SLS 15RS-1189 ORIGINAL
2015 Regular Session
SENATE CONCURRENT RESOL UTION NO. 102
BY SENATOR BROOME
LEGIS POWERS/FUNCTIONS. Requests the Louisiana State Law Institute to study and
make recommendations regarding whether an assignment or transfer of a mortgage loan on
residential real property should be required to be recorded in the appropriate mortgage or
conveyance records in order to be effective as to third parties.
1 A CONCURRENT RESOL UTION
2 To urge and request the Louisiana State Law Institute to study and make recommendations
3 regarding whether an assignment or transfer of a mortgage loan on residential real
4 property should be required to be recorded in the appropriate mortgage or
5 conveyance records in order to be effective as to third parties.
6 WHEREAS, currently Civil Code Article 3338 provides that the rights and
7 obligations established or created by certain written instruments are without effect as to a
8 third person unless the instrument is registered by recording it in the appropriate mortgage
9 or conveyance records; and
10 WHEREAS, the list of instruments Civil Code Article 3338 requires to be recorded
11 in the appropriate mortgage or conveyance records in order to be effective as to third parties
12 does not include instruments or endorsements that transfer an interest in a note that is
13 secured by a mortgage or a deed of trust on an immovable, nor does it require any instrument
14 reflecting a new assignment of that mortgage to be recorded; and
15 WHEREAS, currently when a note secured by a residential mortgage is transferred
16 or assigned to a new mortgagee, no instrument reflecting the latest assignment or transfer
17 of that note secured by a residential mortgage is required to be recorded in the appropriate
18 mortgage records; and
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SLS 15RS-1189 ORIGINAL
1 WHEREAS, this can create difficulty and confusion for consumers or debtors whose
2 mortgage is sold or otherwise transferred or assigned to a new mortgagee on the secondary
3 market, and who are seeking to ascertain from the public record who the new mortgagee is,
4 potentially causing challenges for mortgagors or debtors in various types of proceedings,
5 including foreclosure proceedings, in properly identifying who the new mortgagee is or
6 which party to pay in order to avoid foreclosure proceedings and keep their mortgage
7 payment schedule in good standing; and
8 WHEREAS, for such reasons, the Louisiana State Law Institute should study
9 whether requiring, rather than simply permitting, recording of new assignments or transfers
10 of mortgage loans on residential real property may assist mortgagors or debtors to be better
11 advised of the contact information for new mortgagees, including the new mortgagee's name,
12 telephone number, and mailing address to which the mortgagor or debtor may send payments
13 on the mortgage loan.
14 THEREFORE, BE IT RESOLVED that the Legislature of Louisiana does hereby
15 urge and request the Louisiana State Law Institute to study and make recommendations
16 regarding whether any assignment or transfer of a mortgage loan on residential real property
17 should be required to be recorded in the appropriate mortgage or conveyance records in
18 order to be effective as to third parties, and further to determine whether there are alternative
19 measures other than such recording in the public record that may assist in ensuring that
20 mortgagors are better advised of the identity and contact information of new mortgagees in
21 successive assignments or transfers of a mortgage loan on residential real property.
22 BE IT FURTHER RESOLVED that a copy of this Resolution be transmitted to the
23 director of the Louisiana State Law Institute.
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Julie J. Baxter.
DIGEST
SCR 102 Original 2015 Regular Session Broome
Requests the Louisiana State Law Institute to study and make recommendations regarding
whether an assignment or transfer of a mortgage loan on residential real property should be
required to be recorded in the appropriate mortgage or conveyance records in order to be
effective as to third parties.
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