Brown v. Dep't of Commerce (Majority)
Annotate this CaseAfter defaulting on her home loan, Darlene Brown requested a foreclosure fairness act (FFA) mediation. The Department denied the request, reasoning the beneficiary of her deed of trust was exempt from mediation. Whether that determination was correct turned on whether the beneficiary of Brown's deed of trust for purposes of the exemption statute, was the holder of her promissory note (M&T Bank, an exempt entity), or its owner (Federal Home Loan Mortgage Corporation (Freddie Mac), a nonexempt entity). The Washington Supreme Court concluded that the Department correctly recognized the holder of the note as the beneficiary for the purposes of the mediation exemption statute. In addition, the Court held that a party's undisputed declaration submitted under penalty of perjury that the party is the holder of the note satisfied the DTA's proof of beneficiary provisions: “The holder of the note satisfies these provisions and is the beneficiary because the legislature intended the beneficiary to be the party who has authority to modify and enforce the note. The Department correctly determined that Brown is not entitled to mediation because the note holder and beneficiary, M&T Bank, satisfies the conditions of the mediation exemption statute, RCW 61.24.166.”
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