Robertson v. U.S. Bank, N.A., No. 15-6286 (6th Cir. 2016)Annotate this Case
In 2005, the Robertsons borrowed $192,000, secured by a mortgage on their Memphis home. The note was bundled into a mortgage-backed trust with U.S. Bank as designated supervisor; Wilson as trustee, responsible for conducting any foreclosure sale; and MERS (Mortgage Electronic Registration Systems) as the beneficiary. MERS acts as an agent for the owners as mortgage notes are transferred on the secondary market.The Robertsons stopped making payments in 2011. MERS assigned the deed to U.S. Bank. In 2014, Wilson sent the Robertsons a Notice of Trustee’s Sale. The Robertsons responded with a “notice of rescission,” alleging that U.S. Bank had violated the Truth in Lending Act (TILA) and lacked standing to foreclose, then sued U.S. Bank and Wilson in state court. U.S. Bank removed the case to federal court, where the Robertsons agreed to dismiss Wilson. The district court granted U.S. Bank summary judgment. The Sixth Circuit affirmed, rejecting arguments that Wilson waived its right to remove the case; U.S. Bank failed to comply with a TILA notice requirement, giving the Robertsons the right to rescind the loan; U.S. Bank lacked standing to enforce the note because it never showed it had a stake in the loan; and U.S. Bank forfeited its right to foreclose when it failed to raise the claim in its answer to the Robertsons’ complaint.