BB&T PRIVATE LABEL SECURITIZATIONS

ONE ON ONE WITH NEIL GARFIELD ONE ON ONE WITH NEIL GARFIELD

COMBO ANALYSIS TITLE AND SECURITIZATION

BB&T is knee deep in securitizations but it appears that nearly all of them were “private label” meaning they were not registered directly with the SEC. Hence our normal search engines are unable to find the actual securitization documents. A sweep of foreclosures in your area might reveal the underwriter (BB&T may have been the underwriter itself) or the Pooling and Servicing Agreement. We are continuing the research. Anybody with additional information please write in.

Based upon an examination of the 10k (Annual Report) of BB&T the odds are 6:1 that their involvement in a loan was the subject of securitization documents and the receivables from the loan were split up accordingly. This does not mean that in fact the loan was actually securitized — it just means that there are documents describing an “asset-backed” pool that claims to have the note and mortgage and claims an interest in the loan obligation. Based upon previous experience with thousands of such situations, it is unlikely that the the loan was ever actually transferred, delivered or indorsed or assigned within the 90-day limit imposed by the REMIC statute which is normally repeated in the Pooling and Servicing Agreement.

Thus the legal consequence could be (check with attorney) that the original lender of record could be wiped off the record with a quiet title action since they have no interest in the loan and would not contest that fact. Even if the declaration from the court was limited to the originator, it would give you an opportunity to show that that the note was made payable to a party who was not the lender and that the lender referenced in the mortgage was also incorrect. Thus the written instruments describe a transaction that never existed. The transaction that actually occurred was a loan to you by unidentified parties and is undocumented and therefore unsecured.

13 Responses

  1. Take a Look at IMF.. International Monetary Fund
    and the Bretton Woods Agreements…Federal Reserve Act..

  2. http://sanityisdead.blogspot.com/2009/03/prisoner-bonds-banking-and-slavery-of.html
    Rule 144 Holder?

  3. https://www.scottstringfellow.com/ss/
    BB&T Capital markets

  4. http://consusgroup.com/previews/137686/

  5. http://www.consumerdefenseprograms.com
    The original note can not exist because the loan has become a stock.

  6. http://www.wikinvest.com/stock/BB%26T_%28BBT%29/Loan_Securitizations
    BB&T CORPORATION AND SUBSIDIARIES

    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

    National Mortgage Association (“Fannie Mae”) and the Government National Mortgage Association (“Ginnie Mae”) and sells the resulting securities to third party investors. BB&T records loan securitizations as a sale when the transferred loans are legally isolated from its creditors and the other accounting criteria for a sale are met. Gains or losses recorded on loan securitizations depend in part on the net carrying amount of the loans sold, which is allocated between the loans sold and retained interests based on their relative fair values at the date of sale. BB&T generally retains the mortgage servicing on loans sold. Since quoted market prices are not typically available, BB&T estimates the fair value of these retained interests using modeling techniques to determine the net present value of expected future cash flows. Such models incorporate management’s best estimates of key variables, such as prepayment speeds and discount rates that would be used by market participants and are appropriate for the risks involved. Gains and losses incurred on loans sold to third party investors are included in mortgage banking income in the Consolidated Statements of Income.

    BB&T also periodically securitizes mortgage loans that it intends to hold for the foreseeable future and transfers the resulting securities to the securities available for sale portfolio. This is generally accomplished by exchanging the loans for mortgage-backed securities issued primarily by Freddie Mac. Since the transfers are not considered a sale, no gain or loss is recorded in conjunction with these transactions.

    Loan Securitizations

    BB&T securitizes most of its fixed-rate conforming
    mortgage loans, converts them into mortgage-backed securities issued primarily through the Federal Home Loan Mortgage Corporation (“Freddie Mac”), the Federal

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    Table of Contents

    BB&T CORPORATION AND SUBSIDIARIES

    STYLE=”margin-top:0px;margin-bottom:-6px”>

    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

    National Mortgage Association (“Fannie Mae”) and the Government National Mortgage Association (“Ginnie Mae”) and sells the resulting
    securities to third party investors. BB&T records loan securitizations as a sale when the transferred loans are legally isolated from its creditors and the other accounting criteria for a sale are met. Gains or losses recorded on loan
    securitizations depend in part on the net carrying amount of the loans sold, which is allocated between the loans sold and retained interests based on their relative fair values at the date of sale. BB&T generally retains the mortgage servicing
    on loans sold. Since quoted market prices are not typically available, BB&T estimates the fair value of these retained interests using modeling techniques to determine the net present value of expected future cash flows. Such models incorporate
    management’s best estimates of key variables, such as prepayment speeds and discount rates that would be used by market participants and are appropriate for the risks involved. Gains and losses incurred on loans sold to third party investors
    are included in mortgage banking income in the Consolidated Statements of Income.

