SECURITIZATION TRUSTEE PLAINTIFF RELIES ON PSA IN VERIFIED AMENDED COMPLAINT; SECURITIZATION DEFENSES THUS DIRECTLY RELEVANT

November 14, 2012

In what is the first case of its kind that we have seen, Wells Fargo, as a securitization trustee for an Option One mortgage loan trust, has filed a Verified Amended Complaint (VAC) in a Florida foreclosure case where it expressly refers to and relies on the PSA, even quoting portions of the Section 2.01 Mortgage Loan Conveyance Provisions and the directions of the PSA as to the express manner of endorsement of the Note.

What makes this case even more interesting is that WF admits, essentially under oath, that the (alleged) endorsment to the Note “does not reflect the language proposed by the PSA”, but that the transfer is purportedly manifested by a redacted portion of the mortgage loan schedule (which shows no such transfer or confirmation of compliance with Section 2.01), and an undated “Allonge” which was “executed” by Option One. It is public knowledge that Option One ceased its mortgage operations in 2008.

With this verified pleading, WF obviously will not be able to object to any securitization-related defenses or discovery, as it has expressly plead the PSA in the VAC, and thus defenses and discovery as to matters plead are deemed relevant to the facts allegedly supporting the claims of the Plaintiff itself.

Jeff Barnes, Esq., www.ForeclosureDefenseNationwide.com

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