It’s Here! It’s Wimpy, but Yvanova is finally here.

We’ve all waited with bated breath for the “Happening” of the California Supreme Court decision in Yvanova vs. New Century Mortgage Corporation a case, as the Supremes put it, “granted plaintiff‘s petition for review, limiting the issue to be briefed and argued to the following: “In an action for wrongful foreclosure on a deed of trust securing a home loan, does the borrower have standing to challenge an assignment of the note and deed of trust on the basis of defects allegedly rendering the assignment void?“”

While Yvanova wins the appeal, the Supremes’ opinion is less exciting than hoped for – yet it had some redeeming qualities when you look deep into the opinion and the footnotes. It sorta keeps you Hangin’ On (pun intended). Continue reading

Is Borrower Bashing a Disease or Psychotic Disorder?

Scott Stafne goes to Dallas

By Scott E Stafne of Stafne Trumbull, LLC

Scott042-850x422-580x333In search of Continuing Legal Education credits I wandered into a different world last Thursday and Friday at the American Conference Institute’s Residential Mortgage & Regulatory Conference, Dallas, TX. The people at the conference, mostly lawyers for institutions seeking to eject people from their homes, were clearly human beings; Mostly youngish (under 55). Except for a token two-person panel representing home owners and a group of judges, most of the speakers seemed to agree that there was little need for meaningful judicial involvement in throwing home owners out of their homes. Indeed, many appeared indignant that families would not simply march Continue reading

Is the Promissory Note Even Enforceable?

Judge UnEnforceableWhen all is said and done the courts come back to the main premise, “Did you pay?”. That is so injudicious on so many levels. The deeper we get into securitization and contract law we soon realize (after dissection) there is one very basic question being ignored – “Is the Promissory Note even enforceable?”

Sheila Bair’s (former FDIC Chairperson) new book, Bull By the Horns, addresses issues that must be taken into careful consideration when considering the validity of foreclosures – and she does it with impressive candor. Sheila separates the MBS into 2 categories: Continue reading

Welcome to Freddie and Fannie’s Mortgage Shell Game

By Shawn Timothy Newman, J.D.
Adjunct Professor
Saint Martin’s University

Wheres-the-NoteIn common parlance, a mortgage (or Deed of Trust) includes the underlying loan (promissory note) and the security on that loan (mortgage or Deed of Trust). This ignores the fact that the note and mortgage (or DOT) are two separate contracts governed by some different laws and legal principals.

As noted in Powell on Real Property, sec. 37.27 [2] (Michael Allan Wolf ed., LexisNexis Matthew Bender 2010)  Continue reading