But lenders often haven’t used that provision, opting instead to simply wait out the 150 days, according to bankers and regulators.
Effect of the Robo Signing Scandel
I disagree with Deputy Commissioner Rivera and I question how much the new law has contributed to the drop. Initially it makes sense that their would be a large drop, but once the initial time lag had passed, it would seem the the banks would be back on the same schedule. I believe that the largest factor contributing to the drop was the nationwide robo-signing scandal, which caused several large national banks to stop issuing foreclosures last fall. They have begun to realize that they must have their paperwork in order BEFORE they start the foreclosure process, thanks to some landmark cases such as the Ibanez case in Massachusetts. A potentially influential ruling issued by the U.S. District Court in Boston this week both endorsed the Mortgage Electronic Registration System (MERS) while at the same time supported the notion that in order to properly foreclose the lender or its servicers MUST POSSESS both the mortgage and the note. The question remains as to whether the Supreme Judicial Court will agree with him in its upcoming ruling in Eaton vs Fannie Mae.