A borrower lacks standing to challenge foreclosure based on late assignment of the loan to a securitized trust as breach of the trust agreement renders the assignment voidable, not void, the borrower is not a third party beneficiary of that agreement, and the defects do not harm the borrower who would be foreclosed anyway. A borrower lacks standing to challenge a late assignment of his loan into a New York securitized trust since a transfer into the trust which violates the terms of the pooling and servicing agreement is merely voidable, not void. The borrower is not a third party beneficiary of the pooling and servicing agreement and so cannot sue for its breach or for breach of the covenant of good faith implied in that agreement. The borrower lacks standing to bring a UCL claim based on alleged defects in assignment of the deed of trust and foreclosure notices because he cannot show harm caused by those alleged violations. As he was in default, his deed of trust would have been foreclosed anyway, with or without the alleged defects in the assignments and foreclosure notices.
Ninth Circuit Court of Appeals (Bolton, J., sitting by designation); June 15, 2017; 2017 WL 2587981