Elmer and Anita Ketcham owned a home subject to a senior mortgage held by the Bank of New York and originally obtained through America’s Wholesale Lender (AWL). The home was also subject to a junior mortgage held by First National Bank of Steamboat Springs (FNB) (plaintiff). Countrywide Home Loans, Inc. (Countrywide) (defendant) issued a refinancing loan to the Ketchams, which the Ketchams used to pay off the AWL mortgage. Subsequently, the Ketchams defaulted on the FNB mortgage, and FNB instituted foreclosure proceedings. Countrywide claimed its interest had priority over that of FNB because by paying off the AWL mortgage, Countrywide stepped into AWL’s shoes. Countrywide and FNB each filed a motion for summary judgment. The trial court ruled in favor of FNB. Countrywide appealed.