Originators of Loans Were Buried

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EDITOR’S NOTE:  One of the things that is being universally overlooked is that the original “mortgage lien” was never valid in the first place. Lawyers refer to that as “perfecting the lien.” The reason that the securitization scheme worked so well is that “originators” were used instead of banks at the time of closing. These originators have been buried in bankruptcies and fraudulent paperwork.

 Most of the originators were simply companies incorporated for the purpose of attending closings. In many cases the originators filed for bankruptcy protection. This makes your job easier in establishing the fact that the originator was not in the business of lending money. By using the appropriate online services you can pull up the original schedules and any amended schedules that will show the assets and liabilities of the originator.

 When you look at the schedule of assets and the bankruptcy of an originator you will not find any loans receivable listed as assets. This is important for two reasons. The first reason is that the originator was not in the business of lending money and the description of the business will probably describe the actual activities of the bankrupt originator. The second reason is that many participants in the securitization scheme used fabricated assignments from the originator, many of which are dated after the filing of the petition for relief, and some of which are dated after the discharge order and injunction. In both instances it is clear that the lien is fatally defective from the start and that therefore no effective transfer could ever occur.

 The same logic applies even if the originator is still in existence. However you’ll need to get into discovery to show that the loan was never booked as a loan receivable and that the transaction was considered a service for which the originator received a fee. And the same logic applies even if the originator was an actual bank. The fact that it was the bank did not mean that it was performing a banking function. It was merely performing the function of an originator and collecting a service fee. In that event it too was merely a nominee for an undisclosed  principal. Without the creditor being disclosed on the face of the mortgage or deed of trust it is my opinion that in most states the lean would not be considered perfected, which means that it is invalid and cannot be enforced.

Proof of massive bankers’ fraud. Originators all buried?

PROOF THAT POTENTIALLY MILLIONS OF LOANS BETWEEN 2003 – 2007, WERE FRAUDULENT – BY THE BANKERS!??
FHFA (and OFHEO) Legal Filings
http://www.fhfa.gov/Default.aspx?Page=110
FEDERAL HOUSING FINANCE AGENCY

FHFA Filings in PLS Cases, September 2, 2011:

Ally Financial Inc. f/k/a GMAC, LLC
2. The Originators of the Underlying Mortgage Loans Systematically
Disregarded Their Underwriting Guidelines ………………………………………..41
a. Government and Private Investigations Confirm That the
Originators of the Loans in the Securitizations
Systematically Failed to Adhere to Their Underwriting
Guidelines………………………………………………………………………………42
i. New Century Violated Its Underwriting Guidelines……….43
ii. HFN Violated Its Underwriting Guidelines……………………46
iii. MLN Violated Its Underwriting Guidelines…………………..48
b. The Collapse of the Certificates’ Credit Ratings Further
Shows that the Mortgage Loans were not Originated in
Adherence to the Stated Underwriting Guidelines …………………….49
c. The Surge in Mortgage Delinquency and Default Further
Demonstrates that the Mortgage Loans were not Originated
in Adherence to the Stated Underwriting Guidelines…………………50

Bank of America Corporation
B. The Originators of the Underlying Mortgage Loans Systematically
Disregarded Their Underwriting Guidelines …………………………………………………45
1. Government Investigations and Private Litigants Have Confirmed
That the Originators of the Loans in the Securitizations
Systematically Failed to Adhere to Their Underwriting Guidelines ………45
2. The Collapse of the Certificates’ Credit Ratings Further Indicates
that the Mortgage Loans Were Not Originated in Adherence to the
Stated Underwriting Guidelines ………………………………………………………..51
3. The Surge in Mortgage Delinquency and Default Further
Demonstrates that the Mortgage Loans Were Not Originated in
Adherence to the Stated Underwriting Guidelines ………………………………53

Barclays Bank PLC
B. The Originators of the Underlying Mortgage Loans Systematically
Disregarded Their Underwriting Guidelines …………………………………………………32
1. Government Investigations Have Confirmed That the Originators
of the Loans in the Securitizations Systematically Failed to Adhere
to Their Underwriting Guidelines ……………………………………………………..33
2. The Collapse of the Certificates’ Credit Ratings Further Indicates
that the Mortgage Loans were not Originated in Adherence to the
Stated Underwriting Guidelines. ……………………………………………………….37
3. The Surge in Mortgage Delinquency and Default Further Indicates
that the Mortgage Loans Were Not Originated in Adherence to the
Stated Underwriting Guidelines ………………………………………………………..38

