Freddie Mac

Here is the relevant statute:

NRS 106.210  Recording of assignments of mortgages or beneficial interests in deeds of trust; constructive notice; effect of unrecorded assignments.
1.  Any assignment of a mortgage of real property, or of a mortgage of personal property or crops recorded prior to March 27, 1935, and any assignment of the beneficial interest under a deed of trust must be recorded in the office of the recorder of the county in which the property is located, and from the time any of the same are so filed for record shall operate as constructive notice of the contents thereof to all persons. A mortgage of real property, or a mortgage of personal property or crops recorded prior to March 27, 1935, which has been assigned may not be enforced unless and until the assignment is recorded pursuant to this subsection. If the beneficial interest under a deed of trust has been assigned, the trustee under the deed of trust may not exercise the power of sale pursuant to NRS 107.080 unless and until the assignment is recorded pursuant to this subsection. (Emphasis added)

Under this statute, an AOM recorded prior to the going to sale, i.e., exercising the power of sale, may be acceptable. However, an AOM recorded after the sale and simultaneously with the TDUS arguably violates the statute, potentially rendering the foreclosure sale void. The title carrier is aware of at least 30-40 instances of direct deeding right now, but expects more to surface shortly.

The good news is that the title insurer is exploring options on a case-by-case basis to determine if they can insure around “direct deeding” that has already occurred. But if the trustee is currently recording the AOM simultaneously with the TDUS, you may want to review your practice in light of the concern noted by the title company.