KEY Defense under UCC rules; Check the lender credit Insurance issuer and escrow agent on the mortgage originator. Watch the assignment behind the seen..Follow the MONEY.
The fraud deals with “redemption rights of the equity” under your mortgage. Equity is a “Financial Asset”.
Under the code…. the selling of pooled securities is a security interest, however you must prove that the unit they sold/held and sold/transferred was a “financial asset” instead. (an asset participation). Their hidden “lender credit insurance” will pay off the Trust/2nd market lender if your home equity can be recovered by the insurance company. That is why they sue personally….to get the judgment against the guarantor and the entitlement to the equity without going through the proper channel in court.
UCC #8 & 9 – The trick is to switch the #9 to #8. Research how they do this ….to switch from a security to a financial asset.
The definition under the code (UCC)will support this and if a claim lawsuit was started for possession and against the guarantor..it is a big clue as to what they are after….
To recover under UCC, there must have been a “notice” of the “adverse claim” given to the real holder of that asset by the trust/lender. It is a requirement for the Insurance company> Fight this in order to knock the “asset equity claim” out and get rights to the equity again ….ie Power of Sale was fraudulent.
Ron
How do you know if this is the case? I have a trustee for a trust suing me for foreclosure via the servicer – found out trust was private label created by original lender and all went bankrupt years ago w/o assigning to trust AND no certificates from alleged trust even left. SO where did my payments go and WHO ARE THEY FORECLOSING FOR? How can I find out? (P.S. – never missed a payment) How can I find out if insurer a. already paid my loan off or b. wants my equity.
Here is the Key clause in a Mortgage Loan Purchase and Servicing Agreement. You need to attack this agreement to uncover the fraud; https://www.secinfo.com/d14D5a.v1mr6.b.htm
The warehouse lender has the likely proceeds to the Lender credit Title Insurance in order to grab your equity above the mortgage loan.
See:
(dd) Recording of Mortgage. The original Mortgage is in recordable form and is acceptable for recording under the laws of the jurisdiction in which the related Mortgaged Property is located. The original Mortgage (in recordable form and acceptable for recording) was recorded or is in the process of being recorded under the laws of the jurisdiction in which the related Mortgaged Property is located. All intervening assignments of the original Mortgage (other than unrecorded warehouse assignments and assignments for which the related original Mortgage has not been returned from the applicable public recording office) have been delivered for recordation or have been recorded in the appropriate jurisdictions wherein such recordation is necessary to perfect the lien thereof as against creditors of or purchasers from the Seller. The Assignment of Mortgage (other than with respect to a MERS Mortgage, which shall not require an assignment) is in recordable form and is acceptable for recording under the laws of the jurisdiction in which the related Mortgaged Property is located.
Where is the FRAUD;
It is not a crime if a Mortgage Bank / Originator protects itself with “Lender Credit Insurance” (self insurance)from the funding “Warehouse 2nd Market funding Lender”…. HOWEVER, IT IS A CRIME if the Mortgage Bank charges the homeowner (consumer)the up front fee for MTGE Insurance (hidden as Lender Title insurance)as well as adding any non disclosed (or even disclosed) insurance fee to the mortgage principal if they are not “registered” to sell “mortgage credit insurance” directly to consumers. Check Insurance Law. This is much different from normal Title Insurance for a few hundred bucks. Closing Lawyers often confuse the two types. (The lawyers are sold a third type as well…for their own “safety” to issue a clean title.This comfort is part of the problem !!>
Here is a Lenders Credit Insurance breakdown. https://www.firstam.com/title/ucc/products/eagle9-ucc-insurance-endorsements/lenders-endorsements.html
The Crime goes further with the behind the seen “loan assignments” that are not registered at the local Land Registry. The public is defrauded of its registration fees on assignments.
In Canada, we have CMHC Mortgage Insurance. (There are a couple of Private Sources as well). The Lender must be registered and approved to sell this type of CMHC lender protection policy. The Premium goes directly to CMHC. There are strict limitations on LTV. Check your own legal requirements for such Insurance.
