United States Court of Appeals for the Fifth Circuit ____________ United States Court of Appeals Fifth Circuit

FILED No. 24-40167 March 10, 2025 ____________ Lyle W. Cayce Clerk Kafi, Incorporated,

Plaintiff—Appellant,

versus Wells Fargo Bank, N.A., as Trustee for ABFC 2006-OPT3 Trust, Asset Backed Funding Corporation Asset-Backed Certificates, Series 2006-OPT3; PHH Mortgage Corporation,

Defendants—Appellees. ______________________________

Appeal from the United States District Court for the Southern District of Texas USDC No. 3:20-CV-354 ______________________________ Before Ho, Engelhardt, and Douglas, Circuit Judges. Kurt D. Engelhardt, Circuit Judge: Plaintiff-Appellant Kafi, Inc. (“Kafi”), appeals the district court’s adverse summary judgment rulings regarding (1) Defendant-Appellee Wells Fargo Bank, N.A.’s standing to foreclose on residential real property that Kafi currently owns in League City, Texas; and (2) Kafi’s ability to prevail on its alternative claim for equitable redemption. We AFFIRM. Case: 24-40167 Document: 53-1 Page: 2 Date Filed: 03/10/2025

No. 24-40167

I. Kafi owns a residential property located at 810 Almond Pointe in League City, Texas (“the Property”). In this lawsuit, Kafi challenges the right of Wells Fargo Bank, N.A., as Trustee for ABFC 2006-OPT3 Trust, Asset Backed Funding Corporation Asset-Backed Certificates, Series 2006- OPT3 (“Wells Fargo”) to foreclose on the Property. Kafi purchased the Property from non-parties Joe and Kelly Richardson (the “Richardsons”) on September 25, 2020. The Richardsons had purchased the Property on June 28, 2006, with financing provided by a loan from Sand Canyon Corporation (“Sand Canyon”). As security for the Loan, the Richardsons executed an Adjustable Rate Note (“the Note”) and a Deed of Trust (collectively, “the Loan”) in favor of Sand Canyon. In October 2006, pursuant to a Pooling and Servicing Agreement (“PSA”), Sand Canyon “transferred, assigned, sent over, and otherwise conveyed” its interest in the Loan to Wells Fargo. As part of the transfer and assignment, Sand Canyon also delivered to Wells Fargo the original Note endorsed in blank and the original Deed of Trust. On January 5, 2012, Sand Canyon executed a Corporate Assign- ment of the Deed of Trust from Sand Canyon to Wells Fargo (the “Assign- ment”), which purported to assign the Deed of Trust, along with “all in- terests secured thereby, all liens, and any rights due or to become due thereon” to Wells Fargo. The Assignment was recorded in the real prop- erty records of Galveston County, Texas, and reflects that it was executed on behalf of Sand Canyon by Derrick White, as a Vice President of Sand Canyon, and notarized by Miranda Avila, employees of former defendant Nationwide Title Clearing, Inc. (“NTC”). Kafi contends that White’s and Avila’s signatures were forged.

2 Case: 24-40167 Document: 53-1 Page: 3 Date Filed: 03/10/2025

No. 24-40167

The Property has been noticed for sale on five separate occasions since 2008 (September 2, 2008; October 2, 2012; December 4, 2012; August 1, 2017; and May 5, 2020). For unknown reasons, none of those