Do you know where your loan payments are going? Bet you Don't!

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Submitted from a person who is an anonymous source but who works deep inside an organization where the raw data is available and just to be clear —- I told you so:

Bonding experience

Subject: Bonding experience

Sorry for the title line, low hanging fruit……Anyway, I thought you both will find this of interest.) From the Citibank Trustee website you both have access to per my prior e-mail (or anyone, it is public….) you will find below the listing of the original principal balance of the loans in the various traunches for the WAMU-HE-2 Trust. The balances below are from the PSA on page 8; they track almost identically to the balances as of the funds 1st reporting date on the Citibank website (I have attached below from May 2007); Directly above the May 2007 balances is the current January 2015 balances. Notice anything strange? All principal balances are lower or gone, and reduced by half in the largest traunch (1-A). How can this be you ask?  Did that many loans default and have the homes liquidated and proceeds applied to the loans? OR,  did insurance payments, credit default swaps, TARP money, or buy backs on the loans by Chase (as likely forced by the investors who have that right for non-conforming loans) pay off the loan balances that are now gone? The answer is likely a bit of all the above.

Not to bore you with the details, but if you look at the January 2015 certificate holder statement on Page 5 you will see detail on who lost what, other pages break out reasons for reductions (yes, some of this is due to repurchase, Chase? maybe, unknown). The M-Series traunches appear to have been wiped out completely, which tracks to PSA which shows 1-A-II A’s get distributions 4th (AFTER credit default swaps and derivative holders mind you, who may be from entirely different funds! Like that, your loan payment is not even going to the fund that claims to hold it 1st, 2nd, or 3rd time around), losses last, Hence if you are M-series you are screwed.

So why does this matter in a typical homeowner foreclosure? As XXX and I pointed out to judges too lazy to want to dive into this, if your loan is in Traunch 1-IIA, which report no principal loss (any losses?) the fund has a hard time claiming standing if the certificate holders of your loan suffered no loss. Due to commingling of funds, and cross defaults, when peoples loan payments are distributed to the Servicer (Chase), it puts your payment in the loan pool, and it is likely used to pay someone else’s loan payment (ditto with foreclosure proceeds, if your loan was in M Traunch, a 100% loss was realized years ago, your proceeds go to make someone else’s loan payment). This was never disclosed to the homeowner at loan signing, your payment goes to another, your home is cross collateralized, your home may be covered by a pool level insurance policy, credit default swaps, your payment does not go to whom you bargained it would (TILA, RESPA, REG Z violations anyone?). If your loan was repurchased, the fund is not even the correct foreclosing party anymore, and if servicer advances and credit default swaps cover your loan payments (from swap holders in other funds!!) you are not even in default nor has the fund suffered a claimed loss. You can see what a mess this is, and why Chase and other “Servicers” don’t want to open the books on what happens to the Trust funds money to anyone. Investors in current lawsuits have to sue their own Trustee’s (like Citigroup) to try to get to the “real” books, sound crazy, it’s happening….  since Chase and the fund never legally held my loan due to multiple forgeries and botched assignments, they in essence committed theft through conversion of my loan payments when I made them, because they never held the legal right to accept payments from me.… Like I said, this happens thousands of times daily to thousands of homeowners, and no one, not the government, regulators, judiciary, and especially the banks, want to discuss this mess. LOL, if this all gives you a headache, it should! Same process is now happening on credit cards and auto loans, anything they can securitize…..

see http://www.bloomberg.com/news/articles/2015-02-24/justice-department-probing-auto-loan-securitization-yates-says
 

REMIC 3
As provided  herein, the Trustee shall  make an election  to treat the segregated  pool of assets consisting of the REMIC 2 Regular Interests as a REMIC for federal income tax purposes, and such segregated pool of assets shall be designated as “REMIC 3.”  The Class R-3 Interest represents  the  sole  class  of  “residual  interests”  in  REMIC  3  for  purposes   of  the  REMIC Provisions.The following  table sets forth (or describes)  the Class  designation,  Pass-Through  Rate and Original Class Certificate Principal Balance for each Class of Certificates that represents one or more of the “regular interests” in REMIC 3 and each class of uncertificated  “regular  interests” inREMIC 3:

Tags: Chase, Citigroup, disclosures, Reg Z, RESPA, TILA, traunch, where are your monthly payments going?, Why won't banks open their books?
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