Wishful Thinking From the Other Side: Fairy Dust

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

EDITOR’S NOTE:  Maybe some players will fall for this, but eventually they are going to be hit with a choice of two options (1) admit that  nearly all the loans have fatal flaws or (2) get the state legislatures to legitimize and reset all questionable title prior to an arbitrary date. These people can’t fix a bicycle tire much less the mortgage mess.

Mortgage title review service launched at ASF
by JACOB GAFFNEY
Tuesday, February 8th, 2011, 11:35 am

In the wake of the robo-signing scandal and recent court cases challenging mortgage paperwork, a new service being launched at the American Securitization Forum gathering in Orlando claims it can fix most errors in the mortgage title chain.

DKR Collateral Dynamics is a new venture being co-partnered by Jon Daurio, CEO of Kondaur Capital, perhaps the largest dealer in nonperforming mortgages in the country.

DKR offers collateral audit reviews, by going through mortgage and title paperwork, identifying any errors and working to patch the problems.

“We can cure the loan documentation more than 98% of the time,” Daurio said.

The paper work receives a “Collateral Dyna Rating” on a scale of A to F. Similar to a credit rating agency review, where risk of default is measured, the CDR measures the risk of the title ownership deteriorating for a mortgage servicer once foreclosure proceedings begin.

Daurio said the actual process is no different that the due diligence Kondaur completes on mortgages it is looking to buy. As proof of his system’s effectiveness, Daurio said that eight out of 10 times, he can take the title on the loans he buys.

In the other 2% of cases, the documentation is rated as a “FF” which stands for “fatal flaw.” This happens when DKR reviews the paperwork and finds “there is a real problem with the (foreclosure) affidavit,” Daurio said.

In other words, “if a judge calls you to the mat, you’ll be dead in the water,” he added.

Any results of DKR is discoverable in court, Daurio admits, but this can work to the servicer’s advantage.

On the downside, if a distressed mortgage borrower finds out his Dyna Rating is FF, he may be incentivized to aggressively pursue the servicer in court.

But Daurio said what is more likely, is that plaintiff’s attorneys will see that in most cases with a Dyna Rating, the loan is in the process of being cured and will move on to a less challenging court case.

Write to Jacob Gaffney.

Follow him on Twitter @JacobGaffney.

14 Responses

  1. ANONYMOUS- thanks for detailed explanation of tranche structure and related payouts.(I think I get it now) Can you also explain, again, how changing the account numbers,or the mortgage loan number, facilitates the title cleaning (laundering) DKR boasts about in this post. 98% is not rational,so it can’t be legal, without fabricated,forged,backdated documents, in my book.

  2. Oh yeah — and what made this easy??? Changing of account numbers.

  3. TMT,

    Thanks — and let’s not forget — insurance fraud.

  4. Kahane & Associates, Daniel Consuegra & Albertelli legal in Florida received letters from the Attorney General’s Office, Economic Crimes Division, under investigation along with Sterns Office. See Matt Weidner web blog

  5. ANONYMOUS
    Good analysis. Thanks.

  6. Why does Kondaur keep transferring my assignment from Kondaur to Quantum and back and forth? Is there any lawsuits that can help with this. Is there any fraud that they have committed that I can use in court?

  7. ALL NEW CENTURY MORTGAGE AND HOME123 VICTIMS—-IT IS STILL NOT TOO LATE TO FILE A PROOF OF CLAIM UP IN THEIR BANKRUPTCY.

    THERE ARE 11 OF US PRO SE’S FIGHTING THEM UP IN THEIR BANKRUPTCY IN DELAWARE.

    JUST YESTERDAY THE JUDGE SAID IN A HEARING HE IS STILL CONCERNED ABOUT THE ‘FLOODGATES OPENING’ FOR HOMEOWNERS.

    SEVERAL PRO SE’S HAVE GOTTEN CASH SETTLEMENTS OF OVER 60k AND OTHER HELPFUL AFFIDAVITS.

    YOU CAN STILL HAVE YOUR PROOF OF CLAIM AS TIMELY FILED. THE JUDGE ASKED OPPOSING COUNSEL JUST YESTERDAY IF THE NEW CENTURY MORTGAGE OR HOME123 CORP BANKRUPTCY WAS PUBLISHED IN FLORIDA. THE ANSWER WAS NO.

    CONSULT AN ATTORNEY RIGHT AWAY TO PRESERVE YOUR RIGHTS AND TO DISCUSS POSSIBLY FILING AN ADVERSARY PROCEEDING AGAINST THEM UP IN THEIR BANKRUPTCY.

    THEY STILL HAVE MONEY TO DIVVY UP.

    SOME OF US ARE ASKING FOR QUIET TITLE UP THERE.

    THEY ARE CONCERNED ABOUT THE FLOODGATES OPENING TO HOMEOWNERS!!

    IF YOU ARE PRO SE YOU CAN EMAIL ME AT carra2009@gmail.com and I can give you some basic information.

    ALSO—WAMU VICTIMS–WAMU IS ALSO IN BANKRUPTCY UP IN DELAWARE. YOU CAN DO THE SAME…..SO FIND YOUR ATTORNEY NOW.

