A 'fake' signature and missing endorsement decision on a transferred mortgage gets overturned on appeal
The Fourth District Court of Appeal of Florida has ruled in favor of The Bank of New York Mellon (BONYM), reversing a lower court’s decision that had dismissed the bank’s foreclosure action against homeowners Remonde and Samuel Lopez.
The case stemmed from a foreclosure complaint filed by BONYM against the Lopezes, who had executed a mortgage in 2005 in favor of Aegis Wholesale Corporation. The dispute centered on BONYM’s ability to prove its standing to enforce the note, with the trial court ultimately siding with the Lopezes and granting an involuntary dismissal of the case. The appellate court, however, felt differently.
BONYM sought to foreclose on a mortgage that the Lopezes had defaulted on. As part of its case, the bank submitted a note and an allonge (a piece of paper attached to the end of an agreement containing endorsements) that included a chain of endorsements transferring the mortgage between multiple entities, ultimately leading to a blank endorsement. The allonge contained signatures from Wendy Thompson, who signed on behalf of Aegis Wholesale Corporation, and Aegis Mortgage Corporation.
The Lopezes challenged the validity of the endorsements, arguing that Thompson’s signature was inauthentic and that she lacked the authority to transfer the note. They introduced corporate filings to show that Thompson was not listed as an officer of either company and presented testimony from a handwriting expert who claimed the signatures were likely not hers. However, Thompson had previously testified in a deposition that the signatures appeared to be hers and that she had believed she was authorized to sign the endorsements.
The trial court ruled in favor of the Lopezes, finding that the allonge was inadmissible due to the questions surrounding Thompson’s signature. Without the allonge, the court determined that BONYM had failed to establish its standing to foreclose, leading to the involuntary dismissal of the case.
On appeal, BONYM argued that the trial court erred by allowing the Lopezes to challenge the validity of the endorsements. The Fourth District Court of Appeal agreed, ruling that the Lopezes lacked standing to dispute the endorsements since they were not parties to those transactions. The court cited prior Florida case law and similar rulings from other jurisdictions that prohibit borrowers from contesting the legitimacy of mortgage assignments and endorsements to which they are not directly involved.
With the appellate court finding the allonge admissible, it concluded that BONYM had proven its standing as the holder of the note. As a result, the court reversed the lower court’s ruling and remanded the case with instructions to enter a final judgment of foreclosure in favor of BONYM.
The decision reinforces the principle that borrowers cannot challenge the validity of mortgage assignments or endorsements made between financial institutions. It also underscores the importance of establishing proper documentation in foreclosure proceedings and clarifies that a plaintiff’s possession of a note with a blank endorsement is sufficient to demonstrate standing.
The case will now return to the circuit court for finalization of the foreclosure judgment, bringing an end to a lengthy legal battle over the property.
