Myles v. Pennymac Loan Services

Filed 10/8/19 CERTIFIED FOR PUBLICATION

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

SECOND APPELLATE DISTRICT

DIVISION EIGHT

GERALD LAMONT MYLES, B288905

Plaintiff and Appellant, (Los Angeles County Super. Ct. No. BC661051) v.

PENNYMAC LOAN SERVICES, LLC et al.,

Defendants and Respondents.

APPEAL from a judgment of the Superior Court of Los Angeles County, Barbara A. Meiers, Judge. Affirmed. J. Wright Law Group, Jamie Wright, and Eric C. Jacobson for Plaintiff and Appellant. Blank Rome, Cheryl S. Chang, Christine Lee for Defendants and Respondents PennyMac Loan Services, LLC and PennyMac Corp. Burke, Williams & Sorensen, Richard J. Reynolds, Fabio R. Cabezas for Defendant and Respondent MTC Financial Inc. __________________________

Gerald Myles sued Pennymac Loan Services and others for wrongful foreclosure, claiming the assignment of his mortgage to Pennymac was invalid. The trial court correctly sustained the defense demurrer because Myles alleged no facts to support his claim. I Myles’s factual allegations are as follows. In 2007 Myles got a $880,000 mortgage from Washington Mutual Bank secured by his Los Angeles home. Myles fell behind in his payments in the summer of 2008 and the debt fell into default. At oral argument, Myles’s attorney said Myles paid nothing on his mortgage after 2008. On September 25, 2008, the federal government closed Washington Mutual. The Federal Deposit Insurance Corporation as receiver transferred Myles’s mortgage to JPMorgan. What happened next is the crux of this case. The ten documents Myles appended to his complaint seem to show JPMorgan assigned Myles’s mortgage to Pennymac. Myles attached Exhibit E to his first amended complaint. This document is a recorded assignment of Myles’s deed of trust from JPMorgan to Pennymac on February 27, 2015. Myles’s Exhibit G is a recorded substitution of trustee dated June 10, 2016. This document announces Pennymac substituted MTC Financial Inc. dba Trustee Corps as the new trustee on Myles’s mortgage. MTC Financial is Pennymac’s co- defendant in this case. Pennymac and MTC Financial foreclosed on Myles’s house on April 24, 2017. Myles alleged Pennymac and MTC Financial had no rightful claim to foreclose on his home, on the following logic.