Banking, & Insurance & Real Estate Frauds: HOW TO USE INFO FROM SECURITIZATION RESEARCH

SUBMITTED BY MARY COCHRANE

Banking, & Insurance & Real Estate Frauds

Substantive omissions of material facts during origiantion mask deceptive acts.

Largest producer of non-conforming mortgage products (Originations & Servicing) sells discounted loans.

Real Estate Industruy of the United States controlled by ‘private brand label’ Wells Fargo, who allows their valuable trade name to mask the real entities who take residential property into the pipeline.

One mortgage at a time the ‘SELLER’ Wells Fargo sells discounted loan#’s wholesale. ‘BUYER’ purchases the ‘loan#s’ and in agreement sells back right to service ‘Loan#’s”.

SELLER collecing moniies from consumers.

Skip to default event, consumer late 90 days.

The SELLER, is the Origination LENDER on the Mortgage, and document custodian for BUYER, and SERVICER. I asked myself why the SERVICER did not process the ‘Loan#’ against the real ‘loan trust’. The only reason they create a new Loan using the same Loan#, and clearly with intent planned in the event of a default, they would reference a loan trust that the loan# did not appear inside of the PSA. Could Foreclouse Gate really be Banking & Insurance Frauds? Claims paid through ERRORS AND OMISSIONS POLICIES.

Does the BUYER get notified of the DEFAULT event? I would say yes. Does the BUYER process insurance claims against the sameLoan# for a different loan trust the loan# actually is placed within, YES.

MASTER SERVICER BUYER & MASTER SERVICER SELLER each have a loan trust that each other can play off of the ‘Errors and Omissions Policies.

Each Master Servicer able to ‘keep the property’ and keep the insurance claims and note of the currency gets to the investors. That is what the RECONSTITUTUED SERVICING AGREEMENTS and SUBSTITUTE TRUSTEES benefit from.
Its huge. 95% of the foreclouses uncontested.

Wells Fargo Home Mortgage Institutional Lender is responsible for SERVICING (Des Moines Iowa). The Executive Specialist of ’708′ Lehman Brothers ‘loan#’ pulls the RECONSTITUTED SERVICING AGREEMENT and creates the ‘robo’documents’ to process the complaint of foreclouse.

The Credit Risk Manager tracks the ‘forecasted foreclosures’ for the new ‘loan#’ (which may just be an A/R account not a real financial product.

The private members of the Financial Exchance collaborated and figured out a way to profit from the valuable ‘ERRORS & OMISSIONS POLICIES’.

The SERVICER is the Credit Risk Manager , DOCUMENT CUSTODIAN, Lender. The only meaty unlawful act is the intent of the reconstituted agreement to place an insurance claim for a loan# that was never in the PSA.

The same loan# used in Origination so the BUYER is setup in a different loan trust using the same loan# and processes insurance claims for credit enhancements.

30 Responses

  1. Mary, John and UsedCarGuy,

    I just came back to this particular blog and saw your comments. Thank you!

    As it turns out, Guaranty Bank out of Wisconsin pretended to be the “Servicer” and GN Mortgage pretended to be the lenderout of Woodland Hills, CA. However, we recently discovered that Stewart Title stamped “Wells Fargo” on our Deed of Trust prior to them recording it without our knowledge.

    In the Trust Wells Fargo Alternative Loan 2007-PA3, Aka: Wfalt 2007-pa3 or Wfalt 2007-pa03, Guaranty Bank shows as a Corresonding Lender in the trust documents.

    Now, GN Mortgage, LLC was a subsidiary of Guaranty Bank.

    I have found many of the investors…many of which are other trusts such as a JP Morgan Trust. The largest investor appears to be Morningstar.

    The other interesting thing here is that I also found a document in the trust that showed that all of the interest in the loans was sold to Credit Suisse (USA). The entire pool was sold to them as an underwriter…I don’t understand that.

    All the loans were designed to fail, I just wish that I could prove it with Credit Default Swap agreements on this trust.

    In the BK, HSBC is stating that they are the Trustee for the Certificate Holders of WFALT 2007-pa3…they don’t quite use the exact name of the trust.

    We also just realized that in the only modification that we were offered we went from a 10 year interest only loan to a 10 year interest only loan now bearing interest with a forebearance agreement on top of it!

    They’ve also charge us $650…for what…we don’t know.

    We thought we did a down payment of $120,000…they applied it to “good faith.”

    Does anyone know how to get a copy of your appraisal? Would the original bank have it, Wells Fargo, Stewart Title? Oh, not to mention that the is still a $100,000 lien on our house from the previous owners that was never reconveyed. They expected us to fail, so I guess they didn’t care.

