Bofa Mortgage Morass Deepens After Employee Says Notes Not Sent

Max Gardner III , a Shelby, North Carolina, bankruptcy litigator. The notes also cant be transferred to the trust without first being conveyed through a chain of interim entities, he said. If they do an end run and directly deliver it to the trust, that would violate all the documents they filed with the SEC under oath as to what they did, Gardner said. Industry lawyers said trust law isnt relevant in this instance. For the original version including any supplementary images or video, visit http://www.bloomberg.com/news/2010-11-30/bofa-mortgage-morass-deepens-after-employee-says-trustee-didn-t-get-notes.html







Deposition: Countrywide Never Sent Mortgage Notes to Trust; Mortgage-Backed Securities in Question





Perhaps the greatest advantage of using trust deeds is should foreclosure occur, lenders cannot pursue borrowers for deficiency amounts. If banks repossess the home and sell it at auction for thousands less than is owed it becomes a loss for the bank. When mortgage notes are used and foreclosure occurs, banks can pursue borrowers for deficiency amounts. For the original version including any supplementary images or video, visit http://finance.yahoo.com/news/first-person-deed-trust-vs-mortgage-notes-foreclosure-20110128-113200-822.html







First Person: Deed of Trust vs. Mortgage Notes in the Foreclosure Process





I would add that its simply not the only problem, or even the biggest problem, that the banks have. Of far bigger importance is the possibility that the trustees for the mortgage-backed securities they created never secured the assets from the originators. If the notes never transferred to the trust, theres no way to retroactively do that now; the trusts are governed by very specific pooling at servicing agreements that for the most part give the trust 90 days to transfer all the required assets. For the original version including any supplementary images or video, visit http://news.firedoglake.com/2010/11/21/deposition-countrywide-never-sent-mortgage-notes-to-trust-mortgage-backed-securities-in-question/