BOA HEADACHE: Countrywide Routinely Failed to Send Key Docs to MBS Trustees, B of A Employee Says

COMBO Title and Securitization Search, Report, Documents, Analysis & Commentary COMBO Title and Securitization Search, Report, Documents, Analysis & Commentary

Submitted by Brian Davies

Countrywide and Bank of America published case.

This could be an IMPORTANT development. It could mean proof that the securitized trusts were routinely NEVER consummated. That would mean Countrywide-cum-BOA legal actions being taken in the name of their securitized trusts lack “Standing” and or “Capacity”. Those actions would then likely be dismissed(hopefully with prejudice). It would also mean that MANY people who have already LOST their property under some circumstances could RECLAIM them. The foreclosures may be “void or voidable”.

Countrywide Routinely Failed to Send Key Docs to MBS Trustees, B of A Employee Says
Written on November 19, 2010 by admin
Another American Banker article (subscription required) and some more quotes by Max.
Countrywide, the mortgage giant that’s now part of Bank of America Corp., routinely didn’t bother to transfer essential documents for loans sold to investors, an employee testified.
The testimony — which a New Jersey bankruptcy judge cited in dismissing a B of A claim against a debtor — could complicate attempts by the company to foreclose on soured loans that Countrywide originated and sold in better times.
The B of A employee’s admission that the lender customarily held on to promissory notes could also undermine the industry’s position that document transfers to securitization trusts are fundamentally sound.O. Max Gardner, a North Carolina consumer bankruptcy lawyer who was not involved in the case, called the testimony “a major problem” for B of A, which acquired Countrywide, the country’s largest servicer of residential mortgages, in 2008.
“These original notes were supposed to be transferred and delivered all the way up the line and for this witness to admit they were never transferred is pretty amazing,” Gardner said.“I’ve never seen this admitted anywhere.” …In a Nov. 17 ruling, Chief Judge Judith Wizmur of the U.S. Bankruptcy Court in New Jersey rejected Countrywide’s claim that it had standing to foreclose on a borrower who owed $211,202.41 on a Haddon Heights, N.J., home.
Countrywide originated and serviced the loan.
It securitized the mortgage in 2006 but failed to endorse or deliver the note and other related mortgage documents to the bond trustee, Bank of New York Mellon, the court found. (BNY Mellon had no comment on Friday.)Linda DeMartini, a supervisor and operational team leader in B of A’s litigation management department, testified that “the original note never left the possession of Countrywide,” and was instead transferred to the lender’s foreclosure unit, as shown by internal FedEx tracking numbers, according to the ruling.
DeMartini “testified further that it was customary for Countrywide to maintain possession of the original note and related loan documents,” Judge Wizmur wrote.
Attempts to reach DeMartini for comment were unsuccessful.
In private-label residential mortgage-backed security transactions, it was supposed to be standard practice for the sponsor of a securitized trust to physically deliver the original mortgage notes to the trustee or custodian at the closing of the securitization.
Typically, lenders endorse a mortgage note “in blank,” similar to a bearer bond or a check made out to cash, giving the holder any ownership rights.
“Most significantly for purposes of this discussion, the note in question was never endorsed in blank or delivered to the Bank of New York,” Judge Wizmur wrote.
Whether a servicer or investor has the standing to foreclose on a borrower has become a major issue since late September, when B of A, Ally Financial Inc.’s GMAC Mortgage and JPMorgan Chase & Co. first admitted problems with robo-signers — employees who signed thousands of foreclosure affidavits without personal knowledge of the borrowers’ debts and without signing in the presence of a notary.
Many defaulted borrowers and mortgage investors are now questioning whether mortgage documents were properly transferred, and whether servicers or third-party foreclosure attorneys may have fabricated documents in courts to prove underlying ownership of the debt.
Judge Wizmur wrote that, in a bizarre twist, Countrywide had filed a “lost note certificate” in 2007, claiming the original note had been “misplaced, lost or destroyed.”
But two years later, in September 2009, it suddenly found the note and attorneys were unable “to explain the inconsistencies between the lost note certification, Ms. DeMartini’s testimony and the ‘rediscovery’ of the note,” the judge wrote. …

http://www.scribd.com/doc/43554934/CASE-FILE-New-Jersey-Admissions-in-Testimony-Notes-Never-Sent-to-Trusts-Kemp-v-Country-Wide