    If anyone would like to compare notes, email me at KPPI2U@gmail.com.

    Thanks all!

  2. Mary, John and UsedCarGuy,

    I just came back to this particular blog and saw your comments. Thank you!

    As it turns out, Guaranty Bank out of Wisconsin pretended to be the “Servicer” and GN Mortgage pretended to be the lenderout of Woodland Hills, CA. However, we recently discovered that Stewart Title stamped “Wells Fargo” on our Deed of Trust prior to them recording it without our knowledge.

    In the Trust Wells Fargo Alternative Loan 2007-PA3, Aka: Wfalt 2007-pa3 or Wfalt 2007-pa03, Guaranty Bank shows as a Corresonding Lender in the trust documents.

    Now, GN Mortgage, LLC was a subsidiary of Guaranty Bank.

    I have found many of the investors…many of which are other trusts

  3. In the MERS deposition they ask “Are you familiar with the concept of selling assets into a Bankruptcy Remote Vehicle such as a trust for the benefit of the investors in the assets of that trust?” Bill Hultman from MERS replies “If your asking me if im familiar with how special purpose vehicles are used in the securitization process, the answer is , yes”

  4. Please read the MERS deposition from William Hultman, Treasurer of MERS, They have to provide a Special Purpose Vehicle, albiet a bankrupt special purpose vehicle to appear that the loan is moving out of the Pool and hands and assign the mortgage so a party can steal, i mean , foreclosue on a property. READ IT HERE, it is very very informative.
    http://4closurefraud.org/2010/08/27/full-deposition-of-william-hultman-secretary-and-treasurer-of-merscorp/
    or
    http://stopforeclosurefraud.com/2010/06/02/deposition-of-a-real-vice-president-of-mers-william-bill-hultman/

  5. usedkarguy, on March 21, 2011 at 4:38 pm said:

    Herman John Kennerty just signed our assignment in April of 2010, Peter, for Wells Fargo Home Mortgage to HSBC. 5 years after closing date of trust, 14 months after F/C filed.

    You “Need more details”

  6. neidermeyer, on March 19, 2011 at 5:06 pm said:
    Do we have a cross reference on WF loan numbers and who may be the real “investor” mine is listed in a 2007 trust.

    “Neidermeyer” I’ll be happy to provide whatever details I Can find but need info from you. Feel free to call 973-347-3475.

    Have your MIN# you can identify the
    “MERS MEMBER” and SalesAgreement#

    First 7 Digits are the MERS MEMBER
    Last Digit a control #
    Balance the SalesAgreement

    https://www.mersonline.org/mers/mbrsearch/mbrsearch.htm

    SERVICER:
    https://www.mers-servicerid.org/sis/

    Note: The Loan# may never have been placed into a loan trust.

  7. Herman John Kennerty just signed our assignment in April of 2010, Peter, for Wells Fargo Home Mortgage to HSBC. 5 years after closing date of trust, 14 months after F/C filed.

  8. Steve,

    Believe fraud in loans originated included lender placed insurance/PMI fraud. Servicers did not allocate mortgage loan payments properly — thereby — falsely putting borrowers into default — even though they were not in default. Many Fannie/Freddie loans falsely placed in default.– and any refinance after that — was not a mortgage.

  9. There’s a pattern going on here.

    Peters Loan

    1. Guaranty Bank (Servicer)

    2. GN Mortgage LLC =
    3. Subsidiary
    4. Bankrupt
    5. GN Mortgage, LLC at local county records

    My Loan

    1. AHMSI (Servicer) =

    2. American Brokers Conduit
    3. Subsidiary
    4. Bankrupt
    5. American Brokers Conduit at county records

  10. ANONYMOUS,

    in my own loan, ABC is origination lender issuing a loan # on my documents. Before making first payment it is directed to make payments to AHMSI under a new loan #. The PSA shows no loan #, only zip code and purchase amount to find my own loan.

    ABC is an affiliate, subsidiary, d/b/a for AHMSI

    Are they referencing that the 1st loan # is not in the trust or the 2nd?

    Wells Fargo was my Master Servicer and I did learn there was a Lender Paid PMI policy between AHMSI and Wells that I was never informed of. Are they saying that my 2nd loan # was used to collect PMI insurance and that my 1st loan # was placed or sold in another trust to collect more insurance?

  11. We got a 10-year interest only loan through a Wells Fargo correspondent Guaranty Bank out of Wisconsin. However, the “Lender” on our docs was GN Mortgage, LLC (a subsidiary of Guaranty Bank) in March 2007. The mortgage broker told us we could refinance into a fixed loan after we sold our other house. Well, within a month, we lost equity in both homes and couldn’t refinance.

