December 10, 2012

Today, a Special Master appointed by a Tennessee state court Judge ordered discovery, including securitization discovery, to proceed, denying a Motion which had been filed by Bank of New York (as “trustee” of a CWALT securutized mortgage loan trust) to stay discovery pending a ruling on BONY’s Motion to Dismiss. The discovery was ordered to proceed before any ruling on the Motion to Dismiss, in accordance with a prior pronouncement of the Judge at a prior hearing. The Special Master also denied BONY’s Motion to Dissolve a restraining order which had been entered by the Judge staying all foreclosure activity, which order was entered without the necessity of the posting of a bond. The Special Master found that “the Judge thinks that this is serious enough to warrant injunctive relief.”

The securitization issues presented to the Special Master are believed to be the first of their kind raised in Tennessee, which has no appellate law on MERS or securitization. The case is fraught with issues including a toxic, post-trust closing assignment by MERS over 5 years after the trust closed; conflicting documents filed by MERS and ReconTrust as to who the alleged assigning party is; and whether BONY has any interest in either the Note or the DOT whatsoever.

Jeff Barnes, Esq. represents the homeowners together with local counsel Andrew Farmer, Esq. Mr. Barnes prepared the briefs and personally argued the matters in court in Sevierville, Tennessee today.

Jeff Barnes, Esq.,