Max Gardner’s Bankruptcy Boot Camp is proud to present an important seminar on the impact of the UCC on residential mortgage securitization and its effect on foreclosure defense.
In order for a residential mortgage to be properly securitized within a trust, the note needs to have been properly assigned by ALL parties to the transaction. In reality, this rarely occurred last decade and Max refers to this as the “Alphabet Problem.” You will rarely, if ever find that the parties, A, B, C, D etc. made the proper assignments of the mortgage or deed of trust or transfers of the note. What typically happens is that the foreclosing partly will magically find the “missing” assignment at the last minute before trial claiming an assignment from party A to D.
Various Articles of the Uniform Commercial Code cover aspects of how a residential mortgage note in a securitized transaction should be transferred. If you are going to attack the secured status of the Trustee of residential mortgage backed securitized trusts, you must be fluent in “UCC” or as Max might say in the “ABC’s”. Max really is of the opinion that a residential mortgage note is not a negotiable instrument under Article 3 of the UCC and that the Pooling and Servicing Agrements are actually “otherwise agreed” mandatory methods of perfection as permitted by Article 1-302 of the UCC.
Save the Date
We will be holding two special and in-depth sessions on the topic of the UCC’s impact on mortgage securitization. The first will be held in Ontario, California at the University of La Verne College of Law on September 17 & 18, 2011 and will be adapted to California law. The second will be held in New York City on September 24 & 25, 2011 and will be adapted to New York law.
We are still working out the details, including pricing, but wanted to make this announcement now so you can save the date. Please check back soon for full details.