    Our loan # is in Wells Fargo Alternative Loan 2007-PA3 Trust. The Deed of Trust still sits in the name of GN Mortgage, LLC at local county records.

    Here’s the catch, my husband filed Chapter 13. We received assignment documents from Pite Duncan, LLP assigning from GN Mortgage (no longer in business) to Guaranty Bank signed by Robo-Signer John Kennerty on July 13, 2010.

    The next assignment is from Guaranty Bank to Wells Fargo Bank, NA on July 28, 2010.

    Then from Wells Fargo Bank, NA to HSBC as trustee for. The Certificate Holders of Wells Fargo Alternative Loan 2007-PA3 on JULY 13, 2010!!!

    Apparantly, there is a lawsuit going on with this trust, but I can’t find the info on it.

    The trust is no longer reporting and I’ve found SEVERAL investors or bond holder of the various classes within the trust. The largest being Morningstar.

    So, here is another kicker, all of the loans in the trust were sold to Credit Suisse. Would that be a Credit Default Swap deal?

    ALSO VERY IMPORTANT: When I received the documents from Pite Duncan, the original loan numbers from Guaranty Bank we all whited out. Anyone know why?

    We have an idiot of a bankruptcy attorney that won’t respond to my questions. Shoulkdn’t he have contested the assignments submitted to the trustee? The trustee just ignored them and so did our attorney.

    Wells fargo signed us into a loan modification with a forbearance agreement, which leaves us in a worse position…BUT, according to the assignments, they didn’t even have an interest until AFTER the so-called loan mod took place. We an’t even understand the terms of the loan mod, nor could our BK attorney.

    Anyone have a document (most likely a Note) signed by Joan M. Mills? I don’t think that she really exists.

    Oh, one more thing…Just prior to recording our original documents, Stewart Title stamped, Payable to Wells Fargo Bank, NA without our knowledge.

    Lastly, we have a $100,000 ien from the previous owner that was never reconveyed bt PNC. I called Stewart Title and they said we’re only protected when we sell the house…it’s not an issue right now.

    Is there a REAL attorney out there that is TRULY on the side of the homeowners that GETS it and migh be able to help? We’re in the Los Angeles area. Honest attorneys seem to be difficult to come by around here.

    Please let me know if you have come across any docs where your original loan number has been whited out. KPPI2U@gmail.com

    Thanks!

  12. i recently received a call from a company called PMI, they were interested in my problem and why is it that i was in default , i explained to them that my originator bank was citi thru Freddy Mac and that i have defaulted because there were some title issues that were not clear and i did not wanted to spend 30 years paying for a mortgage that citi could not give me a Satisfaction of Mortgage to. This is where the fun starts , the lady on the phone says, “Well we have an interest in the loan as well , since you defaulted on your payments , we had to pay out the full amount of the loan to citi, we are an insurance company that covers for the amount of the loan 100% if the homeowner defaults”, the first thing it hit my mind was…… “isn’t that a Side BET Miss, and if you guys paid citi, why is citi trying to foreclose on me when they were paid in full by you guys”. The lady at that point hung up the phone and the phone went dead. WHAT A LOAD OF CROOKS!!!

  13. Steve

    You write — “I’m thinking all the loans being refinanced had to do with it did not have to be reported to the Home Mortgage Disclosure Act”

    Non-disclosure is right — and more than just the HMDA..

  14. edgetraderplus,

    This has got to change. New approach — the longer we keep going — the more chance for them to mess-up.

  15. Mortgage Brokers are the ones who carry Errors and Omissions Insurance and lately it has been recommended that real-estate agents carry the same policies. Lenders are the ones who take out ALTA lender title policies. I don’t think Errors and Omission policies are related to lenders.

    I’m thinking all the loans being refinanced had to do with it did not have to be reported to the Home Mortgage Disclosure Act. The HMDA only keeps records on mortgage application originals. Not refi’s. This might be the back door to getting the fraud loans approved( pg.46).

    http://www.federalreserve.gov/pubs/feds/2005/200541/200541pap.pdf

    I apologize if I’m on the wrong track here but I think the Errors and Omissions policies are causing confusion. I tried to hire a lawyer to go after my mortgage brokers policy but with all that Obama modification financial crisis Bull the lawyer thinks too much time has passed since 2006. We already knew they’d win buying time and ignoring the borrower.

  16. Sunday 20 March 2011

    The labyrinthine explanations of “who” really did what by the “real insiders” of “how it really happened” changes weekly.

