as the trustee and Mortgage Electronic Registration Systems, Inc. (MERS), as the “nominee for Lender and Lender’s successors and assigns” and as “beneficiary under this Security Instrument.”

2 On November 17, 2010, MERS executed an “Assignment of Deed of Trust,” thereby transferring to HSBC Bank USA, National Association as Trustee for Wells Fargo Asset Securities Corporation, Mortgage Pass-Through Certificates, Series 2007-8 all beneficial interest under plaintiffs’ deed of trust. Plaintiffs allege that China Brown, an employee of America’s Servicing Company, a division of Wells Fargo, fraudulently signed the assignment as part of a “robo-sign[ing]” process leading to the unlawful foreclosure of many properties, including that of plaintiffs. On November 23, 2010, Default…