Action Date: January 13, 2011
Location: West Palm Beach, FL

In the wake of the Massachusetts Supreme Court decision in Ibanez, a few facts regarding Mortgage Assignments to mortgage-backed trusts are worth noting.

First, the vast majority of the hundreds of thousands of Mortgage Assignments made in the last three years were made by mortgage servicing companies.

Second, these servicer-made Assignments were signed and notarized several years after the closing date of the trust. This means that these were NOT Assignments in blank – that is, signed by the assignor at the time of transfer to the trust, but with the name of the assignee left blank.

Third, these servicer-made Assignments state that the Assignments to the Trusts were made years after the closing dates of the Trusts.

Fourth, in all of these cases, the intervening Assignments were left out – the assignment went directly from the originator (such as Option One) to the Trustee on behalf of the Trust. Even the few Assignments in Blank, when subsequently filled in with the name of the Assignee, ignore these intervening owners and show the mortgage as going directly from the originator to the Trust, (ignoring the transfers to the depositors and sponsors).

Fifth, the victims of IAEF – Illegal Acts Expediting Foreclosures – include:

• individuals and families who were removed from their homes by a system (judicial and non-judicial) that relied on the authenticity of documents presented by the mortgage servicers;

• all investors in the mortgage-backed trusts; and

• subsequent purchasers of homes with concealed chain-of-title problems;
• all counties deprived of revenues by the servicer-prepared “originator-to-trust” Assignments.

In the search for solutions to the foreclosure crisis, it is important to keep in mind that at least part of the problem involves real crimes and real victims.