Category Archives: Securitization Issues

THE JOURNEY BEGINS WHEN THE PITY PARTY ENDS … STEP TWO!

Op-Ed — (continued from the previous post) STEP TWO … 

The Internet can be a dangerous thing, especially when doing research, trying to find answers to questions surrounding a potential financial issue that could become a crisis, like a foreclosure.

One of the reasons why I post blogs is because people share them.  Others who are in despair happen to run across these posts and some of them walk away with reason.  The “reason” I speak of is the need to recognize when there is a problem and the HOW TO’s to do something about it. Being in denial solves nothing.  It simply prolongs the problem.  Sometimes, it makes the problem worse.

The bigger part of the problem is the second issue I spoke of in the previous article: Confusion.  Understanding what is happening in its most blatant aspects is that there is the potential of losing one’s home.  The WHY of it all stems from the alleged lender’s assertion that payments were missed and that the loan is in default.

In mortgage states, or states that are commonly referred to as judicial states, you not only get your “day in court”, but the bank has to actually PROVE that you are in default AND that they hold your promissory note AND have the right to enforce the terms of the mortgage (and note).   In all cases, the mortgage FOLLOWS the note.  The mortgage is a recorded security instrument, which is found in the public record in the county in which the mortgaged property is located.  It contains terms and conditions which must be adhered to in order to keep the note holder from foreclosing and taking their “security for the loan” back.

In deed of trust states, or states that are commonly referred to as non-judicial states, you don’t get your day in court unless you file a lawsuit and demand that the court issue a temporary restraining order (TRO), which prevents the lender (or its alleged servicing representative) from advertising and conducting a sale of your property on the courthouse steps at a prescribed point in time.  The deed of trust is also a recorded security instrument, which operates similarly to a mortgage, and if properly recorded, is also found in the public record in the county in which the mortgaged property is located.

You should know that if lenders had their way, EVERY STATE would be a deed of trust state.  That way, the lenders and their henchmen would have nothing to prove when it came to advertising and selling homes on the courthouse steps.  Until they actually bribe every state’s legislature to change over to non-judicial from judicial, homeowners still have their day in court. This is the only way the banks can win.  Knowing of this potential makes me wonder why people are taking out loans to buy property when, if they know there is a possibility of their financial future turning dismal, they don’t just buy a small plot of raw land and “build as they go”.  This would seemingly make more sense and involve the banks less.

Another reason the lenders prefer a deed of trust to a mortgage is that when examining the 2007-08 financial crisis, homeowners were affected to the point where most in financial straits could not afford an attorney let alone keeping food on the table.  Knowing the homeowner won’t fight back increases a successful outcome by the lender of taking the property back without much hassle.  Now that the Dodd-Frank Act has been molested and degraded to the point of history repeating itself, how many potential homeowners will be sucked into taking out mortgages from the mega-banks, which the gutting of Dodd-Frank was clearly designed to benefit.  You can bet the major lenders had a lot to do with those major changes to the most recent passage of the “Economic Growth, Regulatory Relief and Consumer Protection Act”.  Because these bills are so voluminous and partisan, they create more “confusion” for the average person on the street who didn’t go to law school.

Your “property” has a chain of title … 

Researching your property’s chain of title is like peeling away the layers of an onion.  The more research you do, the more layers you peel away, leaving the real truth on the table, which, after peeling an onion, leaves most people in tears.  This is why I used the “onion” analogy because peeling onions makes my nose run and my eyes water.  Finding out what really happened to you as the result of your being duped by an unscrupulous mortgage loan officer would make anyone cry, especially when they discover that they made a mistake getting that particular mortgage loan in the first place.  And now, you’ve opened “Pandora’s Box” and found the onion.

