New Jersey Bankruptcy Court Finds that “Non-Holder” Cannot Enforce Mortgage Note

Posted by & filed under Bankruptcy litigation, Downstream litigation, MERS/Bank lacks standing, New Jersey, Note ownership litigation.

In In re Kemp, 440 B.R. 624 (Bankr. D.N.J. 2010) the debtor/plaintiff brought an adversary proceeding to expunge a proof of claim filed on behalf of Bank of New York by loan servicer Countrywide Home Loans. At all relevant times, the original note appears to have been either in the possession of Countrywide or Countrywide… Read more »

Florida Court Holds Bank Lacked Authority to Foreclose Absent Substantiation of Note Assignments

Posted by & filed under Downstream litigation, Downstream litigation by state, Florida, MERS/Bank lacks standing.

In Gee v. U.S. Bank Nat. Ass’n, 72 So. 3d 211 (Fla. Dist. Ct. App. 2011) the court held that summary judgment against appellant/homeowner was inappropriate because U.S. Bank failed to establish its authority to foreclose. A copy of the mortgage and two assignments, from Advent Mortgage (the original mortgagee) to Option One (first assignee)… Read more »

Texas Appellate Court Holds that Formal Transfer of Deed is Not Required to Initiate Foreclosure

Posted by & filed under 2012, Downstream litigation, MERS/Bank has standing, Texas.

In Robeson v. Mortgage Electronic Registration Systems, Inc., No. 02-10-00227-CV (Tex. App. –Fort Worth [2nd Dist.] 2012, pet. denied), the Texas Court of Appeals affirmed a summary judgment motion by MERS and the Midfirst bank granted by the trial court. The homeowner plaintiff argued that the bank did not have standing to accelerate the loan… Read more »

New York Attorney General Sues J.P. Morgan for Fraudulent and Deceptive Acts in Promoting and Selling Mortgage-Backed Securities

Posted by & filed under Government lawsuits, Upstream litigation.

In New York v. J.P. Morgan Securities LLC, No. 451556/2012 (County of New York Oct. 10, 2012), the New York Attorney General sued J.P. Morgan (and several of its affilliates, including entities formerly a part of Bear, Stearns & Co.) for its role in connection with the creation and sale of residential mortgage-backed securities (RMBS). The… Read more »

HSH Nordbank Sues Barclays Bank for Fraud in Issuing Mortgage-Backed Securities

Posted by & filed under Investor lawsuits, Upstream litigation.

In HSH Nordbank v. Barclays Bank, No. 652678/2011 (New York County Apr. 2, 2012), HSH Nordbank claims that Barclays Bank issued MBS offering materials that included false and misleading statements regarding (1) assignment of mortgages and notes to trusts, (2) the tax treatment of trusts as REMICs, (3) occupancy status of homes secured by mortgages, (4) the combined… Read more »

New Affordable Housing Goals Set for Fannie and Freddie

Posted by & filed under Regulation.

The FHFA issued a final rule.  The summary is as follows: The Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (Safety and Soundness Act) requires the Federal Housing Finance Agency (FHFA) to establish annual housing goals for mortgages purchased by the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage… Read more »

Disturbing Reminders about Rating Agencies in Brummer’s New Article

Posted by & filed under Rating agencies, Regulation.

Some disturbing reminders in The New Politics of Transatlantic Credit Rating Agency Regulation.  Major rating agencies (CRAs) generally did not verify the information used to determine the creditworthiness of the products they rated. Plus new models for rating subprime mortgages assumed that housing prices would continue to increase and the model did not consider the… Read more »