Conduit loan servicing: Who’s who and what’s what?
The thing most borrowers fail to realize about conduit loans is that once a loan has been securitized, they are not working with a “lender” anymore. The loans are pooled into a securitization called a Real Estate Mortgage Investment Conduit (REMIC). The REMIC is a trust and it has no lenders, only fiduciaries of the “certificate holders.” Once the loans have been pooled and securitized, the players are as follows:
Master Servicer
Special Servicer
Trustee
For complete details see the document below…
It also can be downloaded here…
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4closureFraud.org
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Conduit loan servicing: Who’s who and what’s what?
I have the same problem as Laura, my loan where can I find out if a securitization of my loan was ever done, I checked Fannie Mae and Freddie mac but they have no information on my loan, my Wells Fargo has been servicing my loan since August 2006, now we are in Federal Court in Harris County, Texas, as Deutsche Trust bank claims to be the trustee of my loan and Morgan Stanley to be the investor, but in court records no assignments were recorded, We stopped the foreclosure and now ended up in Federal Court, DTB were asking the judge to a motion to dismiss my law suit, they have not been able to validate the debt, plus we discovered 6 violations in my loan origination documents, this loan was a home equity loan that I obtained to do some improvements to my home, where do I find the documents of my loan, my loan mortgagee is New Century Mortgage, but they sold my loan in August 2006, where do I find the assignment documents to my note, showing that Deutsche Trust bank is the owner of my note my attorneys are not telling me so much on what is going to happen now as the judge denied the motion to dismiss to the bank, this process is kind of complicated as Wells Fargo is wants a short sale, which my house has been listed in the market since May 2013, and at the same time we are requesting the court to remove the cloud of my title and to the bank to validate the debt. I don’t know where I stand right now, just that foreclosure was vacated and my case was transferred to a federal court. Please help me any advice will be appreciated.
Norma, been through the same thing with our mortgage. First of all you need to understand the SECURITIZATION process. If your loan IS SECURITIZED it will be registered with the SEC, Security Exchange Commission. You may also find info about it on a website called MERS, Mortgage Electronic Registration System. This was developed by bankers and functions as a registry. Read as much as you can about the process and find who is the actual “holder of the note” and “beneficial person of interest.” This is who has “standing” and the ONLY one who can foreclose. Find out if your state is judicial or non-judicial, makes a big difference in finding info and defending your position.
Norma, one more thing. If your loan was, once again, securitized, there will no longer be an originated “Note.” It will be gone for more than one reason. Look for “The Foreclosure Defense Handbook. It will tell you everything that you need to know. Good Luck!
@ Bobbi…….I did receive an act 91 a long while back…. too
Hi Bobbie…thanks for all the Info… I really appreciate it. Actually I did hire an attorney to file an answer but that is all he does… and now I haven’t heard anything from anyone. But I did make an appointment for Saturday with a law group to check out my documents and see what is going to happen. If not I will call that guy Gary and see what he can do… I appreciate you taking the time to give me this information
One should note also that the document is not truthful! In the document under “Trustee” it says “the Trustee conveys the mortgage loans and documents to the trust” but anyone who understands the securitization process and/or ahas read a PSA can tell you that nobody’s allowed to make deposits into the trust except the “Depositor”… where in the document it says “If the Special Servicer is willing to extend the loan, they have to get permission from the Controlling Class Representative (CCR), who is a fiduciary for all the certificate holders. The CCR was designated when the REMIC was created and the PSA was signed.” So I just searched my own PSA and found no mention of Controlling Class Representative (CCR) whatsoever! As for the rest of the document… it’s 5 am and I’m headed to bed. Just because it’s from Wells Fargo don’t mean it’s true folks. Don’t trust… VERIFY!
I agree with what ex banking regulator Professor Bill Black told the Senate…If Wall Street was going to play 3 card monty with our mortgages, they should have told us. I for one, would have walked away unless I could have insured myself for 10 times the risk in case the FED would default in my name and Wall Street would destroy the value of my property and the original bill of credit in my name by overissuing investments. Then this scam would have never happened.
