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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tmc
I've been reading the posts in the forum for some months now and joined today to make my first post and hopefully get some feedback.

The originator and holder of the loan was closed by the FDIC.  FDIC sold the loans in a structured transaction to a consortium of investors which formed a new LLC and the FDIC also holds an ownership in the newly formed LLC.   The LLC contracted with servicing company XYZ to service the portfolio and gave XYZ power of attorney to act on the LLC's behalf.  The Loan Sale Agreement between the FDIC and the LLC gave Limited Power of Attorney to a few individuals at XYZ servicing company to endorse notes and assignments  from FDIC as receiver to LLC.  The notes and underlying mortgages were supposed to have specific language assigning them from the FDIC to the LLC.  I know all of this because the FDIC makes all these agreements public.

THE INTERSTING PART:  Servicing company XYZ utilized the FDIC power of attorney to assign the Deed of Trust to ITSELF and the assignment was recorded and it lacked any mention of the LLC and did not conform in any way to Power of Attorney granted by the FDIC.  No other assignments of Deed of Trust were ever recorded.  XYZ also filed motion for relief claiming, one year after the sale to the LLC,  XYZ was the owner of the Note.   XYZ provided a copy of the Note, endorsed in blank by the originator without any mention of the assignment by the FDIC as required in the Loan Sale Agreement.  I have no idea why they did this.  Maybe there's a lot of confusion at the LLC and XYZ figures they can poach a few homes for themselves. 
I believe because the loan and DOT were never delivered to the LLC; the loan and deed of trust still sit at the FDIC in receivership.  Servicing company XYZ derived any authority at had from it's contract and power of attorney with the LLC.  Because the loan was never delivered to the LLC,  XYZ never had authority to negotiate a modification or attempt to collect the debt.
Furthermore, I would think it would be impossible for XYZ to wiggle out of any wrong doings.  In this case, we're not missing an assignment.  We have an assignment that goes from A to C skipping B.  A had the power to assign to B BUT NOT C. 

Any thoughts?
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texas
might take a look at the federal holder in due course doctrine
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tmc
Does due course matter? 
My point is, we had an employee of a loan servicer step in and misuse the POA that was granted to him by the FDIC for the purpose of transfering assets into the LLC from the FDIC.  But instead, he used the POA to assign the deed of trust to the servicer and then the servicer claimed it owned the Note in federal court.
I don't think any of my potential cause of actions would be contractual in nature.  In fact my whole point is there is no contract with the servicer, LLC or trustee!

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You may have an infirm transaction, but the power of attorney will have to be examined closely to guide you.

Look at the state of the documentation as of the date the Complaint is filed. In  many jurisdictions, the plaintiff cannot acquire an interest in the note or the mortgage after the litigation is brought. It should be a rule in every jurisdiction because it triggers the Article III court standing issue. If the Plaintiff did not own the note when the litigation was brought, then the court has no personal jurisdiction and cannot consider the case at all.

(In my jurisdiction) this error is not curable because the defect relates back to the commencement of the litigation. If the court has no power to consider a case, it has no power. Period. It can't even open the file.

The way these defects are cured is to withdraw the litigation and bring it a second time with note in hand (if the originals have not been destroyed) Lost note affidavits are being disregarded by judges due to their prior abuse, and any defendant default as to the litigation disappears if the case has to be brought again.

But it puts the Plaintiff at a disadvantage in many ways, particularly as the documentation may be in disarray.

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