Non Registered Lenders, protecting themselves with “self insurance”, will disguise the cost. Charging an increased interest rate on the mortgage loan to cover this internal cost is one thing but to add a principal “benefit” amount directly to the mortgage to the consumer, as an upfront insurance premium that they pocket, is in violation of Insurance law. https://www.cmhc-schl.gc.ca/en/co/moloin/upload/List_of_Approved_Lenders.pdf https://www.cmhc-schl.gc.ca/en/co/moloin/moloin_010.cfm
Private (self insurance) for the Lenders is a method that they use to trick the consumer and avoid regulation.
See: Registered Insurance Brokers Act
Trust funds
32. (1) All funds received or receivable by a member in the course of business on behalf of insurers from members of the public or on behalf of members of the public from insurers are deemed to be trust funds.
Idem
(2) No member shall assign, pledge, hypothecate or mortgage or in any way charge the funds referred to in subsection (1) whether or not such funds have been received or remain receivable.
Idem
(3) Any assignment, pledge, hypothecation, mortgage or other charge of or on funds referred to in subsection (1) is null and void as against the beneficial owner of the funds. R.S.O. 1990, c. R.19, s. 32.
Also See: Mortgagee not to receive commission from insurer https://www.e-laws.gov.on.ca/html/statutes/english/elaws_statutes_90i08_e.htm#BK132
Check your mortgage principal to see if any up front premium fee “benefit” was added.
See; STATUTORY CONDITIONS (in above link).
Fraud
7. Any fraud or wilfully false statement in a statutory declaration in relation to any of the above particulars, vitiates the claim of the person making the declaration.
Your Friendly Title Insurance Company doing their business;
First American Title Fined $500,000 for Alleged Sham Businesses https://mortgagefraudblog.com/perp-walk/item/11094-first_american_title_fined_500000_for_alleged_sham_businesses
Commerce Department investigators identified 35 affiliated business arrangements between First American and over 600 referral partners that included real estate agents and brokers, mortgage originators, building contractors, land developers, and others.
Ron Mason thanks for the good information. how could i go about pressuring the servicer to refi my loan? i’m not in forclosure and i’m current on my payments. I have applied for a modification and my paperwork has been lost or “incomplete” 3 x already with my 1st and 2nd mortgage.
I went over my loan docs and see that i was charged for “lenders Title Policy” I also visited my local county records and an assignment of deed done this year from my original lender to the “trust” my loan was done 8 years ago, so, isn’t that illegal to wait 8 years to do the assignment? I have found the Pooling and Services agreement and there is a clause allowing for Modification. it says:
“The Master Servicer may modify any Mortgage Loan provided that the
Master Servicer purchases the Mortgage Loan from the trust fund immediately following the modification. A Mortgage Loan may not be modified unless the modification includes a change in the interest rate on the related Mortgage Loan to approximately a prevailing market rate. Any purchase of a Mortgage Loan subject to a modification will be for a price equal to 100% of the Stated Principal Balance of that Mortgage Loan, plus accrued and unpaid interest on the Mortgage Loan up to the next Due Date at the applicable net mortgage rate, net of any unreimbursed advances of principal and interest on the Mortgage Loan made by the Master Servicer. The Master Servicer will deposit the purchase price in the Certificate Account within one business day of the purchase of that Mortgage Loan. Purchases of Mortgage Loans may occur when prevailing interest rates are below the interest rates on the Mortgage Loans and mortgagors request modifications as an alternative to refinancings. The Master Servicer will indemnify the trust fund against liability for any prohibited transactions taxes and related interest, additions or penalties incurred by any REMIC as a result
of any modification or purchase.”
I just want to get my title “unclouded” and get into a lower payment. any suggestions would be appriciated
KEY Defense under UCC rules; Check the lender credit Insurance issuer and escrow agent on the mortgage originator. Watch the assignment behind the seen..Follow the MONEY.
The fraud deals with “redemption rights of the equity” under your mortgage. Equity is a “Financial Asset”.
