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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Is there any way to find out if a securitized mortage note was paid off by insurance when it goes into default? With no disrespect to all who participate in this forum, I'm hoping Mr. Roper can shed some light on this. Any advice is appreciated.
Thanks in advance

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anon

discovery

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Moose
Yankee wrote:
Is there any way to find out if a securitized mortage note was paid off by insurance when it goes into default? With no disrespect to all who participate in this forum, I'm hoping Mr. Roper can shed some light on this. Any advice is appreciated.
Thanks in advance


There is more than one kind of insurance but in general, the insurance never pays the entire amount of the note - they only make up the difference (if there is one) after the foreclosure sale to guarantee the value of the note to the trustee/investors.

Think for a moment about when they could calculate the actual loss - certainly not at the time of default. The PSA's require them to go through special servicing procedures ("loss-mitigation) that can take as long as 90 days. In some states foreclosure can take as long as a year.

No one knows how much that loss is until after the foreclosure sale. Only when they have the proceeds from that can they file an insurance claim to cover any deficiency.

This is one of the reasons some investor trustees have sued servicers for selling the homes too cheap and the mortgage insurance doesn't cover enough of their losses.

Hope that helps.

Moose





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