Beware of Bank and Foreclosure Mill Labels — That is where the lies start

For example, by labelling something as a servicer advance it presumptively means that it was an advance by a servicer that is die back to the servicer because it was advanced on behalf of the owners and holders of certificates issued in the name of a labelled trust using a labelled trustee as its putative administrator.
By reading the Prospectus and Trust Agreement you find that these labels
are used to create illusions.
The labelled servicer to whom the money is paid has never serviced anything. The money was paid from a pool of money derived entirely from advances by the investors who bought certificates. Thus the receipt of money by the servicer is pure revenue under GAAP but treated as return of loan for tax purposes.
So for example if the loan was $300,000,  and the property is worth $180,000 the Master Servicer continues to make payments to the investors even though no payments are made by the borrower up to the point of around $165,000, which is when they foreclose and claim all the proceeds as servicer advances. This is why ten year or twelve year foreclosures work to the benefit of the labelled “Master Servicer” who is actually the lead (bookrunner) investment bank.
The labelled certificates convey no right, title or interest to the debt, note or mortgage and therefore are not “certificates” but only unsecured promises masquerading as bonds or debentures with no equity interest. They are called “mortgage-backed” but they are not backed by mortgages.
The trust owns nothing and therefore with nothing entrusted to the trustee on behalf of named beneficiaries there is no trust.
The labelled trustee has no powers of administration over the active affairs of a trust. Therefore it is not a trustee which is why they never appear in court.
The sole beneficiary of the trust, which is a sham conduit for the investment bank, is the investment bank that sold labeled certificates to investors whose money was put in suspense and entirely controlled and owned by the investment bank.
The labelled “Master Servicer” is the investment bank.
The devil is in the details. Ask the right questions in discovery.
An assignment of mortgage (or beneficial interest under a deed of trust) without a purchase of the debt is a legal nullity. The assignment is nothing unless and until the party claiming ownership of the mortgage has paid value for it. Calling it an assignment of mortgage does not make it an assignment of mortgage.
An assignment of mortgage from a party who had paid value for the debt at the time of the assignment, is a legal nullity, and continues to be a nullity until payment of value for the debt is tendered and received.Calling it an assignment of mortgage does not make it an assignment of mortgage.
Similarly, an endorsement of a note by a party who neither owns the debt nor represents a party who owns the debt and ahs paid for it is also a legal nullity. Calling it a note endorsement does not make it anote endorsement.
Calling a separate piece of paper with no foundation an allonge does not make it an allonge. An allonge is part of the note firmly affixed ior written directly on the note.
The most frequent successful objection at trial is lack of foundation.

7 Responses

  1. And Courts incapable without government disclosure.

  2. The devil is truly in the details as Neil states. There were “pilot programs” under Regulation AB that included MBS which were allowed by the SEC. This goes back to late 2004/early 2005. These programs, and adequate disclosure, were only more recently addressed by the SEC. More than ten years later to address, and even then not fully addressed.

    Lets start with “Sponsor.” And disclosure of any entity with 20% or more position in that role. What is a Sponsor???? What is their qualification? What is their role? Warehouse lender? Are they also a a Sponsor? Were they disclosed? And what did that warehouse lender even lend? Nothing but cash out. It was just restructured classified debt. Nothing paid off by borrower at refi – or even at purchase if you purchased a home with a “history.”

    These loans were nothing more than restructured “debt” already declared in default to the GSEs. What entity led that cause?

    There is no other explanation for such leverage in the types of trusts formed, undisclosed entities/parties in specific roles, undisclosed accounting, undisclosed disposal of “pools,”, and undisclosed entities who file bogus assignments and discharges. .

    And the loan mods today? Just a continuance of the same.

    Investors were duped. Borrowers were conned. But borrowers continue to be conned. That is where the “fix” ended.


  3. I never understood how Bank of America NA transfered Servicer to BAC Home Loans changing my account number (in good standing) and then took in back from BAC Home Loans , did not change account numbers and never assigned the mortgage servicing either time.

    Can anyone explain what they were doing and/or trying to play a shell game of deceit ????

    And now it’s SLS turn to try and fraudclose as they got an assignment from Bank of America NA (that never got assignment back from BAC Home Loans) as well as assignment to SLS is some power of attorney BullSh*t outfit down in Florida.

    Of course the judge couldn’t care less , as in my opinion , in might hurt the judges bloated taxpayer paid pension.

  4. BOA did NOT buy anything from Countrywide or America’s Wholesale Lender (non existing corporation which was never registered in any State)

    BOA was always behind CWF/AWL, from the beginning, Later they merely officially transferred fraudulent loans back to BOA when CWF/AWL totally screwed up. To create an illusion that BOA was never involved in this scam.