    FACE=”Times New Roman” SIZE=”2″>BB&T also periodically securitizes mortgage loans that it intends to hold for the foreseeable future and transfers the resulting securities to the securities available for sale portfolio. This is generally
    accomplished by exchanging the loans for mortgage-backed securities issued primarily by Freddie Mac. Since the transfers are not considered a sale, no gain or loss is recorded in conjunction with these transactions.

    STYLE=”margin-top:0px;margin-bottom:0px”>
    These excerpts taken from the BBT 10-K filed Feb 28, 2008.

    Loan Securitizations

    BB&T securitizes most of its fixed-rate conforming mortgage loans, converts them into mortgage-backed securities issued primarily through the Federal Home Loan Mortgage Corporation (“Freddie Mac”) and the Federal National Mortgage Association (“Fannie Mae”), and sells the resulting securities to third party investors. BB&T records loan securitizations as a sale when the transferred loans are legally isolated from its creditors and the other accounting criteria for a sale are met. Gains or losses recorded on loan securitizations depend in part on the net carrying amount of the loans sold, which is allocated between the loans sold and retained interests based on their relative fair values at the date of sale. BB&T generally retains the mortgage servicing on loans sold. Since quoted market prices are not typically available, BB&T estimates the fair value of these retained interests using modeling techniques to determine the net present value of expected future cash flows. Such models incorporate management’s best estimates of key variables, such as prepayment speeds and discount rates appropriate for the risks involved. Gains and losses incurred on loans sold to third party investors are included in mortgage banking income in the Consolidated Statements of Income.

    BB&T also periodically securitizes mortgage loans that it intends to hold for the foreseeable future and transfers the resulting securities to the securities available for sale portfolio. This is generally accomplished by exchanging the loans for mortgage-backed securities issued primarily by Freddie Mac. Since the transfers are not considered a sale, no gain or loss is recorded in conjunction with these transactions.

    Loan Securitizations

    STYLE=”margin-top:0px;margin-bottom:0px; text-indent:4%”>BB&T securitizes most of its fixed-rate conforming mortgage loans, converts them into mortgage-backed securities issued primarily through the Federal
    Home Loan Mortgage Corporation (“Freddie Mac”) and the Federal National Mortgage Association (“Fannie Mae”), and sells the resulting securities to third party investors. BB&T records loan securitizations as a sale when the
    transferred loans are legally isolated from its creditors and the other accounting criteria for a sale are met. Gains or losses recorded on loan securitizations depend in part on the net carrying amount of the loans sold, which is allocated between
    the loans sold and retained interests based on their relative fair values at the date of sale. BB&T generally retains the mortgage servicing on loans sold. Since quoted market prices are not typically available, BB&T estimates the fair value
    of these retained interests using modeling techniques to determine the net present value of expected future cash flows. Such models incorporate management’s best estimates of key variables, such as prepayment speeds and discount rates
    appropriate for the risks involved. Gains and losses incurred on loans sold to third party investors are included in mortgage banking income in the Consolidated Statements of Income.

    SIZE=”1″>

    BB&T also periodically securitizes mortgage loans that it intends to hold for the foreseeable future and transfers the
    resulting securities to the securities available for sale portfolio. This is generally accomplished by exchanging the loans for mortgage-backed securities issued primarily by Freddie Mac. Since the transfers are not considered a sale, no gain or
    loss is recorded in conjunction with these transactions.

    SIZE=”2″>Mortgage Servicing Rights

    BB&T has two
    classes of mortgage servicing rights for which it separately manages the economic risks: residential and commercial. Beginning January 1, 2006, residential mortgage servicing rights are recorded on the Consolidated Balance Sheets at fair value
    with changes in fair value recorded as a component of mortgage banking income each period. In previous periods, residential mortgage servicing rights were recorded at the lower of amortized cost or market. Commercial mortgage servicing rights are
    recorded as other assets on the Consolidated Balance Sheets at lower of cost or market and amortized in proportion to, and over the estimated period that, net servicing income is expected to be received based on projections of the amount and timing
    of estimated future net cash flows. The amount and timing of estimated future net cash flows are updated based on actual results and updated projections.

