Sand Canyon Sues American Home Mortgage Servicing for Making it Too Easy for MBS Trustees and Insurers to Get Hold of Underlying Loan Files

“In short, Sand Canyon is claiming that it has bought American Home’s complicity in a scheme to help Sand Canyon escape liability to the trustees and investors to whom it sold mortgage loans,” the American Home brief said. “But American Home is not Sand Canyon’s accomplice in such a scheme.”

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New MBS twist: Sand Canyon sues servicer for releasing loan info

Just when you think you’ve seen it all in mortgage-backed securities litigation, along comes the likes of Sand Canyon to prove you wrong.

The onetime California mortgage lender, which stopped originating loans in late 2007 and sold its servicing business to American Home Mortgage Servicing in 2008, has filed a complaint in New York State Supreme Court in Manhattan that accuses American Home of making it too easy for MBS trustees and insurers to get hold of underlying loan files. In essence, Sand Canyon’s lawyers at Cahill Gordon & Reindel are arguing that the servicer should be helping it thwart claims that it breached representations and warranties about the mortgages it sold to MBS issuers, not smoothing the way for put-back demands.

Sand Canyon’s 26-page complaint, filed last month, asserts that American Home pledged to act as an ally when it bought the servicing business in 2008. “Sand Canyon bargained for and obtained (American Home’s) cooperation in connection with Sand Canyon’s defense,” the complaint said. Under their agreement, according to the complaint, American Home was supposed to “refrain from disclosing confidential loan information to third parties except as required by law.”

Most pooling and servicing agreements permitted MBS trustees and insurers to see underlying loan files only during regular business hours and at the servicer’s offices, according to the Sand Canyon complaint. But American Home, the suit alleged, has provided electronic records in response to demands from trustees and insurers.

Rest here…

Copy of the complaint below…

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4closureFraud.org

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Sand Canyon Complaint

Comments
6 Responses to “Sand Canyon Sues American Home Mortgage Servicing for Making it Too Easy for MBS Trustees and Insurers to Get Hold of Underlying Loan Files”
  1. A.T. says:

    THIS VALIDATES THE FRAUD. AMERICAN HOME MORTGAGE SERVICING INC. WAS NOTIFIED IN 2010 ABOUT AMERIQUEST & ARGENT MORTGAGE ALLEGED FRAUD. REGISTERED LETTERS WERE SENT TO AHMSI BECAUSE THEY WERE THE LOAN SERVICER. CHICAGO TITLE HAD BEEN THE ALLEGED CLOSER THAT WAS LISTED ON LOAN DOCUMENTS. CHICAGO TITLE IS A SUBSIDIARY OF (FNF) FIDELITY NATIONAL FINANCIAL TITLE IN JACKSONVILLE FLORIDA. THE BOARD ALONG WITH CEO MR. FOLEY II
    RECEIVED THE SAME LETTERS THAT WERE SENT TO AHMSI.

    DAVID BLOOMQUIST CHICAGO TITLE ATTY. DENIED ALL ALLEGATIONS. I NEVER SAW NOTARY & SIGNED DOCS AT BROKERS OFFICE. RESPA,& RIGHT TO CANCEL NOTICE WITHHELD FROM MY LOAN DOCS TO ALLOW OTHERS TO SIGN LOAN AS JOINT BORROWERS WITHOUT MY KNOWLEDGE. DOCUMENT THAT CAME FROM CHICAGO’S FILES & ARGENT CHARGED 4 ALTA TITLE FEES, 2 RECORDING FEES,
    DOUBLE INCOME EXACTLY SAME AMOUNT, DECEASED FATHER NAME STILL ON DEED, NOTARY ADDED NAMES TO QUIT CLAIM DEEDS, DOCS NOTARIZED ON SATURDAY, TITLE COMPANY WAS CLOSED, I WAS OUT OF TOWN, INT RATE SWITCHED 3X’S, LOAN DOCS RECORDED 41 DAYS LA DEAD MOM & DAD ON DEED AFTER LOAN CLOSED. OTHER SIGNERS ALLEGED SIGNED MY LOAN DOCS AT THEIR ATTY’S OFFICE. DOCS FAXED OVER TO CHICAGO TITLE. FAX # ON ALL DOC THEY SIGNED. TITLE POLICE DATED DAY BEFORE I APPLIED FOR LOAN. & THERE’S MORE MISTAKES.
    WILBUR ROSS JR. RECEIVED THIS LETTER & DAVID APPLEGATE. I TOLD THEM TO RESCIND LOAN COLLECT ON TITLE POLICY. 60 MIN. ROBO SIGNERS ON ASSIGNMENT OF MORTGAGE.
    ROSS, AHMSI & FNF WORKED TO ALLEGEDLY DECEIVE MANY BY FNF MAKING POA DOC FOR ROBO SIGNERS THRU DOCXX & LENDERS PROCESSING THEY OWNED. FNF MADE BILLIONS CLOSING SUB PRIME LOANS. FNF 1ST AMERICAN TITLE PROCESSED ROBO ASSIGNMENT OF MORTGAGES SENT TO FORECLOSURE ATTYS & COURTS.
    THEY ALL ARE IN ON THIS. HENCE THE ARTICLE ABOVE. AHMSI PLAYS VICTIM THEY WERE ALLEGEDLY ON BOARD AND PEOPLE MUST JOIN FORCES AND MAKE THEM PAY FOR THEIR DECEPTION. ROSS KNEW OF THE COMPLAINTS BOUGHT LOANS ANYWAY. THEN TRADE THEM ON WALL ST DEUSCHE BANK.

  2. J.R. Homeowner says:

    HEADLINE CORRECTION:

    Sand Canyon Sues American Home Mortgage Servicing for not helping hide evidence from investors.

    (when you get right down to it, thats what this suit is really all about)

  3. Pamela Edwards says:

    Alot of canniblism taking place these days.The whole lot of them are like sharks circling the water for new blood.This is the same Sand Canyon that got shut down for trying to build in an area that was protected because of the eco system involved.

  4. Stupendous Man - Defender of Liberty, Foe of Tyranny says:

    Sand Canyon Corporation does not own any residential real estate mortgages. See the Affidavit of Dale Sugimoto here:

    http://www.scribd.com/doc/46562142/In-Re-Wilson-Affidavit-of-Dale-M-SUGIMOTO-Pres-of-Sand-Canyon-19-Mar-2009

  5. readdocs says:

    It is popcorn time, watching the thieves start eating each other.

  6. Mario Kenny says:

    I love it when the monsters bite each other, it shows us how dedicated they are to self interest.

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