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
I'm helping a friend try to find out who owns her mortgage.  MERS signed it over to Huntington Bank and it was recorded on 2/25/2008.  This has to be BS.

The loan was recorded on 11/01/04 in the name of the original lender David Mortgage Co. out of Cincinnati Ohio.  I think that Huntington Bank has been the servicer all these years because that's who my friend has always paid. The principle amount was $180,643. 

How can I find out what investment this mortgage might be a part of?

Any help points in the right direction ANTHING would be much appreciated!

Quote 0 0
The Equitable One
Have you tried asking them in qualified written request?
Quote 0 0
The auction date is October 30, 2009.  I seriously doubt they wouild respond in time.

Quote 0 0
1. make sure the original lender was licensed to make mortgage loans. If not
    the foreclosure is illegal because there is no lawful mortgage, even if the
    Note was lawful. It would be an unsecured loan and could be modified in
2. Make sure the plaintiff is the lawful owner of the Note, ie it was properly
    endorsed to the plaintiff before the action began. Most of the time the
    servicer is not the lawful owner of the Note and therefore has no standing
    to file the complaint in the first place.
3.  If the above is true, get a lawyer and reopen the case. Doing it pro se at
     this late stage would be very difficult because certain motions raising
     these objections need to be filed correctly and you don't have alot of
Quote 0 0
The Equitable One
Look also, and perhaps more so, at the chain of assignments of mortgage. P-notes can be, and frequently are, indorsed in blank. This is perfectly lawful. It makes the P-note bearer paper, payable to the holder of such.

Assignments of mortgage are another matter. They are usually required to be recorded at every sale/transfer/conveyance of the instruments. This is usually codified in the states "statute of frauds" and any statutes that relate to property and/or real estate.

If the loan has been "securitized" it would not be atypical for there to be only one recording of the original mortgage, and then one recorded assignment of mortgage that purports to convey such from the original mortgagee to the plaintiff in the lawsuit. This chain of title, or assignment, would be defective. Commonly the one recorded assignment of mortgage if a fabricated document and does not memorialize a transaction that actually took place. There are a number of "foreclosure mills" whose sole purpose is to fabricate documents for the expedition of judicial foreclosures.

Securitized loans pass through several separate conveyances, and each of these is usually required to  be recorded in the county recorders office where the subject property is located. Failure to properly record this information, this chain of title, is not just a simple omission. Proper recording is of vital importance. Without such how in the heck can you tell who owns what? Property ownership is among the foundations of liberty.

The recent Kansas Supreme Court decision in Landmark v Kesler dealt, at least in part, with this issue.

More on point is the decision of Judge Long - just this week - in Mass.

Both of these cases had jurists that took their jobs quite seriously, and they wrote well researched and proper decisions.

For the record my property is also scheduled for auction very soon. I've just presented more information and evidence in my case, in my court, in the form of a Motion to Vacate a Void Judgment. We'll see how both plaintiff, and the court, respond. I also have an appeal, with my brief perfected. It will be many months before the appellate court rules so I expect no immediate help from it. I have better than even odds of winning the appeal, and if so it will be a precedent setting case in my state.

Quote 0 0
   I could have sworn that I read somewhere, possibly LIVINGLIES, that it
is unlawful under some Federal Tax Law to endose a Note in blank, thereby
making it "bearer paper". Unfortunately, I can not find that article nor the
Federal Statute that makes it unlawful. If anyone knows the answer to this
question, it would help many people to have such information.
   Logically, I would think the IRS would be interested in such transactions
because some entity could be buying NOTES for 10 Cents on the dollar and
then selling the Notes to a foreclosing investor for 50 cents on the dollar.
Without the proper names on the endorsement and  a record of the sums
the Notes were bought and sold for, the IRS would have a hard time taxing
the transactions. Therefore it seems to me it must be unlawful and would
violate the "clean hands doctrine".
Quote 0 0
Mike H and The Equitable One, thank you both for your responses!!!

And Equitable One, I wish you luck with your case.  I hope you succeed!

I never thought to look to see if the original lender was licensed or not. Will do.

I believe that the original note was endorsed in blank. I believe that the plaintiff IS/was the servicer.  My friend told me that she's always made payments to them.

Recorded in the county records, is the original mortgage in the original lender's name (with MERS on it of course).  And there is an Assignment of Mortgage executed days before the foreclosure complaint was filed in court.  It wasn't recorded until after the case was filed, but in Ohio, it only has to be executed (meaning they have liberal ability to backdate it).

I cannot specifically pinpoint the fraud in the assignment, but it is a little fishy.  The dates are mixed up at the bottom with it supposedly drawn up on on date and then a month later it was actually signed and notarized. 