Accepting the “truth” for what it is … 

During the times prior to the 2007-08 financial crisis, banks and mortgage companies were loaning money to anyone who could “fog up a mirror”, altering mortgage loan applications, baiting loan applicants with teaser rates tied to adjustable rate, interest-only and negative amortization loans and mortgages that looked normal, only to end up finding one got stuck with a balloon note or interest rates that put their monthly payments out of reach of their paychecks.  This was deliberate and calculated.  The banks played both sides of the coin when they lured the investors into the schemes of securitization and lured the homeowners into loans they neither could afford nor deserved.  The first “truth” you need to recognize is whether you’ve bitten off more than you can chew.  Once you realize what the truth is, it makes it easier to come to grips with and deal with HOW the mistake was made that got you into the dilemma you’re in now.  I went through this “dilemma”.  I got stuck with an “80/20 loan”.  That’s two separate mortgages, wherein the second mortgage (the “20”) had a much higher interest rate and was generally tied to another Wall Street security altogether. I used the foregoing phraseology to describe “securitization”.

It does not take an Einstein to figure out that when there’s more month at the end of the money, you’re not making it.  When you’re even one day late on your mortgage payments, the servicer handling your mortgage “red flags” your account and starts a file on you. The servicer is generally looking for excuses to take your home away from you.  No servicer in today’s times is “nice”; in fact, they’re all common liars from time to time, especially those $9/hour cubicle employees who tell you that you have to be 90 days late before you can apply for a loan mod.  THAT IS THE BIG LIE!  The servicer knows that on Day 91, the REMIC’s credit default swaps, default insurance and any other PMI or LPMI that’s been tied to the loan will be negotiated and the alleged “Lender” will reap over 200% profit off of your mortgage loan … and that’s without even applying for the title insurance payout (the principal amount of the loan less 27% administrative costs) because the chain of title is jacked up (due to the Lender’s own ineptness).

The next major ploy of disbelief is the then-servicer (on or before DAY 90) has its employees dummy up an assignment of mortgage or deed of trust and cause it to be recorded into the land records in the county where your home is located so they can “structure” or “manufacture” standing to foreclose.  The term “standing” in of itself intimates that the lender (or its servicer) has the right to do what it’s doing to you. Most attorneys I know assert “lack of standing” in almost every foreclosure defense, because the simple statements of the servicer (who claims to represent the real party in interest) are not sufficient enough to prosecute a foreclosure.

If your loan is in the MERS® System, it is likely to have been securitized, which means that the chain of title is really messed up an there is likely a REMIC (Real Estate Mortgage Investment Conduit), a tax-exempt entity that soaked investors for loan money, who has no idea you’re in default (the servicer knows!) and the servicer comes in disguised as the Lender, retains an attorney, obtains a foreclosure, sells the house post-judgment and runs away with your earnings.  This is why mortgage loan servicers are in business.  You make gobs of money when 95% of the homeowners run away and leave their homes to the servicer and their law firms, who split the booty, post-sale. MERSCORP (in whatever form) and its wholly-owned subsidiary, Mortgage Electronic Registration Systems, Inc. were created to bolster lighting fast transfers of loans electronically, that have allegedly been securitized (paid for with investor money instead of the bank’s own money) and sold and re-sold multiple times on Wall Street.  This can only happen if the loan is securitized.  MERS IS NOT (AND SHOULD NOT BE) USED IN PORTFOLIO LOANS!

If you just understood what I just said … the REMIC does NOT know when you are in default because the servicer is required to make your payments to the investors, even when you don’t.  When people realize this, they get really pissed off because all along they thought it was all their fault.  The “noose” was tightened around your neck when you signed the mortgage loan in the first place!  Speaking of fault … did you come to realize the word “fault” and “default” are similar?  How do you know you’re actually in “default” if the servicer has been making your mortgage payments all along?   This is the “power over” debt collection game they play with you when you’re late on your mortgage payments.  All this time, the servicer has been making the payment for you and you never knew it.

These are only a fraction of the “truths” I teach at my workshops!

Homeowners who think they’ve been defrauded want to sue everyone tied to the mortgage loan.  THAT is the first big mistake that homeowners make.  That’s because their confusion has caused them to become angered (the third phase of foreclosure) for all the wrong reasons, to the point where they lose all rational consciousness in making proper decisions about litigation. Listening to people putting forth information and then acting on that information (without first vetting it just because it supports some sort of rational argument they have in order to make a living steering people down rabbit holes) accomplishes nothing either.  This is why many people become confused. Once they enter the cesspool of foreclosure cases looking for answers, they get so overwhelmed they don’t know where to turn or who to trust.

