NEW YORK, NY – May 12, 2011 – (RealEstateRama) — On May 9, 2011, the Federal Reserve Bank of New York, along with other interested stakeholders, participated in a meeting sponsored by the Uniform Law Commission, the American Law Institute and the Permanent Editorial Board of the Uniform Commercial Code to explore legal issues involved in the recent problems experienced in the secondary mortgage market. The financial crisis raised a number of fundamental questions regarding the adequacy of the legal framework for modern mortgage note transactions, particularly with regard to the transfer and enforcement of notes and mortgages.
“This multilateral gathering was an important first step in exploring where the existing legal framework has failed to meet the needs of debtors, creditors and others interested in notes and mortgages, such as the participants in the secondary mortgage market, as well as it should have,” said Thomas C. Baxter, general counsel and executive vice president at the Federal Reserve Bank of New York.
On behalf of its authors, the New York Fed today also released a paper which explores these issues, entitled “A Foreclosure Crisis,” written by Thomas C. Baxter, general counsel and executive vice president and Stephanie Heller, assistant general counsel and senior vice president of the Federal Reserve Bank of New York; Frederick Miller, of counsel, Gray Plant Mooty; and Linda J. Rusch, professor of law, co-director, Commercial Law Center, Gonzaga University School of Law.
“The New York Fed is committed to addressing these issues and will continue to work on identifying potential changes to the legal framework which will better serve the needs of those who are subject to it,” Mr. Baxter added.
Contact:
Jack Gutt
(212) 720-6142
(646) 720-6142
jack.gutt (at) ny.frb (dot) org