The person who signs on behalf of MERS/Original Lender signs as Staff Officer. 

I've done some digging and I've found so really really fishy assignments done by this guy, another guy, and a woman.  The woman's is really bad and blatantly fraudulent.

I found the guy who signed my friend's assignment on a professional networking website and it says that he was "validated" as of a certain date.  My suspicions are that this is when he started at this company where he is now and if so, I found an asssignment that was backdated BEFORE he worked for his current employer.  But I cannot verify his employment.  It's driving me nuts.

Quote 0 0
    The "blank endorsement" is the red flag that this whole foreclosure action
must be illegal and the servicer is not the true owner of the Note.
     The Note should have the date of endorsement and the party to whom it
was endorsed. This should be on the original Note, not a copy. It should be
possible to subpoena the parties involved and find out exactly how much the
Note was sold for and when it was sold. If the parties, like the original lender
are out of business, than the date of the endorsement of the Note and the
assignment of the mortgage is important. Mers was only the agent for the
original lender as long as that original lender was in business. If for example
the original lender was dissolved a year or two before the assignment from
Mers, than the assignment must be  phony because the original lender no
longer existed and MERS had no standing to do the assignment.
     The original meaning of a "mortgage" comes from the French "mort"meaning "death" and "gage" meaning "engagement". It was also called
a "death gamble" because if the borrower died first, the debt was due on "death". If the lender died first, before assigning the Note, then the "mortgage " was unenforceable and the borrower got his property back "free and clear" of the lein. It seems to me, your friend lucked out and won the
"death gamble"!
Quote 0 0
This is what I've found out.

David Mortgage Company didn't disolve until November 2008.  Assignment was in February 2008,  This is what information is presented in the complaint and I looked at Sec of State's website to see when DMC disolved.

DMC surrendered their Broker License in March 2008. grrrrrrrrr

But the license they had when they originated this loan was one that was supposed to be sold to FNMA Freddie Mac.  They didn't.
Quote 0 0
I just thought of something.  If Huntington just acquired the loan in jan or feb 2008, then wouldn't it show up on their sec filings?

I'm not sure how to research these......
Quote 0 0
    It looks like your friend did not win the "death gamble" after all, because the original lender assigned the mortgage before it "died" ie was dissolved.
    You win some, you lose some. In this situation, it might be cheaper to
buy an REO directly from another bank and start over again. Perhaps even
the same one Huntington is foreclosing on. Once Huntington gets the property, they will need to flip it at the market price or below. Perhaps
your friend could buy it back and let Huntington collect on the mortgage
insurance. They probably don't even want the house, they just want their
money. Talk to the opposing attorney and see if Huntington will rent it
back to your friend pending a possible resale at a much lower price than what
was originally owed. After all, we are in a deflationary depression a la 1930's.
Quote 0 0
h gosh
Did you check all the listings for David Mortgage, including their D/B/A and Trade Name Registrations?  Some pretty fancy going on there.  Also, check exactly WHO signed the assignment!!
Quote 0 0
I called the old number for David Mortgage, Inc. and left a message today.  A really nice guy called me back.  He told me that David Mortgage wouldn't normally hold onto any loan and would immediately sell/assign it.  That's what I thought.

He gave me the number to the former owner, who I'm calling tomorrow to see if he remembers transferring anything at the last minute before he closed shop.  I know he didn't, its just getting the info from him, ya know? 

I'm going to ask him who he sold his non FHA/HUD/FNMA/Freddie Mac loans to.  My friend's loan was a stated income loan.  Hopefully he'll remember.

We'll see.

Yeah, no death game winner here.  Although, I am getting closer to finding out who owns the loan, its frustrating!!

The assignment was signed by an alleged employee of the assignee.  He was signing on behalf of MERS/ on behalf of the Assignor.  I know he's an employee of the assignee because he is listed on a professional networking website as such and he also signs a TON of other assignments in another county that actually has theirs online.

I don't get the agent relationship here though.

B= Original Lender/Assignor
C= Assignee
D=MERS "officer" (but we all know their just agents, if even that)

Agent relationship A to B  = Good
Agent relationship A to C = Good
Agent relationship A to D = Good
Agent relationship D to B = Not Good

And neither the Original Lender/Assignor nor the Assignee are members of MERS.

Who Is a member of MERS?  A corporation who shows up as having close relationships with the Assignee. 
Quote 0 0
William A. Roper, Jr.
In regard to Mike H., please see the new thread:

"About Mike H."

Quote 0 0
Thanks.  I saw that.  Wow.  Just wow!

I have to say that when I saw this in the forum it kinda scared me because I didn't remember posting anything on the 18th!!!  I'm such a ditz sometimes lol.
Quote 0 0
Write a reply...