HSBC Bank USA, N.A. v. Matt

Plaintiff bank (Bank) claimed to be the holder of a mortgage given by Defendant. Bank filed a complaint in equity in the land court under the Massachusetts Soldiers' and Sailors' Civil Relief Act to determine if Defendant was entitled to foreclosure protections under the Federal Servicemembers Civil Relief Act (SCRA). Defendant conceded she was not entitled to protection under the SCRA but moved to dismiss the complaint on the ground that Bank lacked standing to bring a servicemember proceeding because it was not the clear holder of her note or mortgage. The land court denied Defendant's motion, determining that Bank had standing based on its right to purchase Defendant's mortgage. The court then authorized Bank to make an entry and to sell the property covered by the mortgage. The Supreme Court vacated the land court's judgment, holding (1) because Defendant was not entitled to appear or be heard at the servicemember proceeding, the land court should not have accepted or entertained Defendant's filings; (2) only mortgagees or those acting on behalf of mortgagees having standing to bring servicemember proceedings; and (3) in the present case, the judge used the incorrect standard in making the determination that Bank had standing. Remanded. View "HSBC Bank USA, N.A. v. Matt" on Justia Law