Securitization and Mers

8/3/2019 Securitization and Mers

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Securitization and Mers

Mortgage Securitization and MERs challenges

I think the foreclosure playing field, as enormously tilted as it still is, has changed. My name is

Jeff Greenberg, I am a certified forensic mortgage auditor. This credential is recognized byNAMU, the National Association of Mortgage Underwriters, albeit rubber stamped nontheless

we are one of very few mortgage auditors with the only credential available.

I have been for some time opining about RESPA, TILA, ECOA and HOEPA violations,regulation z and the merits of rescission as a method to place pressure on your lender to modify

the terms of your mortgage. At my certification class I met Doug Rian and Beth Jacobson ofPaCE-Professional Compliance Examiners, LLC from Maryland. Now I have remained, to a

significant extent interested in the spelunkers who crawl down through the SEC.gov websitepouring through SEC filings to find just how the subprime mortgage lenders are able to sell a

mortgage to a homeowner, transfer it 5 or 10 times until it ends up in a trust with a group of other

similarly pooled mortgage assets via a pooling and servicing agreement (PSA), create aprospectus and get a mortgage backed securities offering approved at the SEC in such a mannerthat they can sell off interests in the pool to investors, and then for those assets in the pool that

are non-performing, use a substitute trustee to foreclose on a house, without proper chain of titleor without endorsing the note and deed from one owner to the next and it all be lilly white

and legal. Too many hoops, Too many hurdles. Somebody must have done somethingwrong, something must be running afoul of federal statutes, somebody is commiting

securities fraud. Someone somewhere is without a doubt. It plain old fashion stinks to highheaven.

Well, I thing our friends in Easton Maryland have found the treasure room in the spelunking

cave. I was extremely impressed with the knowledge these two homeowner advocates haveamassed and were able to eloquently convey to a room full of securitization neophites.

Heres the skinny. The secret sauce is located in three places. The pooling and servicingagreement, the prospectus for the mortgage backed securties offering and the unendorsed note.

You see, in a Mortgage backed, securitized loan purchase the PSA will typically have veryspecific language regarding endorsements that are required in order to perfect a proper and legal

conveyance of the note into the pool. Typically there will an entire section or article describingexactly how each subsequent owner of the note must convey title to the note or ownership of the

note to the next holder of record in order to properly convey such ownership. Without suchproper and legal conveyance of the financial instrument, as with a stock, bond or even check, the

pool of mortgage backed securities has no rights to the note in accordance with ITS OWN PSAagreement. Nor does the trust have any ability to convey upon a substitute trustee any rights to

foreclose on the note. Having said that, beg the obvious question? How is this happeningevery day?

Well, I think we are witnessing the largest de-frauding of the people of the US and the federal

government by Banks, As these foreclosures are allowing the banks (without having legallydocumented/perfected their assignments and therefore their foreclosures) to draw down on


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TARP and FDIC loss share dollars from our government, placing the future of our Country incertain economic peril. Why cant we just let the investors in these mortgage backed

securities eat the shite sandwich? They were relying upon the securities brokers and brokerdealers who underwrote them? Why should the problem of this huge scandal hurt the ripped-

off homeowner instead of the spoiled protected investor? Why is wall street more important to

save than our entire economy. I say make the homeowner borrower whole by giving themtheir homes at the expense of the mis-lead investors instead of paying for the losses of thesecrooked predatory bankers on our future tax revenue. Just MHO.

Anyways: Here is a description of what Doug & Beth at PaCE do.. They go well beyond a

normal forensic audit because they trace the ownership of your mortgage from the Pool back tothe day you signed your loan documents finding chinks in the custody chain.

Professional ComplianceExaminers, LLC

(PaCE)

Forensic Loan Auditing & Compliance

In Real Property Transactions

(410)-650-4121 (Intake Line)

(410)-690-4891 (Fax)

[email protected]

What isPaCE?

