I recently lost a foreclosure trial where a key issue was the fact that the servicer showed no authority to act or proceed on behalf of the ultimate owner of the note and mortgage. I argued that it was improper to allow my client to be thrown into the street by an agent when that agent was acting on behalf of an undisclosed principle and the agent provided no evidence that it had any authority to act. These statement of law seemed so elementary to me, but I frankly did a poor job of making the case and I lost. Just who exactly is the Wizard Behind the Curtain?
Well, the issue is bubbling up all across this country, and the fundamental principle is clear…..
AN AGENT MUST SHOW HOW IT ASSERTS THE AUTHORITY TO ACT
From a case in Texas:
Texas law further provides that, before a mortgage
servicer may administer a foreclosure on behalf of a mortgagee, ” the mortgage servicer and
mortgagee [must] have entered an agreement granting the current mortgage servicer authority
to service the mortgage,” and notice of that agreement must be given to the debtor.