Reverse Engineering Wall Street
Bankruptcy Judge Margaret M. Mann Strikes Down Deutsche
By Daniel Edstrom
DTC Systems, Inc.
The Honorable Judge Mann in Southern California brings the MERS issue up hard against Deutsche Bank National Trust Company.
Read the ruling – in re: Doble, Doble v. Deutsche Bank National Trust Company as Trustee: http://dtc-systems.net/wp-content/uploads/2011/04/Doble-v-Deutsche-Bank.pdf
Appeals Court Ruling Against MERS in Michigan Reverses District Court Non-Judicial Proceedings
By Daniel Edstrom
DTC Systems, Inc.
Selected excerpts:
These consolidated cases each involve a foreclosure instituted by Mortgage Electronic Registration System (MERS), the mortgagee in both cases. The sole question presented is whether MERS is an entity that qualifies under MCL 600.3204(1)(d) to foreclose by advertisement on the subject properties, or if it must instead seek to foreclose by judicial process. We hold that MERS does not meet the requirements of MCL 600.3204(1)(d) and, therefore, may not foreclose by advertisement.
MERS would purportedly track the mortgage sales internally so as to know for which entity it was holding the mortgage at any given time and, if foreclosure was necessary, after foreclosing on the property, would quit claim the property to whatever lender owned the loan at the time of foreclosure.
Cease and Desist Consent Order Issued Against DocX and LPS Default Solutions
By Daniel Edstrom
DTC Systems, Inc.
These consent orders are coming out of the woodwork. Here is an excerpt:
WHEREAS, in providing document execution services to Examined Servicers, including
services that facilitated completing foreclosures, LPS and its employees allegedly:(a) Executed numerous affidavits and similar sworn statements (collectively,
“Affidavits”) making various assertions, such as the ownership of the mortgage note and
mortgage (or deed of trust), the amount of principal and interest due, and the fees and expenses
chargeable to the borrower, in which the affiant represented that the assertions in the Affidavit
were made based on personal knowledge or based on a review by the affiant of the relevant
books and records, when, in many cases, they were not based on such knowledge or review.
LPS executed these Affidavits on behalf of Examined Servicers knowing they would be filed in
state courts and in connection with bankruptcy proceedings in federal courts;Continue reading “Cease and Desist Consent Order Issued Against DocX and LPS Default Solutions”
OTS Takes Action on Aurora Bank, EverBank, OneWest and Sovereign Bank
By Daniel Edstrom
DTC Systems, Inc.
The Office of Thrift Supervision is in on the action as well. Here is their press release from April 13, 2011:
Press Releases
April 13, 2011
OTS 11-008 – OTS Takes Action to Correct Foreclosure Deficiencies
FOR RELEASE:
Wednesday, April 13, 2010
CONTACT:
William Ruberry
(202) 906-6677
——————————————————————————–
Washington, D.C. — The Office of Thrift Supervision (OTS) has taken enforcement actions against four OTS-regulated mortgage loan servicers for critical weaknesses in processing home foreclosures, the OTS announced today.
After an interagency review of foreclosure policies and procedures at 14 nationwide mortgage servicers, the OTS issued enforcement orders against the four servicers supervised by the agency: Aurora Bank, EverBank, OneWest Bank and Sovereign Bank. The orders require swift and comprehensive action to remedy the widespread and significant deficiencies identified by the review.
Continue reading “OTS Takes Action on Aurora Bank, EverBank, OneWest and Sovereign Bank”
Cease & Desist Orders for: Citigroup, HSBC, JP Morgan Chase, MetLife, PNC, SunTrust, US Bancorp and Wells Fargo Bank
By Daniel Edstrom
DTC Systems, Inc.
The latest round of Cease and Desist orders issued by the Office of the Comptroller of the Currency (OCC) are against some of the largest “too big to fail” banks. Notably missing so far is Deutsche Bank National Trust Company along with Deutsche Bank Trust Company Americas and of course OneWest Bank.
The gist of these Cease and Desist orders is that certain “deficiencies” were found and the banks are operating with “unsafe or unsound” practices in residential mortgage servicing and in the Bank’s initiation and handling of foreclosure proceedings.
We hail the OCC for these efforts, but the problem is following up. How are the banks going to immediately comply with this order? They would have to stop processing nearly every single foreclosure they are working on today.
Wells Fargo Does It Again – This Time Investors Take a Hit
By Daniel Edstrom
DTC Systems, Inc.
