americanaspiration

AZ to make lenders prove chain of title

In Legal on February 26, 2011 at 8:08 am

Famed mortgage meltdown maverick commentator Martin Mandelman has an indepth report (rant?) on the recently passed AZ Senate Bill 1259 which if signed into law, would among other things, require that the foreclosing lender record a chain of title summary document showing the original and current note holders and all transfers in between.

Speaking directly to Paul Hickman, chief executive officer of the Arizona Bankers Association, who is against the passage of this bill, Mandelman properly points out:

And by the way, Mr. Hickman… the whole chain of title thing is already the law in Arizona and elsewhere. This new law just requires your membership to follow the existing laws and actually make sure the chain of title is not destroyed by banker incompetence or blatant disregard for the law.

Yes, chain of title is required. As a basic element of the foreclosure action only the true party in interest may bring the action and for too long MERS and thirds party loan servicers were able to get away with cutting out a fundamental step in the process – to identify the plaintiff.

Mind boggling.

Read More:
http://mandelman.ml-implode.com/2011/02/bankers-apoplectic-over-arizona%E2%80%99s-republican-dominated-senate-passing-chain-of-title-bill-28-2/

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