Citigroup, Inc.
B. The Originators Of The Underlying Mortgage Loans Systematically
Disregarded Their Underwriting Guidelines …………………………………………………45
1. Government Investigations Have Confirmed That The Originators
Of The Loans In The Securitizations Systematically Failed To
Adhere To Their Underwriting Guidelines …………………………………………45
i. Wells Fargo …………………………………………………………………………46
ii. Countrywide ………………………………………………………………………..49
iii. American Home …………………………………………………………………..50
iv. Argent ………………………………………………………………………………..52
v. WMC………………………………………………………………………………….54
vi. Inflated Appraisals ……………………………………………………………….55
2. The Collapse Of The Certificates’ Credit Ratings Further Indicates
That The Mortgage Loans Were Not Originated In Adherence To
The Stated Underwriting Guidelines …………………………………………………56

Countrywide Financial Corporation
B. Countrywide Systematically Disregarded Its Underwriting Guidelines …………….69
1. Government Investigations Have Confirmed That Countrywide
Routinely Failed to Adhere to Its Underwriting Guidelines ………………….70
a. Investigations and Actions of Federal Authorities …………………….70
b. Admissions in Countrywide’s Internal Reporting and
Emails ………………………………………………………………………………..75
c. Deposition Testimony of Countrywide’s Top Executives ………….78
2. Actions Brought by State Enforcement Authorities and Private
Litigants Have Corroborated that Countrywide Systematically
Failed to Adhere to Its Underwriting Guidelines …………………………………81

Credit Suisse Holdings (USA), Inc.
B. The Originators of the Underlying Mortgage Loans Systematically
Disregarded Their Underwriting Guidelines …………………………………………………52
1. A Forensic Review of Loan Files Has Revealed Pervasive Failure
to Adhere to Underwriting Guidelines ……………………………………………….53
(a) Stated Income Was Not Reasonable ……………………………………….55
(b) Evidence of Occupancy Misrepresentations …………………………….57
(c) Debts Incorrectly Calculated ………………………………………………….58
(d) Credit Inquiries That Indicated Misrepresentation of Debt ………..59
2. Government Investigations and Other Evidence Have Confirmed
That the Originators of the Loans in the Securitizations
Systematically Failed to Adhere to Their Underwriting Guidelines ………61

Deutsche Bank AG
B. The Originators of the Underlying Mortgage Loans Systematically
Disregarded Their Underwriting Guidelines …………………………………………………45
1. Government Investigations Have Confirmed That the Originators
of the Loans in the Securitizations Systematically Failed to Adhere
to Their Underwriting Guidelines ……………………………………………………..45
2. The Collapse of the Certificates’ Credit Ratings Further Indicates
that the Mortgage Loans were not Originated in Adherence to the
Stated Underwriting Guidelines ………………………………………………………..54
3. The Surge in Mortgage Delinquency and Default Further
Demonstrates that the Mortgage Loans Were Not Originated in
Adherence to the Stated Underwriting Guidelines ………………………………56

First Horizon National Corporation
B. The Originators of the Underlying Mortgage Loans Systematically
Disregarded Their Underwriting Guidelines …………………………………………………46
1. First Horizon Home Loan Failed to Adhere to Its Underwriting
Guidelines ……………………………………………………………………………………..46
2. The Collapse of the Certificates’ Credit Ratings Further Indicates
that the Mortgage Loans Were Not Originated in Adherence to the
Stated Underwriting Guidelines ………………………………………………………..48
3. The Surge in Mortgage Delinquencies and Defaults Further
Indicates that the Mortgage Loans Were Not Originated in
Adherence to the Stated Underwriting Guidelines ………………………………50

General Electric Company
6. Falsity Of Statements In The Registration Statements And
Prospectus Supplements…………………………………………………………………..26
a. The Statistical Data Provided in the Prospectus
Supplements Concerning Owner-Occupancy and Loan-To-
Value Ratios Was Materially False…………………………………………26
b. Owner-Occupancy Data Was Materially False…………………………26
c. Loan-to-Value Data Was Materially False ………………………………28
d. The Originators of the Underlying Mortgage Loans
Systematically Disregarded Their Underwriting Guidelines………31
e. Government and Private Investigations Confirm That the
Originator of the Loans in the Securitizations
Systematically Failed to Adhere to Its Underwriting
Guidelines …………………………………………………………………………..31

Goldman Sachs & Co.
B. The Originators of the Underlying Mortgage Loans Systematically
Disregarded Their Underwriting Guidelines …………………………………………………54
1. Government Investigations Have Confirmed That the Originators
of the Loans in the Securitizations Systematically Failed to Adhere
to Their Underwriting Guidelines ……………………………………………………..55
2. The Collapse of the GSE Certificates’ Credit Ratings Further
Indicates that the Mortgage Loans Were not Originated in
Adherence to the Stated Underwriting Guidelines ………………………………64
3. The Surge in Mortgage Delinquencies and Defaults Further
Demonstrates that the Mortgage Loans Were Not Originated in
Adherence to the Stated Underwriting Guidelines ………………………………66

