The PINTI Decision and Underwriting Guidelines
This memorandum supplements our Company’s existing foreclosure underwriting guidelines in light of the recent Supreme Judicial Court’s decision in Pinti v. Emigrant Mortgage Company, Inc. , 472 Mass. 226, 33 N.E.3d 1213 (2015) (“Pinti”).
On August 21, 2015, our office distributed a memorandum which discussed the Pinti case and decision at length. The ruling by the court that the failure to strictly comply with the requirements in the mortgage that was being foreclosed will void a foreclosure has compelled our Company to issue the following underwriting requirements.
As suggested by the court in its decision, compliance with Pinti can be demonstrated by the recording of an affidavit evidencing strict compliance with those terms of the mortgage necessary to validly exercise the power of sale (for example, the giving of a notice of breach and acceleration). Consequently, in order for our Company to consider insuring a foreclosure that is impacted by Pinti, the following guidelines must be adhered to: Read more...
Foreclosure Update - the Pinti Decision
The Conveyancers' Foreclosure Crisis Continues
On July 17 the Supreme Judicial Court entered its decision in Pinti v. Emigrant Mortgage Company, Inc., 472 Mass. 226, 2015 WL 4366801 (2015). By a 4-3 majority, the Court held that the foreclosure of a mortgage was void and as a result, an arm's length purchaser at the sale had obtained nothing.
Plaintiffs Phillips and Pinti filed an action against Emigrant, the mortgagee, and Wilion, the arm's length purchaser at the foreclosure sale, in which they challenged the validity of the foreclosure on the grounds that it did not comply with the notice requirements set forth in paragraph 22 of the mortgage.
There have been a number of recent foreclosure challenges in the lower courts based on paragraph 22, with inconsistent decisions. As the Pinti court states: Read more...