My research shows me that if the banks and mortgage companies were conniving and calculated enough to pull one over on you at closing, then the obvious objective is to give them their just desserts in return.  “Wise as serpents, harmless as doves.”  Going out and filing big lawsuits against lenders without a reason or any “litigation logic” using that same rationale is futile and fatal.  Why waste your money and your time?  The fact you are being foreclosed on brings an undue psychological burden on the mindset, which in turn induces stress, which in turn affects both your mental and physical health.  This is why 95% of homeowners “run away” and don’t fight.  This is why America can easily be “taken over” by the “party elite”, because most do not know HOW TO fight, let alone WHY.  If you knew HOW TO fight, wouldn’t the WHY develop into something more logical?   This is like taking karate or some other form of martial arts training.  There’s no “false hope” here because you are confident you stand a chance of winning.  You either choose to fight or you don’t.  You can still walk away from a fight and save your mental and physical anguish by formulating an alternate plan (otherwise known as PLAN B).

Everything from taking out the mortgage loan to fighting the alleged “lender” in court has a certain amount of risk.  Some of this risk is calculable.  Some of it is not.   You chose the path you are on for a variety of reasons and now you must choose the right reasons to either run and hide from your creditors or to get educated, stand up and fight them.   Filing bankruptcy only aggravates your struggle and to that end, I will explain that in the next step.

The journey begins with the chain of title … 

There is only one place that you’re going to be able to locate the foregoing and that is in the office of the clerk or recorder of your county records.  These folks get paid to help you search out the necessary documents.  If you live in a rural area with an underdeveloped county recording system, it’s highly likely that you will have to search all of this by hand through the index, which is organized by last name, then first name until you locate the recorded copy of your warranty deed.  This is your proof that title has been vested in you and no one else.

As a title consultant for many years, I can safely say that in most instances, this is your starting point.  You do not need certified copies of everything, just regular printed copies you can scan and mail to others who may have more research knowledge than you.  Getting together with other homeowners to discuss your findings after a visit to the land records may expose you to more research truths, which you need to begin your quest to justice.

You MUST collect the entire chain of title for your property in order to be able to fully analyze it (or have someone else that is more formally trained analyze it).  Skimping to only obtain the first couple of pages of a mortgage or deed of trust is just plain penny wise and pound foolish.  You need to see the whole document to see HOW you got screwed.  The devil is in the details!

Mortgage = Payments until Death  (Duh … “mort” … in several languages, means “Death”)

STAY TUNED FOR STEP THREE!  (I will discuss HOW the chain of title is used to formulate your case for trial!)

For more information on the Foreclosure Defense Workshop, click on the link!

I’m only doing this once this year!

For more information on Dave Krieger’s information library, CLICK HERE!

NOTE: Foreclosure defense attorneys are attending this Workshop!

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CFPB UPDATE ON OCWEN LOAN SERVICING LLC …

BREAKING NEWS —

For those of you who need clarification on Ocwen Loan Servicing’s “financial position” and “mortgage servicing rights”, please pay close attention to WHAT Ocwen acquired from ResCap and why ResCap had to file Chapter 11.  Here’s the 11-page update:

Update on The CFPBs Enforcement Case against Ocwen Financial Corporation

You can also read (in the last paragraph of the Report) what the status is on the lawsuit filed by the CFPB.

For those of you that have been following my blog posts, also understand that ALL SERVICERS have to comply with REMIC rules if a REMIC is involved in your mortgage loan … that includes ADVANCES!  Please refer to my other article on Ocwen in The Pooling & Servicing Agreement: Why Just Eat Half The Enchilada? 

For those of you that need “clarification” on the duties of the Servicer, please pay close attention to the attachments in the referenced article … especially under the area of ADVANCES.  This might explain more of servicer fraud, as the servicer, by omission, commits fraud on the court by NOT admitting that it has to make your mortgage payments if you fail to do so, under the 424(b)(5) Prospectus regulations (shown in the article, by Ocwen’s own admission), coming into court in a foreclosure proceeding claiming that the investors it represents (the REMIC’s certificate holders) suffered harm, when in fact (PLEASE PAY ATTENTION TO THE DISTRIBUTION DATES IN THE REMIC’S REGULATIONS), the investors have been getting paid all along, as long as the servicer is able to make the payments.  This is even more evident when you read the sentence in the Report issued by the CFPB (attached) which explains WHY ResCap filed bankruptcy!  Sorry, you actually should read the Report! 

