Not So Innocent: Transfer of Servicing Rights

Oct 11, 2018

Fundamental questions:

How can a “trust” change trustees without consent of the Trustor and/or beneficiaries? Is this statement true: The position of being a Trustee for a REMIC Trust is a salable, transferrable commodity that can take place without the knowledge or consent of the Trustor or the Beneficiaries? Hence were all those changes in Trustees void or invalid and who has standing to complain about it? If there is no Trustor and there are no beneficiaries it isn’t a Trust so no consent from the trust is required. That still leaves open the question “if not the trust, then who?”

How can a “trust” change servicers without the consent of the Trustor and/or beneficiaries? Is this statement true: Servicers can decide amongst themselves as to who will be designated the “servicer” on performing and non-performing loans without the consent and knowledge of the creditor. The corollary is that homeowners are bound to make payments to whoever declares themselves to be an intermediary for an undisclosed creditor.

It all boils down to whether the existence and identity of the creditor matters. If not, anyone with a computer and printer can collect money or even foreclose on a homeowner. That in turn raises an interesting specter: homeowners forming their own servicing companies and challenging the other self-proclaimed servicers for the rights to service or enforce the loan. It seems to me that the only way the homeowner servicing company can lose is if an actual creditor steps forward and says that they want the “other guy.” Otherwise the new servicing company can do everything that the tricksters do until they too have a chain of title. Am I wrong? Comments appreciated.

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THIS ARTICLE IS NOT A LEGAL OPINION UPON WHICH YOU CAN RELY IN ANY INDIVIDUAL CASE. HIRE A LAWYER.

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Each “notice” that is sent under the letterhead of a self-proclaimed servicer is actually trojan horse designed to provoke no response. Later they will use that notice as “proof of the matter asserted” and get it admitted under the business records exception. Failure to respond to notices is in effect digging your own grave. The most typical example is when the homeowner receives a notice of transfer of servicing. It doesn’t come from the creditor. It comes from one of the self-proclaimed servicers who do not and will not disclose the name(s) of the creditor.

This isn’t just a notice of transfer of loan servicing. The actual outsource vendor “servicing” the account probably doesn’t include either one of the old or new companies claiming they were or are servicers.

The notice is sent to add cement the illusion of chain of title and to invoke “account stated”. (look it up). Most such notices of a change in servicers are for purposes other than those stated in the notice. They are leveraging the law requiring such notices to be sent in the event that a new servicer has been appointed. The change in servicers is actually a fabrication or farce as some judges have described it. No “boarding” occurs. In fact, the only reason they sent this notice was to produce evidence of your acceptance of the terms of the loan and evidence that both the old and new servicers were authorized. Doing nothing is tacit acceptance of everything written on that notice. And it will be used against you.

The hidden agenda is to put another layer between you and the actual creditor. Such a notice, to be valid, must be executed or acknowledged by the creditor to whom the debt is owed. That would require disclosure of the identity of the creditor — something your opposition will never do even under court order.

So to summarize the real purpose of this notice is to serve as the grease on the rails that lead to the abyss of foreclosure or justification for a past foreclosure.

Think about it. You owe money. You’ve been paying a company that claims to be an authorized bookkeeper or servicer. They have never identified a creditor — much less an acknowledgement or direction from the creditor as to where to send your payments. But they do say that the are acting on behalf of a jumble of words that implies that either a big name bank is involved or a REMIC Trust or both.

They never say that the “Trust” is the owner of the debt. They only say that enforcement of the note and mortgage is legal because they have “possession of the “original” note and/or an assignment of the mortgage. They don’t say that the Trust owns the debt because the assertion would (a) be lying and (b) would need to be proved by the attorneys who represent the servicer who proclaims authority to enforce on behalf of the trust. Using the words “on behalf of” or “as trustee for” implies that the named entity exists and owns the loan. But it doesn’t say it outright.

So now the place that had been doing the bookkeeping tells you to now send you the payments to a new bookkeeper. Why would you accept directions from them? Wouldn’t you want to know that the creditor authorized the old servicing and the new servicing?

The strategy and tactics of the banks are ALWAYS about strengthening the illusion that they are authorized intermediaries for the creditors. The more paper they fabricate, the more “transfers” they “disclose” the easier it is to get a judge to treat the homeowner as a conspiracy theorist.

This would be an excellent time to fashion a new QWR and DVL and complaints to AG and CFPB. Anyone can do it using the information from this email. But if you want us to do it for you here are the links (the generic one might be helpful but won’t really get to the essential point in this post):

QUALIFIED WRITTEN REQUEST challenging the notice.

DEBT VALIDATION LETTER challenging the notice.

AG and CFPB COMPLAINTS citing lack of authority from an undisclosed creditor.

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