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Thank you and Happy New Year.

36 Responses

  1. DWynn – it occurs to me that the reason you get a 1099 from someone other than the alleged trust who allegedly owns a loan (in your case, hard to say, such a mess) is that the servicer is reporting the loss on its books by way of their advances.
    CAN a trust take a loss on its books at all? I doubt it. The investors bought security derivatives with no guarantee unless they were from a GSE, just like if one bought stock in GE or AT&T. The individual investors might be able to realize a loss on their investments, but that wouldn’t result in a 1099 to a home loan borrower.
    No guarantee of payment = no loss to write off. A 1099 to someone requires a corresponding loss on someone else’s books. If the attorneys representing homeowners pay attention to the name on these 1099s, I haven’t heard about it. I’m just throwing this raw stuff out there to hopefully start a conversation somewhere, anywhere on our side of this deal.

  2. Section 2.3 Excluded Assets. Notwithstanding anything herein to the contrary, Sellers will not sell, assign, convey, transfer or deliver to Purchaser, and Purchaser will not purchase, acquire or assume or take assignment or delivery of, any and all assets, Contracts or rights that are not expressly Purchased Assets or Assumed Contracts, whether tangible, real, personal or mixed (collectively, the “ Excluded Assets ”). For the avoidance of doubt, Excluded Assets include the following:


    (a) all cash and cash equivalents, including (i) all restricted cash, amounts held in Servicing Escrow Accounts and Servicing Custodial Accounts pursuant to Applicable Requirements or Servicing Agreements (which, for the avoidance of doubt, will be transferred pursuant to the Servicing Transfer Agreement and are not assets of Sellers except to the extent such cash represents investment income related to such accounts, which investment income constitutes Ancillary Income), (ii) the Cash Deposit, (iii) cash and cash equivalents on deposit in bank accounts maintained in accordance with the DIP Financing Agreements and cash received by Sellers that is or was required to be deposited into accounts maintained pursuant to the DIP Order (the “ DIP Cash Proceeds ”), but excluding in all cases cash flows under any Servicing Agreement or any net cash flow generated by operation of the Business on or after the Closing Date;

    (b) all Mortgage Loans, including first and second lien mortgage loans, Whole Loans, pipeline loans and HELOCs owned or held by Sellers that are not specifically identified as Purchased Assets;

    (c) all trading securities and available for sale securities;

    (d) all REO Property owned by a Seller in its corporate capacity;

    (e) all Contracts or other instruments that are considered derivatives;

    (f) any asset or class of assets excluded from the defined terms set forth in Sections 2.l and 2.2 by virtue of the limitations expressed or implied therein;

    (g) all causes of action, lawsuits, judgments, claims, refunds, choses in action, rights of recovery, rights of set-off, rights of recoupment, demands and any other rights or Claims of any nature other than the Transferred Rights and Claims, including any Claims relating to early payment default claims and any and all defenses and counterclaims relating to acts or omissions under the Assumed Contracts that occurred before the Closing;

    (h) any of the rights of Sellers under this Agreement or any agreements between any Seller and Purchaser or any of its Affiliates entered into on or after the date of this Agreement;

    (i) the Consent Order, the DOJ/AG Settlement and the Contracts, including rights and licenses thereunder; and other assets Related to the Business set forth on Schedule Q ;

    (j) all shares or equity interests in any Subsidiaries or Affiliates of the Sellers;

    (k) any and all other assets, whether tangible or intangible, real, personal or mixed, including Intellectual Property, rights or other items that are not Related to the Business;


    (l) the Purchase Price;

    (m) all rights, claims and causes of action relating to any Excluded Asset or any Retained Liability;

    (n) Tax refunds, Tax credits and other Tax benefits relating to Taxes imposed on any Seller or Affiliate Seller or Taxes for which any of them is liable;

    (o) all Tax Returns (including working papers), all Books and Records relating to outstanding litigation and ongoing discovery and e-discovery obligations of any Seller and Affiliate Seller and all Books and Records that Sellers are required by Law to retain, other than copies of such Tax Returns, Books and Records, and obligations as may relate to Tax Returns filed by a Seller as REMIC Administrator by or on behalf of any REMIC, and the duties of which in that capacity the Purchaser will assume;

