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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IN THE UNITED STATES DISTRICT COURT EASTERN DISTRICT OF TENNESSEE AT KNOXVILLE

ROBERT L. SCHMIDT and,                                   )

STACY S.                                                              ) SCHMIDT,                                                             ) Plaintiffs,                                                                  )                                                                                )  

)

PCFS MORTGAGE RESOURCES                           )

n/k/a NATIONAL CITY CORPORATION,            )

LITTON LOAN SERVICING LP,                            )

DEUTSCHE BANK NATIONAL TRUST                )

lCOMPANY, AS TRUSTEE, CREDIT                     )

JBASED ASSET SERVICING AND                        )

SECURITIZATION, CAPTAIN                               )

RANDALL MERCKS, individually,                           )

'WILLIAM ALLENDER, individually,                       )

And JOHN DOES 1-10,                                            )

)

            Defendants.                                                  )

Case No. 3:06-cv-209

AFFIDAVIT

STATE OF TEXAS                )

COUNTY OF HARRIS          )

Comes now the undersigned, and first being duly sworn, deposes as follows:

             1.        I am Debra Lyman, Vice President for Litton Loan Servicing LP ("Litton"), and

in such capacity I am personally familiar with the matters set forth herein. I am over the age of

eighteen (18).

            2.         At the time of the foreclosure that occurred with respect to Robert and Stacy

Schmidt's former home, Litton serviced the loan for Deutsche Bank National Trust Company, as

Trustee.

             3.        Neither Litton nor Deutsche Bank National Trust Company, as Trustee, had an

insurance policy in place to protect against a loss sustained as a result of the Plaintiffs' default or

the resulting foreclosure sale. These entities did not have the right to make claim against any

insurance policy for the resulting loss and no insurance proceeds have been received with respect

to this loan.

           4.         As of February 15, 2008, the total deficiency balance owed on this loan,

excluding costs and attorney's fees, was $149,653.00. Said balance accrues interest and

additional costs daily. Pursuant to the terms of the Note and Deed of Trust, Robert and Stacy

Schmidt are responsible for this deficiency balance plus additional interest, costs and attorney's

fees.

FURTHER AFFIANT SAITH NOT.

    


STATE OF TEXAS               )

COUNTY OF Harris             )

Before me, a Notary Public in and for the state and county aforesaid, personally appeared Debra Lyman, to me known (or proved to me on the basis of satisfactory evidence) to be the person described in and who executed the foregoing instrument, and acknowledged that _she_ (he/she) executed the same as _her_ (his/her) free act and deed.



           Witness my hand and seal, this __                                                  ,2008.

                                                                                                                                                                                                                                                                                               

 Commission Expires:

  


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Above is an Affidavit from a Litton Loan Officer regarding Litton's Forced Place Insurance.  As a PMI, you can see for yourself, they deny the existence of such a policy. 

If your a victim of LITTON LOAN'S Forced Place insurance compare the policy number you were billed for against the ones we have on this site, and notify your lawyers right away. 
 
This affidavit shows the "Dirty Hands" Litton Loan and Tidwell are using for manufacturing fraudulent documents for different courts!
 
I will have much more to say and show on this shortly.

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Confused

Does that mean they force placed a PMI policy on it?

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What it means, is that Litton Loan forced placed a Lloyd's of London insurance policy on thousands, and here in Wisconsin claimed it was for PMI when I filed a complaint to the Office of Insurance Commissioner, and they are now saying according to GREG LOUGE a Litton Loan Attorney from TN, that it was a "Property Casualty".  Yet in this response, it does not say anything about CBASS as also being a NAMED INSURED by Endorsement 30 days prior to a foreclosure.  The Policy can't be a PMI in Wisconsin and a "Property Causality" in TN.  And, no "Surplus Lines" tax's were paid in any states!  No Mr. LOUGE  has a very substantial problem, he has offered an opinion on an insurance policy that even in the State of Texas, Litton Loan and SOUTH WEST BUSINESS Corporation have claimed to be a PMI policy.  Mr. Louge has a very big surpirse coming! Very soon!

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Basically, what LITTON LOAN has done, was force placed an insurance policy that covered nothing for the home owner, and billed the home owner several times the amount of a normal home owners policy.  And now through this Affidavit claims Litton Loan Never had Insurance, yet the policy from Lloyd's says the named insureds are Litton Loan and CBASS by endorsement 30 days prior to a foreclosure.

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Important points about force-placed property insurance:
1) It only covers the unpaid principal balance, not the market value and none of the other kinds of coverage you get with a homeowner's policy are in it. If your $300K house burns down and your mortgage balance is $100K, your $200K equity and all your belongings have gone up in smoke.
2) It is way more expensive than what you can get yourself and the servicer makes a huge profit on the policy.
3) Don't confuse "property casualty" insurance with PMI. PMI covers the investor to some set percentage if the borrower gets foreclosed on NOT your house or belongings.
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. your exactly right, however if the homeowner is required to pay for the insurance policy, and is not an Insured or added Name insured, they have no rights to the policy.  If the Mortgage servicer decides, which in this case is Litton Loan, has and forced-placed the policy upon the homeowner, then forecloses upon the house, and files a claim for loss. 
 
Like MGIC or RADIAN, or several others.  Now, if they did not file a claim under the terms of the policy, it's not the homeowner's responsibility because the servicer by its own "Negligence", "Error" or "Omission" should have. 
 
And the money collected by the Insured "Services" should have been used to write down the debt owed by the homeowner.  If not it would be "Unjust Enrichment" by the servicers who collect the money and not credited or accounted for it as recovered insurance towards the debt. 
 
Every POOLING AND SERVICING AGREEMENT I have looked at required these types of policies within them. 
 
So did Litton Loan have this policy?  Yes, at least according to TX, WI, MN, TN, and several others.  In the above affidavit a Vice President from Litton denies it existed!  Why?  Maybe because Litton Loan and CBASS have collected millions under the terms and conditions of the policy that was forced-placed, and never credited the payments towards the home owner?  Let's find out. Larry!   
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Maybe I'm reading these documents wrong, but with LITTON LOANS forced place policy #FP 1451 $5,078,798.71 According to NATIONAL COLLATERAL PROTECTION, Prepared by IRENE MARTINEZ!
 
This was prepared for 5/8/04, I wonder what the earnings were from 1998 through 2008?
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Im still wondering who the "Names" are behind this policy at Lloyd's?  MGIC, RADIAN, or are thier some personal ones too?   We will find out. 
 

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Sara
Does anyone know what the outcome was on this case?

S
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The case is still pending in Wisconsin Court system, depositons of Litton are to occure within a few weeks.

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Sara
Thanks Gary.

I saw the Youtube video and was heartbroken for this poor family!  I couldn't believe the cop and his attitude.

S
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