BOfA: Countrywide never tranferred the notes

[30ashopper]

This is an enormous deal. If Countrywide never gave up possession of the note, then the trust has no standing to foreclose whatsoever. It also means that investors in the MBS don?t actually have securities backed by mortgages. The ?allonge? appears to be an effort to clear up this situation, and it was signed years after the fact, well past the deadline of the pooling and servicing agreement, and not even affixed to the note as required by law.

This is a deposition from one supervisor, but it could mean that all mortgage pools that Countrywide sold are suspect. That would amount to perhaps hundreds of billions of dollars in MBS. And the law appears to be air-tight on this, and not governed by the Constitution but New York trust law and the specifics of the pooling and servicing agreement.

Now, tell me again how the banks are planning to get out of this.

Deposition: Countrywide Never Sent Mortgage Notes to Trust; Mortgage-Backed Securities in Question | FDL News Desk

It all comes down to the notes.

If mortgages were not properly transferred in the securitization process, then mortgage-backed securities would in fact not be backed by any mortgages whatsoever. The chain of title concerns stem from transactions that make assumptions about the resolution of unsettled law. If those legal issues are resolved differently, then there would be a failure of the transfer of mortgages into securitization trusts, which would cloud title to nearly every property in the United States and would create contract rescission/putback liabilities in the trillions of dollars, greatly exceeding the capital of the US?s major financial institutions

Countrywide Admits to Not Conveying Notes to Mortgage Securitization Trusts ? naked capitalism

The home lending industry is an absolute train wreck. The unwind of legal ownership on property will take years. The recovery from all of this will take a decade. Buy a foreclosure.. hope and prey you actually own the home. Yikes.

 

[futurebeachbum]

Deposition: Countrywide Never Sent Mortgage Notes to Trust; Mortgage-Backed Securities in Question | FDL News Desk

It all comes down to the notes.



Countrywide Admits to Not Conveying Notes to Mortgage Securitization Trusts ? naked capitalism

The home lending industry is an absolute train wreck. The unwind of legal ownership on property will take years. The recovery from all of this will take a decade. Buy a foreclosure.. hope and prey you actually own the home. Yikes.

As someone with 4 CountryWIde mortgages, this is going to be interesting.

 

[Kurt]

Countrywide? What Countrywide?

 

[Lisa Ruby]

Countrywide? What Countrywide?

I think he is referring to originated by Countrywide, but assumed by BOA, but maybe not done legally.....holy cow!

 

[beachmouse]

The home lending industry is an absolute train wreck. The unwind of legal ownership on property will take years. The recovery from all of this will take a decade. Buy a foreclosure.. hope and prey you actually own the home. Yikes.

I wonder how many people who bought foreclosures with cash skipped the title insurance. (And would title insurance be on the hook for something like that to begin with?)

 

[Busta Hustle]

When you climb to the top of that ladder you find the MERS sysyem owned by among others our most favored ibanks. They not only were sloppy in deed and note transfer they also avoided paying county documentation fees costing local gov's billions of lost income and are being sued in about 17 states. oh what a wicked web.

 

[DuneAHH]

The whole foreclosuregate situation is the darkest of nightmares. The deeper I dig... the broader, higher, and all inclusive the corruption is found.

The fed HAMP program is a near total failure for homeowners, yet a windfall for the banks. The banks are making billions off it ($1,000 per loan mod application), then ultimately foreclosing anyway.

The potential for global ID theft is stunning (from repeatedly "lost" loan-mod packages full of private information that are being "handled by customer care units" not just all around U.S. but also abroad.)

Then there's the deficiency judgments being granted to bailed-out banks and banks who "received" failed banks for cents on the $ coupled with loss share agreements with the FDIC.

The judicial system is turning it's back on the American public. The public is being stripped clean "by the letter of the law".
While politicians, judges, and media launch "probes" and shake fingers at the naughty-naughty illegal bankster pranks... essentially nothing ever gets enforced against them.

Check out:
http://www.propublica.org
http://www.4closurefraud.org

 

[30ashopper]

I wonder how many people who bought foreclosures with cash skipped the title insurance. (And would title insurance be on the hook for something like that to begin with?)

One big grey area I suppose, it'll get worked out by the courts over time.

 

[Lynnie]

This is very interesting! I have heard, particularly in FL, that if the closing process / filings / servicing transfers were not properly handled, the judges are dismissing the foreclosures. More to come. I never liked Countrywide and they were never in my portfolio of lenders; I saw signs of predatory lending from them. Angelo Mozillo did not receive his due....at least not yet.

 

[BeachSiO2]

So when can I quit paying my mortgage?