Black & LoBello

On March 15, 2011, Assemblyman Conklin introduced Assembly Bill 284 into the 2011 session of the Nevada Legislature.  The Bill proposes significant changes to NRS 106, 107 and 205 as these statutes relate to foreclosure. Tisha Black Chernine, Managing Partner of Black & LoBello, participated in working group in collaboration with Assemblyman Conklin and the Office of the Nevada Attorney General.

Assembly Bill 284 aims to restore a transparency and integrity to the foreclosure process.  If passed, the foreclosing party would be required to supplement the Notice of Default with a notarized Affidavit of Authority which states the identity of the trustee, describes the amount in default, lists the full name and address of the current beneficiary (and every prior beneficiary under the Deed of Trust) and includes penalties and costs related to the foreclosure.  This element of Assembly Bill 284 will bring some clarification with regard to the chain of beneficial interest and whether the foreclosing party has the right to do so.

In the same Bill, a standard of care is created for the trustee in a Deed of Trust.  NRS 106 is amended to define who a trustee may be, what their obligation is to the foreclosure parties and also sets forth a private cause of action if trustees act improperly.

Assembly Bill 284 was referred to the Judiciary Committee and a hearing was held on March 31, 2011.  Assemblyman Conklin, Ms. Black Chernine, members of the Nevada Attorney General’s office, and members of the Trustees Association of Nevada appeared in support of the Bill.  MERS and Bank of America appeared in opposition through their representatives.

For a copy of the Bill, go to http://www.leg.state.nv.us/Session/76th2011/Bills/AB/AB284.pdf.  We will keep you updated on its progress.

Randy M. Creighton, Esq.