DeutschBank's Version of CYA: SERVICERS "It's Your Fault."

40116426-DEUTSCHE-BANK-NATIONAL-TRUST-COMPANY-AS-TRUSTEE-NOTICE-TO-CERTIFICATE-HOLDERSForeclosure-Practice-Notice-10-25(2)

It would be funny if it were not so disastrously tragic. This group of memos corroborates the information I heard on a telephone conference between the head of “asset acquisition” and the spokesperson for Deutsch as Trustee. To translate it into my native NY tongue. Fuhgetaboutit. (Okay, he said “this might be counter-intuitive.” Same thing). What he said was that Deutsch might be named as the Trustee but all the responsibilities of the Trustee vest with the Servicer, (in that conversation being OneWest, which had taken over FDIC assets in an interesting shared risk deal with the FDIC).

In one swell foop (faux pas) he bypassed the PSA and the rights and obligations of the Master Servicer, Trustee, Depositor, Sponsor, and Underwriter. Let the ankle biting begin.

Here we have Deutsch Bank taking its lines from Hogan’s Heroes, for those of you who remember that series, in which Sgt. Schultz was given to say say “I know nothing, I see nothing, I hear nothing.” Not content with the writing from Bob Conrad’s series they went to the Classic Casablanca where they were  horrified to discover that servicers and other people were using the Deutsch name without their knowledge or consent and utterly miffed at the disgraceful foreclosure practices of these unscrupulous characters. They clearly were “shocked, shocked to discover there was gambling going on here.”

The connection between the taped conversation I heard and the latest missive from Deutsch to all who will read it, is that before the stuff hit the fan, Deutsch was very much aware of the fact that things were going to blow and was disclaiming any knowledge or responsibility to anyone who would listen. In our little case it was a borrower who was persistently asking questions about how they could be named the Trustee and not have any powers, rights or obligations. THOSE little things belonged to the servicer, not the Trustee. And THAT is why I predicted that the “Trustee” would end up as “the contingent agent, not trustee, of a nonexistent trust.”

Posted in bubble, Corruption, Eviction, securities fraud |