They are stealing Charles. They are just doing it very deceptively. Obama said today….the bills are already racked up, and we have to pay them. Well Obama here’s a newsflash…these are the bills Wall Street racked up, in our names with our forged signatures by counterfeiting documents, without our knowledge. These crooks robbed the country blind and destroyed the value of everything and it was intentional so they could bankrupt us and steal our property. These crooks have hijacked the Presidency, the Congress & the Senate and have hijacked the Treasury. America is being held hostage by wantoned criminals.
First borrowers are not aware that their loans are place into a pool as there is no notification of this happening. Next Wells Fargo informed the borrowers they could not inform the borrowers as to who was the owner of the alleged debt because of privacy reasons.
Wells Fargo problem are easier to pin down with Washington Mutual Bank (WaMu) government insured loans because WaMu was declared a “failed bank” on Sep 25, 2008. When these loan are place into the pools no longer does the lender who placed it there have any financial interest in the loan, as it sign endorsing the Notes in blank.
WaMu as with all the other lenders sign a HUD 11711A agreement that conveys the interest over to Ginnie Mae but that already been done once the loan is placed into the pool and the Notes are relinquish at that time.
Now a Note is between a borrower and lender and unless you are a lender you cannot be a part of the contract as you cannot act as a lender. I someone already mention is the borrowers don’t know who to pay, and cannot make payments to a non-lender which Ginnie Mae is.
Ginnie Mae tries to cover there track with it printing of the Frequently Asked Question sheet Feb 2, 2010 which says that Ginnie Mae is not a “investor”/owner and does not purchase a home mortgage loan, as it does not buy or sell home mortgage loans. It go on to try and explain MERS’s reason for listing Ginnie Mae as the “investor” in the electronic registry system.
However Ginnie Mae contradict it self when it send out a message through GinnieNET for the lender to input the date into MERS’s program Transfer Beneficial Rights – Option 1 which inside of Ginnie Mae transfers title to Ginnie Mae, in the system only because there is not an assignment transfer at the local land recording officer, because Ginnie Mae does not purchase the Notes!
Here are the crumbs leading everyone back to the scene of the crime!
The trust only receives the loan file when they want to foreclose says Tim Bryant….Well that is fraud and that is criminal…..Not only is “the trust” therefore a fiction but the FACT they don’t fraudclose until they destroy the quality of the original BILL OF CREDIT…THE ISSUER SOLD YOU…KNOWING FULL WELL THEY FULLY INTENDED TO DESTROY IT VIA WALL STREET INVESTMENT SCAMS IS FELONIOUS…..INTENT TO DECEIVE IS CRIMINAL AND IS PROVEN AT THE ONSET OF THEIR FRAUDULENT FORECLOSURE CLAIMS….THE PROOF THEY ARE IMPOSTERS; FICTITIOUS PAYEES IS UPON PRESENTMENT OF THOSE COPIES OF THOSE UNINDORSED NOTES…..
Does anyone know what the purpose of this document is? Is it to educate internal WF staff members about servicing? Where did it come from? I don’t think this document was developed to inform borrowers at all. I think I first saw this a couple of years ago when I began looking into our WF loan. Anyone know the provenance of the document?
Thanks for commentary Tim – very insightful and actually useful . . . borrowers need to attack the original K (contract) demand correction or reformation in a new K naming the lawfully allowed real parties.
This disappearing act of the lender causes for the first breach of the K – how can a borrower pay a real party that doesn’t exist?? Borrowers can and never will comply with the terms and conditions because not a single cent will have gone to the ‘lender’ who either disappeared or in most cases was never in existence to begin with – a straw name was inserted to keep the transaction ‘untethered’ to any “real” parties who would not allow their realty assets to be stolen without their authority which would have to have been memorialized in corporate resolutions put into the minutes (board meetings) of a corporate entity that the corporation’s elected body elect to sell or otherwise dispose of its real property rights – demand to see the corporate resolutions of the named party – nada will come of it.
Understand that this statement by Wells Fargo is because they got caught and are trying to head off the critic when like they already done and BOA is pay back the Federal Government for the False Claim. But they are making the accuse that this is why they were denying modification because they were taking their order from anybody other than it coming from Wells Fargo leadership.
