Adam Levitin | Securitization Chain-of-Title: The US Bank v. Congress Ruling

Securitization Chain-of-Title: the US Bank v. Congress ruling

posted by Adam Levitin

Over on Housing Wire, Paul Jackson is crowing that chain-of-title issues in mortgage securitization are overblown because an Alabama state trial court rejected such arguments in a case ironically captioned U.S. Bank v. Congress.

But let’s actually consider whether the opinion matters, what the court actually did and did not say, and whether it was right.

Jackson and Yves Smith at Naked Capitalism have a running feud over the seriousness of chain-of-title problems, and I think that explains why Jackson is so worked up over this decision.  My own take is that it is much ado about nothing. Before anyone gets too excited one way or the other about this case, let’s remember that this is a ruling by one judge in an Alabama state trial court decision. It was unlikely to get much notice anywhere else in the country, but for the securitization industry grasping for a legal victory to parade around. This court ruling doesn’t have precedential value anywhere, including in Alabama, and its persuasive value is very low too, both on account of it being an Alabama state trial court and because of the quality of its analysis. Put differently, this ain’t an Ibanez type ruling, where a leading state supreme court issues a very thoughtful unanimous opinion.

Perhaps the most important thing to note about the opinion is what isn’t there. There was no consideration of the chain-of-title issue in the opinion. Let me repeat, the court said nothing about whether there was proper chain-of-title in the securitization. Instead, the court avoided dealing with it. That means that this ruling isn’t grounds for sounding the “all clear” on chain-of-title. At best, it is grounds for arguing that homeowners won’t be able to raise chain-of-title problems. As we’ve seen with Ibanez, that’s clearly incorrect, and a closer look at the Congress ruling shows that it might be an Alabama special, not applicable elsewhere.

Check out the rest of Professor Levitin’s analysis here…


27 Responses to “Adam Levitin | Securitization Chain-of-Title: The US Bank v. Congress Ruling”
  1. lilliallen says:

    Its unfortunate but it appears that everyone has stopped fighting chain of title issues in the Palm Beach and Broward courts. No one is held to accountability. The Judges still rule in favor of the Banksters!
    When I find chain of title issue I do my best to find out if the loan is part of the National Mortgage Settlement and try for a loan modification for the client.

  2. l vent says:


  3. Bust them! says:

  4. Right now, more than 500 people are making lots of noise outside the Office of the Comptroller of the Currency – the worst bank regulator that you never heard of. They are demanding that the OCC stop throwing homeowners under the bus in the their tireless efforts to protect the big banks.

    Join the crowd by calling OCC Chief John Walsh right now at 202-874-5000. Tell him, “We need the OCC to take its responsibility seriously and hold banks accountable for fixing the foreclosure mess.” And be sure to follow the day’s events on Twitter at #makewallstpay

    Over the past weeks, it has emerged that this little-known bank regulator is working hard to weaken any settlement that the Attorneys General and other bank regulator reach with the big banks on their fraudulent foreclosure practices.

    Yes, that’s right. The biggest threat to a strong settlement actually comes from the very regulator who is supposed to be protecting us from the bank’s abusive behavior. But this isn’t anything new for the OCC. For years, they’ve turned a blind eye to the worst financial abuses on Wall Street.

    We have to tell them, “Stop!” Call OCC Chief John Walsh right now at 202-874-5000.

    Together, we can make sure this a “settlement that fits the crime.”

    Thank you,

    • l vent says:


    • l vent says:

      TREASON, TREASON, TREASON. Complete system wide CORRUPTION because of TREASON. IMPOSTERS ROAMING OUR COUNTRY DISGUISED AS AMERICANS, ROBBING US OF EVERYTHING BECA– USE OF rampant corruption in our Judicial Branch, our Executive Branch, our Military Branch our Federal Branch, our Congress is completely corrupt as are our State and Local Governments. They are completely destroying Life, Liberty and the Pursuit Of Happiness. Without those basic principles we have NOTHING. America is then a Jungle when laws protect only the criminals, we all become like animals.

  5. Don St Clair says:

    FINALLY, someone who recognizes what is really going on.
    The situation is whether the complicit government and courts
    ever going to stop taking wealth in trade for their patriotism.
    …or, if because of threats of probable death, actually can.

    it also demonstrates how truly brave some judges are.
    It is very rare to see a real,and not the current fiasco, “tea party spirit.”

  6. Don St Clair says:

    I VENT
    All of us are so naive.
    It is really amazing to me that we actually expect an honorable decision from the courts.
    Maybe we should deal with the mortgage fraud in kind…where they seem to know that all is fair in love and war and result is the only answer, because the banks know there are no consequences

    If you don’t remember what your documents were like 20 years ago, how do you expect them to or to actually find them ?

