The California Supreme Court recently held that borrowers have standing to bring wrongful foreclosures claims based on challenges to an assignment of the note and deed of trust to a securitized trust.
• The decision rejects multiple lower court decisions holding that borrowers lack standing to challenge loan assignments.
• While the decision is an interim victory for borrowers who have defaulted on their loan, its holding is limited to whether a borrower has standing to assert wrongful foreclosure claims based assignments, without addressing what evidence is required to prove such a claim.
• The decision expands the claims available in California to challenge a foreclosure.
In this update, we assess the details of the decision and how it will likely cause an increase in wrongful foreclosure litigation.