2015 Regular Session ENROLLED
SENATE CONCURRENT RESOL UTION NO. 102
BY SENATOR BROOME
A CONCURRENT RESOL UTION
To urge and request 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.
WHEREAS, currently Civil Code Article 3338 provides that the rights and
obligations established or created by certain written instruments are without effect as to a
third person unless the instrument is registered by recording it in the appropriate mortgage
or conveyance records; and
WHEREAS, the list of instruments Civil Code Article 3338 requires to be recorded
in the appropriate mortgage or conveyance records in order to be effective as to third parties
does not include instruments or endorsements that transfer an interest in a note that is
secured by a mortgage or a deed of trust on an immovable, nor does it require any instrument
reflecting a new assignment of that mortgage to be recorded; and
WHEREAS, currently when a note secured by a residential mortgage is transferred
or assigned to a new mortgagee, no instrument reflecting the latest assignment or transfer
of that note secured by a residential mortgage is required to be recorded in the appropriate
mortgage records; and
WHEREAS, this can create difficulty and confusion for consumers or debtors whose
mortgage is sold or otherwise transferred or assigned to a new mortgagee on the secondary
market, and who are seeking to ascertain from the public record who the new mortgagee is,
potentially causing challenges for mortgagors or debtors in various types of proceedings,
including foreclosure proceedings, in properly identifying who the new mortgagee is or
which party to pay in order to avoid foreclosure proceedings and keep their mortgage
payment schedule in good standing; and
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WHEREAS, for such reasons, the Louisiana State Law Institute should study
whether requiring, rather than simply permitting, recording of new assignments or transfers
of mortgage loans on residential real property may assist mortgagors or debtors to be better
advised of the contact information for new mortgagees, including the new mortgagee's name,
telephone number, and mailing address to which the mortgagor or debtor may send payments
on the mortgage loan.
THEREFORE, BE IT RESOLVED that the Legislature of Louisiana does hereby
urge and request the Louisiana State Law Institute to study and make recommendations
regarding whether any 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, and further to determine whether there are alternative
measures other than such recording in the public record that may assist in ensuring that
mortgagors are better advised of the identity and contact information of new mortgagees in
successive assignments or transfers of a mortgage loan on residential real property.
BE IT FURTHER RESOLVED that a copy of this Resolution be transmitted to the
director of the Louisiana State Law Institute.
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
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