bubba, this is interesting. I’m going to get on PACER, perhaps next week and take a look at this and the other cases regarding the transfer of notes thru MERS.
This case will certainly cause more lending disclosures at closing, especially with mortgage banker/broker originated loans. I don’t see the lenders using direct transfers in the future – I still see them bundling acc. to quality and using “middlemen” to transfer – but I see them having to detail this process more to a prospective borrower at the time of origination.
Right now, the disclosure is minimal – a half sheet stating, “`XYZ Lender’ typically sells 50% – 70% – 90% of their loans after origination.”
I could see some lawyers in CA who will use this case to prolong the foreclosure process for their clients even more.
Remember, Chase/Citibank/Countrywide’s fleet of attorneys cost us all $$ (indirectly).
Obviously, any new legislation stemming from this case will not apply to portfolio loans, which are the only type I have recommended to my clients or I myself have used.
