Mortgages

GMAC Mortgage and First American Battle At SJC Over Title Insurance Coverage

by Rich Vetstein 04.08.2013 Closings

Rejects “In For One, In for All” Theory in Title Insurance Coverage One little mistake in drafting and recording legal documents during a refinance can result in a huge problem for a lender — such as the lender having no legal ability to enforce the mortgage! (A slight problem..) GMAC Mortgage learned this the hard [...]

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The First Circuit Strikes Again in Culhane v. Aurora Servicing! Grants Borrowers Legal Standing To Challenge Mortgage Assignments, But Upholds MERS System

by Rich Vetstein 02.16.2013 Foreclosure

We introduce this subject with a riddle: What entity is not a bank but claims to hold title to approximately half of all the mortgaged homes in the country? The answer is MERS. –Circuit Judge Bruce Seyla in Culhane v. Aurora Loan Servicing of Nebraska, For the second time in a week, the U.S. Court of [...]

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Backdated Mortgage Assignment Comes Back To Haunt Foreclosure Lender in Juarez v. Select Portfolio

by Rich Vetstein 02.13.2013 Foreclosure

Federal Appeals Court Reinstates Borrower’s Wrongful Foreclosure Claim  Noted Massachusetts foreclosure defense attorney Glenn Russell is on a roll of a lifetime, yesterday winning a rare victory on behalf of a borrower at the U.S. Court of Appeals for the First Circuit in Boston. The case is Juarez v. Select Portfolio Servicing, Inc. (11-2431) (click [...]

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Land Court Paves Way For Clearing Defective Foreclosure Titles

by Rich Vetstein 01.28.2013 Deeds

Court Uses Novel Equitable Assignment of Mortgage Theory  In what could be the first test case of a new theory to clear up defective foreclosure titles — and much welcome news for property owners stuck with toxic titles — Massachusetts Land Court Judge Gordon Piper has ruled that the theory of equitable assignment of an [...]

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Breaking: Massachusetts SJC Issues Another Important Foreclosure Ruling In HSBC Bank v. Matt

by Rich Vetstein 01.14.2013 Foreclosure

Legal Standing For Mortgage Lender/Servicer Must Be Established To Start Foreclosure Today the Massachusetts Supreme Judicial Court has issued what I believe to be another very important ruling involving foreclosures in the case of HSBC Bank v. Matt (embedded below). This case is the latest piece in the trilogy of recent landmark foreclosure opinions, starting with [...]

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Late To The Party Again? CFPB Issues New “Ability To Repay” Mortgage Rule

by Rich Vetstein 01.10.2013 Consumer Financial Protection Bureau

New Rule Aims To Prevent Predatory Lending The new Consumer Financial Protection Bureau has just issued what it deems “one of its most important rules to date.” It’s called the Ability To Repay Rule. The rule will ensure that a borrower should be able to afford their mortgage payment. Sounds like common sense, right? Yes [...]

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Massachusetts SJC To Decide Three Important Foreclosure Cases This Fall Term

by Rich Vetstein 09.26.2012 Foreclosure

Court Will Consider Mortgage Servicer/MERS Standing and Statutory Foreclosure Affidavits The Supreme Judicial Court has a busy Fall Term with several important foreclosure cases on the docket. Here’s a quick summary. HSBC Bank v. Jodi Matt (SJC-11101) The SJC is considering whether a mortgage servicer holding a securitized mortgage has standing to even begin a [...]

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FHA Softens Condominium Lending Guidelines, But Barriers Remain

by Rich Vetstein 09.13.2012 Condominium Law

Condo Sales May Get Slight Boost, But Financing Rules Remain Tight Responding to lender, condominium association and consumer outcry that the existing FHA condominium lending guidelines are too strict, the Federal Home Administration (FHA) on September 13, 2012 announced a round of changes which will hopefully make it easier for borrowers to qualify for FHA [...]

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Mass. AG Martha Coakley Fires Shot Across Fannie Mae and Freddie Mac’s Bow Over New Foreclosure Law

by Rich Vetstein 08.24.2012 Fannie Mae

Coakley Expects Fed’s Compliance with New Loan Modification Law Attorney General Martha Coakley is picking a very public fight with federal mortgage giants, Fannie Mae and Freddie Mac, in the wake of the new Massachusetts Foreclosure Prevention Act passed earlier in August. The new law requires that lenders first explore loan modifications before starting foreclosure [...]

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Help On The Way? New Massachusetts Foreclosure Prevention Law Passed

by Rich Vetstein 08.16.2012 Fannie Mae

Two Year Effort To Overhaul Foreclosure Practices On August 3, 2012, Massachusetts Governor Deval Patrick signed into law what’s been called the new Foreclosure Prevention Law. The text of the law can be found at House Bill No. 4323. The new law makes significant changes to existing foreclosure practices, and also attempts to clean up [...]

