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Securitisation Issue at court again

This week at the Western Cape High Court Judge Delamo granted a landmark postponement in favour of a homeowner, Mr Mc Epieuw. This postponement was sought specifically to ensure that documents pertaining to the securitisation of Mr Mc Epieuw’s home loan would be disclosed by ABSA bank.

Previously, the attorney for Mr Mc Epieuw, Quintin Zimmermann, had twice requested documents from ABSA, but the bank was not forthcoming. This compelled Zimmermann to appear in Court and ask for a further postponement to allow more time for the bank to produce the documents. Upon considering the papers, Judge Delamo agreed that Mr Mc Epieuw’s matter had merit which warranted a postponement to allow for the proper ventilation of the issues pertaining to the home loan and securitisation.
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The New Economic Rights Alliance (NewERA), a consumer advocacy group who is attempting to prove that securitised loans cannot be foreclosed upon, is pleased with this decision. Scott Cundill, Chairman for the NewERA, stated: “After almost of two years of trying to bring transparency to the banking sector, we have achieved a milestone. A High Court Judge has commented that securitisation could affect the legal standing of a bank’s right to foreclose.”

NewERA, the affidavit filed by Zimmermann  made reference to a fire which apparently destroyed the original documents pertaining to Mc Epieuw’s home loan. This was why ABSA was unable to produce the original loan agreements on request. When the fire department was contacted, they stated that the back-ups and certified copies were not destroyed in the fire, leaving no reason why the bank could not produce valid documents.