My Securitization Audits - What's Happening

Tell me if you can imagine this, frankly I cannot (the names have been withheld to protect the innocent). Big Bank makes mortgage loan, subsequently sells it to another (sale/assignment endorsement stamp in Blank [means no name of Buyer on the endorsement] and Bank Exec signature appears, on this copy of the face/front of Borrower executed Note's copy which I saw). Later, Big Bank records 'Mortgage Assignment' to a different party (to another, Bank #2). This Bank #2 institutes Foreclosure process and schedules Public Sale (let's remember they do not have the Original 'wet-ink' Note). Then I get the file to Audit and see these things.

Did Big Bank actually sell that Note/Loan (without an Assignment/Endorsement) and forgot to also assign/record the Mortgage to that same Buyer? Did they sell it without a 'Mortgage Assignment' and that Note/Loan Buyer went out of business before they could discover they didn't get the Mortgage along with their purchase? We could ask Big Bank, but they have also gone out of business as well.

Today, Bank #2 is moving on what they think/hope is their asset - here's my situation. WHERE is the Original Note because it is unlawful to foreclose without one (BIFORCATION: In Carpenter v. Longman 16 Walls. 271, 83 U.S. 271, 274, 21 Led. 313 (1872), the United States Supreme Court stated, “The note and mortgage are inseparable; the former as essential, the latter as an incident. An assignment of the note carries the mortgage with it, while assignment of the latter alone is a nullity.”), if all you have is a Mortgage (or Trust Deed).

When was that endorsement stamp added to Original Note, or is it merely on a "copy" of the Note, because the foreclosing party (Bank #2) realized they didn't have an 'endorsed' Note, so they added it to a copy when nobody was looking? Far fetched? Nope, not from all I have seen lately.

WhatDoYouThink? After my Audit get's into the hands of the Borrower's attorney, he'll now know what sort of loaded questions he needs to ask the Foreclosing Bank (#2) like - do you really have standing to foreclose in the first place - in advance of his client losing their home.

My Situation With Bankruptcy Lawyers

I have mentioned previously that I am marketing to Bankruptcy Lawyers all across the Country - what I do will be very valuable to them and their clients once they work with me instead of it being a lop-sided pursuit on my part, to get their attention!  THIS IS WHAT I SEND THEM (and do I follow up, of course I do):

"ILLEGAL FORECLOSURES WIDESPREAD ACROSS U.S., EXPERTS SAY - Forensic Loan Securitization Auditor Seeks Additional Contract Work

“Up to 84% of foreclosures appear to be illegal”(*) rampant foreclosure abuse is on the rise, especially since more than Six (6) Million mortgages are overdue today.

Presently I have accepted an assignment as a Forensic Mortgage & Securitization Loan Auditor. Covering Securitizations, Foreclosures as well as Lis Pendens, TRO’s, Robo-Signing, Predatory Lending, Civil Complaints, Demand Letters, Origination analysis, Loan Closing docs, Borrower’s Servicing Handling, etc. - I'm looking for more client files to Audit. Even with all the Robo-Signing Press lately, the foremost firm I work with at this time has hit a slow spot and hasn't been able to keep up with me. This work seems to come easy to me - given I have over four decades in the residential real estate mortgage industry, as senior executive, certified & licensed mortgage trainer/teacher, an owner/operator mortgage banking, FHA approved and a Freddie Mac Seller/Servicer. I can handle up to a dozen audits a week myself, plus if necessary, I have an associate with similar credentials who could help me with another half dozen a week as well.

I dig for the 'smoking-gun' and uncover fabricated, fictitious, forged documents including Assignments and inaccurate claims that are used to gain 'standing to foreclose.' I investigate and identify bogus, questionable foreclosure transactions using false and misleading documents as lenders, mortgage servicers and local trustees are using questionable, wrongful or unlawful practices to foreclose ... all too typical these days.

Please contact me if you think there could be a fit with your organization and your possible need to pump up your profits with a strong addition to your Audit/investigation force.

