Work with my sister who is at home attorney. I am former adjunct instructor of finance/economics with MBA in finance (also former registered security representative).

Here is my question to you: Usually the “servicer” is a subsidiary of the bank (lender) who actually funded the mortgage and purchased for the purpose of securitization, thus, there is an easy trace to the actual lender. However, some Banks used “outside” servicers in the process such as Homeq. How do you trace an outside servicer to the actual lender???

Also, now working with other parties regarding foreclosures (I am not yet in foreclosure). Am familiar with the SEC documents that provide explanation of the process of “note” sale. Therefore, we know there cannot be a direct sale from the original subprime lender (lets say Ameriquest) to the Trustee of an SPV. Yet many attorneys are coming in claiming a direct sale from say Ameriquest to the Trustee. Were notes ever sold to the Trustee for the SPV??

Lastly, according to my understanding , and SEC documents, the loans were sold/assigned by the “seller” to the “depositor” – which is in the name of the incorporated Trust – which then assigns to particular Series. Now, with foreclosures, attorneys are coming in stating they represent the Trustee – on behalf of the “certificate holders” of the Trust. However, the SEC documents state that the “certificates” were sold back to the underwriter (investment bank) – and, as you state – they were resecuritized into CMOs/CDOs for sale to public. Therefore, the certificate holders of the TRUST must be the investment bank itself – who funded the mortgage from the beginning with “warehouse” credit lines etc. then purchased the mortgages from the subprime lender – prior to, at, or after mortgage closing. Thus, the certificate holders of the TRUST is the BANK itself. Further, there are no more investors in the MBS as investors dumped them???

Would like your opinion on this. Stopped one foreclosure in state after false documents were submittted. But judge gave them four weeks to get the rights assignments – chain of title – despite the fact that fraud was already used in process. Waiting now to see their assignments.

As Congress and US Government continue to bail out the Banks they are doing everything possible to cover up the Banks role in the whole process. The people have no say because they do no have any influence in hearings. In addition, Paulson and Bernacke, and every business channel, promotes propoganda that the real fault lies with the borrowers – who bought too much house.

This is not true, as contracts are rampant with fraud, including RESPA violations regarding the actual lender, and inflated appraisals. Also, almost all of the subprime mortgages were for mortgage refinancing – not new home purchases. And those refinances were usually to pay credit card debt to the Banks who were the actual lender for the mortgage.

Hope I have not bothered you. I appreciate your extensive and well-written article. Would appreciate any comment regarding what I have written here. Thank you for your service to our country – in more ways than one!!

Thank you,
ELeanor