Mortgage Servicing Fraud
occurs post loan origination when mortgage servicers use false statements and book-keeping entries, fabricated assignments, forged signatures and utter counterfeit intangible Notes to take a homeowner's property and equity.
Articles |The FORUM |Law Library |Videos | Fraudsters & Co. |File Complaints |How they STEAL |Search MSFraud |Contact Us
On March 20, 2009 the US 8th Circuit Court of Appeals, ruling in Rand Corporation v. Yer Song Mouia et. al., Appeals Court Case Number 07-2544, on appeal from Summary Judgment by the United States District Court of Minnesota, Case Number 0:07-cv-00510-ADM, reversed the Summary judgment of the district court and ruled that Rand Corporation failed to properly provide TILA and HOEPA disclosures within the 3 day period and therefore the 3 year recission period had been invokved properly by the homeowners.

In a footnote (4), the court stated: "We reject Rand's attempt to avoid responsibilty for Excel Title's actions.  Even assuming its assertion is true, the obligation to make TILA and HOEPA disclosuers rests with the creditor.  See 15 U.S.C. § 1631(b)."

The footnote was referring to an attenpt by Rand Corporation to pass the buck for the improper disclosure to the title company.  NOT.

The Court, in the body of the decision stated: "A creditor's failure to comply with these provisions extends the debtor's right to rescind for up to three year following the transaction (citation omitted)".

Well, my opnion, is all you Wall Street fat cats who bought loans that had improper disclosures and want to dance around the holder-in-due course issue, go ahead, maintain those positions, you now do so at great risk.  Many of the toxic loans made in 2006 and later are still within the 3 year recission period.

In its decision the Court included a copy of a letter to Westlaw, listing the actors and lawyers involved in the appeal.  I don't know how long it takes WestLaw to provide the 'publication citation' but this is nevertheless a published decision and may be cited elsewhere as local rules allow.

It's about time an appeals court "got it".  Failure to disclose is exactly what it says it is.  The industry has been trying for years to obsolve themselves of liability when the original mortgage gets past the first lender.

Feel free to step into this discussion.  I'm not a lawyer. 

Quote 0 0
Write a reply...