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    BB&T CORPORATION AND SUBSIDIARIES

    STYLE=”margin-top:0px;margin-bottom:-6px”>

    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

    This excerpt taken from the BBT 10-K filed Feb 27, 2007.

    Loan Securitizations

    BB&T securitizes most of its fixed-rate conforming mortgage loans, converts them into mortgage-backed securities issued primarily through the Federal Home Loan Mortgage Corporation (“Freddie Mac”) and the Federal National Mortgage Association (“Fannie Mae”), and sells the resulting securities to third party investors. BB&T records loan securitizations as a sale when the transferred loans are legally isolated from its creditors and the other accounting criteria for a sale are met. Gains or losses recorded on loan securitizations depend in part on the net carrying amount of the loans sold, which is allocated between the loans sold and retained interests based on their relative fair values at the date of sale. BB&T generally retains the mortgage servicing on loans sold. Since quoted market prices are not typically available, BB&T estimates the fair value of these retained interests using modeling techniques to determine the net present value of expected future cash flows. Such models incorporate management’s best estimates of key variables, such as prepayment speeds and discount rates appropriate for the risks involved. Gains and losses incurred on loans sold to third party investors are included in mortgage banking income in the Consolidated Statements of Income.

    BB&T also periodically securitizes mortgage loans that it intends to hold for the foreseeable future and transfers the resulting securities to the securities available for sale portfolio. This is generally accomplished by exchanging the loans for mortgage-backed securities issued primarily by Freddie Mac. Since the transfers are not considered a sale, no gain or loss is recorded in conjunction with these transactions.

    This excerpt taken from the BBT 10-K filed Mar 10, 2006.

    Loan Securitizations

    BB&T securitizes most of its fixed-rate conforming mortgage loans, converts them into mortgage-backed securities issued primarily through the Federal Home Loan Mortgage Corporation (“Freddie Mac”) and the Federal National Mortgage Association (“Fannie Mae”), and sells the resulting securities to third party investors. BB&T records loan securitizations as a sale when the transferred loans are legally isolated from its creditors and the other accounting criteria for a sale are met. Gains or losses recorded on loan securitizations depend in part on the net carrying amount of the loans sold, which is allocated between the loans sold and retained interests based on their relative fair values at the date of sale. BB&T generally retains the mortgage servicing on loans sold. Since quoted market prices are not typically available, BB&T estimates the fair value of these retained interests using modeling techniques to determine the net present value of expected future cash flows. Such models incorporate management’s best estimates of key variables, such as prepayment speeds and discount rates appropriate for the risks involved. Gains and losses incurred on loans sold to third party investors are included in mortgage banking income on the Consolidated Statements of Income.

    BB&T also periodically securitizes mortgage loans that it intends to hold for the foreseeable future and transfers the resulting securities to the securities available for sale portfolio. This is generally accomplished by exchanging the loans for mortgage-backed securities issued primarily by Freddie Mac. Since the transfers are not considered a sale, no gain or loss is recorded in conjunction with these transactions.

    This excerpt taken from the BBT 10-K filed Mar 7, 2005.

    Loan Securitizations

    BB&T periodically securitizes mortgage loans and transfers the resulting securities to the securities available for sale portfolio. This is accomplished by exchanging the loans for mortgage-backed securities issued primarily by Freddie Mac. Following the transfers, the securities are reported at estimated fair value based on quoted market prices, with unrealized gains and losses reflected in accumulated other comprehensive income, net of deferred income taxes. Since the transfers are not considered a sale, no gain or loss is recorded in conjunction with these transactions. BB&T also securitizes and sells loans to third party investors. BB&T retains the mortgage servicing on loans sold and loans exchanged for securities, recording assets based on the allocation of the carrying amounts of the assets sold between the assets sold and the servicing rights retained based on the relative fair value of the assets sold and the rights retained. Gains or losses incurred on loans sold to third party investors are included in mortgage banking income on the Consolidated Statements of Income.

  7. It feels like 2007 all over again, what with Citi shutting hundreds of consumer lending branches and now BB&T exiting the wholesale mortgage channel.

    Liberty Mortgage Corp., a subsidiary of BB&T, appears to be shutting its doors, according to a memo obtained by National Mortgage News.

