Patt Morrison on Southern California Public Radio

Patt Morrison on Southern California Public Radio

Listen to the recorded version of the Patt Morrison’s show on


Katherine Porter, visiting professor of bankruptcy, consumer finance & secured credit at the Harvard Law School

Daniel Edstrom, head of the securitization auditing firm DTC-Systems

Securitization issues related to foreclosures and paperwork is discussed.

Katherine Porter states that Wrongful foreclosure is when the house is foreclosed on and there  is no default.  This is an interesting definition because in nearly all cases in securitization, the loans are current.  The obligation is not in default because the Securitization Trustee and the investors have received all payments.  So nearly all Securitization foreclosures are wrongful foreclosures?  That is the elephant in the room that nobody wants to look at.

Why are the loans current in securitization?  Because the servicers and securitization trustees are required and obligated to make the payments whether or not they receive the payment from the homeowner.

Author: dmedstrom

Reverse Engineering and Failure Analysis - Reverse Engineering Wall Street

5 thoughts on “Patt Morrison on Southern California Public Radio”

  1. The loans are showing current in securitization because banks like Wells Fargo puts a homeowner in a Forebearance Agreement, so Wells doesn’t lose any money. The money is tacked on to the back end of the loan! That’s their in-house loan modification.

    1. Peter,
      Read my latest post. The loans show current because despite what happens in bankruptcy or in a modification the servicer is required and obligated to make principal and interest advances based on the original amortization schedule of the pooled loan.


  2. Thank you, Dan. Yes, I saw that in the PSA also, but they are still charging the homeowner in a forebearance agreement or loan modification. So, basically the banks or servicers aren’t out any money in their oblogation to the investors because it’s still coming from the homeowners. Thank you for your awesome work out here in California!

  3. Hi

    I am currently working with a attorney that see Barrett law firm as no different from Sterns any I mean any information you can provide about Porter assignments would be so helpful in taking them down.


  4. Pite Duncan, LLC out of San Diego is also a foreclosure mill partner submitting fraudulant documents to courts from LPS for HSBC and Wells Fargo.

Comments are closed.