    (p) REMIC Regular Interests and REMIC Residual Interests, other than any REMIC Residual Interest representing a De Minimis Interest in the residual interests of the related REMIC and required to be held by Purchaser as the REMIC Administrator of such REMIC;

    (q) all rights, demands, Claims, actions and causes of action constituting avoidance actions of Sellers’ estates under Chapter 5 of the Bankruptcy Code, and any other applicable provisions of the Bankruptcy Code, including any and all proceeds of the foregoing;

    (r) other than as set forth in Section 2.1(m) , all rights, demands, Claims, causes of action, objections and defenses of Sellers and its Affiliates under sections 502 and 503 of the Bankruptcy Code and Bankruptcy Rule 3007 with respect to the assertion or defense of any claims that may be filed against Seller and any of its Affiliates that will file a petition for relief under the Bankruptcy Code;

    (s) except as provided in Section 6.7 , any Plan;

    (t) other than as set forth in Section 2.1 , all insurance proceeds that Sellers have a right to receive as of the Closing or that relate to events, circumstances or occurrences prior to the Closing (which, for the avoidance of doubt, includes the proceeds of insurance policies providing coverage for errors and omissions or for directors, officers and employees, whether such policies are held by AFI or by one or more of the Sellers);

    (u) all Privileged Documents;

    (v) any Contracts excluded from Assumed Contracts pursuant to Section 2.15 ; and

    (w) the assets specifically identified on Schedule Q ;

  3. Sale Approval Order ” means a Final Order or Final Orders of the Bankruptcy Court issued pursuant to sections 105, 363, and 365 of the Bankruptcy Code, in substantially the form set forth in Exhibit 3 hereto, authorizing and approving, among other things, (i) the sale, transfer and assignment of the Purchased Assets to Purchaser in accordance with the terms and conditions of this Agreement, free and clear of all Claims and Liens, (ii) the assumption and assignment of the Assumed Contracts in connection therewith and as a part thereof and the fixing of the Cure Amounts with respect to the Assumed Contracts, (iii) that except for the Purchaser Payable Cure Amount, the Purchaser shall not be liable for any Cure Amount or otherwise obligated to cure any defaults, known or unknown, arising prior to Closing under any Assumed Contract (whether or not such Assumed Contract is an Assumed Pre-Petition Contract) and (iv) that Purchaser is a good faith purchaser entitled to the protections of Section 363(m) of the Bankruptcy Code.


    Mortgage Loan Documents ” means, for any Mortgage Loan, all documents in the possession of Sellers or their custodians or other agents pertaining to such Mortgage Loan, including originals of the Mortgage Note, the mortgage or deed of trust and all assignments of the mortgage or deed of trust, all endorsements and allonges to the Mortgage Note, the title insurance policy with all endorsements thereto, any security agreement and financing statements, any account agreements, and any assignments, assumptions, modifications, continuations or amendments to, or affidavits of lost documents relating to, any of the foregoing.

  5. Mortgage Loan ” means any U.S. individual residential (one-to-four family) mortgage loan or other extension of credit secured by a Lien on U.S. real property of a borrower originated, purchased or serviced by a Seller or any Affiliate Seller (which, for avoidance of doubt, may be a charged-off Mortgage Loan).

    “ Mortgage Note ” means, with respect to a Mortgage Loan, a promissory note or notes, a loan agreement or other evidence of Indebtedness with respect to such Mortgage Loan, secured by a mortgage or mortgages or a deed or deeds of trust, together with any assignment, reinstatement, extension, endorsement or modification thereof.

  6. FYI

    Lynn Szymoniac’s website “The Housing Justice Foundation” has good resources:

  7. I just learned David Dayen is releasing a book on Lynn Szymoniak in May. I believe it is to be called “Chain of Title”.

  8. My goodness, I also forgot too mention  that in State of Maine foreclosure  a principal BANK  foreclosure attorney  Mr.  Brent York attorney has never made an appearance so when the foreclosure  hearings occurs … it is like a ghost speaking thru the ceiling and the judge  hammers down the gauntlet, take those peoples home again !!!  So this is where  court watchers would be a good idea.  

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  9. I regret not being more specific , but would not not agree  ” organizing is our only prayer and wouldn’t itbe nice  PEOPLE NO LONGER had to go to court alone…{ need to get organized to impart create court watchers  )  here in maine they scheduled foreclosure hearings  in a remote court of  Springvale  , each hearing  45  min. part of people cold not  meet each other and help each other…they rarely had support , or a person with them  = court watcher.  

