Setting the UCC Record Straight on Mortgage Notes

In Brief

• The Permanent Editorial Board for the UCC recently issued a report to explain the application of UCC provisions to key issues relating to mortgage notes, given the prevalence of residential real estate foreclosures.
• The report addresses who is entitled to enforce a mortgage note and how the transfer of a property interest in a mortgage note is accomplished.
• The report also addresses the effect the transfer of a mortgage note has on the related mortgage and how one enforces a mortgage note by foreclosing nonjudically without a recordable assignment of the mortgage.