Bradley Attorneys Jay Wright and Aaron Chastain Featured in Mortgage Daily on Decision for Reverse Mortgage Lenders
Bradley attorneys Jay Wright and Aaron Chastain were featured in Mortgage Daily on a decision addressing the rights of non-borrowing surviving spouses from a Florida appeals court that bodes well for reverse mortgage lenders. In OneWest Bank, FSB, v. Luisa Palmero, et al., the court found that the defendant waived her rights under a federal reverse mortgage statute because she didn't properly plead lack of standing and fraud.
Wright and Chastain called the decision a significant victory for reverse mortgage lenders.
"Palmero demonstrates that a lender may demonstrate that the surviving spouse is not a 'borrower' under the mortgage by introducing the other documents executed at the time the loan is originated -- most significantly, the non-borrower spouse ownership interest certification, in which the non-borrowing spouse expressly recognized the fact that the borrower's death would allow the lender to accelerate the loan and proceed to foreclosure," Wright stated.
The complete article, “Appeals Court Decision a Win for Reverse Lenders,” appeared in Mortgage Daily on May 1, 2018.