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
William A. Roper, Jr.
In all the excitement associated with the mortgage foreclosure fraud meltdown, I seem to have missed a rather obscure news story that might have enormous significance for quite a few defendant/borrowers facing foreclosure.  The news item was published just as I was completing a supplementary brief in a case in which I am involved and totally escaped my notice.

But I just ran across this item while searching for some additional information regarding U.S. Bank, N.A., on behalf of another pro se litigant.

The essence of the story is that Bank of America sold its entire institutional mortgage trust business to U.S. Bank!

Take a look at several of the items appearing at Bloomberg relating to this transaction:

"As a result of this transaction, U.S. Bank Corporate Trust Services will acquire approximately 2,153 active securitization and related transactions, more than 2.4 million residential mortgage files and 84,000 commercial files, and $1.1 trillion in assets under administration.  Additionally, the transaction is expected to provide U.S. Bank with over $10 billion of deposits."
News Release: "U.S. Bank Expands Corporate Trust Business" (Business Wire) [November 15, 2010]
http://www.bloomberg.com/apps/news?pid=conewsstory&tkr=USB:US&sid=ahQkk0ZqysCo


"U.S. Bancorp, the fifth-largest U.S. bank by assets, said it will buy Bank of America Corp.’s securitization trust administration business for $35 million in cash that will shift more than $10 billion in deposits.

The purchase will make U.S. Bancorp the largest U.S. trustee of mortgage and debt securities with a market share of 30 percent, the Minneapolis-based company said today in a regulatory filing, citing the Asset Backed Alert newsletter.  U.S. Bancorp now has an 18.1 percent share, trailing Frankfurt- based Deutsche Bank AG and Bank of New York Mellon, while Charlotte, North Carolina-based Bank of America ranks sixth with 11.9 percent, according to the filing."
Bloomberg: "BofA Sells Trust Administration Business Unit to U.S. Bancorp" [Nov 15, 2010 4:00 PM ET]
http://www.bloomberg.com/news/2010-11-15/bofa-sells-trust-administration-business-unit-to-u-s-bancorp.html

Bloomberg:  "US Bank closes buyout of BofA securitization unit" [Jan 4, 2011 4:16 PM ET]
http://www.bloomberg.com/news/2011-01-04/us-bank-closes-buyout-of-bofa-securitization-unit.html
*

In order to understand and appreciate the significance of this sale, one needs to distinguish between five different aspects of the institutional mortgage business:  origination, warehouse lending, servicing, institutional trust and custodial.

As is shown in numerous other posts at the site, a mortgage originator typically closes the loan with the mortgage borrower funded with capital advanced by the warehouse lender.  The originator then typically sells the loan either to one of the GSEs (Fannie Mae or Freddie Mac) or to an institutional residential mortgage trust created through the securitization process.  When a loan is sold into a private securitization, the trust is represented by an institutional trustee with various responsibilities allocated amongst the trustee, the servicer and, usually, an institutional custodian, pursuant to the terms of a pooling and servicing agreement (PSA).

The business sold by Bank of America to U.S. Bank is the mortgage institutional trust business.  This means that U.S. Trust will become the successor trustee to essentially every mortgage trust in which Bank of America is now acting as trustee.

In any foreclosure suit in which Bank of America is listed as the plaintiff as trustee for a trust, there ought to be a filing substituting U.S. Bank, N.A., as trustee.

As stated in the news release, U.S. Bank, N.A., after the close of the transaction, U.S. Bank will be the largest U.S. trustee of mortgage trusts, with a 30% market share.  Deutsche Bank previously had the largest market share, followed by Bank of NY Mellon.

Bank of America retains its servicing portfolio and remains liable for the representations and warranties made by Countrywide.  But foreclosures will now only rarely be brought in its name.

The valuation of the institutional trust business is also interesting.  This was at one time a very lucrative business both from the standpoint of fee income and through the rights to control transaction deposit accounts.  The fact that Bank of America was willing to part with this business on such terms is suggestive that the negative publicity and possible liability arising out of this business may now exceed the value of the cash flows this business once threw off.
Quote 0 0
William A. Roper, Jr.
I also found these other related stories:

WSJ: "U.S. Bancorp to Pay $35 Million for BofA Unit" by David Benoit [November 15, 2010, 2:00 P.M. ET]
http://online.wsj.com/article/SB10001424052748703326204575616720357937904.html

WSJ: "US Bancorp In $35M Deal For BofA Securitization Trust Business" [November 15, 2010, 4:20 P.M. ET]
http://online.wsj.com/article/BT-CO-20101115-711609.html

U.S. Bank Completes Acquisition of Securitization Trust Administration Business from Bank of America, N.A. (Business Wire) [January 04, 2011]
http://www.bloomberg.com/apps/news?pid=conewsstory&tkr=MSPX:US&sid=axAcolLzTSA4
http://online.wsj.com/article/PR-CO-20110104-906902.html

Quote 0 0
Bill,

Good Day to you mate! So if someone has been foreclosed on within the last few months do you know how far back it should go that they should of been filing these substitution of trustees for?

