October 9, 2014
Authored by: Mark Stingley and Mark Duedall
The California Court of Appeal for the Fifth Appellate District has held that a borrower has standing to state a claim for wrongful foreclosure based on the alleged improper securitization of the borrower’s note and deed of trust. Glaski v. Bank of America, N.A., et al., 218 Cal. App. 4th 1079 (Cal. App. 5th Dist. 2013). This is a minority view. Rejecting both the holding and reasoning of the Glaski court, and adopting the majority view, the U.S. Bankruptcy Court for the Northern District of California reached a contrary conclusion. Sandri v. Capital One, N.A., et al. (In re Sandri), No. 12-3165DM, 2013 WL 5925655 (Bankr. N.D. Cal. Nov. 5, 2013).
I. Glaski v. Bank of America, N.A., et al., 218 Cal. App. 4th 1079 (Cal. App. 5th Dist. 2013)
Factual Background and Procedural History:
In mid-2005, appellant Glaski obtained a purchase money loan from lender Washington Mutual Bank, FA (“WaMu”). The loan was secured by a deed of trust against Glaski’s residence, identifying WaMu as the lender and beneficiary. In late-2005, the WaMu Mortgage Pass-Through Certificates Series 2005-AR17 Trust was formed as a securitized trust under New York law. Glaski alleged that his note, and the deed of trust