Wells Fargo Bank, N.A. v. Lorson

Summary

The court held that compliance with applicable HUD regulations is a contractual condition precedent to accelerating an FHA-insured mortgage debt and initiating foreclosure. The lender must generally plead compliance; if the borrower specifically contests compliance, the lender bears the ultimate burden of proving it. Because the trial court did not apply that procedure, the judgment was reversed and the matter remanded for a new trial limited to HUD compliance.