Subject: RE: NDEX WEST CONFERENCE CALL. THEY SAY THEY MAKE NO MISTAKES—HAVE QUALITY CONTROLS—————- QUIET TITLE–A HOW TO DO WORKBOOKSecuritizations review of contract rigidness. Timely to read.

http://www.scribd.com/doc/43456962/Southern-California-Law-Review-of-Securitizations-Rigidness-of-the-Contracts-MORTGAGE-BACKED-Securities

Subject: NDEX WEST CONFERENCE CALL. THEY SAY THEY MAKE NO MISTAKES—HAVE QUALITY CONTROLS—————- QUIET TITLE–A HOW TO DO WORKBOOK

http://web.servicebureau.net/conf/meta?i=1113212017&c=2343&m=was&u=/w_ccbn.xsl&date_ticker=DM

Subject: QUIET TITLE–A HOW TO DO WORKBOOK

http://www.scribd.com/doc/43361724/Quiet-Title-Handbook

984 PAGES FOR QUIET TITLE. THIS IS THE REAL DEAL. JAMES M. DID DONATE THIS AN MANY OTHER AWESOME DOCUMENTS.

http://www.scribd.com/doc/43359200/Mers-Lobby-Efforts

MERS LOBBY EFFORTS

16 Responses

  1. After 11 months, BOA offered me a HAMP mod that was only $60 less than original payment. In the “Terms” of that mod,they have a stipulation where by accepting this modification, you agree to not question the original note. Not exact verbage but, it was close to that.

  2. CU Regulator May Go After MBS Underwriters
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    Tuesday, November 23, 2010
    The National Credit Union Administration is exploring legal remedies against firms that sold faulty mortgage backed securities that later played a key role in the failure of a handful of corporate CUs.

    Although the regulator would not discuss specifics, NCUA spokesman John McKechnie said the agency, “is taking all appropriate actions to preserve options to seek redress for the losses incurred in connection with the corporate failures.”

    Regarding the failure of WesCorp Federal Credit Union, the regulator is focusing attention on Wall Street underwriters that sold the California corporate CU MBS that later caused its failure. In particular, regulators are focusing on the relationship between the San Dimas-based WesCorp and Countrywide Financial Corp., which was located just 50 miles away in Calabasas. (See related story on this website.)

    Besides being an originator and servicer of prime and nonprime mortgages, Countrywide – a registered broker/dealer — was an active underwriter that ran an MBS trading desk. (In that regard, it is considered a Wall Street firm.)

    NCUA’s office of general counsel and attorneys at the Justice Department are sifting through the wreckage of WesCorp and four other corporate CUs to determine whether there are grounds to seek damages from underwriters and other outside parties that helped load them up with toxic MBS.

    A large concentration of WesCorp’s MBS was associated with a single entity: Countrywide. As of the annual examination periods between August 2004 and February 2008, Countrywide had the highest single concentrations as originator and servicer of the underlying mortgage collateral within WesCorp’s MBS portfolio.

    But it is not clear what role Countrywide-issued MBS played in the failures of U.S. Central FCU, Members United Corporate FCU, Southwest Corporate FCU and Constitution Corporate, which together with the failure of WesCorp are projected to cost the NCUA $16 billion to resolve.

    The Countrywide role is expected to be further probed more as the Inspector General conducts additional loss reviews on other CUs in the coming months.

    Countrywide was bought by Bank of America in August 2008 but it’s unclear how much legal liability the bank faces from business transactions entered into by Countrywide employees.

  3. Moody’s Takes Action on $19.1 Billion of CFC MBS
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    Tuesday, November 23, 2010
    Moody’s Investors Service Tuesday afternoon downgraded its ratings on 272 tranches of payment option ARM MBS issued by Countrywide Financial Corp. In total, $19.1 billion of securities are affected.

    In taking action, the rating agency cited “rapidly deteriorating
    performance of option arm pools in conjunction with macroeconomic
    conditions that remain under duress.” (It confirmed ratings on 15 tranches.)

    The POA MBS pools were issued between 2005 to 2007, at the height of the housing boom.

