A Review of “Reckless Endangerment”

Posted by & filed under Uncategorized.

The 2008 Financial Crisis and subsequent fall of Lehman has been a recent point of fascination. HBO released its acclaimed “Too Big to Fail”; Kevin Spacey starred in “Margin Call”; even Michael Douglas’ “Wall Street” saw a revamp with a sequel starring Shia LaBoeuf. In the academic sphere, the crisis has certainly been susceptible to… Read more »

Georgia District Court Holds Foreclosure May Be Wrongful Where Security Deed and Note Are “Split”

Posted by & filed under 2011, Downstream litigation, Georgia, Note ownership litigation.

In Morgan v. Ocwen Loan Servicing, LLC, No. 1:10-cv-3555-AT (N.D.Ga. July 7, 2011), homeowner obtained a residential mortgage loan memorialized by two documents: a promissory note and a security deed. The original grantee of the promissory note was Guaranteed Rate. The original grantee of the security deed was MERS “as nominee” for Guaranteed Rate and its successors and… Read more »

Missouri Court of Appeals Holds that MERS Does not have Authority to Assign without Holding Note

Posted by & filed under 2009, Downstream litigation, MERS/Bank lacks standing, Missouri.

In Bellistri v. Ocwen Loan Servicing, LLC, 284 S.W.3d 621 (MO Ct. of App., E. D., Mar. 3, 2009), the court held that MERS did not have the authority to assign its interest because it did not hold the promissory note. BNC Mortgage Inc. (BNC) was the lender and payee of the promissory note. In… Read more »

California District Court Holds that Deed of Trust Authorizes MERS to Take Certain Actions

Posted by & filed under 2013, California, Downstream litigation, MERS/Bank has standing.

In Wadha v. Aurora Loan Services,  CIV. NO. S-11-1784 KJM KJN (Dist. Ct., E.D. California. Feb 8, 2013), homeowners filed claims for wrongful foreclosure alleging that Aurora Loan Services was never assigned the beneficial interest in the deed of trust and that any assignment that MERS and Aurora claimed occurred was not required as required… Read more »

Southern District of California Bankruptcy Court Holds that MERS’ Role as Beneficiary Does Not Provide Protection Against Foreclosure Deficiencies

Posted by & filed under 2011, Bankruptcy litigation, California, Downstream litigation, MERS/Bank lacks standing.

In In re Doble , BK 10-11296-MM13, 2011 WL 1465559 (Bankr. S.D. Cal. Apr. 14, 2011), the court held that MERS’ limited role as beneficiary of the deed of trust did not provide protection against foreclosure deficiencies. MERS’ role did not provide the banks with the authority to enforce the deed of trust, the ability… Read more »

California Court of Appeals Holds that MERS has Authority to Assign Beneficial Interest

Posted by & filed under 2011, California, Downstream litigation, MERS/Bank has standing.

In Forbes v. Countrywide Home Loans, Inc., E051309, 2011 WL 4985965 (Cal. Ct. App. Oct. 20, 2011), homeowner had acquired a single-family residence and later refinanced the property by obtaining two loans. Mortgage Funding, Inc. was the lender of both loans, and the loans were secured by two deeds of trust that were recorded. ReconTrust,… Read more »