You can learn to fight Servicer Fraud at our upcoming Foreclosure Defense Workshop … this weekend in Orlando, Florida!  Servicer Fraud is NOT just Ocwen … it’s all of them! 

FDW ORLANDO REGISTRATION FORM

There are still a few seats left!

We will be sharing information about the differences in “buying time” versus “full resolution” in your foreclosure case!

Learn to attack Assignments of Mortgage and Deeds of Trust the right way!

Learn to attack the other’s side’s Limited Power of Attorney!  … and so much more!

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MERS and its “Parent” are trying to invade Oregon again, despite Supreme Court ruling!

BREAKING NEWS — 

For those of you in Oregon, you should be writing your legislators, especially the ones who are trying to pass the following Senate Bill (968), which would put MERS back into legislative existence again in Oregon, despite the Oregon Supreme Court’s rulings in Niday and Brandrup:

SB 968 (Oregon trying to legislate MERS into existence again)

This just goes to show you that MERSCORP Holdings, Inc., who, along with several major banks, settled a $9-million lawsuit brought by Multnomah County, is now trying to do an “end run” to get itself legally back in the game, this time using the Oregon State Legislature.

It’s time to start “ramping up” against those sponsoring the bill!

Anyone want to retain a private investigator to dig up dirt on (taken from the top of the bill):

Senator JOHNSON, Representative OLSON, Senator HANSELL; Senators BAERTSCHIGER JR, FERRIOLI, Representatives BARKER, CLEM, WITT?

If anything, legislators don’t like seeing smut printed about them on the Internet.  It’s bad for politics.

However, what they are attempting to do is BAD for Oregon homeowners.  The Oregon Supreme Court already made it clear they didn’t want MERS being a nominee or a beneficiary in the State of Oregon. What part of that don’t these legislators get?

It’s called bribery! 

I know.  Harsh wording … but MERS and its parent are paying someone somewhere, through lobbyists, whatever, to put this legislation into effect so it can continue to f**k Oregon homeowners as part of a renewed securitization effort.  I want to see them all in prison.

As to the OSCEOLA COUNTY FORENSIC EXAMINATION … we are not done yet.

This author is not going to stop ranting on MERS and its band of delusionary Board of Directors, who think that the legislature in every state should accord a private entity its own legislation to ply its flawed business model on Americans, most of whom don’t have  a clue as to what is going on.  I personally think these Oregon legislators are on the “take” and so should you!   Time to start making phone calls, if you get my drift, especially if you live in Oregon. These legislators need to be “exposed” for their wrongdoing.

This also goes to show you that with Fannie Mae lowering its borrowing standards, investors are about to get bufu’d again by the major banks.  One would think that with all of the investor lawsuits going on that it should be very clear that the securitization system implemented by and through the major banking cartels are out to destroy the “full faith and credit” of each of us, one home at a time!

SAY “NO!” TO MERS MORTGAGES! 

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The Pooling and Servicing Agreement: Why eat just half the enchilada?

Securitization Issues — Throughout the trials and tribulations of pouring over thousands of documents, the same issue keeps popping up in my head.  Why are attorneys claiming to rely ONLY on the Pooling and Servicing Agreement (the “PSA”) to establish REMIC failure and nothing else?

How many cases have you read in the last two years that there was strict reliance on the use of the PSA to win a foreclosure case?

I have read of very few instances that go into extreme detail in an attempt to educate a judge (unless you’re in one of the “sand states”, which got hit the hardest and well before the rest of the nation caught on), who really didn’t major in securities law (unless you happen to be “seated” somewhere in the Southern District of New York), all the while opposing counsel is objecting to entering the PSA into evidence at trial.  At the end of the day, who has the note with the right to enforce it seems to be the bottom line.  This issue has also come under severe scrutiny, because when MERS and securitization are involved, it means the promissory note you signed is now an electronic memory and does not consist of what the bank’s attorneys claim is “the original note”.  (I will save the forensic discussion of promissory notes for another argument and another article!)

