Posts Tagged ‘Mortgage Lender Secrets’

New MERS Mortgage Settlement Impacts Borrowers Nationwide

Posted on: July 24th, 2012 by David Young No Comments

This Settlement will Impact Banks and Borrowers Nationwide

Perhaps the most convoluted and unresolved issue created by the mortgage meltdown concerns not mortgage rates or amortization, but the central question of who owns your mortgage and where it can be found.

The state of Delaware recently settled a lawsuit with Merscorp Holdings Inc., who operates the Mortgage Electronic Registration System (MERS). The agreement sparked a deal that is likely to spread nationwide.

MERS, according to the settlement agreement, was created to “to speed up and reduce the cost of the securitization process by bypassing county Recorders of Deeds offices throughout America. With little to no oversight of MERS’ practices, MERS did not meaningfully audit its records and failed to enforce its own rules governing members’ conduct. MERS was thus a key player contributing to the lack of transparency in the foreclosure tidal wave…”

In other words, one purpose of the system was to avoid the recordation fees required in most jurisdictions when a mortgage is bought or sold.

“Lenders save at least $25 for every new loan they register on the MERS System,” said MERS executive Carson Mullen in 2007. “Since the beginning, MERS has saved the mortgage industry over $1 billion in unnecessary costs.”


Under the settlement with Delaware Attorney General Beau Biden, MERS will now have to make a series of changes that will allow borrowers to identify their loan owner–an important matter when it comes to mortgage modifications and foreclosure.

Five Important Aaspects of the Settlement

The Delaware agreement outlines five major points:

  • #1 MERS members will be required to record mortgage assignments with the county Recorder of Deeds Office before a foreclosure can proceed
  • #2 MERS will not foreclose in its name for the next five years in Delaware. This reform may become permanent if the Delaware legislature approves
  • #3 MERS will create an online and toll-free system so that homeowners can easily see who owns and services their mortgage
  • #4 MERS records will be audited and errors will be fixed
  • #5 MERS will be required to annually examine documents “signed by employees of its 25 largest members to check the identity and authority of the person who signed the documents.” In other words, no more robo-signing

“Every homeowner should be able to find out who owns their mortgage, not just the company hired to collect payments,” Biden said. “The MERS System functioned to obscure this important information.”

The Biden agreement only applies to Delaware–but obviously it will become the model for all states because there is no reason why only borrowers in Delaware should know who owns their loans. The requirement to record transactions with local property record offices will make it easy to check title data as well as bring in cash to local governments–recordation fees that should always have been paid.

The only tragedy of the Biden agreement is that it was not in effect a decade ago. It would have gone a long way to preventing robo-signing, foreclosure delays and wrongful foreclosures–just a few results associated with the mortgage meltdown.

David Young

NOTE: We stress that we are neither lawyers, attorneys nor accountants and do not give legal nor accounting advice. We help home owners that have mortgage or foreclosure problems. When you are in foreclosure and going to lose your home if you do not take action or stuck with an underwater negative value home, we pull no punches helping you with mortgage Relief. E-Mail ASecretToMoney@gmail.com Address: David Allen Young, Sui Juris Private c/o United States Post Office 305 E. Yager Lane, Suite 423, Rural Route 78753 Austin, Texas Republic Non-Domestic WITHOUT THE UNITED STATES

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Bank of America, Syncora Settles Mortgage Fraud Lawsuit

Posted on: July 24th, 2012 by David Young No Comments

Bank of America, Syncora is hit with a Mortgage Fraud Lawsuit by a homeowner and looses FACE!

reuters.com | July 16, 2012

By Karen Freifeld

Bank of America Corp (BAC.N) agreed to settle a lawsuit alleging that its unit Countrywide Financial fraudulently misrepresented mortgage-backed securities insured by Syncora Guarantee, sources close to the settlement said.

The terms of the settlement were not immediately available.

In a filing in state court in New York on Tuesday, Syncora Guarantee, a unit of Syncora Holdings Ltd (SYCRF.PK), said it had agreed to discontinue the lawsuit.

