SIFMA provides comments to the Uniform Law Commission (the Commission) pertaining to the Commission’s discussion draft, Residential Real Estate Mortgage Foreclosure Process and Protections (the Draft). SIFMA shares three preliminary concerns about the Draft, particularly Section 607 of the draft law, Abrogation of the Holder in Due Course Rule in Foreclosures. SIFMA and its members have not yet taken a formal position on the full Draft.

SIFMA’s first concern centers on the parallel but not necessarily consistent efforts of state and federal governments to limit the contractual rights of loan holders to foreclose on defaulting borrowers in accordance with the terms of the mortgage loan documents. The second is the ambiguity of the Draft concerning the repeal of other state laws that limit foreclosure. The third concern pertains to provisions in the Draft that would eliminate or repeal the Holder in Due Course Rule in the case of home loan foreclosures.