Perhaps it’s because some well-meaning individuals out there in the legal world told the attorneys that the crux of their argument was in the PSA.

I say, “No, it’s not just the PSA! You’re only eating half the enchilada!”

I am writing this piece (not for my own self-gratification) for the sake of those who have gotten past Securitization 101.  I know most of the blog readers understand what a PSA is and what it contains.  They subscribed to this blog in the past because there was something worthwhile posted on here, so the assumption is … the PSA to the readers of this blog is at least within their sphere of knowledge.  This may be a little “deep” for those of you reading this post for the first time.

In my travails, I have discovered that the “blind eye” seems to include such terms as “Cut-off Date” and “Closing Date”, when referencing the PSA, yet these terms are not found in the PSA.  They are merely referenced.  To find these two dates, what must one do?   Go to the front of the bloody 424(b)(5) Prospectus and find it within the first few pages of the document’s definitions.

I am not being paid by SECINFO.COM to tell you that it is much easier to search for REMIC information on this website than many of you have experienced on SEC.GOV.  I only use SEC.GOV to order complete certified copies of the 424(b)(5) Prospectus, because I want to eat and digest the whole enchilada. Why?  Because I’m hungry for the truth, that’s why.  I want the truth, the WHOLE truth and nothing BUT the truth (the WHOLE truth).  That means, if I have to peruse a bloody 400+ page prospectus that defines the parameters of how a REMIC behaves, I’m going to get this knowledge in my craw, because it’s going to come in real handy and some point and this is an RMBS Trust we’re talking about, it’s somebody’s house that is affected by what’s in this bloody document!

If man’s thought processes anything like electricity, it’s following the path of least resistance.  There are “securitization gurus” out there in the hinterland that I tip my hat to because they’ve gone above and beyond the call of duty in reading and understanding the entire “enchilada” (the sales pitch), and you know who you are, but they keep pointing to Section 2.01 (or its relative counterpart in some other types of PSA’s) and not referencing (and including as evidence) the WHOLE truth.

I say, the judge needs to “get smart” in order to play the game.  But … most won’t.

I’ve also heard that judges in America really don’t give a shit about you and whether you lose your home. You didn’t make your payments so you deserve to, whether someone else made them for you or not.  Judges just want to clear their court dockets as quickly as possible to convince the populace and hierarchy that keeps putting them on the bench that they are efficient in their duties and that their political careers and pensions are priority #1 (and go play golf and vacation with their families).

If you wonder what others are saying about judges across America, just dial up The Robing Room and see for yourself!

It seems like the foreclosure defense community just wants to “cut to the chase” to inform the judge that the “path of least resistance” is out there.  All of us lazy folk don’t have time to read the whole enchilada.  (“Your Honor, we know you have a full docket today, so out of professional legal courtesy, we’re not going to waste your time … because after all, we’re ‘officers of the court’ and we have a duty to represent the concerns of the court first, the public second and our clients … in last place!  We have a business model to run, Your Honor, and we can’t do that wasting time in court, when we can make money playing the delay game.  Oh, wait!  That’s part of Your Honor’s game too!  Drag the proceeding out as long as possible so the homeowner runs out of money, gives up and walks away, right?  Either way, the banks win!”)

The foregoing thought process sounds like many a pissed-off homeowner that has lost faith in America.  You know what?  I don’t blame you.  I’ve lost faith in America too.  I’ve learned that you cannot depend on the charity of others in your quest to survive. However, we live in a society that condones and promotes such behaviors (it’s called socialism) and the multiculturalized American society gobbles it up like a hot enchilada.  But … they eat it so fast they don’t take the time to digest it and it passes through their systems like “shit through a goose” (to quote Gen. George Patton). Yet these same pissed off homeowners are quick to criticize anyone else that’s trying to do the right thing, as if we’re all destined to be miserable in life.

This is the chief concern when I don’t see the entire 424(b)(5) Prospectus (in certified form) being offered as evidence at trial. One can always “tab” the document with miniature, self-adhesive type notes or make reference to those sections of the document in their written arguments so the judge will see it.  Bankruptcy judges have to deal with this all the time, because they’re concerned about debt, not chain of title.

