Real Property-Securitization of Mortgages-Fee Limitations of Missouri Second Mortgage Loans Act

Plaintiffs appealed the grant of summary judgment to defendant, which argued that the trial court lacked personal jurisdiction. Plaintiffs obtained second mortgage loans, which were later sold by the original lender to another party who pooled and securitized the loans with mortgages from other states. The loans were placed into Delaware statutory trusts, with defendant serving as indentured trustee. Plaintiffs’ complaint alleged that defendant and other parties violated the Missouri Second Mortgage Loans Act by charging or receiving excessive loan origination fees. The trial court granted summary judgment for defendant, ruling that there was no evidence that it engaged in any enumerated act under the long-arm statute.  

Where defendant did not transact business in Missouri or possess Missouri real estate and there was no agency relationship with the servicer of plaintiffs’ mortgage loans, the trial court correctly determined that it lacked personal jurisdiction over defendant.  

Judgment is affirmed. 

Cox v. The Bank of New York Mellon (MLW No. 83645/Case No. WD87512 – 24 pages) (Missouri Court of Appeals, Western District, Sutton, J.) Appealed from circuit court, Clay County, Chamberlain, J. (Kip Richards, Kansas City; R. Frederick Walters, Kansas City; J. Michael Vaughan, Kansas City; and David Skeens, Kansas City for appellants) (Michael Abrams, Kansas City; Carrie Josserand, Kansas City; and James Layton, St. Louis for respondent)