US Bank and Deutsch Agree That They Should NOT be named as Plaintiffs in Foreclosures

Aug 2, 2019

People forget that Deutsch issued a directive to all servicers to cease using its name when initiating foreclosures. The investment banks fought back and apparently paid Deutsch more money in fees for the use of its name. That was around 2011. You might find the article on this blog about it.

In the above link US Bank in a brochure produced by US Bank pretty much says the same thing. Keep in mind that this is a compromise of language to provide cover both the investment bank that sells the certificates and creates other derivative investment products on the one hand, and US Bank who is merely renting out its name. US Bank is trying to thread the needle. They want no liability from any of the potentially illegal transactions conducted while using its name, nominally, in foreclosures and even Pooling and Servicing Agreements.

This is how they write and publish it:

U.S. Bank as Trustee: As Trustee, U.S. Bank Global Corporate Trust Services performs the following responsibilities:

• Holds an interest in the mortgage loans for the benefit of investors [Editor’s note: Not really true. It holds a claim to bare legal title to loan agreement for the benefit of the investment bank]

• Maintains investors/securities holder records [Editor’s Note: Also not true. Only the investment bank maintains such records. US Bank has no access to the names of investors nor any transactions ever conducted with them in the name of any trust in which US Bank is named as trustee.]

• Collects payments from the Servicer [Editor’s note: also not true. US Bank handles no money in connection with any account or any borrower or any servicer and does not disburse them. That is done by the party named as Master Servicer although that term is probably also a misrepresentation.]

• Distributes payments to the investors/ securities holder [Editor’s note: Not true see above.]

• Does not initiate, nor has any discretion or authority in the foreclosure process [Editor’s note: True but it does allow its name to be used as though it was initiating the foreclosure action. This is why I keep bringing up the issue of whether the lawyer who asserts that he or she represents US Bank actually does represent US Bank since US Bank has no interest in the outcome of litigation, receives no foreclosure proceeds, and the lawyer is taking directions strictly from the servicer or in turn is getting instructions from the investment bank.]

• Does not have responsibility for overseeing mortgage servicers [Editor’s note: Thus it is not a trustee in the legal or traditional sense. It has no duties.]

• Does not mediate between the servicer(s) and investors in securitization deals [Editor’s note: True but they are still a co-conspirator in misrepresenting their role in the securitization deals because they are being paid for the use of their name to make the deal look institutional even though it is strictly a private sham]

• Does not manage or maintain properties in foreclosure [Editor’s note: True and another example of how US Bank does nothing in connection with any activity relating to any loan claimed to be part of the “trust.”]

• Is not responsible for the approval of any loan modifications [Editor’s note: True and an admission that it has no control, which means it is not a trustee even if it is named as a trustee].

All trustees for MBS transactions, including U.S. Bank, have no advance knowledge of when a mortgage loan has defaulted. Trustees on MBS transactions, while named on the mortgage and on legal foreclosure documents, are not involved in the foreclosure process. [Editor’s note: True and they have no knowledge afterwards. In short, they have no knowledge unless requested to say they do because of successful discovery during litigation and an order from the court that US Bank must respond].