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CFPB Releases New Mortgage Disclosures Replacing Good Faith Estimate, Truth and Lending Disclosure, and HUD-1 Settlement Statement

by Rich Vetstein 07.11.2012 Closings

Concise Disclosures Aimed At Reducing Borrower Confusion and Helping Comparison Shopping As part of a continuing overhaul of the home mortgage market, the Consumer Financial Protection Bureau on Monday issued proposed rules to bolster fairness and clarity in residential lending, including requiring a new good-faith estimate of costs for homebuyers and a new closing settlement [...]

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Averting The Apocalypse: Foreclosing Lenders Avoid Disaster and Given More Options To Foreclose In Eaton v. Fannie Mae Case

by Rich Vetstein 06.22.2012 Fannie Mae

Score One For Lenders and Mortgage Servicers In Long-Awaited Eaton v. Fannie Mae Case The Massachusetts real estate community has been waiting 8 long months for a decision from the Massachusetts Supreme Judicial Court (SJC) in the much anticipated Eaton v. Federal National Mortgage Association (link) case. The decision came down June 22, and now [...]

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Leaving With Keys and Carpal Tunnel: Why Do Buyers Sign So Many Closing Documents?

by Rich Vetstein 06.19.2012 Closings

Real Estate Crash Has Resulted In Many More Forms and Disclosures These days buyers are leaving closing rooms with not only their keys but a mild case of carpal tunnel syndrome! The reason for sore forearms and wrists is the voluminous stack of closing documents which are now required to be signed and notarized at every [...]

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Massachusetts Real Estate Tax Payments And Mortgage Escrows Explained

by Rich Vetstein 04.05.2012 Closings

Massachusetts Real Estate Taxes The Massachusetts closing attorney is responsible for verifying the correct amount of real estate taxes assessed against the property, collecting sufficient amounts to pay for any outstanding and/or upcoming tax bills, and to adjust between buyer and seller any payments already made by the seller. The way in which Massachusetts real [...]

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Because I Said So! Satisfying Rigorous Loan Documentation Requirements Key To Mortgage Approval

by Rich Vetstein 03.28.2012 Fannie Mae
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Borrowers, Shut Up, Listen, And Do What Your Lender Asks–Even If It’s The Third Time They’ve Asked For The Same Documentation! When I was a kid, my dad would often answer my questions with “because I said so,” and it would drive me crazy! Now it’s prudent advice to borrowers says Mark Greene at Forbes.com. [...]

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Massachusetts Appeals Court Rules That Lost Promissory Note Renders Mortgage Unenforceable

by Rich Vetstein 03.02.2012 Foreclosure

Case Underscores Importance of Safeguarding Loan Documents And Getting Subordinations JPMorgan Chase & Co. v. Casarano, Mass. Appeals Court (Feb. 28, 2012) (click to read) In a decision which could impact foreclosure cases involving missing or lost loan documents, the Appeals Court held that a mortgage is unenforceable and must be discharged where the underlying [...]

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Lawmakers To The Rescue? Legislation Filed To Fix “Ibanez” Foreclosure Title Defects

by Rich Vetstein 02.28.2012 Foreclosure
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Update (8/3/12): Foreclosure Prevention Act Signed, But Fails To Address Ibanez Title Problems Massachusetts Senate Bill 830 Addresses Toxic Foreclosure Titles Finally, Massachusetts lawmakers have taken action to help innocent purchasers of foreclosed properties in the aftermath of the U.S. Bank v. Ibanez and Bevilacqua v. Rodriguez decisions, which resulted in widespread title defects for [...]

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How To Search Massachusetts Registry of Deeds Online Information

by Rich Vetstein 02.26.2012 Closings
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All of the Massachusetts registries of deeds now offer free online document search capabilities. The main portal for most registries www.masslandrecords.com operated by the Secretary of State’s Office. Other registries have their own systems. Here is a handy list of all registries liked to their online search portals: Barnstable Berkshire: South, Middle, North Bristol: North [...]

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Real Estate Industry Braces For Another Overhaul Of HUD-1 Settlement Statement And Truth-In-Lending (TIL) Disclosures

by Rich Vetstein 02.22.2012 Consumer Financial Protection Bureau

Final product will be a combination of both the final Truth in Lending (TIL) form and the HUD-1 Settlement Statement — a dramatic change from the existing forms. For the second time in as many years, the federal government is substantially overhauling two of the most important disclosures given to mortgage borrowers, the Truth in [...]

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SJC Requests Friend-Of-The-Court Briefs In Important Foreclosure Case of HSBC Bank v. Matt

by Rich Vetstein 02.18.2012 Foreclosure
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In yet another move evidencing the Supreme Judicial Court’s ongoing concern over the impact of the foreclosure crisis in Massachusetts, the SJC is soliciting friend-of-the-court briefs in the next important foreclosure case, HSBC Bank v. Jodi Matt. As we wrote about in our prior post here, the SJC is considering whether a lender holding a [...]

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