    • l vent says:

      They did and still are definitely playing all of us for fools. They think they have all of us outsmarted. Black is White right? They use lies and deception to make us all look and feel as if we are the crazy ones and we did something wrong. Like Fraud? what Fraud? I do not see any Fraud in your mortgage! THIS IS WHAT THEY DID, STUPID!!!! As far as them finding an original mortgage or note I think that is a slim to none chance because I believe I have the unsigned originals in my possession along with the deed to my home. My main take from all of this is we were all TOO TRUSTING. We did not suspect the for one minute that the bansters were out to screw and defraud us, we were soo naive, We thought everything was on the up and up. Why would we have thought that a banking cabal was out to ROB, RAPE AND PILLAGE US and then using this crime try to DESTROY US??? Ronald Reagan was right about one thing TRUST BUT VERIFY. I do think they will all go down but all of America must know what the truth is and BELIEVE IT. There is just too much evidence here against them. No amount of lying and cover up is going to work. Some people may not realize yet that we have all been victimized, but they will because no one is safe in a land of fraud where criminal activivty is a way of life.

      • l vent says:

        I would just like to add something that I think is vastly important. I might have been quite naive at my closing but THEY WERE NOT. As far as I am concerned they knew EXACTLY what they were having the perps do to ALL OF US. They KNOW what they did, The Perps at closing might not have known it was intentional and it was MEANT to CA– USE PERMANENT HARM TO MILLIONS. The NWO put AMERICAN TREASONISTS up to this dirty deed. Then perps. like Jamie Dimond and Anthony Muzillo. escalated the Ponzi scheme up on Wall Street. THE BANKS ARE OWNED BY THE FOREIGN MULTINATIONAL BANKS. They used useful idiots, American traitors, as a front to commit the financial PONZI SCHEME crime of century and then point the finger at the BAD Americans did this. The traitors, the Benedict Arnold’s, they were only the PERPS. They were useful idiots who indeed alot of them got very wealthy off of their treason but they were not the masterminds of the scheme. Some in the mortgage industry may not have known exactly what was going on, It kind of reminds me of the way the Romans — USED Judas the jew, as the traitor to Jesus, but IT WAS REALLY ROME BEHIND IT ALL ALONG.

  7. Tim Bryant says:

    Judge Vowell is not fit enough to judge a dog show. His legal reasoning makes absolutely no sense. Not only has he shown the E-Sign Act was not abided by, he uses the PSA in his decision when it is convenient for him. He claims that Ms. Congress was not a party to the PSA, therefore cannot invoke NY law. He then justifies the the claims of US Bank by invoking the very same PSA. By this reasoning alone, only the seller of the debt is liable to US Bank. Judge (by me a) Vowell is using judicial activism, and not legal soundness. How can there be privity of contract (the PSA) on one-end, but not on the other? This clearly was a pro forma decision, based not on the law, but for the efficiency of the courts.

    His only “proof” of ownership is a reliance on the statements contained in the PSA. Outside of the PSA, the chain of title was clearly broke. Further, Attorney McCollough’s assignment in MERS is an invalid electronic transfer. MERS cannot grant her authority to transfer an assignment, neither can GMAC, if US Bank actually was the true person in control of the note. Also, if all the statements in the PSA were accurate, as the judge claimed, then why was an assignment made just before foreclosure. He makes absolutely no sense.

    Judge Vowell, go back to night school, and how about taking some law classes while you are there !!!

    • l vent says:

      What a fraud! We can clearly see who this imposter judge is working for and it is not for liberty and justice for anyone but the criminals. This needs to stop. The truth needs to spread like wildfire about where the true root of these crimes lies. The Fraudulent Inducement of our mortgages, The Origination Fraud. All of the rest is a distraction from the truth. The real root cause of Fraudclosuregate is the Origination Fraud. MERS and robsigning and the other fraud is fraud indeed but what caused them to commit this fraud is where the truth lies. It is the cover-up for the mother of all PONZI SCHEME FRAUDS it is the ORIGINATION FRAUD. It is high time they put a indefinite moratorium on the fraudclosures and gave the people back the homes they have already stole. WE NEVER OWED ANYBODY ANY MONEY. IT WAS AN INTENTIONAL HIGHLY DESTRUCTIVE GIANT PONZI SCHEME and it was INTENDED TO SET US UP TO FAIL, ROB US OF OUR WEALTH, OUR BUSINESSES, OUR JOBS and then EVERYTHING ELSE INCLUDING OUR HOMES.

      • Tim Bryant says:

        Maybe we should seek redress with the United Nations Human Rights Council? The US is always crying about China’s human rights policy. What hypocrites !!!

