Pending Massachusetts Supreme Court Ruling May Invalidate Securitization Mortgage Transfers « naked capitalism

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Pending Massachusetts Suprem Court Ruling
From Naked Capitalism

• Pending Massachusetts Supreme Court Ruling May Invalidate Securitization Mortgage Transfers « naked capitalism: "The fight between homeowners and banks before the Supreme Judicial Court in Boston turns on whether a mortgage can be transferred without naming the recipient, a common securitization practice. Also at issue is whether the right to a mortgage follows the promissory note it secures when the note is sold, as the industry argues"

This will be interesting. It seems like the law is against the banks but as we have seen that doesn't always mean ruling will be against the banks.


Anyone think it is likely that their will be some legal changes to allow for issues that arise tying up real property?

If the ruling is against the banks, the issue will then be how to unwind all the sales occurred to purchasers of the home from the banks or in short sales etc.....All home buyers would all then have clouded title.

I am having trouble seeing the bank run state and government allowing it to go this far. I think it should but I the economy shows any signs of life it will be full steam ahead to push this issues under the rug and to only slap the banks on the wrist.

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