Professor Levitin summarizes his position by stating that "the securitization industry has a lot to be worried about if the ASF's Senate Banking testimony contains the best arguments they can marshall about chain of title problems."
Professor Levitin's position was reviewed at this blog post at nakedcapitalism.com which links to an order in the by Pasco County Circuit Court Lynn Tepper dismissing a foreclosure complaint without prejudice due to issues of chain of ownership and holdership. The Circuit Court's order requires that the amended complaint should set forth the "present owner of the note and mortgage and in so doing details the chain of ownership/holdership since the loan's inception."
The Court cited the Florida Supreme Court's Administrative Order AOS09-54 for the proposition that plaintiff in foreclosure "must document that they are the owner and holder in due course of the note and mortgage. " The Court also held that if it is not the owner of the note, it must plead facts identifying the owner and its authority to acts as its representative. The Court also ordered that the amended complaint must be verified pursuant to Fla. Stat. 92.525(2) and that an affidavit on "best knowledge and belief" is insufficient.
