Federal Home Loan Mortgage Corporation v. McGough et al.

This case involved a residential foreclosure action filed by the Federal Home Loan Mortgage Corporation (Freddie Mac) against Christina McGough and other occupants. The defendants contested the foreclosure, asserting the "show-me-the-note" defense, arguing that Freddie Mac lacked standing to foreclose because it could not produce the original wet-ink promissory note. On October 19, 2018, the court issued a ruling addressing the validity of this defense under the governing state law. The court found that Freddie Mac had demonstrated its status as holder of the note through an allonge and possession of the original note, and that physical presentation of the original note was not required to proceed. The decision rejected the defendants' motions and allowed the foreclosure to continue, establishing a clear precedent on standing requirements in contested mortgage foreclosures.

The court granted summary judgment in favor of Freddie Mac, ruling that it had established standing to foreclose and that the defendants' "show-me-the-note" defense was insufficient to prevent the foreclosure from proceeding.

Whether Freddie Mac had legal standing to foreclose on the property without physically presenting the original promissory note in court, and whether the "show-me-the-note" defense constituted a valid bar to the foreclosure action under applicable law.

The ruling provided significant clarity to mortgage investors and servicers by affirming that the "show-me-the-note" defense does not impede foreclosures where a valid chain of endorsement exists. It helped expedite the resolution of backlogged foreclosure cases and was cited in subsequent proceedings as persuasive authority supporting the enforceability of notes without dry-ink production.