One of the most interesting court rulings is expected soon is the Supreme Judicial Court’s ruling on the Ibanez case. The case may have some far-reaching consequences both in Massachusetts and for the entire country. The central problem the court will be grapling with is the validity of securitization of mortgages as they have been done. To put it another way, standard practices of transferring mortgages may not be valid. That’s a huge issue. Some foreclosures may be invalidated and banks may be forced to buy back portfolios that were securitized. This could roil the banking industry.

Bloomberg has a very in-depth look at the issue: Foreclosures May Be Undone by Massachusetts Ruling on Mortgage Transfer. So if you want to bone up on the topic, the article is definitely recommended reading.



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