    Moody’s had marked down some of the tranches earlier in the year but on Tuesday some were rated as low ‘Caa3.’

    The agency said it now sees an increasing potential for a double-dip recession, which could cause a further 20% decline in home prices, versus its baseline assumption of a 5% further decline. “Overall, Moody’s assumes a further 5% decline in home prices with stabilization in early 2011, accompanied by continued stress in national employment levels through that timeframe,” it said.

    CFC was bought by Bank of America in August 2008. Bond investors are contemplating suing B of A, holding it responsible for what they say is poor master servicing done by CFC on the bonds.

  4. THIRD AMENDED COMPLAINT IN CALIFORNIA AGAINST BANK OF AMERICA, COUNTRY WIDE ON VARIOUS ISSUES INCLUDING VIOLATION CC 2923.5, NEGLIGENT MISREPRESENTATIONS, FRAUD, VIOLATIONS OF PRIVACY, SLANDER, B & P CODE 17200.

    WOW HOW TIMELY.

    http://www.scribd.com/doc/43894757/CASE-FILE-California-Class-Action-Paul-Ronald-Et-Al-v-Bank-of-America-Corporation-Et-Al

  5. If the feds were to do any checking on these trusts, should they also be asking to see the assignments of the Deed of Trust?

    Especially for any property that is close to the actual foreclosure sale, the county recorder’s office should have some of the assignments showing up. Only the assignments do not match up with the transfers that are spelled out in the PSA.

  6. June Reyno

    Before you do this – hope you force identify of the current creditor/debt collector. Because if they have been attempting collection/eviction without identifying themselves to the homeowner – they are in violation of federal law – and counter-claims should filed.

    And, if you “tender” any money to the wrong party – or unidentified party – you have not tendered money at all – you are simply throwing money away.

    Good luck at finding the real creditor.

    Stanley Putra,

    Try “fraud upon the court” – check the time limits for fraud upon the court.

  7. i am seeking more information on how to obtain this book under subject: QUIET TITLE-A HOW TO DO WORKBOOK, AND ALSO 984 PAGES FOR QUIET TITLE, THIS IS THE REAL DEAL, JAMES M .DID DONATE. any help on how i can purchase the abov e two items, larry 417 833-3358

  8. Let’s just do what appears to be right in the debt collector’s mind and in the eyes of the court and judges and just give them what they want! The money they are alleging you owe them for the house or they will begin eviction proceedings!!

    We can have the money ready on the table to tender on your behalf at a fair cost.

    Why not just give them what they want? No more controversy. Solved. Give them the money! No more having to go before a Judge with a million paper cuts so that the Judge decides who is right and who is wrong unless a greater controversy is added which can and oftentimes does unfold in the process.

    Call us for the help on the tender issue. This is made possible with the help of caring people who have made it possible for you to provide them the money they want in order to stop the eviction or a trustee sale. We want to work with you at a fair cost to keep you inside your home and not lose your house before or after the trustee sale. After we show you how we do it, we hope you will show others how they can salvage their homes from the greedy clutches of the banks.

    We can help you put up the money and try to put things back in order for you and them; and, create a new loan that is affordable for any distressed homeowner. A new loan that is not set (as like the Banks engineered would happen) for you to fail or that you may not be able to make payments in the future because of economic hardships.

    National Alliance of Homeowners for Justice, Inc. june.reyno@gmail 858-361-2399

    Before calling, please gather for us copies of your Notice of Default, Notice of Trustee Sale, your mortgage statement , current market value report and your diabolical mortgage contract.

    We require the same information for those families who have been evicted and foreclosed by the bank’s and their servicing companies. Our recent launch on this nationwide program is now available to assist families facing imminent eviction pre and post foreclosure conditions.

    Please remember, that if you agreed to a loan modification you just made it eas[ier] for the banks to take possession and foreclose on your house because you admitted you cannot make your mortgage payment. They had you sign something admitting to that Right? It’s a rat hole trap.

    We can help you obtain remedy even after sheriff’s eviction or if the banks and their servicers have thrown you out to the street curb and left without a place to go.

    It is our recommendation that homeowners across America take remedial action at least 1 to 2 years before your alleged debt obligation goes to fault. Can never start too early to fix your mortgage payments.

