K&L Gates Presents at National Conference of Commissioners on Uniform State Law Regarding State Foreclosure Law
On Friday, November 15, 2013, Laurence E. Platt presented at the working group meeting of the National Conference of Commissioners on Uniform State Law (the “Commission”) pertaining to the Commission’s discussion draft on the “Home Foreclosure Procedures Act” (the “Draft”). Speaking on behalf of The Securities Industry & Financial Markets Association, Platt expressed several concerns about the Draft. Among other issues, Platt emphasized the need for any uniform state foreclosure law to repeal existing state provisions that address the same issues so that the Draft does not merely serve as a “floor” for state regulations. He also asked that the Draft account for the new federal servicing regulations issued by the Consumer Financial Protection Bureau, by providing that satisfaction of the federal requirements would be deemed to satisfy the state requirements also addressing the same issues. He suggested that the Draft should make clear that loan holders and loan servicers are not obligated to offer any particular loss mitigation outcome to delinquent borrowers, such as permanent principal reductions. Platt objected to the three proposed alternatives to roll back the state “holder in due course” doctrine, each of which would permit a mortgagor to assert defenses to payment against a subsequent holder of the loan that could be asserted against the originating creditor. For a written summary of Platt’s comments, please click here. For background on the Draft, please click here.