10/17/13

Stoner on the U.S. Bank v. Ibanez Decision: Another "failure to produce documents" case or a turning point in foreclosure law?
Portal RealEstateLaw RealEstateLawBlog StonerontheU.S.Bankv.IbanezDecision:Another"failuretoproducedocuments"caseoraturningpointinforeclosurelaw? 02142011|07:32AM Author:JohnE.Stoner

Stoner on the U.S. Bank v. Ibanez Decision: Another "failure to produce documents" case or a turning point in foreclosure law?
UnitedStatesBankNat'lAss'nv.Ibanez,458Mass.637(Mass.2011)[enhancedversionavailabletolexis.comsubscribers / unenhancedversionavailablefromlexisONEFreeCaseLaw ]mayhavewidespreadimplicationsforthemortgageindustryifadopted outsideofMassachusetts.TheMassachusettsSupremeCourtaffirmedtheinvalidationofnonjudicialforeclosuresbasedonthe securitizationtrustees'failuretooffersufficientevidencethattheyheldtherelevantmortgage.InthisAnalysis,JohnE.Stonerexamines Ibanezanddiscussesitsimpactonforeclosures.Hewrites: Introduction.OnJanuary7,2011,theMassachusettsSupremeCourt(the"Court")issueditsmuchanticipatedopinionintheU.S. Bankv.Ibanezcase.Thecasearosewhentwosecuritizationtrusteesconductednonjudicialforeclosuresalespursuanttothepowerofsalecontainedintheirrespective mortgagesandpurchasedtheunderlyingpropertiesattheforeclosuresales.Followingtheforeclosuresales,eachofthesecuritizationtrusteesrecordedamortgage assignmentobtainedafterthecompletionofitsforeclosuresale(thoughoneoftheassignmentsrecitedthatitwaseffectiveasofadatepriortothesale).Thesecuritization trusteesthenbroughtactionsinMassachusettsLandCourt(the"LandCourt")seekingadeclarationthattheyheldcleartitleinfeesimpletotheforeclosedproperties.The LandCourtruledagainstthem,findingthatneithersecuritizationtrusteehadshownbysufficientevidencethatitwastheholderoftherelevantmortgage,thusinvalidating theforeclosures.TheCourtaffirmedthejudgmentoftheLandCourt. .... Thebasicholdingofthecaseisrelativelystraightforward,withbothconsumerandmortgageindustryadvocatesclaimingvictory.However,despitetheCourt's statementthatitwasmerelyconfirming"longstanding"principles,severaloftheCourt'sstatementsmayhavewidespreadimplicationsforthemortgageindustryingeneral iftheyareadoptedoutsidethestateofMassachusetts.Setforthbelowisouranalysisofthosestatements. 2.Norequirementforrecordationofassignments.Whileapartyclaimingtobeamortgageholderbyvirtueofanassignmentmustbeabletoestablishanunbroken chainofassignments,theCourtheldthatthoseassignmentsdonothavetoberecordedorbeinrecordableform.Thedefendantsandtheirsupporterswhofiledamicus briefsarguedstronglythatassignmentsshouldnotbevalidunlessrecorded,buttheCourtrejectedthatargument,notingthat"[w]edonotsuggestthatanassignmentmust beinrecordableformatthetimeofthenoticeofsaleorthesubsequentforeclosuresale,althoughrecordingislikelythebetterpractice.Whereapoolofmortgagesis assignedtoasecuritizedtrust,theexecutedagreementthatassignsthepoolofmortgages,withascheduleofthepooledmortgagesthatclearlyandspecificallyidentifiesthe mortgageatissueasamongthoseassigned,maysufficetoestablishthetrusteeasthemortgageholder."TheCourtalsostatedthat"[a]foreclosingentitymayprovidea completechainofassignmentslinkingittotherecordholderofthemortgage,orasingleassignmentfromtherecordholderofthemortgage,"essentiallyapproving "skippingover"interveningassignments. (footnotesomitted) AccessthefullversionofStonerontheIbanezDecision:Another"failuretoproducedocuments"caseoraturningpointinforeclosurelaw?withyourlexis.comID. Additionalfeesmaybeincurred.(approx.8pages) Ifyoudonothavealexis.comID,youcanpurchasethiscommentaryonLexisNexisStore contentthroughlexisONEResearchPackages . FormoreinformationaboutLexisNexisproductsandsolutionsconnectwithusthroughourcorporatesite . ,oryoucanaccessthiscommentaryandadditionalEmergingIssuesAnalysis

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foreclosure

mortgageholder

mortgages

U.S.Bankv.Ibanez

www.lexisnexis.com/legalnewsroom/real-estate/b/real-estate-law-blog/archive/2011/02/14/stoner-on-the-u-s-bank-v-ibanez-decision-another-quot-failure-to-prod

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