Texas Doesn't Make Laws For Utah

Utah AG: We will fight foreclosure ruling Judge said BofA’s actions in Utah are governed by Texas laws.:

'via Blog this'Abraham Bates, one of the attorneys representing homeowners, said that perhaps 10,000 Utah homeowners were foreclosed on by ReconTrust in recent years.

The Attorney General’s Office is seeking to intervene in a lawsuit in which a federal judge has ruled that Texas law governs foreclosures carried out by a unit of Bank of America in Utah.

The Feb. 8 ruling by U.S. District Judge Ted Stewart "is not something the State of Utah can let pass," Assistant Attorney General Jerrold Jensen wrote in seeking to intervene in the lawsuit.http://www.sltrib.com/sltrib/money/53825208-79/utah-recontrust-font-judge.html.csp 

Stewart ruled that because ReconTrust is headquartered in Texas, where it carries out many of its foreclosure functions, the National Bank Act says the bank’s actions are governed by that state’s laws.

"Texas does not pass banking laws for Utah," Jensen wrote. "And Utah does not pass banking laws for Texas."

Bank of America representatives did not respond to an email seeking comment on the state’s actions.

Stewart’s ruling dismissed a proposed class-action lawsuit, which claimed that in carrying out foreclosures in Utah under its own name, ReconTrust violated a state law that says only Utah attorneys or title companies can legally foreclose on behalf of a mortgage note holder.