UhlRolland988
Just what is a securitization audit? Was my mortgage securitized? Will a securitization audit stop my foreclosure? Will a securitization audit assist me get a customization with my servicer? Lets start with a couple of definitions. A securitization audit tracks exactly what occurred to your promissory note after you closed your loan. Thats right, if you have a MIN number on your deed of trust or on your mortgage paper, your creditor deceived you. First of all the word lender is undoubtedly a misnomer. Most of the time they just placed your note at a government reserve associated bank and cashed it, utilizing brand-new cash to cash your mortgage transaction that they borrowed at a much reduced interest rate than exactly what they charged you. The difference in the interest they obtained the cash at and the rate on the face of your note is a yield spread. That is the difference in the interest payments over the thirty years that you would certainly pay at say 7 or 8 % (just for example) and the payments that the note the fed generated at 3 % is a yield premium of 5 % over the life of your loan represents alot of money they made merely cashing your note at the fed. The fed wanted to do this to utilize your note to develop cash supply. It brought cash to the United States economy. The money was never ever borrowed from your pretender loan provider. Then the depositor pooled a bunch of these loans, chose a trustee for exactly what is called an RMBS or Real Estate Mortgage Backed securites pool, incorporated the pool, transferred all of the loans (they didnt truly transfer them legally however that was the idea) to the financial investment bank who would certainly offer pass through certifications (pool ownership interests) to backers. loan auditors.
They would certainly get an insurance policy (credit default swaps) on many if not many of these RMBS's so that they might tell capitalists that their return was guaranteed which way they might hoodwink Moody's and Regular and Poors (the bond rating agencies) into giving the pools a three-way A score and this permitted the filthy rotten investment banks to offer this pile of garbage to municipal and corporate pension programs.
A securitization audit purports to find the RMBS that your promissory note is in and do some detective work to see if the pooling and servicing agreement (which is part of the prospectus for the RMBS) calls for that the note be signed or endorsed by each of the parties that the note passed through to get into the pool. Most of the time this will certainly be the case. Then we try to find whether the notes are endorsed. If not, legally the pool does not have your note. If the pool does not have your note, do they have legal standing to substitute in a trustee in the land record? Are they legally enabled to confiscate on you? Also make a task? Of course not, see Horace v La Salle and GMAC v Ibanez. Look at the recent bankruptcy instances in New York.
So, another part of the securitization auditing process is to look in the land record at filings made by bodies who are stepping up claiming to have standing to confiscate on you by virtue of their filings and describe the obstacles the property owner might have the ability to make about the credibility or possible fraudulent nature of these filings. Further, some securitization auditors keep a listing of recognized possible robo-signers.