    Per their website, the company offered conventional loans, as well as FHA loans and VA loans, via the wholesale channel in “numerous states across the country” since 1958.

    The memo from Liberty Mortgage didn’t offer an explanation for the exit, but did say it will honor existing loan commitments so long as they close before August 1.

    It’s unclear how many layoffs will result, though the bulk will probably come from the company’s headquarters in Norcross, Georgia, where the sales, operations, underwriting, closing and administrative offices are all located.

    North Carolina-based BB&T is one of the largest warehouse lenders remaining, and may be choosing to focus on that segment of the business rather than the seemingly endangered mortgage broker business.

    Check out the latest list of mortgage layoffs, closures, and mergers.

  8. Wholesale lender Liberty Mortgage Corporation, the Atlanta, GA based subsidiary of BB&T Corporation, has announced it will be exiting the wholesale lending arena:

    “We are writing to let you know that Liberty Mortgage has decided to realign its resources and will exit the wholesale lending business. The timetable for Liberty’s business discontinuance is:

    * Last day to allow new loan registrations: June 2, 2010, 5 p.m. ET
    * Last day to lock or relock loans: June 30, 2010, 5 p.m. ET
    * Last day loans may be submitted: June 30, 2010, 5 p.m. ET
    * Last day to close loans: July 31, 2010, unless lock expiration is after that date. In those instances, the loans must close by the lock expiration date. There will be no extensions beyond July 31, 2010.”

    Sources that contacted us indicated this came as a complete surprise both to broker clients and the Account Executives at Liberty. We inquired with parent BB&T for more detail and were sent the following statements by VP of Corporate Communications Merrie Tolbert:

    “Liberty Mortgage Corporation and BB&T today announced plans to realign its resources and exit the wholesale lending business. By realigning those resources, we will be able to ramp up our commitment to correspondent lending which will increase our ability to grow the Mortgage Warehouse Lending division we gained from the Colonial Bank acquisition.”

    Tolbert indicated the 51 employees of Liberty were expected to transition to other positions inside the company. “Those who do not transition will be offered severance packages and are considered for open positions in other areas of the company. The Atlanta operations will remain in the current office,” she said. Peak volumes for the wholesale operation averaged around $240 million per month according to Tolbert, and recent production had dropped to half that amount.

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  10. Private Label means BB&T WERE THE UNDERWRITER, and Master Servicer, and Originator ( or a TPO ).

    Securitization or not, your assumption is 100% correct that the TRANSFER never happened!

    Another way to tell whether BB&T transferred ANYTHING is the Classic ” Blank Endorsement ” aka we fucked up on that 90 day cut-off, so we have to use the Classic UCC argument that is IF THE NOTE CAN BE FOUND.

    If there is a NOTE, the Originator has been sitting on it for years! After the Default, the Bank Attorney’s make is look like the TRUST had the note from day 1.

    Where you bust the UCC argument is plain and simple. GET THE DATE of the BLANK ENDORSEMENT ( if there is a note ), and you will see NOTHING WAS EVER TRANSFERRED!

    What you will see is FRAUD in the Complaint! Fraud in the LOST NOTE BS, and FRAUD IN THE AFFIDAVIT, and FRAUD IN THE ATTNY CERT! ( FL ).

    At that point its game over.

    Its the same BS over & over & Over!

  11. […] This post was mentioned on Twitter by Wanta Freedumb, Teri Sherwood. Teri Sherwood said: BB&T PRIVATE LABEL SECURITIZATIONS: http://t.co/aLDUbL1 #Quiet Title […]

  12. Gee, sounds like BB&T may have sold unregistered securities. Either the trusts would have had to be registered with the SEC (and possibly the states too, depending on the Blue Sky laws) or perhaps they fell under a private offering exemption such as Reg D (again state Blue Sky laws may apply).

    If you go to sec.gov, you can search for SEC filings. SEC Form Ds are now filed electronically. If the Form D was filed on paper (older filings), you can still request a paper copy from the SEC. I recently ordered a paper copy of a Form D filed by MERS several years back.

    I would also think that since these are securitized debt that there may be UCCs on file, if they were filed, that is. This would perfect the securitization.

    Of course, chances are they may not have done any of these things since there seems to be such indifference in even bothering to comply with federal and state securities laws, not to mention the Uniform Commercial Code.

    I am not a lawyer, but I’ve been a corporate/securities paralegal since 1981. I run a compliance consulting firm now, but I still consider myself to be a paralegal at heart.

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