Forensic Mortgage Securitization Audit Adventures

Since I have been sorta keeping you up to date throughout my travels as a Mortgage Fraud Investigator lately, I just gotta tell you this one.

The very last two Securitization Audits I did - (in both case they were in the Judicial Foreclosure State of Florida were the Plaintiff has to submit the Original live 'wet-ink' Note and the originally recorded Mortgage documents to the Court as part of the Foreclosure process)  - the Attorney for the Plaintiff's (the Lenders and/or the Securitizer) actually were clueless enough that when they showed these documents to the Judge, they were also tipping their hands to us! Ya know why that matters? I'll tell you why: Neither Lawyer apparently understands the rules about Bifurcation* - translated it means, they now have already demonstrated for the benefit of the Borrowers, that they cannot lawfully complete their foreclosure process.When they do my work or me, I just get kick out of it :-)

BTW, there's been some rather good news lately in industry press - take a peek here: http://cugno.net/latestnews.htm
 

*Bifurcated

In Carpenter v. Longan 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.”  The obligation can exist with or without security but a security interest cannot without the underlying existing obligation ... so if all you get is the mortgage and not the note, that's pretty much worthless, or you have a Note without collateral.

 

Forensic Mortgage Securitization Audits - Sloppy! ??

SERIOUSLY, can they All be this Sloppy? I’m now at 100% of every single Residential Mortgage Loan Securitization Forensic Audit I have done has missed the securitizations cut-off and closing date to lawfully PLOP the Note & Trust Seed/Mortgage in to it. Not by a day oer so, but many months! And in most cases YEARS Late!

Here’s why this confuses me: even though 100% of the borrower files we Audit are consumers who are upset with their Lender and/or Servicer and have told their Lawyer “… they’ve done me wrong … I need one of those Audits ….”

You see, that sort of negative selection could never explain to me, how it is that they ALL have behind the scenes negligent /sloppy paperwork, hell they couldn’t know that!

My question is this: Can They All Be That Sloppy?

4 Months of Improvement in Serious Delinquency

Spotted this deceptive short news piece in industry news yesterday:

"First-mortgage delinquency improved for the fourth month in a row and stands at its lowest level since before the financial crisis. It's a similar story for second liens.

The 90-day delinquency rate on first mortgages finished April 12 basis points lower than in March. It was the fourth consecutive month that 90-day delinquency improved and the lowest rate since July 2007.Compared to April 2011, the rate of late payments on first mortgages was down 28 BPS."

The Trick here? The math utilized does not include the most serious delinquency category ever, Those in Foreclosure! Hell, if you remove that growing gagging number, it's no wonder things don't all that bad - this sort of BS reporting has always troubled me over the years, who do these guys really think they are kidding?  Not me.