Tag: REMICs

SEC Corroborates Livinglies Position on Third Party Payment While Texas BKR Judge Disallows Assignments After Cut-Off Date


SEC Corroborates Livinglies Position on Third Party Payment While Texas BKR Judge Disallows Assignments After Cut-Off Date

By Neil Garfield
Garfield Gwaltney Kelley and White | LivingLies

Maybe this should have been divided into three articles:

  1. Saldivar: Texas BKR Judge finds Assignment Void not voidable. It never happened.
  2. Erobobo: NY Judge rules ownership of note is burden of the banks. Not standing but rather capacity to sue without injury.
  3. SEC Orders Credit Suisse to disgorge illegal profits back to investors. Principal balances of borrowers may be reduced. Defaults might not exist because notices contain demands that include money held by banks that should have been paid to investors.

But these decisions are so interrelated and their effect so far-reaching that it seems to me that if you read only one of them you might head off in the wrong direction. Pay careful attention to the Court’s admonition in Erobobo that these defenses can be waived unless timely raised. Use the logic of these decisions and you will find more and more judges listening with increasing care. The turning point is arriving and foreclosures — past, present and future — might finally get the review and remedies that are required in a nation of laws.

Continue reading “SEC Corroborates Livinglies Position on Third Party Payment While Texas BKR Judge Disallows Assignments After Cut-Off Date”

World Savings Bank and Fannie Mae Securitizations

world_savings_logoWorld Savings Bank and Fannie Mae Securitizations

By Daniel Edstrom
DTC Systems, Inc.

We have already shown that World Savings Bank securitized commercial and residential loans.  See the following posts:

http://dtc-systems.net/2010/12/world-savings-bank-living-legacy-subprime-crisis/

http://dtc-systems.net/2011/03/world-savings-bank-loans-were-securitizated/

http://dtc-systems.net/2011/06/internal-revenue-service-publication-938-remics-reporting-information/

http://dtc-systems.net/2011/12/world-savings-bank-wells-fargo-admits-loans-securitized/

http://dtc-systems.net/2012/02/androes-world-savings-bank-lien-avoided-kansas-bankruptcy-february-2008/

Now we show that World Savings securitized multi-family housing into Fannie Mae pools.  These “pools” are REMICs.  This deal contains 9 multi-family properties with fixed rate balloon loans.  That’s right – no option ARM loans, which is what World Savings Bank is known for.

Download part 1 of the Trust Indenture here: 1-FixedRate_TrustIndenture_Part_1_1982_last_updated_1987

Download part 2 of the Trust Indenture here: 2-FixedRate_TrustIndenture_Part_2_1982_last_updated_1987

Download the Prospectus here: 3-Prospectus_2003_09_01

Download the Prospectus Supplement here: 4-Prospectus_Supplement_1_2003_09_01

Download the Prospectus Supplement Pool Statistics here: 5-Prospectus_Supplement_Pool_Statistics_2003_09_01

Download the Pool Loan Schedule here: 6-Pool_Loan_Schedule

 

IN RE WACHOVIA PREFERRED SECURITIES AND BOND/NOTES LITIGATION

IN RE WACHOVIA PREFERRED SECURITIES AND BOND/NOTES LITIGATION
 
 
 

By Daniel Edstrom
DTC Systems, Inc.
 
This case discusses the “pick-a-pay” loans, CDO’s and RMBS from World Savings Bank and Wachovia.  Note that in paragraph 3 on page 8 Wachovia reported:

 

 

$120 billion portfolio of option adjustable rate mortgages (“Option ARMs”), known as the “Pick-A-Pay” portfolio, which Wachovia acquired through its May 2006 purchase of Golden West;

By my calculations, the original principal balance of World Savings REMICs that contain “Option ARMs” was $124.9 billion dollars.  What a coincidence.

