DTC Systems Inc – Page 15 – Reverse Engineering Wall Street

Wells Fargo Does It Again – This Time Investors Take a Hit

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

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!!!

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!

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?

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.

The Wrong Remedy at the Wrong Time, Part 3

The Wrong Remedy at the Wrong Time, Part 3

By Daniel Edstrom
DTC Systems, Inc.

The previous three parts to this topic related to the trustee and the beneficiary having the right to petition the court under California Probate Code 17200. This section will talk about the rights of the settlor to petition the Court under California Probate Code 17200.

California Civil Code 2934b says the following:

Sections 15643 and 18102 of the Probate Code apply to trustees under deeds of trust given to secure obligations.

Continue reading “The Wrong Remedy at the Wrong Time, Part 3”

LAWYERS CLE WORKSHOP ON FORECLOSURE DEFENSE AND OFFENSE

LAWYERS CLE WORKSHOP ON FORECLOSURE DEFENSE AND OFFENSE

April 30 to May 1, 2011 – in Phoenix, Arizona

Venue is to be determined

World Savings Bank Loans Were Securitized – Pooling and Servicing Agreement Uncovered

World Savings Loans Were Securitized – Pooling and Servicing Agreement Uncovered

By Daniel Edstrom
DTC Systems, Inc.

Contrary to what Wells Fargo is saying in court, we have proof that World Savings Bank Securitized loans into REMICs. We had some evidence of this already, but newly added is a Pooling and Servicing Agreement that we have acquired for World Savings Bank REMIC 12. The terms are fairly standard that you see in most other securitizations, except that World Savings Bank played nearly all parts in the transaction (the originator, sponsor/seller, depositor, underwriter, etc). The servicers were required and obligated to make principal and interest payments whether or not they receive them from the homeowners, the notes were required to be endorsed without recourse to the order of Trustee and showing an unbroken chain of endorsements [..] from the originator thereof to the Person endorsing it to Trustee. It is all here, even the second set of books kept by the master servicer (you know, the true accounting that is concealed, misrepresented and not disclosed to any court of law).

This is a HUGE breakthrough for those looking for evidence that their World Savings Bank loans were securitized.

Download the Pooling and Servicing Agreement here

Wells Fargo will Freeze your Accounts if you Declare Bankruptcy

Wells Fargo will Freeze your Accounts if you Declare Bankruptcy

By Daniel Edstrom
DTC Systems, Inc.

We are receiving numerous reports that when bankruptcy is filed by a consumer, their accounts with Wells Fargo are frozen. This is just a warning to all of those with any type of accounts at Wells Fargo. Be prepared to lose access to your accounts for at least 30 days, probably longer. Too big to fail? No, too big to keep.

Foreclosure Mills Continue Down the Wide Path of Destruction

Foreclosure Mills Continue Down the Wide Path of Destruction

By Daniel Edstrom
DTC Systems, Inc.

We have already talked about the foreclosure mills the Law Offices of David J. Stern PA and Ben-Ezra & Katz PA and NDEx West (owned by Dolan Media) with its doppelgänger foreclosure mill law firm, Barrett Daffin Frappier Turner & Engle. Now we turn our attention to Shapiro & Burson apparently out of Maryland. As stated on livinglies.wordpress.com (and originally from 4closurefraud.org), The Baltimore Sun’s Jamie Smith Hopkins reports that 1,000 or more Maryland deeds are likely forgeries that were created by a foreclosure mill (the law firm of Shapiro & Burson). It turns out that last year two other law firms in Maryland admitted they had forged signatures on foreclosure documents in a similar manner (Bierman Geesing & Ward along with Covahey Boozer Devan and Dore). I have already shown that NDEx West (owned by Dolan Media) along with Barrett Daffin Frappier Turner & Engle does the same thing. This is very easy to show for just about any foreclosure mill. Here is how. Just go down to the recorders office and pull up 20 documents in each of the last 3 or 4 years naming your favorite foreclosure mill (NDEx West or whoever). The chances of you not finding one forgery are probably close to 0%. The chances of you finding multiple forgeries is very high (99%+). Continue reading “Foreclosure Mills Continue Down the Wide Path of Destruction”