PaCEis the nations only certified forensic loan auditing team examining real

property and securitized transactions!

PaCEmeets the needs of todays homeowners by performing forensic audits that

review our clients loan documents, loan transactions involving servicing andnegotiating, and deficiency and/or foreclosure notice documents. Obtaining a loan

from a borrower and negotiating its terms is a fundamental part of buying a home and

that is why we review foreclosure as a basic contractual right. Contracts cannot bechanged unless all parties to the contract agree. It is not possible to negotiate loan

modifications unless all parties in the real property transactions know who the

creditor, the secured party, is. Borrowers are as much a party in interest to securitizedmortgage loans as investment banks, servicers, aggregators, and trustees because the

mortgage is a basic loan transaction between the borrower and the investor.


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PaCEis:

Elizabeth Jacobson is a partner atPaCE.She became a Certified Forensic Loan Auditor in

June 2010.Elizabeth graduated with her American Bar Association-approved paralegal degreefrom Stevenson University (formerly Villa Julie College) and later attended the University ofMaryland Baltimore County. Thereafter, she assisted in asbestos litigation research over an

eight-year period that resulted in the largest punitive damage awarded by a jury in Maryland.Prior to co-foundingPaCE, Elizabeth was also recognized as Wells Fargos top-producing

national loan officer for nearly 10 years. In that capacity, she developed invaluable skills to helpher clients maneuver through the mortgage landscape, and in 2009 penned an article for Harpers

Magazine detailing her experience. Elizabeth now focuses on assisting homeowners in savingtheir homes from foreclosure, and she has appeared on CNN, NPR, and the BBC for interviews

related to her efforts to do so. She served as Foreclosure Prevention Coordinator for Mid-ShorePro Bono in 2008-2009, and her expertise has been tapped by the United States Department of

Justice, Federal Bureau of Investigation, Comptroller of Currency, and the Maryland Departmentof Labor, Licensing & Regulation. Most recently, Elizabeth appeared in Michael Moores

documentary Capitalism: A Love Story. Although her efforts to assist homeowners have landedher many accolades, she is most proud of recently being recognized by the U.S. House of

Representatives for her service to homeowners in the State of Maryland.

Douglas Rian, M.A., co-foundedPaCEand is Elizabeth Jacobsons partner. Doug became a

Certified Forensic Loan Auditor in June 2010. His background includes academia, public policyand legal/financial analysis consultation. He applies a rigorously analytic approach to uncovering

little-known, rarely used defenses in areas of mortgage securitization and mortgage deficiency.After obtaining a B.A. (cum laude) in English from the University of North Dakota, he earned

his M.A. from the University of Chicago during which time he attended its School of Law andworked at its Mandel Legal Aid Clinic. He later completed investing coursework from The

Investment Analysts Society of Chicago, and worked with the Tennessee Supreme Courts Boardof Professional Responsibility while obtaining an ABA-approved paralegal certificate from the

Kaplan Institute. Dougs research, analysis, teaching, and writing skills have been tapped bystate and federal agencies and private-sector companies including the FBIs Uniform Crime

Reporting (UCR) of its Bureau of Justice Statistics, the Minnesota House of Representatives,U.S. Senator Kent Conrad, two Governors and State Attorneys-General, the Minnesota Public

Service CommissionersPlanning Center Division, IBM, ITT Educational Services, Morningstar,

Inc., and the National Association of State Boards of Accountancy (NASBA). He recentlyserved as Visiting Professor of Law and Politics at Universidad Espiritu Santo in Guayaquil,Ecuador. Doug has acted as a delegate to the National Conference of State Legislatures, and is a

member of Pi Sigma Alpha, the International Association of Business Communicators, and theSociety of American Business Editors and Writers.


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If you are in mortgage trouble of any kind, we can direct you to the rightresources and we are glad to help.

Office: 540-341-1481Cell: 703-615-0950Email: [email protected]: www.LegalForensicAuditors.com

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Securitization and Mers