Under the code…. the selling of pooled securities is a security interest, however you must prove that the unit they sold/held and sold/transferred was a “financial asset” instead. (an asset participation). Their hidden “lender credit insurance” will pay off the Trust/2nd market lender if your home equity can be recovered by the insurance company. That is why they sue personally….to get the judgment against the guarantor and the entitlement to the equity without going through the proper channel in court.
UCC #8 & 9 – The trick is to switch the #9 to #8. Research how they do this ….to switch from a security to a financial asset.
The definition under the code (UCC)will support this and if a claim lawsuit was started for possession and against the guarantor..it is a big clue as to what they are after….
To recover under UCC, there must have been a “notice” of the “adverse claim” given to the real holder of that asset by the trust/lender. It is a requirement for the Insurance company> Fight this in order to knock the “asset equity claim” out and get rights to the equity again ….ie Power of Sale was fraudulent.
Ron
How do you know if this is the case? I have a trustee for a trust suing me for foreclosure via the servicer – found out trust was private label created by original lender and all went bankrupt years ago w/o assigning to trust AND no certificates from alleged trust even left. SO where did my payments go and WHO ARE THEY FORECLOSING FOR? How can I find out? (P.S. – never missed a payment) How can I find out if insurer a. already paid my loan off or b. wants my equity.
How to ” Opt In” to Article 8
UCC:
https://files.ali-aba.org/thumbs/datastorage/skoob/articles/TAB12-Spitzer_thumb.pdf
Ron
Here are the Insurance Agreements of the Lenders and how they go after your equity:
https://www.firstam.com/title/resources/reference-information/jack-murray-law-library/title-and-ucc-insurance-for-mezzanine-financing-transactions.html
Ron
Here is the Key clause in a Mortgage Loan Purchase and Servicing Agreement. You need to attack this agreement to uncover the fraud;
https://www.secinfo.com/d14D5a.v1mr6.b.htm
The warehouse lender has the likely proceeds to the Lender credit Title Insurance in order to grab your equity above the mortgage loan.
See:
(dd) Recording of Mortgage. The original Mortgage is in recordable form and is acceptable for recording under the laws of the jurisdiction in which the related Mortgaged Property is located. The original Mortgage (in recordable form and acceptable for recording) was recorded or is in the process of being recorded under the laws of the jurisdiction in which the related Mortgaged Property is located. All intervening assignments of the original Mortgage (other than unrecorded warehouse assignments and assignments for which the related original Mortgage has not been returned from the applicable public recording office) have been delivered for recordation or have been recorded in the appropriate jurisdictions wherein such recordation is necessary to perfect the lien thereof as against creditors of or purchasers from the Seller. The Assignment of Mortgage (other than with respect to a MERS Mortgage, which shall not require an assignment) is in recordable form and is acceptable for recording under the laws of the jurisdiction in which the related Mortgaged Property is located.
Where is the FRAUD;
It is not a crime if a Mortgage Bank / Originator protects itself with “Lender Credit Insurance” (self insurance)from the funding “Warehouse 2nd Market funding Lender”…. HOWEVER, IT IS A CRIME if the Mortgage Bank charges the homeowner (consumer)the up front fee for MTGE Insurance (hidden as Lender Title insurance)as well as adding any non disclosed (or even disclosed) insurance fee to the mortgage principal if they are not “registered” to sell “mortgage credit insurance” directly to consumers. Check Insurance Law. This is much different from normal Title Insurance for a few hundred bucks. Closing Lawyers often confuse the two types. (The lawyers are sold a third type as well…for their own “safety” to issue a clean title.This comfort is part of the problem !!>
Here is a Lenders Credit Insurance breakdown.
https://www.firstam.com/title/ucc/products/eagle9-ucc-insurance-endorsements/lenders-endorsements.html
The Crime goes further with the behind the seen “loan assignments” that are not registered at the local Land Registry. The public is defrauded of its registration fees on assignments.
In Canada, we have CMHC Mortgage Insurance. (There are a couple of Private Sources as well). The Lender must be registered and approved to sell this type of CMHC lender protection policy. The Premium goes directly to CMHC. There are strict limitations on LTV. Check your own legal requirements for such Insurance.