So the question then becomes: Does securitization actually have anything to do with chain of title?  Do you know the answer?

YES! 

It’s just that Wall Street’s idea of “pure intellectual masturbation” hasn’t permeated into the crevices of America’s primary educational system.  Kids in school today don’t even learn “Checkbook 101”.  Nope!  They just want their allowance so they can go out and blow it on junk.  Wait a minute!  That sounds kind of like Wall Street in 2008 when everyone in the securitization game was being compensated into the millions so they could go out and party in blow, booze and hookers, doesn’t it?  Now, I suppose some of you out there are also picturing Dante’s Inferno, right?  Especially the Third, Fourth and Eighth Circles. 

When it comes to securitization, you simply CANNOT cut corners.  If you’ll notice, the entire 424(b)(5) Prospectus document, in whatever form, has some commonalities:

  1. It was signed under penalty of perjury under the Sarbanes-Oxley (“SOX”) Act.
  2. Virtually ALL of the REMICs have Cut-off and Closing Dates.
  3. The chain of title to the subject property (under attack) probably contains an Assignment of Mortgage or Assignment of Deed of Trust that makes reference to a REMIC by name (if it’s written correctly, some aren’t). This is where the REMIC shows up in the chain of title and becomes a “party” in the “adverse claimants to title” category.
  4. Most if not all of the time, the Assignment in question (also suspect to this very day) was drafted by the employees of the mortgage loan servicer you’re trying to deal with, using MERS or some other “made up” interest so the servicer can “hide behind the scenes”.
  5. All prospectuses make reference (somewhere in the document) of who the “players” in the securitization game are, generally they’re right up front.  These are offered to investors right up front, prior to investing, which also promoted the caveats (there were no guarantees), when the creators of the REMICs knew exacting what they were doing in running the reader around in circles (the “pure intellectual masturbation”) until they’re so confused they don’t know which end of the document is “up”.
  6. All make reference to who collects the money to support the distribution payments to the investors at the other end of the REMIC who claimed to be harmed when the REMIC drags you into court or announces it’s selling your home on the courthouse steps.
  7. In some way, shape or form, most if not all prospectuses contain a Pooling and Servicing Agreement of some sort, which explain HOW mortgage loans are supposed to be conveyed into the trust pool and when.

The problem is, none of the banks ever followed their own rules.  The servicers of the mortgage loans began paying your mortgage loans for you when you hit your financial “tipping point” and couldn’t make them any longer (or wouldn’t because you found out the truth).  When the borrower stops making payments, the servicer starts making the payments for the borrower.  This is mandated by the Prospectus, but again, how convenient THAT was left out of the legal equation brought before the Court.  We couldn’t have the judge thinking some rich uncle was making our mortgage payments now, could we?

The judges just want to give your homes to the bank.  They really don’t have time for details.  Right?

Again, I post the following for your consideration: Ocwen’s Letter to 6 Government Agencies

The foregoing transmission is 9 pages long.  I would suggest, as part of your digestion process of “the whole enchilada”, you focus on the parts of the Prospectus that talk about payments being made to investors to keep the REMIC going.  What happened in 2008 was pure “overload” on Wall Street’s financial system.  When you read this Ocwen transmission, you will probably be infuriated, because this affects NOT JUST OCWEN, but EVERY mortgage loan servicer out there!

Read the 9 pages again!  The servicers are the parties doing the foreclosures in the name of the lender.  The problem is, you don’t have a written agreement with the servicer.  You have a written agreement with the Lender.  If the lender’s out of business, the servicer is still collecting mortgage payments and is still paying the REMIC’s investors.  When you stop making the mortgage payments, along with your taxes and insurance payments, the servicer makes them for you!

In the case of a GSE, like Fannie Mae, Freddie Mac, Ginnie Mae or Sallie Mae (WHAT?  Student loans are securitized too?), they too manage REMICs and are knee deep in securitization failure just like the rest of the published REMICs contained within the SEC’s databases.

