Court of Appeals of Illinois, First District, Fifth Division
23 order filed December 16, 2016
Rehearing denied January 20, 2017
23 order withdrawn February 1, 2017
from the Circuit Court of Cook County, No. 09-CH-25185; the
Hon. Michael F. Otto, Judge, presiding.
Lord LLP, of Chicago (Simon A. Fleischmann and Ryan M. Holz,
of counsel), for appellant.
Stephen D. Richek, of Chicago, for appellee.
JUSTICE LAMPKIN delivered the judgment of the court, with
opinion. Justices Hall and Reyes concurred in the judgment
1 In a mortgage foreclosure action, a mortgage assignee's
lack of a license to conduct the business of residential
mortgage lending was not a basis to invalidate the
assignment, and thus, the trial court erred when it concluded
the assignee lacked standing to pursue foreclosure, denied
confirmation of the foreclosure sale, and dismissed the
2 Plaintiff Nationstar Mortgage LLC (Nationstar) obtained a
judgment of foreclosure and sale on a condominium held by
defendant Jonathan Missirlian, who had defaulted on his loan.
After Nationstar purchased the condominium, the trial court
denied confirmation of the sale on the basis that justice was
otherwise not done and dismissed the foreclosure action for
lack of standing. Specifically, the trial court held that the
violation of the licensing statute by a previous assignee
rendered the mortgage assignment to Nationstar invalid, and
thus, Nationstar lacked standing to pursue foreclosure.
3 Nationstar appealed, contending (1) defendant failed to
meet his burden to establish the sale was improper or justice
was otherwise not done, (2) the assignment of the mortgage to
an unlicensed assignee in a secondary market transaction did
not invalidate the assignment, (3) federal law preempted
application of the Illinois statutory licensing requirement
in this matter, (4) defendant failed to establish that
Nationstar and the previous assignee lacked standing as the
servicers of the loan, and (5) Illinois law bars the
invalidation of mortgages based on license violations.
4 For the reasons that follow, we reverse the judgment of the