COLOSSAL FAILURE: Nothing-Backed Securites Investigated by Biden-Schneiderman, Attempt to Foreclose You Can’t Collect - FORECLOSURE FRAUD

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COLOSSAL FAILURE: Nothing-Backed Securites Investigated by Biden-Schneiderman, Attempt to Foreclose You Can’t Collect

COLOSSAL FAILURE: Nothing-Backed Securites Investigated by Biden-Schneiderman, Attempt to Foreclose You Can’t Collect

The sale of mortgages into the trusts that pool loans may be void if banks didn’t follow strict requirements for such transfers, said Biden

Ladies & Gentlemen…and what did MERS exactly do? It separated the mortgage from the note…skipped the deliverance and the acceptance process of the PSA.

Delivery & Acceptance Must Happen

Nearly all Pooling and Servicing Agreements require that On the Closing Date, the Purchaser will assign to the Trustee pursuant to the Pooling and Servicing Agreement all of its right, title and interest in and to the Mortgage Loans and its rights under this Agreement (to the extent set forth in Section 15), and the Trustee shall succeed to such right, title and interest in and to the Mortgage Loans and the Purchaser’s rights under this Agreement (to the extent set forth in Section 15). Also, an Assignment of Mortgage must accompany each note and this almost never happens.

Also, nearly every single loan transferred was transferred to the Trust in blank name. That is to say the actual loans were apparently not, as of either the cut-off or closing dates, assigned to the Trust as required by the PSA.


Bloomberg-

The New York and Delaware probes involve banks that assembled the securities and firms that act as trustees on behalf of investors in the debt, said one of the people and a third person familiar with the matter.

The top issuers of mortgage securities without government backing in 2005 included Bank of America’s Countrywide Financial unit, GMAC, Bear Stearns Cos. and Washington Mutual, according to trade publication Inside MBS & ABS. Total volume for the top 10 issuers was $672 billion. JPMorgan acquired Bear Stearns and Washington Mutual in 2008.

The sale of mortgages into the trusts that pool loans may be void if banks didn’t follow strict requirements for such transfers, Biden said in a lawsuit filed last year over a national mortgage database used by banks. The requirements for transferring documents were “frequently not complied with” and likely led to the failure to properly transfer loans “on a large scale,” Biden said in the complaint.

[…]

Proper document transfers are critical to investors because if there are defects, the trusts, which act on behalf of investors, can’t foreclose on borrowers when they default, leading to losses, said Beth Kaswan, an attorney whose firm, Scott + Scott LLP, represents pension funds that have sued Bank of New York Mellon Corp. (BK) and US Bancorp as bond trustees. The banks are accused of failing in their job to review loan files for missing and incomplete documents and ensure any problems were corrected, according to court filings.

“You have very significant losses in the trusts and very high delinquencies and foreclosures, and when you attempt to foreclose you can’t collect,” Kaswan said.

[BLOOMBERG]

You’re gonna find they can’t find the paper up there in Wall Street

-U.S. Rep. Marcy Kaptur

© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



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3 Responses to “COLOSSAL FAILURE: Nothing-Backed Securites Investigated by Biden-Schneiderman, Attempt to Foreclose You Can’t Collect”

  1. Mary Malone says:

    We sent our research that there were no mortgages to back MBS to Schneiderman 18 months ago.

    He’s smart – launched his own investigation and came up with the same results.

    It is very clear that there has been a sea change in the last 6 months. Investors, senior execs in the Capital Markets are openly stating, “There are no mortgages in the MBS.”

    This tells us that the story is about to break wide open. The bad actors who created, implemented and covered up the fraud may go down.

    Or, there will be another massive bailout to cover-up their crimes.

    Either way – the dam is about to break and a tsunami is heading our way.

  2. Ricco Pitts says:

    I could never understand why loans where being made to people who could not aford the payments. I could never understand why loans of 125% loan to value where being made. I could never understand why a bank would not go along with a short sell, to only foreclose six months later and get half of what they could have had. I could never understand why the banks would not work with the home owner on a mod. Today I do understand. This will go down as the biggest con of all time. It was never the banks money. They sold bonds or other type of security to investors to get the money to fund the loans, but some how they did it without giving the investor the true ownership of the loan, note. When the loan goes bad, the investor takes the hit, the bank ends up as owner of the home without having one red cent invested in it. They then get the tax write off. The investor, the home owner both are victoms. The bank walks away with a home, never losing anything. My hat off to the banks for thinking this one up. What a great con job

  3. Avatar says:

    Marcy Kaptur is my heroine of all times.
    But how this colossal fraud is being swept under the carpet, without creating the scandal and uproar that it deserves?
    The whole legal framework is at stake.

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