This is what we have been saying from day 1. By using MERS they have split the Note and Mortgage= “Bifurcate”.
By not assigning from the Originator to the Sponsor this is where lies the problem. Instead they transferred the notes to the Trusts in ___________________________ name? Which leaves this a Bearer instrument.
So by maintaining the notes in a bearer name, each step must have been documented and assigned according to the PSA. If these were securitized, question is did the true sale ever happen? Bottom Line.
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.
We believe 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.
Quite the can of worms. Anyone who says that the banks will fix all this in a few months is seriously delusional.
I am not a pro, finance guru and that is why there is a comment section below. But I do have common sense and I smell scam.
Vanilla, chocolate, strawberry …each state is different. Eliminate Electronic Recordings PERIOD!
One of the best videos I have seen on this crisis.