Washington Mutual Bank, F.A. v. ORNL Federal Credit Union

OPINION

in which HERSCHEL P. FRANKS, P.J., and CHARLES D. SUSANO, JR., J., joined.

In this appeal, we determine the priority between two recorded deeds of trust. Homeowners entered into a line of credit with a credit union secured by a recorded deed of trust on the homeowners’ home. The homeowners subsequently refinanced their home with a bank. The bank paid off the homeowners’ debt to the credit union, and recorded its own deed of trust securing its loan. At that same time, the loan and deed of trust was assigned to a second bank. Despite the payoff of the homeowners’ debt by the assignor…