Tuesday, January 11, 2011

Amherst downplays Ibanez foreclosure ruling in Massachusetts

Just like the New York case, foreclosures will happen just bank need to follow the the proper procedures.
But Amherst says the situation is not dissimilar to the procedural issues surrounding the robo-signing debacle, when foreclosure documents allegedly moved forward without proper review.
"Procedural violations in the foreclosure process appears to be a nonissue that just refuses to die," the analysts write.
They conclude ultimately that the impact overall will be muted, though add that if the mortgages would have been placed in the Mortgage Electronic Registration Systems database, this may not have happened. MERS tracks mortgage ownership in around 60% of all residential U.S. loans. MERS declined comment.
So while the decision is likely to invite more lawsuits, Amherst said that a clear positive to U.S. Bancorp and Wells Fargo is that the banks can still clean up their records and re-foreclose on the properties.
The main impact will increases costs for banks do to processing and non-performing assets.  Also you have people able to live free in their houses longer, but nobody is getting a free house.

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