Massachusetts Supreme Judicial Court Clarifies Foreclosure Requirements: Eaton v. Federal National Mortgage Association

July 12, 2012
In its recent ruling in Eaton v. Federal National Mortgage Association, the Massachusetts Supreme Judicial Court rebuked a so-called “show the note” defense, holding that in order to foreclose under Massachusetts law, a mortgagee must either be the holder of the promissory note or be able demonstrate that the mortgagee is acting under the authority of the note holder. This update summarizes the Eaton decision, with a particular focus on issues pertinent to securitization lenders and servicers.