Monday, June 29, 2009

The Debts of the Spenders: CDS Case Law Update

I wrote here about a month ago promising that I would start including some CDS case law coverage about the securitization industry. Case law remains a bit scant but there are a variety of interesting issues that have already been ruled on such as ownership of notes and mortgages.

Since I no longer have reliable access to Westlaw or Lexisnexis, I have to dig through older law periodicals or ask others for help in providing case names.

Here is one interesting tidbit - In re Foreclosure Cases, 2007 WL 3232420.

Although it is a bit dated (from 2007), the case should still be controlling.

After reading the case though, it seems that the court ruled on narrow and specific terms - specifically on the issue of the lenders recording the deeds ONLY AFTER the case had been filed in court. So, that is an error that can be easily cured depending on whether or not the property is situated in a race notice or notice recording state. The UCC (Uniform Commercial Code) would also seems to support the lenders' contentions as there are provisions w/in that make for a strong lender argument.


For the actual decision

*Thanks Robert for the case name*
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