This is one little piece in a great big mine field for the mortgage loan industry. It follows a good dozen rulings against them across the country, on more than half a dozen different fronts. Off the top of my head we have:
1. MERS standing.
2. Improper endorsements.
3. Failure to transmit original documents.
4. Attesting to the accuracy of claims made based on personal knowledge of attestee.
5. Violation of NY trust laws which apply to almost all REMICs.
6. Violations of trust specific documents, which, in conjunction with 5 above could invalidate the securitization process, putting tax treatment in jeopardy.
7. Failure to record ownership transfers as required in some jurisdictions.
8. I know there’s at least 3 more that aren’t immediately coming to mind.
This one ruling actually touches on a few of them. Many of them only apply in some states. Some of them can be cured. But it’s a mess. And will almost undoubtedly be something the lenders and loan servicers could have avoided. They deserve all bad things that come to them.