THE SECURITIZATION CHAIN

The way that the OCC Asset Securitization Handbook contemplated the path of cash flows through the securitization chain started at the top, with the Borrower.  Even U. S. Bank, N.A. admits the Borrower is a party to the Securitization Chain in its 4-page brochure, here:  US Bank Brochure – Role of the Corporate Trustee

So then, why do bank attorneys in court keep downplaying that the Borrower has nothing to do with the Assignment of Mortgage, when the Borrower clearly is AT THE TOP OF THE CHAIN? (taken from p. 8, virtually right up front, just like the Cut-off and Closing Dates are located in a Prospectus).

 

The “Originator” and “Servicer” work in tandem with (but independent of) each other to make the loans and then collect the payments so the investors who “buy into” the securitization scheme get paid (on the distribution date, generally the 25th of every month).   The “Rating Agency” issues ratings for the bonds the investors would be able to buy (this is shown in the Prospectus, NOT in the PSA).  How much more evidence do you need that the Borrower’s payments to the chain have everything to do with compliance of the entire Prospectus, even when the Borrower DOESN’T MAKE THE PAYMENTS!

For the purposes of this discussion, we move within the path of the securitization chain to discuss WHO makes your payments when you can’t.

The following item was taken from the front end of the Prospectus (NOT in the PSA, which I why I say ya’ll spend so much time focusing on the PSA, you miss the good shit**):

 

 

So, if you think I’m making this stuff up, think again.  This paragraph (taken out of the front end of a Free Writing Prospectus in conjunction with the REMIC paperwork offered on SECINFO.com, which I subscribe to) explains the same thing that the 9-page letter Ocwen wrote about who makes the payments when the Borrower doesn’t.  So, these are the “baker’s dozen” questions I leave you with:

  1. Is your written contract (the Security Instrument) with the mortgage loan servicer or with the lender?
  2. Does it say anything in your Mortgage or Deed of Trust that the Servicers may change during the life of your loan?
  3. Did anyone tell the mortgage loan servicer to make your payments for you when you couldn’t?
  4. Did the mortgage loan servicer handling your loan tell you that it was making your payments for you when you couldn’t?
  5. Did the foreclosure mill law firm mention in the foreclosure complaint that the servicer made the payments for you?
  6. When you asked the servicer (in discovery or through a QWR) for a payment history, did the servicer disclose ALL the payments made (including the payments the servicer made)?
  7. Did the servicer’s law firm misrepresent the character and status of the debt as being in “default” when it really wasn’t? [FDCPA § 807(2)(A)]
  8. As the result of Question #7, has the servicer been wrongfully trashing your credit reports? (FUTURE CREDIT DAMAGE, actual harm under Spokeo v. Robins)
  9. As the result of Question #7, did the foreclosure mill law firm attempt to collect payments from you that you believe were already paid by the servicer?
  10. As the result of Question #7, did the foreclosure mill law firm allege that the REMIC was the Plaintiff when the servicer had been paying the REMIC’s investors all along?
  11. If the servicer had been making the payments all along, was the REMIC and its investors actually harmed?
  12. In deed of trust states, are you non-judicial foreclosure victims now kicking yourself because you didn’t realize this information was in the Prospectus … and you could have truly fought this?
  13. If you retained an attorney to fight your foreclosure, why didn’t your foreclosure defense lawyer pick up on this?  (Remember, the path of electricity?)

Therefore, it would stand to reason that if everyone stopped making their mortgage payments on known securitization chains, the mortgage loan servicers now in existence would go broke overnight making everyone’s payments, as there isn’t enough money in their coffers to support doing that.  All of the RMBS’s on Wall Street would go under on the distribution date following the borrowers’ loan payment stoppage.

See how easy it would be to collapse part of the U.S. economy?

We’re not talking about the TBTF institutions that started all this garbage, we’re talking about the loan servicers that are the real parties filing foreclosure complaints trying to collect their “servicer advances” before the REMIC itself, which has been getting paid all along, gets any residual payments.  It’s the servicers that are lying to the courts in an attempt to reimburse their coffers for all the money they’ve stolen from everyone’s escrow accounts to keep securitization afloat! 

Eventually however, the investors would get stung.

Ignorance is bliss.

For now, I rest my case.

**The information shown above came from SEC filings on behalf of the Bear Stearns Asset Backed Securities I Trust 2006-AC1.

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