  8. You judges should be upholding the law and not “industry practices.” You judges that are not upholding the law are nothing but a bunch of kawayu tsupis and are not worthy to wear the robe.

  9. Let’s not forget American Securitization Forum are the same folks that cranked out the “white paper” not long ago attempting to “white-wash” the whole securitization process and MERS as just one big financial system, too complex for the average Joe-blow non-lawyer to figure out. Yes, the DocX reference is dead on! There’s a lot of contrarian opinions published about the ASF white paper. No need to list them all here. Just Google ASF white paper dissenting opinions – to get some hits.
    uncledunc

  10. This “dyna rating” crap sounds as scammy as the FICO rating crap. I agree with you, Debi, sounds like a frankenstein reincarnation of DocX. But this is not capitalism, it is fascism.

  11. My question is: if the house is worth about 100k or less on the market, how much litigation can a servicer engage in before the litigation costs exceed the value of the house? This guy is just another s$%^&g debt collector creating more fraud on the court. Burmese8@yahoo.com

  12. Kondaur Capital is not just a dealer in non-performing mortgages – it is a “scratch and dent” buyer of non-compliant mortgage loans. Scratch and dent is not just for non-performing loans. Non-compliant means the loans were deemed unfit for earmarked securitized trusts. Loans were scratched for many reasons including — breach of representation, missing documents, violation of consumer protection laws at origination, early payment defaults (EPD) (often manufactured since there was no actual EPD), etc..

    Scratch and Dent happens at the beginning of the securitization process – the loan is removed from Mortgage Loan Purchase Agreements (which are usually just an “intent” to purchase) and from tentative Mortgage Schedules.

    No one knows if loans are removed from targeted trust purchase since Mortgage Schedules are not updated to reflect scratch and dents (SD). Although the market for SDs was huge, I have never seen a court case, or a foreclosure action, in which the scratch and dent buyer is revealed. Since SDs also include performing mortgages in which certain documents such as mortgage title insurance are missing, even borrowers that are paying likely have invalid mortgage title.

    The reason Mr. Daurio thinks he can fix mortgage title is because Mr. Daurio is aiming to continue to conceal mortgage title. His reasoning stems from a long standing practice to name the past creditor – and not the current creditor – in legal actions. Of course this is in violation of the law — but courts buy it because a false creditor “bank” is named in the process — and because courts have a preference to rule against borrowers who they believe — “owe the money.”

    Mr. Daurio’s reference to “being cured” — simply means “conceal some more.”

    .

  13. Doesn’t this mean, “we can fix the fraud”. Sound familiar? This sounds like an advertisement for LPS! Kondour is pond scum. They are leaches in the foreclosure meltdown. They are the true vultures. Their tactic??? Scare the homeowner to death and offer them cash. I know of several Kondour suits right now where they pretend they own the loan AFTER its changed servicers several times—its like a fumble that the play was already ruled an incomplete pass. They are crooked and use fraud as their weapon. Is this what capitalism means?? God, please bless America- the vultures are taking over !! Debi

  14. At best, a feeble attempt by the American Securitization Forum and DKR to claim such a feat.

    The bank attorney I spoke with told me there is no way that any lender involved in a faulty chain of title can fix or reverse engineer a title that has serious clouds on it. This especially applies to assignments of mortgage that are suspect of backdating to serve a purpose; use of parties who did not have personal knowledge of the transaction and mortgage files at the time the new documentation was drafted and recorded; and wherein the notarial executions are suspect.

    In the cases I am currently asked to review, there are serious chain of title issues in appointment of successor trustees and assignments coming afterward; or in mortgage states, assignments that disconnect the entity through MERS’s agents, operating under a flawed signing agreement.

    There is no signing agreement with MERS that can effectively indemnify it. If a corporate resolution claims to do otherwise, then it is flawed. This is what we’re seeing and what is currently being challenged in the chains of title in the lawsuits currently filed.

    DKR sadly, will find itself in the same boat as IBM, having incomplete paperwork and flawed chains of title in which defense is impossible. This is all meant to discourage the homeowner from pursuing chain of title issues in court. All the lender still has is their “conscionable note argument” with no basis in fact when compared to where it flows from the warranty deed.

    Find out more about chain of title issues at http://www.cloudedtitles.com … this is not legal advice. The information is gleaned from research and applicable events that continue to unfold.

    February should pose some interesting developments in the quiet title cases that are ongoing that I am involved in.

    Dave Krieger will be live on The Power Hour on Monday, February 21, 2011 at 9:00 a.m. (CST) to discuss the most recent developments with host Joyce Riley. Dave will have Seattle attorney Matthew Hale on as his guest to talk about a lawsuit filed that pits the investors against the borrower while sandwiching an apparently defunct Wall Street trust in the middle with the servicer. We are NOT discussing securitization, we are discussing how agency law and real property law come into play here and you can bet we’re attacking those pesky indemnification agreements as they relate to principal-agent relationships. Hear the broadcast streaming on http://www.thepowerhour.com.

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