$654,000 government insured loans is $6.54 billion in submitted claims times three = $19.62 billion in treble damage which since Ginnie Mae is involved the government may not seek the treble damage.
The writing on the wall and let get down the the taxpayer getting back it money!
The 654,000 problematic loan found by the OCC & Fed are government insured loans, and Wells Fargo is covering its track saying they are only working for these trust. The was a deliberate strategy in not informing the borrower who owned their loans. But the fact is with government insured loans is that there is not once the loan is endorsed in Blank and relinquish to Ginnie Mae.
Ginnie Mae is NOT and mortgage loan lender and this argument about being delivered to the Trust is bull, because the Notes are signed in blank and given over to another party without payment. The other party must be able to act as a lender. Once the transfer occurs without payment there is not procedure to transfer it back, as Ginnie Mae is NOT a lender.
They are using UCC 3 to and obtain ownership and Ginnie Mae follows that up by having a phony process through MERS called Transfer Beneficial Rights – Option 1, that suppose to transfer the title rights to Ginnie Mae. Problem is Ginnie Mae cannot and does not purchase the loans/Notes and is not and cannot at the local land recording offices be in titled as the are NOT the “holder in due course” and with UCC 9, the possessor of the blank Notes when ask must be able to provide proof of purchase.
The reason these clown have been able to get away with this crap, is that the local land recorder are not asking to review the current state of the Notes. Had each county ask to simple review a current copy of the Notes it would show this blank endorse Note which is not negotiable in that state!
The loan are base on the Notes and not some after the closing deal the lenders makes with additional parties. They have employed MERS is this mess to provide cover, but MERS is not a lender and like in Nebraska these clowns are not even authorized to do business because they have not applied to the Secretary of State for a certificate to do business.
This will come down to the Whistle-Blower claim that the lenders have submitted False Claims against the Federal Government insurance fund in FHA Mortgage Insurance Premium, VA Guaranty Fund and USDA Farm Loan insurance that the servicers/lenders have raided.
@bobbi
The problem is various courts have ruled the homeowner has no rights to the PSA, so failiure to transfer the documents into the trust in a timely manner is irrelevant. The servicer or some other entity comes to court with a blank endorsed note and claims ownership. Until we can get the most courts to look into the trust documents, its going to be a long uphill battle.
What you are failing to see bobbi, is that if the PSA is the only document showing any privity between the borrower and the trust. If the borrower is not a third-party beneficiary, then the trust is not a secured party owed any obligation by the borrower.
All the obligations in the mortgage and note, are covenanted between the “borrower” and “lender”. There is no new or continuing contract once the lender disappears. A new contract must be drawn and executed by the borrower to be actionable. That is in the Statute of Frauds of every state.
The court issues you bring up have occurred for 2 reasons, 1) per se arguments, where a blanket accusation is claimed, without having a clue about the legality of the argument. Judges easily abuse these arguments, because they know that most per se litigants are very limited in their legal knowledge, and 2) Most foreclosure defense attorneys have no clue how modern mortgage financing operates. They are defending foreclosures circa 1970. The industry has caused a disservice to everyone by failing to keep up with the times.
The last item I want to bring up is that the trustee does not have standing until it produces it’s trust authority to the court. This includes the PSA. Any foreclosure defense attorney who lets this fact slide, needs to read up on trust law, and trustee process.
Here is what Wells Fargo is trying to do and that is get out of paying the Federal Government back monies they have received in illegal foreclosure sells and insurance claims they received.
Don’t come out now telling the world that borrowers are needing to contact a host of other people in order to work out a problem because Wells Fargo and the rest of the clown lender have place out loan into some pool.
A Trust of whatever needs to have been a lender and purchase the debt, and if not so borrowers have not agreed with Louie Left Finger or some freaking Trust. Is this Trust endorsed the Note or recorded on title at the LOCAL land recording office? The answer is NO!
