from Lynn Szymoniak

her notes

  • Originators made the loan
  • Depositors in charge of gathering all the loans..could be from different mortgage companies
  • Sponsors supervised creation of Trusts, filed SEC and IRS documents – Trust became tax exempt
  • Servicers collect payment, send out notices…most lucrative position, Sometimes called Master Servicers
  • Trustees operate Trusts after creation. Have Authority to take action for breach in PSA rules
  • Citibank, Deutsche, Bank of America JP Morgan Chase Bank of New York,Well Fargo HBSC, etc were  Trustees
  • Trustees don’t keep documents themselves
  • Document Custodian holds documents in vaults
  • Major investors in these trusts are Banks, Hedge Funds,Pension funds, Insurance Companies,  State and Local Governments (WOW)
  • PSA includes provisions of mortgage file, the assignments, title insurance policy, not all were on MERS system, but most were.
  • Most Trusts were made in New York and Delaware
  • Nevada Attorney General filed first lawsuit against these practices
  • Illinois, Mass, Nevada, New York, and Delaware are the most serious attorney generals doing their job
  • Problems, failure to disclose risks, 30% had decent loan to value, sold to above entities as great investments without disclosing the loans were bad
  • Many law suits filed by private investors and SEC, check link to Lynn’s notes. These started in 2011.  PSAs were followed
  • If investors were so mislead, can you imagine the homeowners?
  • Trusts have been continually downgraded by rating agencies, however they were never trustworthy, sorry for pun
  • RMBS trusts now own more homes in every county than any citizen property owners
  • Go to property appraisers website and you can search by name of property owner, ex Wells Fargo as trustee for…and then up will pop all the properties in the county that they will have in their name.

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