  10. Neil:

    i think it is high-time you revisit and update this topic from 2012:

    much has changed or morphed since then by way of new ‘questionable’ state legislation (written by bank lawyers) allowing banks to keep on filing at will; but forcing homeowners or their representatives to get a court order from the SAME judges stonewalling them in court; to file their documents onto the recorder of deeds office (not likely);

    cite Cook [crook] County Illinois as example! 55 ILCS 5/3-5010.7 []

    The rest of the State has no such restriction, but since like New York, over 50% of all real property value in the State exists in one county, they created county-specific legislation to thwart homeowners (or their trustees or lawyers) from making public their notices of interest and challenges to sales, deeds & titles, etc. associated with their land/property… [is there some eco-social engineering going on?]

    to treat one state citizen in one county ‘one way’ (reducing their rights by limiting recording) and other state citizens in other counties ‘another way’ (free to record anything) seems dubious and unconstitutional at best…

    yet, even at the county recorder’s website [] – it still says clearly: “…County Recorders are not authorized by law to verify the legal claims made in documents.”

    i await your insight…

    thank you

  11. Advance Obligation
    As a servicer or subservicer, we have the obligation to advance funds to securitization trusts in the event that borrowers are delinquent on
    their monthly mortgage payments. When a borrower becomes delinquent, we advance cash to trusts on the scheduled remittance date thus
    creating a receivable from the trust that is secured by the future cash flows from the mortgages underlying the trust. We advance principal and
    interest (P&I Advances), taxes and insurance (T&I Advances) and legal fees, property valuation fees, property inspection fees, maintenance
    costs and preservation costs on properties that have been foreclosed (Corporate Advances). For loans in private-label securitization trusts, if we
    determine that our P&I Advances cannot be recovered from the projected future cash flows, we generally have the right to cease making P&I
    Advances, declare advances in excess of net proceeds to be non-recoverable and, in most cases, immediately recover any such excess advances
    from the general collection accounts of the respective trust. With T&I and Corporate Advances, we continue to advance if net future cash flows
    exceed projected future advances without regard to advances already made. Most of our advances have the highest reimbursement priority (i.e.,
    they are “top of the waterfall”) so that we are entitled to repayment from respective loan or REO liquidation proceeds before any interest or
    principal is paid on the bonds that were issued by the trust. In the majority of cases, advances in excess of respective loan or REO liquidation
    proceeds may be recovered from pool-level proceeds. The costs incurred in meeting these obligations consist principally of the interest expense
    incurred in financing the servicing advances. Most, but not all, subservicing agreements provide for more rapid reimbursement of any advances
    from the owner of the servicing rights.

  12. EX-10.1 2 d564958dex101.htm EX-10.1
    Exhibit 10.1

    dated as of July 1, 2013
    HLSS HOLDINGS, LLC, as Purchaser

    FORM 8-K
    (Current report filing)
    Filed 07/08/13 for the Period Ending 07/01/13

    Cayman Islands 1-35431 98-0683664
    (State or other jurisdiction
    of incorporation)
    File Number)
    (I.R.S. Employer
    Identification No.)

    Address C/O JAMES LAUTER
    ATLANTA, GA 30319
    Telephone 561-682-7561
    CIK 0001513161
    Symbol HLSS
    SIC Code 6162 – Mortgage Bankers and Loan Correspondents
    Industry Consumer Financial Services
    Sector Financial
    Fiscal Year 12/31

    Washington, D.C. 20549

    FORM 8-K

    Current Report
    Pursuant to Section 13 or 15 (d)
    of the Securities Exchange Act of 1934
    Date of Report (Date of earliest event reported): July 1, 2013

    (Exact name of registrant as specified in its charter)

    2002 Summit Boulevard, Sixth Floor
    Atlanta, Georgia 30319
    (Address of principal executive offices)
    Registrant’s telephone number, including area code: (561) 682-8000
    Not applicable.
    (Former name or former address, if changed since last report)

    Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of
    the following provisions ( see General Instruction A.2. below):

  14. 2. Release of Liens Except as otherwise provided in the Plan or in any contract, instrument, release, or other agreement or document created pursuant to the Plan, on the Effective Date and concurrently with the applicable distributions made pursuant to the Plan and, in the case of any Secured Claim, satisfaction in full of the portion of the Secured Claim that is Allowed as of the Effective Date

    , all mortgages, deeds of trust, Liens, pledges, or other security interests against any property of the Estates shall be fully released and discharged, and all of the right, title, and interest of any holder of such mortgages, deeds of trust, Liens, pledges, or other security interests shall vest in the Liquidating Trust.

