Ocwen Loan Servicing LLC v. Summit Bank, N.A. (In Re Francis)

LOKEN, Circuit Judge.

GMAC Mortgage Corporation, the predecessor in interest of appellant Ocwen Loan Servicing LLC, refinanced a first mortgage loan on a home and surrounding twenty two acres of land owned by Ray and Rhonda Francis. In preparing a mortgage securing GMAC’s loan, its agents described an adjacent eleven acres as the mortgaged property and filed the flawed mortgage in the recorder’s office. See Ark.Code Ann. § 18-40-102. Ray Francis brought this error to GMAC’s attention, but GMAC failed to correct it. Some months later, appellees Summit Bank, N.A., and Southern State Bank (later…