    The KISS principle of who loaned what, along with faulty assignments, all of which are supported by valid case law that will stand up in court, is being lost in the rabbit-warren articles that do nothing to make a win in court.

    Rah-rah is becoming blah-blah.

  17. cubed2k and BSE

    Neil writes in his post today — “In most cases the asset pools were never actually created. In most cases, nothing was put in them except some money from sale of credit default swaps..”

    And, as I have stated before, Louis Ranieri- father of subprime securitization — as stated that the bottom tranches to trusts were sold first – and the banks kept the upper tranches. The bottom tranches were sold cheaply — not much principal proportionally as compared to the top tranches. We know, already, that the security underwriters (subsidiaries of parent bank) purchased the securities from the trust after banks purchased the loans from originators. This means, – the pools to SPV trusts were only funded by credit swaps — actually the bottom tranches – from which value was derived only by collection rights. The bottom tranches are “credit enhancers” to the trust — taking the “hit” for defaults to protect the upper tranches and, as they take the hit — collection rights are swapped out of the trust — to the swap holders.

    So nothing was actually funded. How did this happen with actual loans?? Easy – if loan was a refinance. Borrower is placed in default — by whatever method – on prior loan – just before refinance is closed. If prior loan was in a trust — which could have been a Fannie/Freddie — borrower is reported as in default – insurance collected (different ways for insurance collection)- and prior trust never paid off by YOU — it is only “satisfied” by the insurance. As I have said before “PAID” by you and “Satisfied” — are NOT the same thing. Even though your refinanced loan is earmarked for a trust – thus, possibly in Mortgage Schedule — it will never be accepted into the trust because the loan is already in default — no can do – for a REMIC.

    cubed2k — this was the case for many refinances — that is — it would take a long time. Closing dates would be also be changed. Borrowers would be told that this was due to “funding” issue.
    Given the above scenario — all that need to be funded of the refinance was any “cash-out” that borrower received – (any credit card debt that was already in default — did not have to be actually paid). This means debt collectors working with banks to secure the subprime refinance.

    All of this makes sense – because subprime loans (and nearly 100% were refinances) were loans to borrowers with poor credit to begin with. The mortgage loans granted by the subprime “lender” — would never qualify as Freddie/Fannie MBS — and could only be securitized (anything with cash flow can be securitized — but MBS required triple A rated) as a default debt.

    Trustee to prior trust — before refinance — likely the same trustee to trust they claim you are currently in. And, trustee is likely the swap administrator trustee. Have seen foreclosure attorneys try to avoid naming the stated trust — and only name the “trustee.” There is a reason for this — as described above. But, of course a trustee has to be trustee to a trust — so they have to name the trust. Does not matter which trust they name — given the above scenario — you are in default to both prior trust (not paid by you – but should have been paid by you by refinance) and, of course you are in default to earmarked second trust — because loan is kicked out.

    Am not saying this occurred for everyone — but believe this was very prevalent.

  18. This is a one the most interesting postings of the year and important to understand.

    Per ANONYMOUS,This is all regardless of who funded ANYTHING –NOTHING was funded — you were already in default!!!!!!!!!!!!!!!!!!

    Very interesting. If any one like Neil or Anonymous could explain in layman terms I would really appreciate the input.

    Thx

  19. Anon, when we refinanced and we did a few times, it would take about a month or so. So what was going on behind the scenes? Why so long? Now that I think about it.

    Today on KGO 560 in Calif SF area, they talk real estate. Today they had on the manage of Real Estate for BofA talking. I didn’t hear but the final end, but they were talking about short sales. Basically the BofA guy said we really do help home owners in short sales and want to see it go thru. But, buyers you should know we short sale at market price so don’t expect a buy low deal. And then they talk and say it helps present home owners in the neighborhood, and we don’t want to depress the prices and so on. What a bunch of BS. Man, these guys are experts at PR BS. They just want to keep the sale prices inflated, apart from free market forces, so as to keep their MBS game fulfilled.

  20. received back from my servicer copy of Interest Only Fixed Rate Note, Deed of Trust and copy of letter of Transfer of Servicing Notes.

    We specifically asked for documents that state they are entitled to collect or service this loan from Fannie Mae.

    But what I find interesting is that the copy of the Interest-Only Fixed Rate Note,

    last page at near bottom states “Pay to the order of: a line for signature, below “Without Recourse”, below Sterns Lending, below BY: line for signature, below Name and Title, place for signature.

    Then that above statement is rubber stamped diagonally “VOID”.
    And stapled to that is a copy of a piece of paper marked “Without recourse pay to the order of JP Morgan Chase Bank, NA, Stearns Lending, signed by Judy Smart, Assistant Secretacy.