    GMAC Mortgage, LLC and Residential Funding Company, LLC’s membership interest and stock ownership in MERS®, including all related rights and interests.

  15. Mea Culpable ETOLLE and Kalifornia. ..

    I became confused when I went to the local 7-11 and they were trying to sell me a Sunday AJC paper reporting on Friday’s “news”.

    On my way now to find a Saturday issue of yesterday’s news.

  16. And you too.. Kalifornia?

  17. ETolle…

    In what time zone are you posting your comments… the middle of the Atlantic Ocean, Greenland, Iceland?

  18. ETolle..

    Thanks for the Sanders/Summers Glass-Stegall article…

    It’s sad to me that I have to admit that the bearer of the truth in this ugly matter is a long, self-proclaimed Socialist.

  19. Obama Program That Hurt Homeowners and Helped Big Banks Is Ending

    When President Obama announced the Home Affordable Modification Program, or HAMP, on February 18, 2009, in Mesa, Arizona, he promised it would assist 3 to 4 million homeowners to modify their loans to avoid foreclosure. Almost seven years later, less than 1 million have received ongoing assistance; nearly one in three re-defaulted after receiving inadequate modifications; and 6 million families lost their homes over the same time period.

    Now the program is ending.

  20. @EToLLe,

    In your own way, you are as beautiful as a studied masterpiece, as rendered within the simplicity and honest confines of a child’s finger-painting.

    Don’t EVER change:

    “When I do an ink blot test and a picture of Jamie Dimon comes up, I blurt out LAMP POST!”.

    Bravo… author!

  21. EToLLe, Rules.


  22. We’re in the mess we’re in because the assholes who consider themselves above the masses, so much so that they rule with or without the need for election or even a semblance of doing what’s right for the country (actually, the world), continue to this day to make the rules or change them to suit. Until we break those ties, or better yet, tie these jerks up until they break, we’ll stay just where we are, only sliding further into the abyss of inequality and serfdom.

    It might just be time to give up that master’s degree and learn a truly valuable trade that will come in handy for the new normal, something like Bentley or Rolls maintenance, or personal valet. The never ending list of sociopaths in D.C. and their headquarters on Wall Street are always looking for round-the-clock vassals to dress them and deliver them to important functions where they decide how best to divide planet earth’s resources to best suit their needs. Think Downton Abby, only you’re one of the staff for whom the backroom bells toll.

    Speaking of sociopaths, here’s a perfect example of one in power, with the royal cufflinks to prove it. This person should have a place in encyclopedias going forward to serve as the icon of this malady as I believe he broke the mold:

    “Giving ‘debt relief’ to people that really need it, that’s what foreclosure is. Homeowners are probably better off going somewhere else, because they get relieved almost 100 percent of the debt through foreclosure.” – Jamie Dimon, JPM Chase.

    When I do an ink blot test and a picture of Jamie Dimon comes up, I blurt out LAMP POST!

    Speaking of assh- uh, sociopaths, here’s a great read that points directly to the problem….it paints the picture with broad brush strokes so that anyone can understand that the Great Pilfer Machine in place is no accident, and was precisely enabled over the last several decades by pure design. It didn’t arrive through vote or popular demand, but by clever deceptions slipped through as policy in the wee hours in dimly lit rooms full of hubris and expensive cigar smoke. And those very same people are still in power behind the scenes.

    Larry Summers Lectures Bernie Sanders

    Ps. David Dayens once wrote, “The American public is like a deaf spectator seated in the back row at a crowded sports stadium. They haven’t a clue what is happening, why it is happening, or what should happen.
    And so they move along in single file to the next shearing shed.”

    Ps also. Summers’ next job should be noose tester.

  23. @aclay777,

    I also recall that Mr. Garfield once explained that the “FDIC reading room” will also show that Bank of America never accepted any notes as transferred from Countrywide.

