State of Florida – Reverse Mortgage Case Law Update
Florida Supreme Court Accepts Jurisdiction to Review Onewest v. Palmero
On May 20, 2020 the Florida Supreme Court advised that it was accepting jurisdiction to review Onewest Bank , FSB v. Palermo (3D14-3114).
This is a reverse mortgage case involving the designation of the non-borrowing spouse as a borrower by looking solely at the language in the mortgage rather taking into consideration additional loan documents or the intent of the parties. The initial brief filed on June 9, 2020 requests that the Supreme Court quash the current holding for two reasons:
- 1) the current holding stands in express and direct conflict with the Court’s precedent requiring that a mortgage and note shall be construed together, with any conflicts resolved in favor of the note; and
- 2) the current holding stands in express and direct conflict with the Court’s precedent regarding the application of the mutual construction doctrine.
The order accepting jurisdiction by the Supreme Court states that oral arguments will be set by separate order with the answer brief due on or before July 9, 2020.
Our office will continue to keep you informed regarding this important case.