Union National Bank v. Cobbs

ROWLEY, Judge:

This is an appeal by Darrell Cobbs 1 from a summary judgment in favor of appellee, Union National Bank of Little Rock (Bank), in a mortgage foreclosure action. The only issue raised on appeal is whether or not the Bank’s failure to comply with the mortgage servicing provisions contained in the Lenders Handbook [VA Pamphlet 26-7 (Revised)] can be raised as an equitable defense in a mortgage foreclosure action. We reverse the summary judgment and hold that such a failure may be asserted as an equitable defense.

The present action was commenced to foreclose a federally insured…