Statement From American Home Mortgage Servicing, Inc. Regarding the Massachusetts Supreme Judicial Court Ruling, January 7, 2011 on the Consolidated Ibanez and LaRace Appeals

COPPELL, Texas, Jan. 7, 2011 /PRNewswire/ -- In U.S. Bank National Association, trustee, vs. Ibanez, the Massachusetts Supreme Judicial Court (SJC) affirmed the decisions of the Massachusetts Land Court based on an allegedly incomplete evidentiary record relating to two mortgage loans.  However, the SJC's ruling effectively rejected many grounds for the lower court's decisions, and generally represents a good result for the mortgage loan securitization industry.  Ultimately, the SJC's decision confirms that the securitization processes currently in place in the secondary mortgage market are sound, and can and do validly transfer mortgages for foreclosure purposes. 

The SJC's decision is of limited applicability because it is based on law that is unique and specific to Massachusetts.  The decision does not extend to foreclosures in other states.

US Bank, N.A., and Wells Fargo Bank N.A. acted in a nominal capacity as trustees for the securitization trusts that held the loans.  American Home Mortgage Servicing, Inc. is the current servicer for these trusts; however the challenged foreclosures were conducted by a prior servicer.    

SOURCE American Home Mortgage Servicing, Inc.

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