During the past year, allegations about the use of inaccurate affidavits and proof of loan ownership to support foreclosures have led several major mortgage loan servicers to institute temporary foreclosure moratoriums.
"It's a challenging time for courts and lawyers who work in this area," said Ballard Spahr attorney Robert A. Scott, Chair of the Subprime Crisis Subcommittee of the Section of Litigation's Real Estate Litigation Committee. "Securitization of mortgages makes proof of loan ownership in foreclosures more complicated today than it was 20 years ago when one bank issued, serviced, and held the loan for life."