Non Registered Lenders, protecting themselves with “self insurance”, will disguise the cost. Charging an increased interest rate on the mortgage loan to cover this internal cost is one thing but to add a principal “benefit” amount directly to the mortgage to the consumer, as an upfront insurance premium that they pocket, is in violation of Insurance law.
https://www.cmhc-schl.gc.ca/en/co/moloin/upload/List_of_Approved_Lenders.pdf
https://www.cmhc-schl.gc.ca/en/co/moloin/moloin_010.cfm
Private (self insurance) for the Lenders is a method that they use to trick the consumer and avoid regulation.
See: Registered Insurance Brokers Act
Trust funds
32. (1) All funds received or receivable by a member in the course of business on behalf of insurers from members of the public or on behalf of members of the public from insurers are deemed to be trust funds.
Idem
(2) No member shall assign, pledge, hypothecate or mortgage or in any way charge the funds referred to in subsection (1) whether or not such funds have been received or remain receivable.
Idem
(3) Any assignment, pledge, hypothecation, mortgage or other charge of or on funds referred to in subsection (1) is null and void as against the beneficial owner of the funds. R.S.O. 1990, c. R.19, s. 32.
Also See: Mortgagee not to receive commission from insurer
https://www.e-laws.gov.on.ca/html/statutes/english/elaws_statutes_90i08_e.htm#BK132
Check your mortgage principal to see if any up front premium fee “benefit” was added.
See; STATUTORY CONDITIONS (in above link).
Fraud
7. Any fraud or wilfully false statement in a statutory declaration in relation to any of the above particulars, vitiates the claim of the person making the declaration.
Your Friendly Title Insurance Company doing their business;
First American Title Fined $500,000 for Alleged Sham Businesses
https://mortgagefraudblog.com/perp-walk/item/11094-first_american_title_fined_500000_for_alleged_sham_businesses
Commerce Department investigators identified 35 affiliated business arrangements between First American and over 600 referral partners that included real estate agents and brokers, mortgage originators, building contractors, land developers, and others.
Here is a great background on the Title Insurance Scam Business;
TITLE INSURANCE
AND ESCROW INDUSTRY
https://www.insurance.ca.gov/0400-news/0200-studies-reports/upload/CATitleCompetitionReport0512Public.pdf
See this Section; This is where the Fraud occurs.
Controlled Escrow Companies and Independent Escrow
Companies.
Ron Mason thanks for the good information. how could i go about pressuring the servicer to refi my loan? i’m not in forclosure and i’m current on my payments. I have applied for a modification and my paperwork has been lost or “incomplete” 3 x already with my 1st and 2nd mortgage.
I went over my loan docs and see that i was charged for “lenders Title Policy” I also visited my local county records and an assignment of deed done this year from my original lender to the “trust” my loan was done 8 years ago, so, isn’t that illegal to wait 8 years to do the assignment? I have found the Pooling and Services agreement and there is a clause allowing for Modification. it says:
“The Master Servicer may modify any Mortgage Loan provided that the
Master Servicer purchases the Mortgage Loan from the trust fund immediately following the modification. A Mortgage Loan may not be modified unless the modification includes a change in the interest rate on the related Mortgage Loan to approximately a prevailing market rate. Any purchase of a Mortgage Loan subject to a modification will be for a price equal to 100% of the Stated Principal Balance of that Mortgage Loan, plus accrued and unpaid interest on the Mortgage Loan up to the next Due Date at the applicable net mortgage rate, net of any unreimbursed advances of principal and interest on the Mortgage Loan made by the Master Servicer. The Master Servicer will deposit the purchase price in the Certificate Account within one business day of the purchase of that Mortgage Loan. Purchases of Mortgage Loans may occur when prevailing interest rates are below the interest rates on the Mortgage Loans and mortgagors request modifications as an alternative to refinancings. The Master Servicer will indemnify the trust fund against liability for any prohibited transactions taxes and related interest, additions or penalties incurred by any REMIC as a result
of any modification or purchase.”
I just want to get my title “unclouded” and get into a lower payment. any suggestions would be appriciated