Rhodes v. JP Morgan Chase Bank, N.A.
In this action, the borrower filed a quiet title action against Chase stating that Chase did not have an interest in the property, and therefore, the borrower was entitled to clear title. The borrower had executed a mortgage which was of record in the oﬃcial records of Palm Beach County, Florida. The borrower attempted to show the invalidity of Chase's interest by making the following claims: (i) since Chase was no longer the owner of the note and mortgage, the existing recorded mortgage listing Chase as the mortgagee was a cloud on title; (ii) Chase received full payment for the note when the loan was securitized; and (iii) Chase had no interest because it failed to comply with the Pooling and Servicing Agreement. The United States District Court for the Southern District summarily dismissed the borrower's claim regarding Chase's failure to comply with the PSA on the grounds that the borrower has no standing to attack the PSA or the securitization process. The court also rejected the borrower's claim that the mortgage was now invalid merely because Chase was paid when the note was securitized. The court concluded that the mortgage remained a valid lien against the property, and therefore the borrower's claim seeking to quiet title was due to be dismissed.