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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connect the dots

If fannie mae requests that a lender/servicer repurchase a loan at par value, due to lender/servicer mischief what is your opinion as to the collectability of the loan now resting with a non party to a foreclosure (mischievous lender/servicer)?

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The Equitable One
My opinion:

If Fan/Fred have kicked it back to the originator/servicer it is because their audit has revealed flaws of some sort - likely in origination.

How this relates to a foreclosure... Likely the court will allow a substitution of parties if a motion for such is made. Courts are want to grant plaintiffs in foreclosure a wide path to enforcement/collection. Parties on this side of the issue/suit don't care for this but it is a possibility. Rules of civil procedure allow for this substitution. It is something to object to.

Another option is for the/an original foreclosure suit to be dismissed and for the originator/servicer to initiate suit in its own name. This assumes that the instruments have been pulled out of the trust and are now in lawful possession of the servicer. That is problematic in its own right. If all transfers and conveyances were not done "according to hoyle" then the originator/servicer may have difficulty in acquiring status as holder or holder in due course. Fan/Fred may not have had that status. I don't know that Fan/Fred could convey a status they did not themselves have.

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