Many people have "table funded" loans where the originator
was supposed to be on the loan documents (and probably was)
but the servicer, for its own fraudulent reasons, changed the
name of the lender on the loan documents to a "bankruptcy remote"
"strawman" so it could sell the loan multiple times on the secondary loan market to gullible investors.
The way to discover this, is to look at your loan closing
documents to find out who the "true" lender was. If you look
at the HUD addendum to the loan application, you will find the
true lender in box 15. The initial servicer is in box 16.
Also look for who got the "yield spread premium" (also known
as "service release premium"). THIS IS THE TRUE LENDER WHICH
SHOULD BE ON THE LOAN DOCUMENTS. Normally, in a "table funded"
loan, the true lender will endorse the Note and assign the
mortgage over to the entity that supplied the lender with the
funds to fund the loan.
Besides charging the borrower front end "points" for doing the
loan, the originator will often obtain a "back end" profit by
immediately "selling" the loan on the secondary market. So for example, lets say the originator loans $100k at 6%. The Note
and mortgage will show the originator as the lender.
Next, the originator will often sell that "obligation" to
their "warehouse" source of funding for let's say $102K, thus
making a "yield spread premium" (ie service release premium)
of $2,000. This is shown as "POC", ie paid outside closing.
Now the Note should be properly endorsed and the mortgage
properly assigned to the "ware house" source of funding. They
call it "yield spread premium" because now the effective interest
rate is 6K on 102K=5.88% instead of 6%.
If the lender shown on the loan documents is not the same as
the lender shown on the Hud documents, what it means is that the
note is a phony. If the mortgage also has this "phony" lender on
it, it means the lien was never perfected in the name of the
true lender, so no mortgage exists. Therefore, no foreclosure is
Most of the time, the true lender was licensed but the "phony"
lender shown on the "phony" loan documents was not licensed. This
is a "dead" give away that "mortgage servicing fraud" occurred
with your loan. Very often, you will never discover this unless
you go into foreclosure or you do a Quiet Title action instead.