AISLE Amicus Brief Succeeds in New Jersey

Decision Highlight
The New Jersey Appellate Division affirmed that the Community Wealth Preservation Program's nonprofit right of second refusal is unconstitutional as applied. This decision will help to preserve important protections for surplus equity and competitive foreclosure sales.

Amicus Brief Background
AISLE Founding Member Friedman Vartolo led the effort to represent the American Institute of Servicing and Legal Executives (AISLE) as amicus curiae in the consolidated case Atlantic County Sheriffs and Joseph O’Donoghue v. State of New Jersey.

In its amicus brief, AISLE argued that the statute harmed foreclosed homeowners and junior lienholders by eliminating competitive bidding and equity. The AISLE amicus brief successfully challenged the "right of second refusal" in New Jersey's Community Wealth Preservation Act (CWPP). The court ruled this provision unconstitutional under the Takings Clause, eliminating the nonprofit purchase right that bypassed competitive bidding and stripped equity from foreclosed property owners.​

“We are grateful to have collaborated with AISLE on an issue with such high-stakes implications for the mortgage servicing industry. This is a win for the entire industry, and we’re thrilled with the Court’s decision,” said Friedman Vartolo Partner Catherine Aponte, Esq.  

AISLE Board Chair, Marissa M. Yaker, Esq. commented, “Catherine led us in drafting a well-written brief, and ultimately the Court validated the arguments presented through the AISLE amicus brief. This is a prime example of when the industry comes together to advocate for reasonable and effective outcomes, we can succeed.”