The court of appeals affirmed a judgment of the district court. The court held that a putative class action by mortgagees who alleged wrongful foreclosure based on the operation of the Mortgage Electronic Registration System could not go forward for failure to sufficiently plead fraud under both state and federal law.
Olga Cervantes, Carlos Almendarez, and Arturo Maximo obtained home loans or refinanced existing loans in 2006. All three signed promissory notes with their lenders, Cervantes with Countrywide Home Loans, Inc., Almendarez and Maximo with First Franklin Financial Corporation.