View this case here: http://dtc-systems.net/wp-content/uploads/2011/08/in-RE-Wachovia-Preferred-Securities-and-Bond-Notes-Litigation.pdf

The Los Angeles Times discusses a new settlement agreement:  http://latimesblogs.latimes.com/money_co/2011/08/wells-fargo-kpmg-reach-627-million-settlement-of-lending-lawsuit.html

Wells Fargo Bank 10-Q from quarterly period ended June 30, 2011: http://www.sec.gov/Archives/edgar/data/72971/000095012311073266/f59207e10vq.htm

Internal Revenue Service Publication 938 – REMICs Reporting Information

Internal Revenue Service Publication 938 – REMICs Reporting Information

By Daniel Edstrom
DTC Systems, Inc.

Publication 938 contains a directory listing of REMICs and CDOs.  It contains newly created REMICs and CDOs as well as amended listings to existing REMICs and CDOs.  Interestingly the IRS did not publish this publication for 2008.  Why is this interesting?  It is the peak of the meltdown with the failure of Bear Stearns and Lehman Brothers.  Why is the IRS keeping this information a secret?  I have heard many interesting conspiracy theories, but my guess is “they” feel “we” can’t handle the truth.   From my review of these documents, I only have more questions.  Why are some REMICs not listed?  If Wells Fargo claims that World Savings Bank loans were held in house and not securitized, why are so many World Savings REMICs reported to the IRS?  Why is the REMIC claiming to hold my loan not listed in any of these documents?  Is it a law that all REMICs have to report themselves to the IRS for publication?

The Introduction to Publication 938 for 1996 states:

This publication contains directories relating to real estate mortgage investment conduits (REMICs) and collaterized debt obligations (CDO’s). The directory for each calendar quarter is based on information submitted to the Internal Revenue Service during that quarter. This publication is only available on the IRS electronic bulletin board and the Internet.
For each quarter, there is:
• A directory of new REMICs and CDOs,
and
• A section containing amended listings.
You can use the directory to find the representative of the REMIC or the issuer of the CDO from whom you can request tax information. The amended listing section shows changes to previously listed REMICs and CDOs.
The directory for each calendar quarter will be added to this publication approximately six weeks after the end of the quarter. Continue reading “Internal Revenue Service Publication 938 – REMICs Reporting Information”

The Internal Revenue Service is Investigating the Tax-Exempt Status of REMICs

The Internal Revenue Service is investigating the Tax-Exempt Status of REMICs

By Daniel Edstrom
DTC Systems, Inc.

Reuters has announced that “The Internal Revenue Service has launched a review of the tax-exempt status of a widely-held form of mortgage-backed securities called REMICs.”  This comes after many years of homeowners, lawyers and securitization experts having discussed the shenanigans of Wall Street.  The standard industry practice is that loans were never perfected into these REMICs, which required the loans as “qualified mortgages” to be in the REMIC within 90 days of the “startup day”, which corresponds with the trust “closing date”.  However, in nearly every case we have seen, the REMIC servicers are doing an assignment of the security instrument into the trust after the loan is in foreclosure in order that whoever is foreclosing has the right to foreclose.  Unfortunately once a loan is in default it is no longer a “qualified mortgage” under REMIC laws, not to mention that it is years past the REMIC “startup day”.  Nor as Judge Arthur Schack puts it in New York, why is the trustee accepting the conveyance of a non-performing loan into the trust?

Specifically the article says “These banks’ transgressions, confirmed in court decisions and through recent action by federal bank regulators, include the failure to formally transfer ownership of mortgages to the trusts that invested in them and the subsequent creation of fraudulent mortgage assignments and other false documents.”  Cease and Desist Consent Orders were just issued against Bank of America, Citibank, HSBC, JP Morgan Chase, US Bank, Wells Fargo, Aurora Bank, EverBank, EverBank Financial Corporation, IMB HoldCo LLC, OneWest, Sovereign Bank, DocX, LPS Default and MERS.  Just wait until the Securities and Exchange Commission decides to investigate Sarbanes-Oxley legislation against the statements these entities have made under oath with what the bank regulators found actually happened with them. Continue reading “The Internal Revenue Service is Investigating the Tax-Exempt Status of REMICs”

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