Here the deal I have submitted a whistle-blower claim that tell the story that not a single Federal Government insured loan could have possibly be foreclosed because in order to place the loan into the Ginnie Mae pools the Notes are signed endorse in blank and are relinquish to Ginnie Mae who is not a lender and not being a lender does not have the rights of a lender.
I don’t care about what Wells Fargo and the other ex-lenders or alleged servicers are now saying about what and who borrowers were supposed to have contacted, because these group they are now coming forward with saying they have the say so are not on the Notes as the LENDERS or on title as the “holder in due course”!
How were borrowers to know this information when the alleged servicer was saying they could not tell you who the “investor” of the loan was because of privacy reasons? First the borrowers got a Notes of Default saying Wells Fargo or one of the other clown Banksters was the owner of the loan and was calling it due, however when your asking for a modification the borrower is told its an investor’s loan, but I can’t tell you who the investor is? What the F!
Next the borrowers are told by Ginnie Mae if anybody tell you they are the “investor” they are lying and that Ginnie Mae is not the investor and are only listed that way in MERS so that they can contact the lenders if the loan is in default? What? Ginnie Mae go on to say in publish print that they are not a investor and cannot buy or sell and home mortgage loan, and cannot change a interest rate or term!
What you got is a Ponzi scheme that has occurred.
Every Government insured loan (FHA, VA, USDA) that been foreclosed could have never been foreclosed because once Ginnie Mae is in possession of the blank Notes the Notes become non-negotiable as Ginnie Mae cannot and does not purchase the debt of the Notes, and the blank Note is blank and remains so for a life time.
Understand that a Note is only and Note when the Note is owe a debt, and in order to be owed a debt, Ginnie Mae must have originated or purchase the Note in which they cannot by law. One has a debt if a lender has an Note that says the Note is their from the origination or purchase and if purchase there is proof of purchase (check or wire transfer).
Wells Fargo been caught as with the others with the 654,000 problematic loans the OCC & Federal Reserve Bank found thank you to me! You just happen to screw over the wrong guy!
But what is not explained here is that most of these loans were transferred but not secutitized. i do not have a trust listed on my well fargo foreclosure yet early on in this fight 2009 i asked who my investor was (thinking maybe the investor would modify my mortgage) wells fargo refused and some on let the cat out of the bag sought a speak he told me about securitization. wonder if he last his job???
NONE of the loans are transferred. They are all pledged. The trust does not receive the collateral file until they want to foreclose. By that time, they have sold off all of their right, title, and interest in the loans. ALL the securities are held in the name of Cede & Co, the “nominee” for the Depository Trust Company. These securities are sold overseas, mostly into the Irish Stock Market, where the CUSIP number is converted into an ISIN.
This is an excellent guide for homeowners. There’s much more details involved in securitization and what the obligations and requirements under the PSA, but for the most part this piece is excellent. Note that there are ‘delivery’ dates within the PSA for the lender to deliver the notes and mortgages to the trustee of which most lenders never even sent the documents at all or neglected to submit them to the trustee in the time frame under the PSA, all of which is a cause for ‘no standing’ with a Plaintiff in a foreclosure. And lenders did not have to ‘notify’ a borrower that their mortgage was securitized or to whom it was sold; however, there was to be an assignment of mortgage filed and that, too, was not done for the most part by lenders. Grab ’em by the b@lls and nail them to the wall! Great stuff.
Hi Bobbi…. I am in this situation… I was with bought my house in 2006 through a crooked mortgage broker called HANSEN MORTGAGE in Philadelphia PA with Countrywide Bank… then they sold it to BOA now supposedly with Wells Fargo and SPS as the servicer. I am in foreclosure because I refused to pay SPS …. and now the plaintiff is Wells Fargo …but when I called every department in Wells Fargo and spoke to someone they DO NOT know who I am or don’t have my social on file. I refuse to lose my home to these thieves … I need help. I have asked defense attorneys and other attorneys but I get no help. What should I do? I have 2 little children… Thanks!