    So what the hell is that? Means as far as I can tell Stearns Lending was in fact not the actual lender. Why is it stamped void. Servicer must have gotten this from the title company?

    Anybody know?

  21. This is important —

    Quote — from Mary —

    “One mortgage at a time the ‘SELLER’ Wells Fargo sells discounted loan#’s wholesale. ‘BUYER’ purchases the ‘loan#s’ and in agreement sells back right to service ‘Loan#’s”.

    WHO IS THE BUYER???

    And, in the process — prior trusts – before refinance — is not paid — BY YOU– it is paid by insurance — even though YOU refinanced and signed mortgage documents that the prior “lender” was paid — by YOU!!!!

    You are already in default — BEFORE you even actually default!!!!!!!!!!!!.

    And, because you were in default — before you defaulted — (because prior trust not paid off by your refinance) — your refinanced loan can never be securitized into the trust that “servicer” currently states — owns the rights to your loan!!!!!!!!!!

    This is all regardless of who funded ANYTHING —
    NOTHING was funded — you were already in default!!!!!!!!!!!!!!!!!!

  22. I’ve been on this Wells/Lehman/Citi/Bear Stearns/HSBC connection for three years!

    Douglas? SYNONYMOUS?

    I’m there, baby!

    Mary? Where’s Mary?

    Anybody ever heard the phrase “Bucket #3”?
    That’s a bunch of uncollectable defaulted debt you carry as an asset.

    Wells is now selling new securities based on modified debt, or this is a blanket addendum to all the certificates to failed/defaulted MBS certs? They are running around scarfing up assets that were left behind from the “Citigroup Writes Down $62 Billion” episode in Sept 08 (?). Remember, Lehman, then Bear, collapsed. Wells and Goldman scooped up the poop knowing they would collect through AIG getting bailed out.

    Wells has their hands in most of this crap. Between them and HSBC, they’re taking most of this real estate (in their names, at least). In Chicago, Wells is abandoning most of properties on the south and west sides after eviction but before title transfers. This is turning Chicago, St. Louis, Milwaukee, and other cities into carbon copies of Detroit.

  23. Mary, where have you been all my (mortgage) life?
    WFHET05-2
    HSBC as Trustee,
    Wells Fargo Asset Sec. Corp. 1999 Trust (Norwest Asset Sec.), HSBC as Trustee
    2 loan numbers (708)

    I keep putting up a link for the S-3A, new PSA, reads like a resecuritization of modified loans.

    is there a problem with posting these links?

    http://www.secinfo.com/$/SEC/Documents.asp?CIK=1011663&Party=BFO&Type=S-3&Label=Registration+Statements+for+Securities+Offered+Pursuant+to+Transactions+–+Form+S-3

  24. let’s try this again: This filing: ‘S-3/A’ — # 0000914121-11-000060 @ 110310-160939 —

    http://www.secinfo.com/$/SEC/Filing.asp?D=RSm6.q1j&CIK=1011663

    Filer: Wells Fargo Asset Securities Corp [ formerly Norwest Asset Securities Corp ] —
    http://www.secinfo.com/$/SEC/Registrant.asp?CIK=1011663

  25. neidermeyer

    We have nothing.

  26. Do we have a cross reference on WF loan numbers and who may be the real “investor” mine is listed in a 2007 trust.

  27. THANK YOU — MARY!!!!!!!!!!!!!!!!

  28. some weekend NEWS :

    WaMu’s advertising slogan, “The Power of Yes.”
    http://www.courthousenews.com/2011/03/18/FDICWAMU.pdf

    May be the State Attorney wait for the paper already : http://www.courthousenews.com/2011/03/18/FannieMae.pdf

  29. Wells Fargo Asset Securities Corp [ formerly Norwest Asset Securities Corp ]

    released on Thursday, 3/10/11, a 1-document, 465-page ‘S-3/A’

    Pre-Effective Amendment to Registration Statement for Securities Offered Pursuant to a Transaction — Form S-3

    filed as of Thursday, 3/10/11
    ________________________________________________________________

    This filing: ‘S-3/A’ — # 0000914121-11-000060 @ 110310-160939 —
    http://www.secinfo.com/$/SEC/Filing.asp?D=RSm6.q1j&CIK=1011663

    Filer: Wells Fargo Asset Securities Corp [ formerly Norwest Asset Securities Corp ] —
    http://www.secinfo.com/$/SEC/Registrant.asp?CIK=1011663

  30. Thank you! my “investor” is a “708” account. Wells Fargo 1999 Trust has the loan on the EX-99. I knew this was a fargin’ Lehman Bros. Deal.

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