    This is why CWF created AWL – to shield themselves from liability for fraud and tell investors that CWF and AWL are two different companies.

    Now they do absolutely the same under names of “Caliber Home Loan”; PennyMac Loan Servicing” and BAC Home Mortgage

  5. Last I knew, BOA bought servicing rights only from America’s Wholesale Lender-Countrywide. Like Ocwen, they use servicing rights to assign the asset from a non-funded trust, to their own portfolios (BOA bought the servicing rights in 2008, for a mere $450.00 per loan). The PSA’s are available in the archives through the SEC data base. Most are all the same.They use the asset transfer as a way to create a deficiency and then counterfeit the paperwork to foreclose. I have never seen a receipt for payment, personally and have scoured thousands of documents and civil cases, in multiple states. All of it is “fraud”. The judges do not care. or do many of the lawyers. Let’s face it, the lawyers create the paperwork and get paid by the deep pocket players.

  6. Great post, Neil, as usual

    I want just add- when you ask Banks about copy of Pooling and Servicing Agreement or Prospectus – they will tell you that this information is “proprietory” and will lie all the way – even though you catch them with lies all the time

    Example – my friends currently fight with BOA acting as BONY.

    Their lawyer recently secretly filed an Affidavit from a “reliable witness” who said that BONY transferred to Bayview this mortgage in October 2012….

    My friend has a letter from BOA who said that this mortgage was transferred by BOA to Bayview in October 2012…

    I guess this “witness” forgot to coordinate his lies with BOA’s

    Mortgage was issued by America’s Wholesale lender, a non -existing company

    The Trust was never registered as a Trust

    This “Trust” does not have any address (except BOA’s in CA);

    they do not have EIN (means evade taxes in astronomic proportions.

    They do not file any reports with IRS.

    Judges do not care.

  7. Clearly, since November 2015 when I lost my home in Eviction Court in Harris County, Houston TX, I prayed to be rescued from evil Stonecrest Acquisitions out of San Jose, CA (The evil attorney out of Fort Bend County, Texas appearing for Stonecrest Acquisitions) Liar Substitute Trustee Kenny Shirey, and Trustee Bank of New York Mellon. Let’s not forget Kelly Harvey with Harvey Law Firm in Houston TX who claimed to 2 days after that my property didn’t sell at Auction so Bank took it back. Kenny Shirey, Substitute Trustee filed Substitute Trustee Deed. which states on 4/7/2015 He sold property to Bank of New Tork Mellon on Courthouse steps in Downtown Houston. Deed was notarized by employee Vanessa McHaney on behalf of Kenny Shirey 4/20/2015. Now in May of 2015 Bank of New York Mellon for Asset Backed Certificates CWABS 2007-2 files recorded deed now naming Bank of New York Mellon as Owner with Harris County Appraisal district and in July 2015 Stonecrest Acquisitions files Deed Without Warranty claimed they purchased property from Bank of New York Mellon. Clearly from date of purchase I find defect in Warranty Deed all the way up to filed Foreclosure with Kelly Harvey (want to report her to Bar) where everything reads America’s Wholesale Lender “a Corporation” existing under laws of New York in October, 2011 created a Assignment of Deed of Trust signed by Bank of America employee Cristine Daymude to Bank of New York Mellon. This recorded document is in November, 2011 followed by Corporate Assignment of Deed of Trust signed by Melanie D Cowan Assistant Secretary of Mortgage Electronic Systems, Inc consecutively by date and recorded entry Appointment of Substitute Trustee where Melanie D Cown becomes Vice President and Attorney-In-Fact for Bank of America. As I dig further into Melanie D Cowan of course she is signing for New Century Bank, Nations Bank, Bank of America in other Texas Counties not just Harris County. I presented all of this but in November 2015, Stonecrest Acquisitions won using Deed without Warranty and had me evicted from my home. In 2018, I received a Certificate of Non-Licensure Ms Cora Peck sworn under Oath notarized with Gold Embossed Texas Seal Department of Savings & Mortgage Lending which clearly states America’s Wholesale Lender Corporation was not a Licensed Lender or Corporation existing in Texas. I lost but I know Kelly Harvey Attorney who is all up in Nationstar and Bank of America’s kool-aid is making a killing off of illegal foreclosures as is other attorneys such as the one who lied under oath in a courtroom using a deed wuthout warranty to evict me from my home in 2015. Bank of New York Mellon recorded deed filed with Harris County Appraisal District has since been removed. Parcel Number unidentified and Bank of New Tork Mellon removed from Ownershup History and replaced by Stonecrest Acquisitions. Property has sold 2 times since Stonecrest Acquisitions and under MERS Registry Trust Banks US Bank and PHH Mortgage. So what makes this property have a transferable title? DBA or fictitious entity can not hold title.

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