        Ironically, China is on the Human Rights Council and would probably be receptive.

  8. l vent says:

    Securitization of what? The mortgages were FRAUDULENTLY INDUCED. The so called mortgages debt and the notes never existed because they were never actually signed by us. Chain of title for whom? Our signatures are the only way that a clear chain of title can be created. We are the only entity that can legally sell OUR HOMES because we are the only ones holding title to property. They ^#%&%$ up. They made me pay 20 years for a house that I owed no money on then they destroyed our economy and made my family lose our business we had been building up for 25 years, then they stole my commercial property by doubling my tax bill from $16,000 to$ 32,000 without any warning and threw that into receivership, now they are trying to steal the roof from my family’s heads. They drained us of our life savings and worse of all they stole my kid’s college education and forced them to move back into my home to torture me and my husband to the brink of a near nervous breakdown.. I am %&*#$@# sueing all of these bastards.. .They have made my life a living hell and for that I want them to suffer here on earth and then I want them to burn in hell for all of eternity after they die.

  9. l vent says:

    I decided to take a closer look today at my original mortgage and note. It looks to me like an original document and it is unsigned. I am not a forensic examiner but if this is a copy I will be shocked. It is also unsigned. Can this be possible? Could this be absolute, undeniable evidence of the Origination Fraud? Could this be absolute proof that the mortgage loan never existed? THE FRAUDULENT INDUCEMENT!!!! It has been 20 years since my original closing so I do not remember the exact details of what transpired on that day but if this is true it would be clear cut black and white proof that the alleged crimes were indeed intentionally committed if the so called owner in due course cannot come up with the original note. .There was a mortgage recorded but there has been no assignment to my deed in 20 years. Even if these documents are copies, which I am very doubtful that they are, shouldnt there be a copy of our sigantures on these documents? I would think so. Has anyone else discovered this? I have found alot of obvious fraud before such as robosigning and forgeries, no notes or assignments recorded ever, a new pin# to hide the origination fraud, etc, but nothing quite this bold, this one really takes the cake, even for them. They better give those homes back they already stole and quit fraudclosing on fraudulently induced debt or the people are going to go fricking nuts.

  10. Mary says:

    Dear Sir:
    Congress is Last name of defendant

  11. l vent says:

    Bank of America building actually ON FIRE today in the heart of downtown Chicago. The fire burned up 11 floors of the building on Dearborn and Washington Street in the heart of downtown Chicago. Havent heard of ANY banks in Downtown Chicago ever catching fire. Maybe it will be the start of a new trend. Could it be some sort a white flag? A call out to Rome, we are burning over here in America? I am hoping so.

    • l vent says:

      Here is the link to the story about the BoA fire today in the heart of Downtown Chicago:,0,5894790.story

      • l vent says:

        IIt seems that firefighters are now investigating claims that the fire alarms NEVER sounded. Hmmm.

    • l vent says:

      What kind of B.S. are they going to do now to try and distract the masses from FRAUDCLOSUREGATE? What new false flag operation do they have up their sleeve this week? Turn on the HAARP machine and create some more giant weather catastrophes? Start another war? Gas us in our homes? Spray some more chemtrail poisons on all of us? I am sure they are not through with us yet. I think we are through with them though and i think they know it.

    • yvonne says:

      Sounds to me l;ike a set up to claim that notes and assignments were real destroyed….interesting….to what lenghts some people would go….I have this little wooden plaque that says….there is no telling how low some people will stoop for the love of money/greed…

      • l vent says:

        I think this is what Marcy Kaptor was really talking about when she said they DO NOT HAVE THE NOTES UP ON WALL STREET. They never really had any legitamite notes at all. It was and is a giant PONZI SCHEME. They gambled on thin air, like what Enron. SPECULATING is also FRAUD and a crime. Just ask Jeffery Skilling.

  12. Don St Clair says:

    1. Is there any credibility to the argument that the securitized loans have been paid off by investors and therefore the Trusts, Banks etc. have no pecuniary interest? Only the actual individual investors could be a Plaintiff and only for the amount he invested? 2-300 plaintiffs?

    2. What about the fact that most of the Trusts are receiving loans after default and therefore only a “debt collectors” under FDCPA?

    3. I have been trying to get the ball rolling on a RICO (Racketeering) action started against the Banks, Trusts, Mers, Attorneys and possibly some of the lagging rubber stamp courts.

  13. Stupendous Man - Defender of Liberty - Foe of Tyranny says:

    I anticipate an appeal on this. The commentary offered by Levitan, and Smith, is spot on. I’m sure that reasoning is not lost on Congress most learned counsel. Or, to put it another way, If it were my case I’d already have the notice of appeal drafted and ready to go.

  14. l vent says:


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