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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I am confused as to how to locate the trust my loan may have been entered in.  I have read the warnings about giving too much info, so I am changing some names. 

MERS:  checked the site and Fannie Mae is the investor and Wells Fargo Bank, NA is listed as servicer.  No other info given.

LENDER:  ABC Mortgage Corp--mortgage broker--We sent our payments to XYZ Savings Bank for about 7 months.  XYZ Savings bank was taken over by LMN Bank and at that time we were notified to send payments to Wells Fargo Home Mortgage as they are now our servicer.

DATES OF LOAN:  March XX, 200X to April XX, 20XX.

Where do I go from here?  What more info do I need if any?  Any help would be greatly appreciated.  Thanks.

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Call your servicer who you send your monthly payment to , ask them which trust your loan is in. Sometimes you get lucky, they'll tell you. Try couple times, it may work.

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As part of the Helping Families Save Their Homes Act (the “Act”), Congress amended Section 131 of the Truth in Lending Act (15 USC § 1641)(“TILA”) to include a new provision (Section 131(g)) that requires the assignee of a mortgage loan to notify a consumer borrower that his loan has been transferred. This notice requirement became effective immediately upon the President’s signature on May 19, 2009

I always thought this was interesting.  Prior to this amendment they were ONLY required to notify you when there was a change of SERVICER.  Now the TILA requires that the recipient of ANY ASSIGNMENT to notify the borrower in writing with the Name, Address, Phone number, Person to contact, ect...


Pursuant to Section 131(g), the new owner or assignee of a mortgage loan must notify the borrower in writing within 30 days after his mortgage loan is sold or otherwise transferred. The notice must include:

  1. The assignee’s identity, address and phone number;
  2. The date of transfer;
  3. Contact information for an agent or party having authority to act on behalf of the assignee;
  4. The location of the place where transfer of ownership of the debt is recorded; and
  5. Any other relevant information regarding the assignee.

An assignee that violates this notice requirement will be subject to civil penalties under Section 130(a) of TILA. 15 USC § 1640(a). Effective July 31, 2009, the maximum penalty that an individual consumer may recover for a TILA violation in connection with a closed-end loan secured by real property or a dwelling will increase from $2,000 to $4,000.

Call the Servicer and throw that around.  Tell them you never received any notification that someone other than the original lender was the owner.  See what they say. 

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William A. Roper, Jr.
See the Fannie Mae Loan Lookup link at my thread:

Does Fannie Mae Own Your Mortgage?

Get Fannie Mae to tell you directly if they own your loan.


Generally, there is less of a problem ascertaining the mortgage investor when either Fannie or Freddie owns the loan.

There is also far LESS servicing fraud in respect of Fannie and Freddie loans than with the subprime toxic trash.  The subprime loans were generally DESIGNED TO FAIL and to also give the borrower a haircut on the refinance via a prepayment penalty.  More often, the Fannie and Freddie servicers were in for the longer haul hoping to profit by servicing the loan over a seven to ten year time horizon.


The typical mistake that is made by servicers and foreclosure mills in respect of teh agency loans is they will almost ALWAYS bring the foreclosure suit in the servicers' name.  SOMETIMES, they also falsely allege that the servicer is the OWNER of the loan, which is almost never true.

If they allege that the servicer is the owner and the holder, the former will almost always be false and the latter will OFTEN be false with respect to the commencement of the suit.  That is, they will FILE SUIT in the servicers' name alleging that the servicer is the holder.  But the Fannie or Freddie notes will be in the vaults of the institutional custodian.  The institutional custodian is actually very often the holder at commencement.

Both Fannie and Freddie have changed their servicing guides and contracts to include language that ASSERTS that the custodian is holding the negotiatble instruments ON BEHALF of Fannie or Freddie, but where foreclosure is intitiated in the name of the servicer then the servicer is the holder.

THis is UTTER NONSENSE!  I have seen NO CASE LAW that supports this garbage.  It is simply an attempt to CHANGE the UCC by unilateral alteration of the GSE rules.

Holder is expressly defined within the UCC.  One becomes a holder through negotiation (indorsement and delivery).

The servicer can ONLY become a holder by the negotiation of the negotiable instrument from the instituional custodian to the servicer.

If the servicer filed suit BEFORE it obtained the promissory note, then the borrower is probably entitled to a dismissal in most judicial foreclosure states.  But the borrower has a bit of a PROOF PROBLEM.  Though truly, it is the servicer with the PROOF PROBLEM, as the servicer will have the burden of showing the date it acquired the note through negotiation.


The other problem that most frequently arises in a judicial foreclosure of an agency loan is that the foreclosure mill law firm may very well FORGE an assignment of mortgage from the originating Lender to the servicer OR from MERS to the servicer.  This is almost always a forgery.

There usually IS a valid assignment from the originating Lender to Fannie Mae or Freddie Mac, but they will almost NEVER produce it unless ORDERED by the court.  Fannie and Freddie try to get ALL foreclosures done in the servicers' name.  And they try to keep their name out of the suit.

The foreclosure mill firm finds it more convenient to forge an assignment showing the mortgage assigned to the servicer by the originator than to use REAL assignments. 
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