@Laura – Since you are in PA I am not sure of the type of foreclosure you would be facing. Florida is a judicial state so your laws may be different. My best advice is to research your state laws to determine what and how you can proceed. For instance, in Florida, you have 20 days from the time you are served to file an “answer” to the foreclosure. That, in itself, opens the door for defendants to raise defenses to the filing. You can also file motions for the plaintiff to produce certain documents as part of discovery. As far as being able to determine if your loan was part of a securitization check both the Fannie and Freddie sites for ‘loan look up’. It will tell you if your loan is owned by either of those entities. If so, the likelihood is that your loan was part of a pool of mortgages. You can also request such information directly to Fannie/Freddie if your loan shows up as ‘owned’ by them. Make sure that any mail you send out has some sort of tracking or required signature and keep copies of everything you do. If you can’t afford an attorney just make sure that you do your research. I found that the law library at the court house is an excellent source of information and the people that work there are really helpful. It is not an easy task to represent yourself pro se so if you intend on going down that road prepare yourself for a bumpy ride. It will take a lot of preserverance and patience. If you do plan on trying to find an attorney you can post on this site for references (on the general posting board) for one in your area or research for one that has background and actual experience in foreclosure defense on the internet. Talk to several before you make a decision. Most importantly is that you file whatever is required at the onset of being served! It’s very hard to go back in time once a filing has been made.
Hi Bobbi
Thanks for the reply! I just looked up Freddie and fannie and NO neither own my loan. I don’t know who owns my loan… What is the best thing for me to do? I am so lost.
@ Laura – I just saw this post by another person here at this site. It may prove to be useful:
Do you really want to uncover the FRAUD? Well IF you do call this man Gary Michaels who is a Certified Document Examiner for the past 35 years. He can find exactly where the FRAUD is and will go into court and explain this to the Judge! Call him @720-878-7076 Cell or his home at
303-952-9910. If nothing else it is well worth the phone call. PLEASE tell Gary that Christie referred you to him 🙂 http://www.forgeryfraud.com
I also found out that PA is a judicial state (similar to Florida) on foreclosures.
Pennsylvania is known as a lien theory state where the property acts as security for the underlying loan. Depending on the court schedule, it usually takes approximately 120 days or more to effectuate an uncontested foreclosure. This process may be delayed if the borrower contests the action, seeks delays and adjournments of hearings, or files for bankruptcy. A defendant has 20 days in which to file an answer to a foreclosure complaint otherwise default will be entered. The defaulting borrower must be given at least 10 days notice before default is entered and there must be a 30 day notice before a foreclosure sale can take place by the Sheriff. There are two pre-foreclosure notice requirements which are specific to Pennsylvania. An Act 6 notice (Required to be sent by certified Mail) requires a notice of intention to foreclose to be sent within 60 days of a default occurring. The borrower will usually then have 30 days in which to set up a payment plan or cure any default during this time frame. An Act 91 notice (Required to be sent by regular mail with certificate of mailing) relates to a mortgage default where the borrower is advised there may be assistance available in the form of a HEMAP (Homeowners Emergency Mortgage Assistance Program) loan to cure the existing default. Act 6 and Act 91 notices have different applications to various government guaranteed loans. FHA loans under $50K in default usually require Act 6 notice and VA/Conventional loans under $50K require Act 91 notices.
If you have rec’d any of the above notices and a Lis Pendens has been filed and served upon you then you have only 20 days to file an answer and contest the foreclosure. PA does not have redemption like Florida so you don’t have the choice to pay up the arrearage and reinstate your mortgage once the Lis Pendens is filed and served. If you do this alone, my suggestion is to google “filing a contested foreclosure in PA’ and there should be plenty of assistance in helping you form the proper paperwork for filing the answer. The KEY is the 20 day time period.
I have the same situation you do I’m going to the FBI. Already been there once they agree there’s collusion between the banks and they suggested for me to just get over it. Let the bank take your home take two aspirins go to sleep find another place to live. I have been dealing with this since 2005 I’m still in my home have not paid a mortgage in 5 years plus. I’m returning to the FBI I will not come out of there until these people arrest someone at Wells Fargo Bank oh by the way US Bank is involved also about that I know quite a bit about the situation email me back garrypennington@gmail.com