Expert Mortgage Securitization Forensic Audits - Part DUEX

I have spotted a trend with the securitization folks. The last four (4) files in a row contained these same characteristics. Here's what I see while performing Audits on Borrower files I examine.
1. They're all in foreclosure and say their Lender and/or the Servicer is a SOB.
2. Selling//Assigning the Note and Deed of Trust/Mortgage away from the Original Lender downstream to the securitization, seems to be a major hurdle for everybody in the chain.
3. The Loan's Note and other paperwork in the Borrowers file, is sold, sometimes to two or 3 Investor/Buyers before it makes it way to be PLOPED into a Securitization. Most of the time, the Sale/Assignment endorsements are missing - this means the Note is still owned by the Original Lender. Anyone that subsequently bought the loan, may very well have taken custody of the Note BUT its ownership is still with the Original Lender! This ends up being a "Smoking Gun" when later another party attempts a Foreclosure, and most likely causes a 'Bifurcation' situation as well.
4. Next, sometimes 4 or five years after the Securitization's Cut off and Close dates, the last party to hold the Security instrument (Deed of Trust/Mortgage) files/records an Assignment of Deed of Trust/Mortgage into the securitization (but it's too late). They've missed the last date to do that, their recording is Invalid.
5. 'Too Late' means both the Note & Security instrument (Deed of Trust/Mortgage) the Trustee of the particular security can't use to Foreclose, because they have No Standing! They cannot lawfully Foreclose. Yet they plow ahead and try - our Audits help stop that Unlawful process.

In these scenarios the last minute attempts to get the paperwork straight provides the Borrower with a sure-fire way to STOP the Foreclosure.

Children Who Lost Homes to Foreclosure: 2.3M, Report Reveals

"While the term foreclosure victim generally brings to mind images of struggling homeowners, one report released by First Focus addressed the impact of foreclosures on an overlooked segment: children. Julia B. Isaacs of the Brookings Institution authored the report, which revealed five years into the housing crises, 2.3 million children have lost their homes to foreclosure, and 3 million more are at serious risk of losing their homes in the future. In addition, approximately 3 million children were evicted, or may face eviction, from rental properties." ...Wow!!

Get Smart - Read about Important Stuff!

Dave Olson's been a friend of mine for more than 40 years. Monthly he issues this Newsletter from his Columbia Maryland offices. The one I got in my e-mail today is typical of his fine work: http://www.accessmrc.com/2012/04/economic-news-for-the-week-ending-4-13-12/

I'm quite sure you can contact his offices and opt-in to begin receiving your own e-mailed issue, he's been 'right on' target when it comes to our industry, check his site out!

Expert Mortgage Securitization Forensic Audits

That's the title of my new website which was formally launched  this past Monday, check it out @ cugno.net

If you like it, please tell me, however if you find errors we've missed I would appreciate you letting me know that also.

Thanks!

New Website Launch Next Week

Although my previous firm had an award winning website, that had several dozen keywords and phrases on the first page of Google, some of you may recall I shut it down at the end of last year (it's still inside the Internet 'wayback machine' thought). I have purchased another domain name - thought I would get a little clever this time: it's www.cugno.net and I plan on completing it's website construction hopefully tomorrow. Later next week, I will reload WordPress software and plug in my Blog to the site (like I used to have for several years). It's sorta like reinventing the wheel.

Happy Easter everybody!

Still Time to Have Forgiven Mortgage Debt Excluded as Taxable Income

I trust you'll find this short news item from yesterday, as compelling as I have: "Homeowners who have had mortgage debt forgiven after a foreclosure, modification, or short sale may be able to exclude the canceled debt from their taxable income if they meet specific criteria. According to Gil Charney, principal analyst at The Tax Institute at H&R Block, the specific criteria to have forgiven debt excluded are the debt must have been incurred to buy, build or substantially improve the residence, called "acquisition debt, and the property must be the taxpayer's primary residence."

Preventing 'Moral Hazard' Issue for Principal Reduction

I found this news piece yesterday, it's quite telling about where we all are: "With numbers from a CoreLogic report revealing 22.8 percent of borrowers are underwater, principal reduction has been eyed as a key solution to keeping borrowers in their homes. The Center for American Progress has released a report detailing solutions to the "moral hazard" issue. One is to make principal reduction a one-time program open to borrowers already delinquent; another is to open the program only to current borrowers who are at-risk of default; and the third is "shared appreciation" modifications."