Just thought it may be something to help people fighting the nightmare most of us live with daily now. As usual Mr. Roper HAT'S OFF TO YOU! I also made note of this on the foreclosurehamlet.org site as well Bill. Hope no one minds.

Thanks for all you do !

Top Gun

Quote 0 0
William A. Roper, Jr.
Quote:
topguncrdtadvsr said:
So if someone has been foreclosed on within the last few months do you know how far back it should go that they should of been filing these substitution of trustees for?


The answer seems most likely to be embedded within these stories themselves, though there also might be some administrative nuances.

The first news release on November 15, 2010, announces the agreement to the sale of the business to U.S. Bank.  The later news release dated January 4, 2011, announces the closing (completion) of this transaction.  The implication seems to me to be that U.S. Bank, N.A., succeeded to ALL of the institutional trust business of Bank of America on or about January 4, 2011.

We should probably recognize the possibility that as to any given trust there might remain some ministerial detail of a substitution of trustee under the PSA to complete the replacement as to that trust, but truly a closing would seem to me under these circumstances to suggest that this was completed as a part of the closing process.

*

I would think that defendants could reasonably INFER that January 4, 2011, was the date, but this probably should be nailed down with effective discovery!
Quote 0 0
I don't know if I am on the same page. So here it goes:

On September 18, 2009, Plaintiff filed an order Substituting Party Plaintiff:
US Bank National Assoc, as Successor Trustee, to B of A, National Association as successor by merger to XXXX, as Trustee, for XXXXXLoan Trust, XXX Mortgage Loan Asset-Backed Certificates, Series XXXX-X is the real party in interest and the proper Plaintiff in this action.....

Order was granted.
Quote 0 0
William A. Roper, Jr.
cmc:

It appears from a number of pleadings that U.S. Bank somehow purchased the institutional trustee rights to administer certain trusts from Bank of America, particularly in respect of its acquisition of LaSalle Bank, even before the transaction described above.

In fact, I was looking for some record or evidence of this transaction when I stumbled across the news mention that Bank of America had sold ALL of its remaining mortgage institutional trust business to U.S. Bank.

This previous sale may have been a divestiture designed to overcome some possible antitrust objections to the acquisition and merger with LaSalle.

The transaction IMPLIED by the type of record you mention would be similar to the type of allegation that one would expect to see arising out of this sale.

*

Two additional comments are probably in order here.

First, the fact of this sale of trustee rights probably is NOT a matter that would cause a major cloud in the ownership or standing per se.  That is, IF Bank of America could previously cleanly demonstrate its standing to sue BEFORE the sale of servicing rights, then it might need only to prove that it had conveyed its rights as trustee to U.S. Bank to entitle U.S. Bank to bring the action.

But I see this as a source of further confusion.  That is the robo-forgers and robo-perjurers are already making a variety of serious mistakes when fabricating evidence in support of foreclosures.  And this presents a new opportunity to catch them in their mistakes!

Second, the sale presents another proof problem for the plaintiff.  Proof of the transaction should be the originals or copies of the closing documents themselves.  So IF a plaintiff were to have previously pled that Bank of America was the owner and holder and then amend the pleadings to show U.S. Bank to be owner and holder, it would seem to me to be incumbent on the plaintiff to PROVE this conveyance by evidence.

Since the servicers have already exhibited a problem obtaining a valid copy of the PSA, it would seem to me that they are likely to show up in court WITHOUT the requisite proof. 

Quote 0 0

ahmsi had atty, baum file lis-pendens in june 2009 ,I was in settlment conf. for mod with the assignment from doxxs fraud mill --Bank of America as sucessor to lasalle bank merrill lynch asset backed securities opt1-2006 and while i was in court for fifteen months with this baums office filed another assignment naming equity now to option one 2 months after first lis-pendens and then ahmsi and baum filed a vacatur and discontinuance for incomplete and incorrect assignments.  Now a year later ahmsi filed an April 2011 corrective assignment claiming U.S. Bank national assoc. is the trustee for these asset backed securities.Their are 3 clouds on our title and we can't sell our home. How can U.S. bank use a fraudulant assignment naming equity now to them when that assignment from Bank of America is a fraud from doxx in alpheretta Ga.? Where can i find out when they sold the motgage into asset backd securities by the cut- off date september 5 2006 or closing date sept.29 2006 ???

Quote 0 0
Write a reply...