A REMIC trust is an acronym for Real Estate Mortgage Investment Trust. The problem, as we shall see here in this article, is that no such entity exists in most cases. That, in turn completely undermines claims by the lawyer representing the foreclosure mill, the claims asserted allegedly on behalf of the so-called REMIC TRUSTEE, and the claims (authority)of the Master Servicer, the “servicer,” and the “subservicer” all of whom claim powers derived from REMIC trusts, which do not exist.
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Elements of a trust agreement without which there is no trust:
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- A written agreement containing term, and rules of the trust — i.e., how ot handle the “thing” (res) entrusted to the trustee ot manage for the benefit of beneficiaries.
- Settlor or trustor who owns an asset (i.e., paid for it or received as gift)
- Res — the thing entrusted to a trustee
- Trustee — with statutory trust powers and obligations (state statutes)
- Beneficiaries are identified or described with precisions, even by reference to another document. Note: the presence of a beneficiary — either named or described does not mean that the “loan” (if it exists) has been entrusted to the trustee or that the beneficiary has any interest in it. For example. Investors in REMIC trust certificates are often erroneously referred to as beneficiaries. They are not. They are creditors of an investment bank dba [name of rem ic trust].
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I would also offer my considered opinion that it is impossible for a trust to exist if the named trustee is required to delegate all duties of a trustee (required under statute) to a third party (servicer). That simply is not possible and defeats the entire purpose of having a trust.
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Hence, I think no such trust exists, even if it is named or registered somewhere. It is all relative.
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Even a valid trust does not exist (i.e., is not relevant) as to an asset that has never been conveyed to the trustor for the benefit of identifiable beneficiaries. Merely saying or arguing that it exists does not make it so. If things worked that way, I would argue that I am the world’s leader and the richest person in history, along with my ability to fly faster than light.
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And remember that uploading to the SEC site is not registration. The only way to create a trust is to comply with the applicable state law that sets forth requirements for creating a valid trust with ownership of certain assets conveyed by the trustor/settlor. And the only way that trust can do anything in your state is if it has complied with the laws of your state as to doing business, suing, and defending actions.
Filed under: foreclosure |
Very informative article Neil, again thanks!
Ask for IRS filings.
Yes – C is for Conduit – John R. But any claimed formation of a REMIC does not, as Neil states, mean a “trust” was ever formed. In fact, trust formation was negated by IRS filings that did NOT form any trust – as described by Neil. Further, “segregated pool of assets” which claim to form a REMIC (not a trust) to IRS — is not permitted by Regulation AB by rules stated by SEC – quite some time ago. Thus, no trust is formed by IRS filings or by any PSA that claims to substitute for a valid trust with valid conveyance to a legal holder trustee – as no trust was ever formed as filed to IRS. At least not for PLMBS – which were never claimed valid by SEC under their Regulation AB for PLMBS – which have all but disappeared since crisis. But the remnants remain. All one has is a claimed title series name that segregated the ultimate pool (in violation of Regulation AB) into separate REMICs that are never stated in courts of law (only the title series name – which is nothing – is stated). No valid trust, no valid legal holder trustee – and no valid REMIC.
Only on paper, Neil. We both know that. Used as the Plaintiff in every non-judicial foreclosure. All a ruse.
Actually…. REMIC stands for: Real Estate Mortgage Investment Conduit (trust).