This is awesome news for homeowners in UT. It looks like legislators in UT are actually doing something right about protecting the rights of homeowners against bank fraud by putting into law the “Wrongful Foreclosure Act“.
This law now makes it illegal for MERS to be named a “Beneficiary” as a dummy assignment entity as they’ve been doing all these years. A “beneficiary” under this law has to have real beneficial interest in the title of the property (ie. they funded the loan). This checklist maids act also makes it a crime to file false documents…AND the person who signs the documents will be personally liable for the crime…including treble damages to the homeowner. In other words, Robo-signers of UT beware…just because you are a minimum wage employee does not mean you get off the hook….you could go to jail if you sign these documents fraudulently.
This act also specifically outlines who can be a Trustee of the Deed of Trust as defined under Subsection 57-1-21(1)(a)(i) or (iv) of the Utah Civil Code.
Here are some highlights from this Act:
SB 261. 57-1a-10 Section 6(d) the person named in the notice of default as beneficiary under the trust deed is not an actual beneficiary under the trust deed
This is a direct shot at MERS.
(3) A person is guilty of a third degree felony if the person files a wrongful notice of default for recording in a county recorder’s officer or publishes or posts a wrongful notice of sale if, at the time of filing, publishing, or posting, the person knows that:
(a) the trustor was not in default under the trust obligation;
(b) the person designated as trustee under the trust deed does not qualify under110 Subsection 57-1-21(1)(a)(i) or (iv);
(c) the trustee submitting the notice of default is not the lawful trustee; or
(d) the person named in the notice of sale as beneficiary under the trust deed is not an113 actual beneficiary under the trust deed
Let’s pass this around to as many others as possible…hopefully this will inspire other States to follow suite.