Today the Bankruptcy Appellate Panel for the Eighth Circuit reversed a Minnesota Bankruptcy Court in Fisette v. Keller, No. 11-6012, and that a debtor may strip off wholly underwater junior mortgages when the debtor is not eligible for a discharge in chapter 13. Prior to Fisette, the bankruptcy courts in the District of Minnesota had disallowed […]
Author Archives: NCBRC
The End of Mortgage Securitization?
August 29, 2011 – 7:43 pm
This newly released paper suggests that the use of MERS to electronically transfer mortgages introduces significant vulnerability into the securitization process by threatening the bankruptcy remoteness between loan originator and trust. Click here for the paper.
EZ Tax Transcripts for Loan Modifications
August 24, 2011 – 9:03 pm
The IRS has created a new Form 4506T-EZ, Short Form Request for Individual Tax Return Transcript, to order a transcript of a Form 1040 series return. The IRS created this streamlined form to help those taxpayers trying to obtain, modify or refinance a home mortgage. Transcripts may also be mailed to a third party, such as a […]
Fifth Circuit Affirms Denial of Attorney Fees to Wells Fargo
August 15, 2011 – 7:58 pm
In a per curiam decision, the Fifth Circuit, in In re Collins, No. 10-20658 (5th Cir. August 15, 2011), upheld the lower courts’ findings that Wells Fargo was not entitled to attorney fees for filing a proof of claim where it disputed the amount of the debt as listed in the debtor’s proof of claim. […]
NCBRC Files Amicus on Absolute Priority Rule in Chapter 11
August 15, 2011 – 7:56 pm
NCBRC’s Tara Twomey has filed an amicus brief on behalf of NACBA in the case of In re Friedman, No. 11-1149 (9th Cir. BAP) arguing that the absolute priority rule in chapter 11 does not apply to individual debtors. NCBRC’s brief argues that when Congress enacted the 2005 amendments it made significant amendments to chapter […]
NCBRC Files Amicus in Vehicle Ownership Expense Case
August 15, 2011 – 7:53 pm
NCBRC has filed an amicus brief in In re Scott, No. 10-33131 (Bankr. S.D. Ill), involving the calculation of projected disposable income for vehicle ownership expense where the debtor’s actual contractual payments were less than the deduction allowed under the IRS Local Standards. NCBRC’s brief relies on the plain language of section 707(b)(2)(A)(ii)(I) for the […]
Goldgar Approves Lien Stripping without Discharge
August 15, 2011 – 6:29 pm
On June 24, 2011, Judge Goldgar from the Bankruptcy Court for the Northern District of Illinois agreed with a growing number of courts that have concluded a discharge is not necessary to strip off a wholly underwater junior mortgage. There is no written decision, but a copy of the transcript is available here. The case is […]
NJ Appellate Court Sets Aside Sheriff’s Sale
August 12, 2011 – 6:16 am
A New Jersey intermediate appellate court set aside a sheriff’s sale and vacated summary judgment originally granted in favor of foreclosing entity because it failed to prove it had standing on the day that the foreclosure complaint was filed. An amended complaint filed after plaintiff received an assignment of mortgage did not cure the defect. […]
Cal. Appellate Court on Option ARMs
August 12, 2011 – 2:43 am
Yesterday in the case of Boschma, et al v. Home Loan Center, Inc., No. G043716, a California Appellate Court held that homeowners sufficiently stated a claim for a state UDAP violation based on the lender’s disclosure that suggested only the possibility of negative amortization and interest rate increases, when both were certain. The interest rate […]
NACBA Files Amicus in Fourth Circuit on Issue of Class Certification
August 3, 2011 – 4:20 pm
NACBA and the National Association of Consumer Advocates has requested leave to file an amicus brief in the case of Gentry v. Circuit City, Inc. No. 10-2418 (4th Cir.) to address the issue of the proper standards to be applied by the bankruptcy court in determining whether to certify a class in bankruptcy. The class […]
