Second Circuit Reverses Judgement Against Mortgagee In De-Acceleration Case

The United States Court of Appeals for the Second Circuit recently vacated and remanded a decision by a lower court that found that a defendant bank's de-acceleration of a mortgage was invalid because it was motivated solely by a desire to avoid the expiration of a statute of limitations. See 53rd St., LLC v. U.S. Bank Nat'l Ass'n, 8 F.4th 74 (2d Cir. 2021). In 2006, a borrower executed a note and mortgage in favor of Downey Savings and Loan Association ("Downey"). Downey sued to foreclose the mortgage on June 30, 2008, and while it was pending, assigned the note and mortgage to U.S. Bank. The foreclosure was dismissed.  In June 2014, within six years of Downey's suit to foreclose, U.S. Bank sent letters to the borrower stating that the loan, which had previously been accelerated by the filing of foreclosure, was de-accelerated and reinstituted as an installment loan. However, a few weeks later, U.S. Bank notified the borrower by letter that the mortgage could be