In Securitized Home Mortgage Litigation, Courts Continue To Wrestle With The Arcane Subject Of Promissory Note "Allonges"

LexisNexis (October 19, 2017, 12:06 PM EDT) -- Securitized real estate mortgages continue to raise "standing" issues for secured lenders seeking to foreclose.  The cases illustrate how the law of negotiable instruments under the UCC, including the use of allonges to substitute for indorsements on the note itself, is crucial for determining standing.  A recent decision from Ohio illustrates the point.  The court holds that allonges may be paperclipped to the note, without stapling.  Therefore, the securitization trustee could foreclose on the mortgage.  And in a recent case from Connecticut, the court okayed an...
To view the full article, register now.