And So It Begins…. (Countrywide Breach of PSA)
Well well well what do we have here?
HOUSTON, Oct. 18 /PRNewswire/ –Today, the holders of over 25% of the Voting Rights in more than $47 billion of Countrywide-issued RMBS sent a Notice of Non-Performance (Notice) to Countrywide Home Loan Servicing, as Master Servicer (“Countrywide Servicing”), and to Bank of New York, as Trustee, identifying specific covenants in 115 Pooling and Servicing Agreements (PSAs) that the Holders allege Countrywide Servicing has failed to perform.
The Holders’ Notice alleges that each of these failures has materially affected the rights of the Certificateholders under the relevant PSAs. Under Section 7.01 of the PSAs, if any of the cited failures “continues unremedied for a period of 60 days after the date on which written notice of such failure has been given … to the Master Servicer and the Trustee by the Holders of Certificates evidencing not less than 25% of the Voting Rights evidenced by the Certificates,” that failure constitutes an Event of Default under the PSAs.
Uh huh.
Gee, three years on, but here it is, and here it comes….
I wonder if there might be a lack of conveyance, for instance? Or maybe some loans in there that wantonly violated the representations and warranties?
Oh wait – they tell us what (at least part) of their complaint is:
Instead, it urges the Trustee to enforce Countrywide Servicing’s obligations to service loans prudently by maintaining accurate loan records, demanding the repurchase of loans that were originated in violation of underwriting guidelines, and compelling the sellers of ineligible or predatory mortgages to bear the costs of modifying them for homeowners or repurchasing them from the Trusts’ collateral pools.
Uh huh.
$47 billion in the pools eh? Uh, that could smart a bit, seeing as it’s going to land straight back on Bank of America.
So much for “no material impact” eh?
Incidentally, do you think BAC knew this was going to come out tonight when they issued their little press release this afternoon claiming that they were all ok with the “Robosigning” nonsense?
I said up front that the robosigning deal and all the sound and fury related to it was a diversion intended to cover up the original failures in the underwriting and securitization process.
Heh BofA – want an umbrella? 
And again, how can you defraud the investor without defrauding the borrower…
The intermediaries had this all figured out and ran off with all the cash…
All of it…
~
It’s called the “GSE BUSINESS MODEL”.
If I were a general, in command of an enormous army facing overwhelming odds, with no chance to win in sight, only stalling tactics to keep myself and my army alive I’d ask my self a question…. “Do I Roll over now and let them completely wipe us out? Or do I step back, muster as many supplies as I can and do everything I can to delay and stall the inevitable”. My own answer would be the latter.
This is, I think, what we’re seeing right now. The Banks are not dumb, and it’s far better to go into battle with as much money as they can possibly muster to get together. Knowing their eventual loss, it’s time to pillage and rape and try to destroy the oppositions spirit. It’s time to build their war chest, and as long as the judiciary keeps rubber stamping their foreclosures, their chests grow.
So we, unskilled dummy’s in the ways of the Law, what can we do?
I say keep on keeping on and simply keep the faith!
The largest Banks in the world have acknowledged the problems of the Robo-signers and that’s more than they’d done a mere month ago. We’s all love to see that one silver bullet that would end this all. But this is a long and drawn out battle against a well equipped adversary. Every day that more foreclosures are processed, our ranks swell. More bodies, more brains, more talent. This is a juggernaut of a movement, it’s not going to fail. Let’s enjoy the success of the past few weeks and just keep on pluggin away.
War is the result of justice, to long denied.
Do all you can to bring this motherf******* system down. the hell with ALL banks…
How do I as a borrower get a hold of the lawyers for the investers and tell them the investors that their servicers do everything possible to stop me from pay my defaulted loan for a house I want to keep?
Stan
Racine WI.
We may be reaching the Mothra vs. Godzilla moment. Our government is too captured (Wall St.’s sock puppet) to restore the rule of law, but holders vs. servicers may just bring the whole casino crashing down.