Fraud Alert: Color Copies being Used to Fabricate Alleged Originals

I have received a number of reports that “outsource providers” are servicing the foreclosers by creating color copies of documents and submitting them as originals. One report is that the “original” was examined at the courthouse and found to be a printout from a very good color printer. It’s a neat trick and one that has probably worked many hundreds if not thousands of times.

This is in addition to the simple ABC’s of chain of title where these service providers create documents signed in one place, witnessed in another place and notarized in another place purporting to transfer a note, mortgage or obligation. You can usually tell that these were not created on the dates they purportedly show they were executed, if nothing else than by noticing dates or breaks in the chain of title. If Joe Smith owns the note and Mike Jones signs an assignment to Mary Simpson, there is a break in the chain of title. Get it?

The dates are important because many of the mortgage “originators” are bankrupt or out of business. The dates often conflict with their non-existence at the time of execution. Thus the person signing on behalf of that company could not possibly have had any authority to do so, the witnesses are probably faked and the notarization is obviously wrong or fraudulent. Some simple checking will probably yield the fact that someone in some unrelated company, possibly the law firm pursuing the foreclosure, signed on behalf of the mortgage originator as a “limited signing officer”.

Usually any signature on behalf of MERS is procured the same way since MERS has no procedure to verify the authority of anyone signing on behalf of MERS on any deed, assignment, or or any other document. From reports received, we believe that MERS has no more than 20 employees, virtually all of whom are IT people maintaining the database and processing or inputting data.

Tags: audit, borrowers, disclosure, foreclosure defense, foreclosure offense, RESPA, securitization
Posted in bubble, Corruption, Eviction, securities fraud |