Clarita Barcarse v. Central Mortgage Company

MEMORANDUM

1. Under Yvanova v. New Century Mortgage Corp., 62 Cal.4th 919 , 199 Cal.Rptr.3d 66 , 365 P.3d 845, 851-60 (2016), third parties may bring a wrongful foreclosure suit only if they allege errors rendering an aspect of the assignment of their debt void, not just voidable. Here, the defects raised by the Barcarses would, at most, make the transfer of their debt voidable. The Barcarses alleged that defendants violated a Pooling Services Agreement (PSA) when transferring their note and deed to a trust, resulting in any later transfers also being invalidated. Under New York law, to which the Barcarses claimed the PSA was subject, these alleged violations of the trust agreement would make the transfers voidable, not void. See Rajamin v. Deutsche Bank Nat’l Trust Co., 757 F.3d 79, 87-90 (2d Cir. 2014); Saterbak v. JPMorgan Chase Bank, N.A., 245 Cal.App.4th 808 , 199 Cal.Rptr.3d 790 , 796 (2016). The Barcarses also claimed that the transfer of their debt from Downey Savings and Loan Association (DSLA) to defendant Mortgage Electronic Registration Systems (MERS) was in error because the assignment was allegedly “robo-signed” by an individual who was not an employee of DSLA. But…