An effort by the financial services industry to waive mortgage recording requirements in most foreclosures died in an Oregon House committee.
The Oregon House Judiciary Committee voted to approve Senate Bill 519 without the amendment sought last week.
The ruling galvanized mortgage companies and title insurers to amend state recording requirements so that banks that used MERS [Mortgage Electronic Registration Systems] to track ownership of mortgages would face relaxed requirements when bringing foreclosure actions. The amendment would have relaxed requirements that lenders ensure public recording in local land records before foreclosing on borrowers without going to court.
A spokeswoman for MERS said the ruling was “inconsistent” with other state decisions, citing two in the past year that found MERS had satisfied state law. The spokeswoman said MERS planned to appeal.
Read more at the Wall Street Journal.