  9. Let’s strike the “may” from our vocabulary shall we? We know that these are criminal activities and Securities violations are that which they don’t want people to know.

    It is not a question whether or not the NOTES are voidable. It is VOID along with all other Judgments by the courts because they lost all rights when they transferred the note under UCC 3:104 attaching an illegal rider.

    Wall Street altered the instrument and the DOT’s extinguishes the equity of redemption. DOTs are unconcsionable contracts! All states should conform to the laws and do away with them.

    The note is the “worker” to collect under UCC3-106. And… to collect YOU HAVE TO BE THE HOLDER IN DUE COURSE. THE HOLDER HOLDS THE ORIGINAL BLUE WET INK [YOUR] SIGNATURE. IF THEY ARE NOT THE HOLDER THEY CANNOT FORECLOSE UNDER THE LAW.

    THEY WERE NOT THE HOLDER IN DUE COURSE BECAUSE MERS BURNED THE TITLES.

    UNFORTUNATELY FOR SOME, EVEN THOSE WHO THINK THEIR HOUSES ARE PAID OFF CAN STILL HAVE THEIR HOUSES TAKEN AWAY FROM THEM. SAD TO SAY.

    Call and let us pay off your alleged mortgage balance and let us help you stay inside your home avoiding foreclosure and stopping Sheriff eviction. Hear the success stories from homeowners who have sought relief under our affordable and flexibly oriented program. We have the time tested proven strategies that can help you to stay in possession of your home. For those of you who are fighting this battle thinking there is no relief in sight–give us a call to learn about our programs to assist you.

    YOU ARE RUNNING OUT OF TIME!

    858-361-2399 National Alliance of Homeowners for Justice, Inc. June.reyno@gmail.com (please copy paste this add if you send me e-mail expressing interest) .

  10. FOLLOW UP OF MABRY CASE IN CALIFORNIA. CASE REMANDED TO SUPERIOR COURT AND THE FINDING IN THE SUPERIOR COURT ORANGE COUNTY FINDS THAT LENDER DID NOT COMPLY WITH CALIFORNIA CODE 2923.5 AND THAT THE LENDER MUST COMPLY AND START THE PROCESS OVER.

    http://www.scribd.com/doc/43784445/Mabry-Decision-After-Appeals-Court-remanded-Court-finds-that-there-was-non-compliance-with-Califronia-Code-2923-5

  11. Sir
    I talked with an attorney in WIS. about standing. Lasalle bank did not have standing to file. They received a judgement before they were assigned the mortgage. Once a year passes I can not open
    the judgement except for certain circumstances.
    I believe the judgement can be void at any time because the court has no jurisdiction because the Wis Statutes do not address foreclosure by a non standing entity entity. But he says there are time limits. I say no. I do not have to follow and illegal order and the plaintif can not fabricate standing.
    The court didn’t do its jo and check standing from this foreclosure mill. I argued that even if I lose , the judge shoule check standing from then on instead of rubber stampimg everything the foreclosure mill submits.
    Stan
    Wisconsin

  12. kac

    Good point. And, also easy for investigators to get Trustee ledgers as to remittance of mortgage payments by servicer to trustee.

  13. one would think it would be easy enough for the feds to get a warrant, show up at the Trust and see just what they have on hand for notes–if they’re not there today, and they show up tomorrow, wouldn’t that prove deceit? Likewise, if they get a warrant and show up at Countrywide and they’re there, viola, they were not transferred to the trust….

  14. Hi Don-Ca, If facing NOD you must plead tender ability and plead amount you will tender.Example, you owe $200,000.00 but with TILA claim you owe $50,000.00 or plead nothing owed if other damages are available. You must plead how you will pay the balance if successful. If your not facing a NOD there is Ca case law that says not needed.

  15. As quiet as it’s kept, I think that Citimortgage, Inc., did the same thing with their mortgages. I don;t think their mortgages were ever consummated, never endorsed or properly transferred.

  16. Anyone know how to deal with the tender issue in CA Quiet Title actions?

    There is language in 15 USC 1635(b) that says “Upon the performance of the creditor’s obligations under this section the obligor shall tender the property to the creditor, except that if return of the property in kind would be impracticable or inequitable, the obligor shall tender its reasonable value. (the home or the money (refinance))

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