High court affirms rulings against mortgage holders

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Rulings against two financial institutions in mortgage foreclosure cases were upheld by a Massachusetts court on Friday, the Wall Street Journal reports .

The Massachusetts Supreme Judicial Court in Boston said U.S. Bancorp ( USB ) and Wells Fargo & Co ( WFC ) did not demonstrate they held mortgages when foreclosure proceedings were advancing, as a lower court previously had ruled.

"We agree with the judge that the plaintiffs, who were not the original mortgagees, failed to make the required showing that they were the holders of the mortgages at the time of foreclosure," according to the high court in Massachusetts. "As a result, they did not demonstrate that the foreclosure sales were valid to convey title to the subject properties, and their requests for a declaration of clear title were properly denied."

In this case, U.S. Bancorp was the trustee while servicing the mortgages was the responsibility of Wells Fargo, who did not answer an initial request for a comment.

"This judgment has no financial impact on U.S. Bancorp. Our role in this case is solely as trustee concerning a mortgage owned by a securitization trust," a spokesperson told the publication. "As trustee, U.S. Bancorp has no responsibility for the terms of the underlying mortgage or the procedure by which they were transferred to the trust and has no ownership interest in the underlying mortgages."



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This article appears in: Personal Finance , Economy

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