Appellate Court Reverses State Court Ruling | Key Points

  1. The Fifth District Court of Appeals (“Fifth DCA”) recently reversed a judgment entered in favor of a borrower in a foreclosure matter based on the bank’s alleged lack of standing. US Bank, NA, as Legal Title Trustee for Truman 2012 SC2 Title Trust v. Glicken, 2017 Fla. App. LEXIS 15541 (Fla. 5th DCA October 27, 2017). In Glicken, the original Plaintiff, Wells Fargo, filed a foreclosure complaint attaching a copy of the note, allonge and mortgage to the complaint. The allonge contained a blank indorsement by the loan originator.
  2. Wells Fargo later successfully moved to substitute US Bank as the party plaintiff. Prior to trial, US Bank filed the identical original of the note, allonge and mortgage that Wells Fargo attached to the complaint. At trial, the borrower argued US Bank failed to prove its standing at the time of trial because it failed to offer any evidence that it purchased the note from Wells Fargo or that Wells Fargo assigned the note to US Bank.
  3. The lower Court agreed with the borrower to the extent it found Wells Fargo lacked standing to foreclose Glicken’s mortgage. The lower Court entered judgment in favor of the borrower finding Wells Fargo could not transfer its interest in a negotiated note to US Bank unless the two banks merged. US Bank appealed the judgment to the Fifth DCA. In line with recent holdings from several other Florida district courts, the Fifth DCA held: “When the note with an undated blank indorsement has been attached to the original complaint, this is sufficient to prove standing provided that the plaintiff produces the original note at trial or files it with the trial court with the same indorsement and there are no subsequent contradictory indorsements.” Glicken, at *4.

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