METROPOLITAN NATIONAL BANK, A NATIONAL BANK, Plaintiff-Respondent,
ROBIN JEMAL; DAVID S. W. VAUGHN; ISRAEL DISCOUNT BANK OF NEW YORK, IDB FACTORS DIVISION; Defendants-Respondents, and BNY MELLON, N.A. Defendant-Appellant
NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION
Argued September 10, 2013
On appeal from Superior Court of New Jersey, Chancery Division, Monmouth County, Docket No. F-52618-10.
Corrine LaCroix Tighe argued the cause for appellant (Finestein & Malloy L.L.C., attorneys; Ms. LaCroix Tighe and Russell M. Finestein, on the brief).
William C. Sandelands argued the cause for respondent (Sandelands Eyet, LLP, attorneys; Mr. Sandelands, of counsel and on the brief; Maria A. Kershaw, on the brief).
Respondent, Robin Jamal, has not filed a brief.
Respondent, Israel Discount Bank, has not filed a brief.
Respondent, S. W.Vaughn, has not filed a brief.
Before Judges Alvarez and Carroll.
The narrow issue on appeal in this mortgage foreclosure action involves a dispute between plaintiff, Metropolitan National Bank (Metropolitan), and defendant, BNY Mellon, N.A. (BNY), over the priority of their respective mortgages on the subject property. BNY appeals from October 4, 2011 orders of the trial court determining that the Metropolitan mortgage held priority. We conclude, based on the facts presented, that Metropolitan's receipt of a credit report during its mortgage application process was insufficient to establish notice of BNY's prior, unrecorded mortgage. Accordingly, we affirm.
The essential facts are substantially undisputed. On April 29, 2003, defendants Marvin and Robin Jemal (the Jemals) borrowed $1, 300, 000 from BNY. BNY secured the 2003 loan with a mortgage on the Jemals' residential property in Allenhurst, New Jersey (the property). Inexplicably, BNY's mortgage was not recorded in the Monmouth County Clerk's Office until November 10, 2010.
During the intervening seven-year period between the execution and recording of the BNY mortgage, Robin Jemal (Jemal) applied for, and obtained, a $3, 270, 000 loan from Metropolitan. The Metropolitan loan was similarly secured by a mortgage on the property, which was dated April 10, 2006, ...