Hank has been requiring Bank of America to produce the underling mortgage documents to prove they actually own the mortgages that are included in bankruptcy. When Bank of America can’t locate the paperwork, the trustee has been diverting the monthly payments to other creditors included in the bankruptcy that apparently can support their claims.
“Hildebrand’s defense? Bank of America had the mortgage but couldn’t produce the underlying promissory note — often referred to as a “naked” mortgage.
Bank of America fired back, citing cases in other states where original lenders didn’t have to file a claim. Courts in Arizona and Massachusetts have recently ruled on the issue, partially siding with the banks.
The rub? Bankruptcy rules in Tennessee still require a timely claim, the mortgage and the original note, rules that Hildebrand has followed to the tee during his tenure.” – Source