Best Wishes,

Cugno & Associates
Peter Samuel Cugno
San Pedro, CA
310/548-3631
cell: 310-365-2049
http://petersamuelcugno.blogspot.com/

PS: I have a detailed 4 decade long resume if that may be something you would want to review, just ask for it or a Sample of my latest Audit. I get $250 for my Audits. Several of my clients charge their clients more than $1,000 for the audit and their legal evaluation of its findings.

* http://www.reuters.com/article/2012/02/17/us-usa-housing-defaults-idUSTRE81G04M20120217"

OCC Getting Involved with Mortgage Forclosure Mess

Morris Morgan is a Large Bank Deputy Comptroller at the Office of the Comptroller of the Currency (OCC). He was before a Congressional Government Oversight Committee yesterday (here's his verbal testimony: http://www.occ.gov/news-issuances/congressional-testimony/2012/pub-test-2012-47-oral.pdf - and here's the written portion: http://www.occ.gov/news-issuances/congressional-testimony/2012/pub-test-2012-47-written.pdf) all about the mess I see daily, and the Government's comprehensive enforcement orders regarding mortgage servicing and foreclosure deficiencies.

Based upon what I have been an eye witness to lately, my view on this issue is a rather simple one ... it's about time some of these folks start to get punished !

The latest in My Securitization Audits

I have spotted a trend, I announced to one of my friends this morning!

My 'Findings' in the last half dozen files I audited is so glaring, nobody could miss it (if they had their eyes open). How this pattern got past the folks that check this sort of stuff for securitizers beats me, EXCEPT to say they must have felt nobody would check their homework ... ever!  Wrong, I AM.

Although it takes some digging and an understand of what you're looking at; here it is in a nutshell:
Mortgage securitizations have a "Closing Date" and normally the Trust's 'Pooling and'Servicing Agreement' or elsewhere in the (500+ page) Prospectus, it spells out individual loans must be included in the Trust by Closing.

Therefore when I review a file that shows the Mortgage has been securitized, the number one thing I look to determine, is to find evidence both the Note and the Deed of Trust (Mortgage) have been properly assigned to the Trust before its "Closing Date."

Time and time again, I discover Lenders (like the Big Four Banks), Trustees, and others trying to assign the Mortgage Loan's Note & Deed of Trust (Mortgage) months, and frequently years after this final date! Then the Trustee of the Securitization proceeds with a faulty Foreclosure and Sale of the borrowers property! Yet, they have no standing to lawfully proceed!

With my Audit in hand, Borrower Lawyers are getting the guilty/sloppy parties to come to the table and workout a solution to the defective foreclosure process along, with the payment arrangement to settle the default status of the loans.

This has happened in my opinion, because these players hoped nobody would ever check!

FHFA's GSE Salary Requirements

"The top 70 executives at Fannie and Freddie were told by the FHFA that their salaries would be limited to $500,000, and bonuses would be eliminated. The change came after Congressional leaders ridiculed the high million-dollar salaries of many executives at the two firms. No date has been set for when the pay changes will go into effect. This compensation cap will inhibit their capacity to retain talent."  This according one news source I trust. Ya know what I think is funny, it is that 'they' feel anybody who would work for that small amount of salary MUST naturally be an untalented hack.

I can tell you I would put my knowledge, experience, industry knowhow, and Resume up against any of the last several CEO'S and Presidents of those GSE dudes anyday.

I 'm sure YOU too may also have an impressive background - neither you nor I are untalented hacks!

Securitization Audits - Been Busy

Haven't posted on my blog lately, I apologize but I have been swamped with this Forensic Securitization Audit activity. I continue to send our Marketing materials to various attorneys all across the Country. Of course some of them tell me ... but how else would YOU get the attention of a stranger attorney in Miami, Chicago, New Jersey, etc. who specializes in Foreclosures and Bankruptcy? Having one of these done for their clients who feel their lender has "done them wrong" is worth its weight in gold. Not only is it great ammunition (if the Lender is at fault) for a lawsuit, but more frequently it brings the parties to the table so they can talk and work something reasonable and friendly out.

I am fairly happy with the response I have received to date, but the more the merrier!