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Ibanez v. US Bank

Ibanez v. US Bank

Today the Supreme
Judicial Court of Massachusetts issued a land-mark decision
regarding real estate mortgages and notes. In the case
of
U.S. Bank v. Ibenez
, the court held that in mortgage
foreclosure cases, the banks must prove that the note was actually
transferred into the trust prior to filing the foreclosure.
While this decision is not binding on any court in Kentucky, it is
an appellate court decision demonstrates that even the too-big to
fail banks have an obligation to follow the law in when it comes to
having standing to foreclose upon homes. Courts around the
nation are likely to soon be presented with the same arguments as
made in Ibenez— 1.
Possession/Ownership of the loan prior to foreclosure; & 2.
When foreclosing in the name of securitized trust, their must be
evidence the trust followed its rules in moving the note through
the securitization process. This decision has generated such
alarm on Wall Street that stocks of US
Bank
and Wells
Fargo
have taken significant falls today. Below are Links
to several stories written today regarding the decision and the
possible effects. The Associated Press reports that “Court
rules against banks in pivotal mortgage case
.” Reuters
reports that “Top
Mass. court rules against foreclosing banks
.” And
Bloomberg News reports that “Banks
Lose Pivotal Massachusetts Foreclosure Case
.” Today’s
decision out of Massachusetts provides additional insight into the
proper process to be followed in taking someone’s home away from
them.

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