FDIC “endorsements” of Note or “Assignments of Mortgage”

The FDIC does not want to get into the middle of a court battle over the validity of ownership claims etc. Most endorsements and assignments occurring while the estate of a failed bank is in receivership are of dubious validity and often outright fraud. Chase for example claims ownership of loans when it suits them but denies ownership — or any liability arising out of the loan ads service practices — when it would place Chase in a bad position.

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Here are my instructions  to our paralegals who do there search for our TEAR (Title & Encumbrances Analysis and & Report) on a case involving the failed bank, BankUnited and the treatment of “loans” claimed to be within the estate of the failed bank. You can pretty much use this wherever the FDIC was involved.

1. Go to FDIC.gov
2. At bottom of page in small letters in FOIA — Freedom of Information Act
3. Then go to reading room
4. Look up BankUnited — find Purchase and Assumption Agreement by whatever bank took over the assets. You might find other documents of interest.

There are two types of note endorsements from FDIC receiverships

1. Execution of endorsement by actual FDIC person with authority — that would be the person who is the FDIC receiver for that particular Bank failure. This is rare if not unheard of. Technically the FDIC owns the estate of the failed bank but does not actually run it. It keep the people in place until it finds a bank to takeover the estate of the failed bank. SO you could have some hybrid, theoretically (I have never seen it) where a person who was working for the failed bank at the time of the receivership executes a document with approval from the FDIC receiver. So you would be looking for whether the endorsement was executed by an employee of thee failed bank while the failed bank was owned in receivership and with approval from the FDIC receiver. This is something that could be included in a report stating that there is no document or other evidence presented, thus far, indicating the endorsement was by someone with authority — and that research of the signatory indicates he/she was employed by whoever (someone else) indicating that there is at the very least an inconsistency between the execution of the endorsement and the employment record of the person who signed.

2. Execution by way of a power of attorney executed supposedly by the FDIC receiver. While some of these are real most are not. The actual person signing is an employee of say, Chase Bank, who claims to be agent for either the failed bank or the FDIC receivership estate. What is missing is a copy of the power of attorney. we are left with just the claim under circumstances where industry practice is to fabricate and forge documentation in order to push through a fraudulent foreclosure.

NOTE: The transfer of the estate of the failed bank does NOT mean that the loans were transferred. In the case of BankUnited it was securitizing the “loans” at a time that either predated the closing (i.e., upon application of the borrower) or the claim of securitization (a lie by the way) originates contemporaneously with the alleged closing of the loan. That means that the failed bank was deriving its income off of fees generated by originations and in some cases (I don’t think BankUnited was a servicer) retaining the servicing rights but not the ownership. AND THAT means that at the time of the failure of the bank it had few, if any, assets that were loans receivable. AND THAT means that their endorsement could be fake for lack of authority (see above) or simply void because at the time of the endorsement they didn’t own the loan.

The illusion of “ownership” is created by the self-serving execution of an endorsement where the courts often presume that the endorsement was real and authorized. THAT presumption leads to another assumption: that the endorser owned the debt and that a transaction took place in which the loan was actually purchased for value, making the endorsement EVIDENCE that the transaction took place. It is circular logic but it is working in the courts for the banks. Our job is to show that the endorsement and the ownership are, at the very least, suspect.

Keep in mind that the original “lender” (the originator) might not have have loaned any money to the borrower, but rather took credit for making the loan without objection from the parties who actually funded the loan. Under common law and the UCC the only party that owns the debt is the one who funded the loan. The endorsements and assignments contribute to the illusion that the originator was in fact the lender. Paper instruments are potentially evidence of a transaction in which money exchanged hands. All paper instruments are hearsay but many can be admitted under exceptions to the hearsay rule. The paper instrument should never be confused with the actual monetary transaction. If there was no transaction, then the paper instrument is a nullity as it refers to a nonexistent transaction.

4 Responses

  1. the lawyer for the servicer in my case put on the front of an assignment and deed the following: Certified to be a true COPY..

    the assignment by the way was done after the filed the first foreclosure…

    can this be legal, can they really use this to take my home???

    Like

  2. Great timely info. Keep hearing of people bringing up America’s Wholesale Lender as pretender lender but courts ignore. May be failure to question specifics of endorsements etc in this way and only focus on dba issue?

    Like

  3. How do we find information about Bank of America and Bank of New York Mello with CWABS trust

    Like

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