Perspective
Sep. 12, 2012
Borrowers have standing to sue lenders lacking authority to enforce notes
If the note is not validly endorsed to the servicer's principal, neither the principal nor its servicing agent can enforce it or the accompanying mortgage or trust deed. By Mark F. Didak
One claim increasingly raised in lawsuits by homeowners is that they are paying a servicer who has no right to demand or collect payments on the note, or to foreclose under the trust deed, because the servicer neither owns the homeowner's mortgage note nor represents its owner. See "Who Can Enforce Mortgages Sold in the Secondary Market?," Daily Journal, Aug. 28. If the note is not validly endorsed to the servicer's principal, neit...
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