Meretta v. Peach

This case arose out of the collapse of the Diamond Mortgage Company. Plaintiff was the assignee of defendant Peach’s mortgage. After the assignment, Peach paid off the mortgage in full. The prepayment was made through the servicing company, Diamond Mortgage, which failed to forward it to plaintiff before going bankrupt. Plaintiff brought this action to foreclose on Peach’s mortgage. The trial judge granted him summary disposition.

Defendants argue on appeal that Diamond Mortgage had actual or apparent authority to accept prepayment of the mortgage. They argue also that payments they made prior…