HSBC North America Holdings, Inc.
B. The Originators of the Underlying Mortgage Loans Systematically
Disregarded Their Underwriting Guidelines …………………………………………………38
1. Government Investigations Have Confirmed That the Originators
of the Loans in the Securitizations Systematically Failed to Adhere
to Their Underwriting Guidelines ……………………………………………………..39
2. The Collapse of the Certificates’ Credit Ratings Further Indicates
That the Mortgage Loans Were Not Originated in Adherence to the
Stated Underwriting Guidelines ………………………………………………………..46
3. The Surge in Mortgage Delinquency and Default Further
Demonstrates That the Mortgage Loans Were Not Originated in
Adherence to the Stated Underwriting Guidelines ………………………………48

JPMorgan Chase & Co.
B. The Originators of the Underlying Mortgage Loans Systematically
Disregarded Their Underwriting Guidelines ……………………………………………….134
1. Government Investigations and Private Actions Have Confirmed
That the Originators of the Loans in the Securitizations
Systematically Failed to Adhere to Their Underwriting Guidelines …….135
iv
2. The Collapse of the Certificates’ Credit Ratings Further Indicates
that the Mortgage Loans Were Not Originated in Adherence to the
Stated Underwriting Guidelines ………………………………………………………142
3. The Surge in Mortgage Delinquency and Default Further
Demonstrates that the Mortgage Loans Were Not Originated in
Adherence to the Stated Underwriting Guidelines …………………………….146

Merrill Lynch & Co. / First Franklin Financial Corp.
B. The Originators of the Underlying Mortgage Loans Systematically
Disregarded Their Underwriting Guidelines …………………………………………………66
1. Government Investigations Have Confirmed That the Originators
of the Loans in the Securitizations Systematically Failed to Adhere
to Their Underwriting Guidelines ……………………………………………………..67
2. The Collapse of the Certificates’ Credit Ratings Further Indicates
that the Mortgage Loans were not Originated in Adherence to the
Stated Underwriting Guidelines ………………………………………………………..74
3. The Surge in Mortgage Delinquency and Default Further
Demonstrates that the Mortgage Loans Were Not Originated in
Adherence to the Stated Underwriting Guidelines ………………………………77

Morgan Stanley
2. The Originators of the Underlying Mortgage Loans Systematically
Disregarded Their Underwriting Guidelines ………………………………………44
a. Government and Private Investigations Confirm That the
Originators of the Loans in the Securitizations
Systematically Failed to Adhere to Their Underwriting
Guidelines …………………………………………………………………………..45
i. New Century Violated Its Underwriting Guidelines ………46
ii. WMC Violated Its Underwriting Guidelines…………………49
iii. IndyMac Violated Its Underwriting Guidelines …………….50
iv. Wilmington Violated Its Underwriting Guidelines…………51
b. The Collapse of the Certificates’ Credit Ratings Further
Shows that the Mortgage Loans were not Originated in
Adherence to the Stated Underwriting Guidelines ……………………52
c. The Surge in Mortgage Delinquency and Default Further
Demonstrates that the Mortgage Loans Were Not
iii
Originated in Adherence to the Stated Underwriting
Guidelines …………………………………………………………………………..54

Nomura Holding America Inc.
B. The Originators of the Underlying Mortgage Loans Systematically
Disregarded Their Underwriting Guidelines …………………………………………………38
1. Investigations Have Confirmed That the Originators of the Loans
in the Securitizations Systematically Failed to Adhere to Their
Underwriting Guidelines ………………………………………………………………….38
2. The Collapse of the Certificates’ Credit Ratings Further Indicates
that the Mortgage Loans Were Not Originated in Adherence to the
Stated Underwriting Guidelines ………………………………………………………..43
3. The Surge in Mortgage Delinquency and Default Further
Demonstrates that the Mortgage Loans Were Not Originated in
Adherence to the Stated Underwriting Guidelines ………………………………45

The Royal Bank of Scotland Group PLC
Generally the same allegations as uniformally described above regarding the Originators’ systematic disregard for their own underwriting guidelines.

Société Générale
Generally the same allegations as uniformally described above regarding the Originators’ systematic disregard for their own underwriting guidelines.

Tags: bankruptcy, borrower, countrywide, disclosure, foreclosure, foreclosure defense, foreclosure offense, foreclosures, fraud, LOAN MODIFICATION, modification, quiet title, rescission, RESPA, securitization, TILA audit, trustee, WEISBAND
Posted in bubble, Corruption, Eviction, securities fraud |