WHO’S ON FIRST: LOAN “OWNER” MUSICAL CHAIRS

April 14, 2014

We have said that the banksters trade mortgage loans like baseball cards. No one seems to know, from one day to the next, who owns the loan. More disturbing is that it now seems that different banks are claiming ownership of the same loan.

Last week, we defended a Rule 120 hearing in Colorado. The “Movant” who in 2013 filed the Petition for an Order Authorizing Sale was U.S. Bank as Trustee for a securitization trust. However, on March 14, 2014 (just 3 weeks before the hearing), the law Firm representing the “Movant” advised the homeowner that U.S. Bank no longer had any interest in the Note or the Deed of Trust, which had been “sold or otherwise transferred” to Citibank, N.A. The law Firm representing U.S. Bank moved to substitute Citibank, N.A. as the moving party without any notice to Citibank.

No documents showing any sale or transfer of the loan were ever produced, and there was no affidavit or testimony from anyone at Citibank as to the alleged sale or transfer, yet the hearing proceeded. The Judge has held off issuing an Order Authorizing Sale pending an issue relating to the appeal of the substitution of Citibank for U.S. Bank.

In a separate case in Florida (which is on appeal), we received two letters today: one from Nationstar dated April 2, 2014 stating that the owner of the loan is U.S. Bank as Trustee for LXS Series 2006-11, located in St. Paul, Minnesota. A second letter dated April 4, 2014 (just 2 days after the date of the Nationstar letter) from the law Firm representing Nationstar in the appeal stated that the owner of the loan is Bank of America, N.A. as Trustee for Lehman XS Trust Mortgage Pass-Through Certificates Series 2006-11 located in Charlotte, North Carolina.

Who is lying? What we suspect is that BOTH U.S. Bank and Bank of America have made claims for payment from the trust, credit default swap policies, and/or other insurance policies on the same “defaulted” loan, in however many tranches the loan was (allegedly) assigned to. Note that the designation of the trust was in “long form” on one letter and “short form” on another. This is probably so that the claims come in under a different reference and so both are paid.

Another scam so that now different banks can get paid on the same loan?

Jeff Barnes, Esq., www.ForeclosureDefenseNationwide.com

Leave a Reply