Stanton v. Bank of New York Mellon CA4/3

INTRODUCTION

The financial markets’ collapse and the recession have generated a cottage industry in complaints against lenders and related entities based on the workings of the secondary markets for mortgages and deeds of trust. Many of these complaints allege that a foreclosure or an impending foreclosure was or is improper because the foreclosing entity does not have an interest in the debt, owing to the way the note and deed of trust were sold or bundled for resale. Such lawsuits have been repeatedly rejected, both by California courts and by federal courts applying California law. Lack of success, however, has not diminished the enthusiasm for them. This is just such a complaint. Borrowers David and Donita Stanton sued their lender and various other entities on the theory they were the victims of predatory loan practices in the financing of the loan for their house. They have made the customary allegations regarding the sale of their note and deed of trust and have alleged that, in effect, nobody owns their debt. Most of their first amended complaint was dismissed after the trial court sustained demurrers without leave to amend. This appeal deals with the judgment entered…