Since Wells Fargo Bank has been around since the Gold Rush days and are such a large lender and securitizer, you would think that they would have state of the art systems handling the servicing of loans. Especially in light of the huge rush to securitize anything and everything in the last 10 years. But apparently the meltdown has moved them beyond what their systems are capable of. This is probably especialy true given that banks are for the most part not lending much anymore (very limited number of new loans), but the number of loans in default, foreclosure, bankruptcy and REO status has skyrocketed. Pushing through so many foreclosures and processing so many advances and distributions is weighing down on their systems and infrastructure. In their latest March statements to certificateholders (investors who purchased certificates from securitized trusts), Wells Fargo (usually as a Master Servicer or Servicer) is giving investors this disclosure on the first page of the reports:
NOTE: Wells Fargo Bank, N.A. is processing an extraordinary expense charge related to the analysis, creation, and implementation of new and enhanced systems and processes necessitated by significant and unanticipated changes in industry and market conditions.
Continue reading “Wells Fargo Does It Again – This Time Investors Take a Hit”
BANK OF AMERICA CEASE AND DESIST ORDER FOR CERTAIN DEFICIENCIES AND UNSAFE OR UNSOUND PRACTICES
By Daniel Edstrom
DTC Systems, Inc.
On April 13, 2011 the Office of the Comptroller of the Currency issued a Consent Cease and Desist Order. The order states that Bank of America has committed “deficiencies and unsafe or unsound practices identified by the OCC …” The OCC finds numerous problems to which the bank “neither admits nor denies”. Such as “failed to sufficiently oversee outside counsel and other third-party providers handling foreclosure-related services.”
Read the order here: http://dtc-systems.net/wp-content/uploads/2011/04/Consent_Order_for_Bank_of_America.pdf
MERS CEASE AND DESIST FOR CERTAIN DEFICIENCIES AND UNSAFE OR UNSOUND PRACTICES!!!
By Daniel Edstrom and Jim Macklin
DTC Systems, Inc. and Secure Document Research
On April 13, 2011 the Department of the Treasury, Comptroller of the Currency, Board of Governers of the Federal Reserve System, Federal Deposit Insurance Corporation, Office of Thrift Supervision and the Federal Housing Finance Agency have issued a consent order stating that these agencies have identified
“certain deficienies and unsafe or unsound practices by MERS and MERSCORP that present financial, operational, compliance, legal and reputational risks to MERS and MERSCORP that present financial, operational, complaince, legal and reputational risks to MERSCORP and MERS, and to the participating Members.”
OCC No. AA-EC-11-20
Board of Governers Docket Nos. 11-051-B-SC-1, 11-051-B-SC-2
FDIC-11-194b
OTS No. 11-040
FHFA No. EAP-11-01
Read the full 31 page Consent Order here: http://dtc-systems.net/wp-content/uploads/2011/04/MERS_Cease_and_Desist_2011_04_13.pdf
Bankruptcy Judge Margaret M. Mann GETS IT!
By Daniel Edstrom
DTC Systems, Inc.
Coming off of the heels of in re: Agard (http://dtc-systems.net/2011/02/mers-agency-york-bankruptcy-court-agard/), the Honorable Judge Mann from the United States Bankruptcy Court Southern District of California took 76 days to review the Motion for Relief From Automatic Stay for the in re: Salazar Chapter 13 bankruptcy (Bankruptcy No: 10-17456-MM13). The findings of fact and conclusions of law were an amazing reading that confirms many of the issues we have been discussing in regards to loans, securitization and foreclosure. Like Judge Grossman in the agard case, Judge Mann goes to great lengths to research the details that are applicable to this case. Here are some highlights: Continue reading “Bankruptcy Judge Margaret M. Mann GETS IT!”
How Do I Order Certified Copies of SEC Filings?
By Daniel Edstrom
DTC Systems, Inc.
Send an email to [email protected]
Ask them for ALL filings related to the trust and then give them the exact name of the trust (this can be a challange). If you can, give them information about one of the filings from this trust (accession number and/or SEC file number). There are usually not that many files associated with a specific securitized trust. I received approx. 2,000 pages. It cost me $26.00 for photocopy fees.
Also you can only request one entity per email. So if you want copies of information for this trust from the depositor (for instance my static loan level file was in an 8-k from the depositor), you will need to request them separately from the trust entity request. In this case reference the specific documents you need by date, accession number and SEC filing number (because the depositor usually has a very large number of filings which are probably unrelated to your specific trust).
Tell them you are ready willing and able to pay the fees necessary. Give them your name and address. You might want to give them your phone number, but if they have questions they will probably just email you. I asked them for two copies of everything but they said I will only get one copy.