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.
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William A. Roper, Jr. Show full post »
Angelo

Texas, I think the answer is yes to all those questions.  If its endorsed "in blank" it would be considered bearer paper and no further endorsements are needed, just proof of transfers(for the notes).  Assignments of mortgages "in blank", now thats a totally different beast!  Statue of frauds would need to be in play in most states.

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Jay_Son
Texas,

First, I was not the one saying it, the Texas Supreme Court was the one saying it; the law they stated is the law in almost every state.
Second, I used to work for a financial institution, but was fired a week ago for refusing to commit fraud...which is why I have the time to make posts during the day on random websites.

To answer your questions in order (and I'm not an attorney, so I could be wrong):

1) The Texas Supreme Court was stating common law and restated it as recently as 2007.  To my knowledge, no statute has been written to override the common law rule in Texas.

2) In Texas, it seems that the security interest (i.e., the mortgage) is transferred as an incident to the mortgage (i.e., the mortgage follows the note).  In title theory states, though, I think the mortgage must be transferred in writing, complying with the statute of frauds, as well as any other picadillos a state may impose.

3) I think you misunderstand indorsements...where an indorsement has been made "in blank," there is no indorsee.  Rather, the one that possesses the note endorsed in blank is the person entitled to enforce the note, i.e., possession is what matters with a note endorsed in blank, not the "endorsee."
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Jay_Son
My apologies, my last post has a typo: "2) In Texas, it seems that the security interest (i.e., the mortgage) is transferred as an incident to the mortgage..."
What I meant to say is that the mortgage transfers as an incident to the note...
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Texas
3) I think you misunderstand indorsements...where an indorsement has been made "in blank," there is no indorsee.  Rather, the one that possesses the note endorsed in blank is the person entitled to enforce the note, i.e., possession is what matters with a note endorsed in blank, not the "endorsee."

"There is no indorsee", so in Texas, what name do you use to assign the Deed of Trust too? "no indorsee"

I have no issue with a Note being negotiated by endorsement of endorsing in blank to become bearer paper.

There are two sets of laws that have to be complied with to reach the Power of Sale clause in the Security Instrument, TX Business & Commerce Code (UCC Article 3) for the Note and the local laws of jurisdiction for timely assigning lien perfection. Tx Loc Govt Code 192.007.  Laws on the note and laws regarding the lien must be complied with in tandem.
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Upon review, the Oklahoma Supreme Court found that the bank with its unindorsed note did not prove that it was entitled to foreclose. The Court reversed the trial court's grant of summary judgment in favor of the bankand remanded the case for further proceedings.WELLS FARGO BANK, N.A. v. HEATH2012 OK 54Case Number: 108383Decided: 06/12/2012
 
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