    Presently, I am on double-secret probation with Mr. Garfield because “iwnatmynpv” always wants to pick fights with me about things he and I already agree on… I think he is lonely…

    Anyway, I have never looked into the “FDIC reading room” as I wouldn’t know where to start, but you may find something there, I just don’t know.

  24. Thank you, I find this on-point, and Niel should be proud, plase send me anything further on this, my e-mail address is

  25. @aclay777,

    You should find “Kemp v Countrywide”, the lawyer, Bruce Levitt, for the homeowners, deposed the master servicer, for Countrywide, Linda Demartino and she explained it was Countrywide’s practice to never transfer ANY of the notes from their possession, into the hands of the “Assignee” of that note.

    I am not a lawyer, but, that is what I get out of Kemp. Of course, if the courts applied the LAW as opposed to harboring the criminals, any note that failed to transfer before Countrywide went belly-up, would be void.

    I suggest you visit, “The Burning Platform- Who’s your Lender” and follow the directions listed, if you are new to this nonsense.

    If you send letters to anyone, make sure they are “certified mail’.

    Before you get started, buy a ring binder and track everything that goes out and everything that comes in.

  26. @ MK lol

  27. Poor Ms. Laura Venturana (“LVENT”) is now likely to think NGarfield has been co-opted by one or all of the conspiracies she rants on and on about.

  28. LOL


    You are why we got yelled at.

    Oh, and btw, if IVent is Bernie Sanders, Its President Ivent to you and all the other ne’er-do-wells.

    Happy New Year.

  29. @Mk, what’s worse is that practically every idiot running for President is talking about making our military strong again. I think Trump said he was going to have the Mexican’s pay to rebuild our military. Finally, you are the reason we were yelled at… but I am back on track. getting me back on track will now provide me plenty of time to read all the posts by that lunatic Ivent, who seemingly has the go ahead from Garfield to rant about anything, most of which is not closely tied to reality or normal comprehension. I’ll bet Bernie Sanders is Ivent! Happy new year.

  30. Not to get off subject … But …

    Many Blessings to All !

  31. Oh thank God! I was wondering when this was going to happen. It’s about time!

  32. while we’re off topic, need some insight. I have been in a foreclosure since 2007. Mine has all the elements of the Countrywide past. Bought, or so they say, by Bank of New York, all the Robo signers are on my loan ect. . . . . HOWEVER, I brought a title 15 claim in federal court for unlawful debt collection. My case involved identity theft, someone was debiting my bank account and paying Countrywide for another house. I knew these people and pleaded guilty to this same line of misconduct. but I through my attorney advised I get an accountant and we stayed involved with the illegal wire fraud, the criminals wen fro auto debit to call in payments. I knew these people and other frauds were occurring concurrently.
    PROBLEM. They dismissed the title 15 claim in Fed court under the original creditor scheme, meaning the illegal foreclosure, a state pendant claim, the court no longer had jurisdiction\. Now my not so good attorneys is allowing them to pursue a res judicata claim, I can’t see it, since (1) I didn’t get a chance to litigate, since no federal claim existed (but maybe should have) the (2) lack of discovery thinking BONY or BOA are not the real owners, actually bought the loan, are they really the original creditors. Need discovery if this claim was brought fraudulently.
    FIRST, I believe that I didn’t get a full chance due to claiming original creditor status,
    ADDITIONALLY, While the discussion was occurring with Countrywide and BOA, they said that to stop making payment and to be credited for the wrongly debited funds, meanwhile these persons kept debiting while indicted on charges similar to this, the same scheme that was used to trap people into a mortgage Mod was used on me to trap me into non-payment. however, they can’t justify the funds going to another account, ergo, the frivolous Res judicata claim, which, I under stand, can still use the fraud as a defense, My position, is the statute of frauds, real estate and paying someone else debt must be in writing.

    MY QUESTION. . . MORE HELP. Does anyone know of a finding that Bank of New York didn’t actually by Countrywide loans?

  33. Yikes! I meant to add there is an additional 1200 Trillion Dollars owed to “Notional Derivatives” that are predicated upon fraud, while employed to steal people’s homes, that we are also not talking about.

  34. @iwnatmynpv,

    Now that YOU got US both, yelled at, by Mr. Garfield, I thought I would share the following:

    Maybe that will help You stay on track

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