To go along with the previous post And So It Begins….(Countrywide Breach of PSA), I am going to show proof positive that there was never any collateral on mortgages assigned to Bank of America from Countrywide when that ‘merger’ took place.
First, we have a print-out from the Oakland County, Michigan Register of Deeds. This is the authority in this county where all transactions pertaining to real property MUST be recorded. The 1st mortgage on the property was originated by Countrywide. All subsequent transactions were also with Countrywide (with the exception of the quit claim deeds, which were done by the homeowner for the purposes forming an estate trust). There was the original mortgage in 2002, a refinance for a lower interest rate in 2003; then there was a home equity line of credit (HELOC) established at the same time as the refinance; and finally there was a refinance of the HELOC into a 2nd mortgage at a fixed interest rate in 2007. The homeowner never transacted with anyone other than Countrwide. Notice what is glaringly missing: Never is there any conveyance of the security interest to Bank of America by way of assignment from Countrywide. If this ocurred, in order for it to be legal and binding, it would have had to have been recorded at the Oakland County Register of Deeds and would show up clearly on this print-out obtained directly from them.
In addition, both the 1st and 2nd mortgages were discharged in a Chapter 7 bankruptcy in 2008. These mortgages are serviced to this day, by Bank of America. The homeonwer is not, nor has he ever been in default.
What this means is that without assignment of the Deed (which represents the collateral/home), Bank of America has absolutely no enforceable contract upon which to have any right or standing to foreclose if the homeowner were to default. To make matters more interesting, the 2nd mortgage shows on the MERS system as held by them, with the investor being Fannie Mae as of April 2010. So, Countrywide never assigned the mortage to Bank of America and Bank of America assigned the mortgage, to which they had no rights, to MERS who then assigned it to Fannie Mae.
The only things legally transferred here were the mortgages (the debt). The property (collateral), has in effect, been severed from the mortgage notes, making these notes unsecured debt, which notes have been discharged in bankruptcy. Nowhere is there any recorded rights to the collateral afforded to any entity but Countrywide, which institution no longer exists.
So, is it any wonder the holders of Countrywide MBS (mortgage-backed securities) are a bit miffed? They don’t hold securities – ie. debt that is secured by collateral – they own unsecured debt, much of which is defaulting and quite possibly, already discharged in bankruptcy, leaving the MBS holders absolutely no recourse to foreclose on the collateral to which their debt should have been attached.
‘Procedural error?’ I think not. This was intentional because this is but one of hundreds of examples in Oakland County, Michigan alone with regards to Countrywide/Bank of America. These homeowners have a LEGAL right under The Fair Debt Collections Practices Act to know to whom they are really indebted and these MBS holders have a right to know who is in possession of their promised collateral so that they may deal directly with those people in order to have any hope of collecting on their now unsecuritized securities. The MBS holders were defrauded and in many casesa, homeowners have been illegally foreclosed upon by entities with no rights to the homes. That collateral was then dispensed (sold) without payment to the people actually owed the money! I’m sure the MBS holders would like to know where their money went.
Bill Black describes it best: The Great American Bank Robbery. Indeed.