Syncora was among bond insurers, including MBIA Inc (MBI.N), that sued Bank of America over representations made by Countrywide, a mortgage lender bought by Bank of America in 2008.

Syncora Guarantee sued Countrywide and Bank of America in 2009 to recover losses on billions of dollars of home loans made by Countrywide. Syncora claimed it was duped into insuring the mortgage-backed securities, saying Countrywide misrepresented the underlying mortgages.

“Countrywide, consistent with its business practices at the time, systematically ignored its own underwriting guidelines and made imprudent loans that no reasonable underwriter would have made,” Syncora said in its complaint.

Donald Hawthorne, an attorney for Syncora, declined to comment on the filing.  Jonathan Rosenberg, an attorney for Bank of America, did not immediately return a call for comment.

The case is Syncora Guarantee Inc. v Countrywide Home Loans Inc.,  New York state Supreme Court, New York County, No. 650042/2009.

Editing by Eddie Evans and Carol Bishopric

David Young

NOTE: We stress that we are neither lawyers, attorneys nor accountants and do not give legal nor accounting advice. We help home owners that have mortgage or foreclosure problems. When you are in foreclosure and going to lose your home if you do not take action or stuck with an underwater negative value home, we pull no punches helping you with mortgage Relief. E-Mail ASecretToMoney@gmail.com Address: David Allen Young, Sui Juris Private c/o United States Post Office 305 E. Yager Lane, Suite 423, Rural Route 78753 Austin, Texas Republic Non-Domestic WITHOUT THE UNITED STATES

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Foreclosure Short Sale Home Owner Analysis Checklist

Posted on: July 21st, 2012 by David Young No Comments

Foreclosure Short Sale Prospect Home Owner Analysis Checklist?
Below Is A Foreclosure – Short Sale Prospect analysis checklist to determin if the home owner is a short sale prospect or a foreclosure candidate.

1. Can the home be sold for enough to pay off what the Seller home owner owes on it before foreclosure?
2. Does the Seller home owner have the means to solve their situation on their own? Do they have money sitting in a bank account or equity in another property that they can use to catch up or pay off their mortgage(s) before a foreclosure or short sale occurs?
3. Does the Seller home owner insist on staying in the home (even when it’s pointed out they’ll have to move if the house is short saled or forecloses)?

YELLOW LIGHT!
If you answered yes to any of the above, this may not be a good Short Sale Prospect before foreclosure.
However, we may have another solution for you!
Give us a call at (850) 423-9728 and let’s talk.  Otherwise, continue with your analysis checklist…
1. Is the Seller home owner cooperative, willing to move and walk away from the home?
2. Is any foreclosure sell more than 10 days away?
3. Is the home over-leveraged?
4. Does the home have more than one mortgage on it?
5. Is the home really ugly?
6. Is the home unconventional/obsolete?
7. Is the home a victim of its surroundings (i.e., located on a busy highway, next door to a cemetery, crime scene, prison, etc.)?
8. If the home is “pretty”, do you think the house would sell in 30 days or less if you dropped the listing price by 20% for a short sale?

GREEN LIGHT!  If you answered yes to any of the above analysis checklist questions, this may be a good short sale prospect before foreclosure, thus, saving the home owner’s credit.
Gather the information on the Short Sale Prospect
Foreclosure Short Sale Prospect Home Owner Analysis Checklist Sheet with this analysis and let’s get this deal moving!

Not sure? Call us at (850) 423-9728 and we’ll help you figure it out!

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David Young

NOTE: We stress that we are neither lawyers, attorneys nor accountants and do not give legal nor accounting advice. We help home owners that have mortgage or foreclosure problems. When you are in foreclosure and going to lose your home if you do not take action or stuck with an underwater negative value home, we pull no punches helping you with mortgage Relief. E-Mail ASecretToMoney@gmail.com Address: David Allen Young, Sui Juris Private c/o United States Post Office 305 E. Yager Lane, Suite 423, Rural Route 78753 Austin, Texas Republic Non-Domestic WITHOUT THE UNITED STATES

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Related Articles:

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New MERS Mortgage Settlement Impacts Borrowers Nationwide

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