Brandrup v. ReconTrust Co., N.A.
Case No. S060281Oregon Supreme Court
We represented Bank of America and numerous other players in the mortgage industry in cases referred to the Oregon Supreme Court from the U.S. District Court for the District of Oregon. arising out of the mortgage foreclosure crisis. This Supreme Court case was critical to all past, pending and future Oregon cases arising out of the mortgage foreclosure crisis, and of further import to similar cases pending in other jurisdictions. The court ultimately held that assignments of trust deeds and mortgages that occur by operation of law when the underlying note is transferred need not be recorded before a non-judicial foreclosure may proceed. Given the numerous note transfers resulting from mortgage securitizations, the result was a significant victory for the industry, clearing the path for proceeding with less-costly non-judicial foreclosures, removing a cloud over thousands of non-judicial foreclosures that had already been completed, and ending a cottage industry of litigation from borrowers challenging lenders’ rights to non-judicial foreclose on delinquent loans.