Josh Rosner, of Graham-Fisher — violations of PSA on mortgages could dwarf the Lehman weekend


Josh Rosner, of Graham-Fisher, put the following out in a note today, claiming violations of pooling and servicing agreements on mortgages could dwarf the Lehman weekend:

Nearly all Pooling and Servicing Agreements require that “On the Closing Date, the Purchaser will assign to the Trustee pursuant to the Pooling and Servicing Agreement all of its right, title and interest in and to the Mortgage Loans and its rights under this Agreement (to the extent set forth in Section 15), and the Trustee shall succeed to such right, title and interest in and to the Mortgage Loans and the Purchaser’s rights under this Agreement (to the extent set forth in Section 15)”. Also, an Assignment of Mortgage must accompany each note and this almost never happens.

We believe nearly every single loan transferred was transferred to the Trust in “blank” name. That is to say the actual loans were apparently not, as of either the cut-off or closing dates, assigned to the Trust as required by the PSA.

Rather than continue to fight for the “put-back” of individual loans the investors may be able to sue for and argue that the “true sale” was never achieved.

Quite the can of worms. Anyone who says that the banks will fix all this in a few months is seriously delusional.

14 Responses

  1. This scheme runs so deep and so far. The feds crossed the line and took it way too far. The greed that drove this fraud is unprecedented. It is amazing to me how STUPID the feds think the American people are. They start from the poorest of populations and see how they fair and then move up into the middle class destroying every family on its way. These Wallstreet evil doers have done way more than mortgage and foreclosure fraud. They rape, mame and terrorize as well. Watch Bush talk about the terrorists….doesn’t anyone get it? Our government and banking systems are the terrorists. The worst of all kinds. They intentionally did this and thought their greed to be funny. I can’t wait to laugh at them when they rot in real jail. Not the fuzzy warm fake one, the real one where the general population may make it up to the american people. Bend over little banker girl, its your turn to pick up the soap.
    Debi. Boynton Bch florida

  2. So when an assignment to a trustee of a securitized trust is fabricated 3 years after the trust cut-off date, where was the servicer sending the payments to before they initiated foreclosure proceedings?

    Weren’t those payments to be forwarded on for the benefits of the certificate holders…

  3. I’m in for ordering those orange jumpsuits

  4. Tommy,

    Sit tight – but do not let your claims go silent. . Do not let a court dispose of – keep it alive – however you can. Get help..

  5. I’m with P. Weber on this. All these backdated assignments and strange transfers that are happening after default combined with multiple companies claiming to hold the note on a single property is a red flag of some broader scheme.

    They are retroactively filling the trust with defaulting property loans. It seems like a mad scramble. Servicers are pulling every dirty trick in the book to cause defaults.

    there is some greater force here.

  6. And what does this mean if the bank , Wells Fargo for instance ,,, just pretended to create the Trust but it was never actually created ,, it was just an accounting gimmick.

  7. There is so much information on this site – where to start?
    If loan modifications are pointless right now, what is the best course of action to handle a foreclosure?

  8. Kona tina-

    My husband & I watched the pbs program also, and couldn’t believe the fraud and deception.
    Brooksly Born never had a chance against these evil, corrupt,heartless,greedy bastards.
    I believe Greenspan,Summers…strategically manipulated and successfully discredited her.
    These guys are scums !
    Everybody should watch the show.

    Judge-let’s make some noise.
    $144b is just so outrageous,I can’t phantom how they can be so blatant to justify that they deserve this ridiculous bonus.

  9. When Brooksley Born warned congress back in the early 2000′s (watch the video THE WARNING produced by Frontline), about the total economic chaos that would happen to the American people if congress allowed securitization of mortgage loans to continue, she was ridiculed by congress and when she confronted Alan Greenspan he said he knew that there were big problems but that the “market would work it out” . Some great workout isn’t it?
    Why is the government just now “discovering” this fraud and problem? Isn’t it odd?
    Seems like the same problems that occured when the IRS made tax shelters in the 80′s. Many unsuspecting Americans got into that scam, only to find out that the shelters were later disallowed and those investors had to pay back fines, penalties and all the money they had saved in the fraudulent tax shelters.
    Isn’t this just another scam perpetrated by our government?
    Why did AIG get $175 Billion in Tarp funds to bail out AIG and AIG paid out $175 Billion to the investors of these fraudulent trusts?
    Why does TARP money get funneled through the FDIC and paid to these fraudulent servicers via the “Shared Loss Agreements”
    In April 2011 the new Bureau of Consumer Financial Protection begins operating and will consolidate the FDIC, Federal Reserve, OTS, and Federal Trade Commission into one government organization. The bureau will consolidate employees and responsibilities from a host of other regulatory bodies, including the Federal Reserve, the Federal Trade Commission, the Federal Deposit Insurance Corporation and even the Department of Housing and Urban Development.
    Is this all preplanned due to the securitization scam that our government allowed?
    We should all stop making our mortgage payments to show support for the millions of Americans that have been foreclosed on illegally by these crooks

  10. Hey ‘Lucy” ever hear the Term: “Let them eat cake!”

    Time to get the Giatine; sharpened up!

    ….now where’s that darn sharpening stone?

  11. hello every one,

    what do you think, these people need those bonuses, they are not dead beats nor criminals, these people are well connected patricians, with access to the government regulators who at this point are being wined and dined to woo them with cushy jobs with the same people they are investigating. will you kill the goose that will make you an instant millionaire?

  12. Now can we order the orange jump suits ?

  13. I wrote much the same thing to my attorney a couple of days ago. Except that my argument is that MERS or the Successor Trustee is not assigning the Deed of Trust / Mortgage (and recording it at the county) to the Trustee of the Pool until they are foreclosing on the property years later!

    Just as stated by Josh Rosner, the ‘true’ assignment of the Deed of Trust and endorsement of the note didn’t occur on the closing date. And hasn’t occurred until they get ready to foreclose and then they don’t use the original Deed of Trust, they just print a new one.


  14. Wall street is paying out $144 billion dollars in bonus this year, are you kidding me??????!!!!!!!

    I’m speechless !!
    There are families that are homeless, and children suffering due to their massive fraud.
    How do you justify this?
    Can somebody please explain ?

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