Herrera

I

INTRODUCTION

Salvador Herrera and Diana Herrera (plaintiffs) defaulted on their home loan. Federal National Mortgage Association (Fannie Mae) purchased their *1498 property at a nonjudicial foreclosure sale. Plaintiffs filed suit against Fannie Mae to set aside the sale. The trial court sustained Fannie Mae’s demurrer to plaintiffs’ second amended complaint (SAC) without leave to amend. Plaintiffs appeal the judgment of dismissal.

Plaintiffs contend the trial court abused its discretion in sustaining Fannie Mae’s demurrer to the fifth and sixth causes of action of plaintiffs’ SAC, without leave to amend. Plaintiffs argue they should be permitted to amend to allege that Mortgage Electronic Registration Systems, Inc. (MERS), a nominee beneficiary, lacked authority to assign the note and deed of trust (DOT), since MERS did not have an agency agreement with IndyMac Federal Bank, F.S.B. (IndyMac Federal), or the Federal Deposit Insurance Corporation (FDIC). Plaintiffs assert that, as a consequence, MERS’s assignment of the DOT and note to OneWest Bank FSB, was void. In turn, OneWest’s assignment of the DOT to Fannie Mae was void as well, and Fannie Mae could not foreclose…