Thread: Deposition: Countrywide Never Sent Mortgage Notes to Trust; Mortgage-Backed Securitie

Deposition: Countrywide Never Sent Mortgage Notes to Trust; Mortgage-Backed Securities

This is an enormous deal. If Countrywide never gave up possession of the note, then the trust has no standing to foreclose whatsoever. It also means that investors in the MBS don’t actually have securities backed by mortgages. The “allonge” appears to be an effort to clear up this situation, and it was signed years after the fact, well past the deadline of the pooling and servicing agreement, and not even affixed to the note as required by law.

This is a deposition from one supervisor, but it could mean that all mortgage pools that Countrywide sold are suspect. That would amount to perhaps hundreds of billions of dollars in MBS. And the law appears to be air-tight on this, and not governed by the Constitution but New York trust law and the specifics of the pooling and servicing agreement.

This is bombshell testimony. If these MBS are not backed by mortgages, then they by definition are counterfeit, and worthless.

Peoples retirement funds may be absolutly worthless....

As to the location of the note, Ms. DeMartini testified that to her knowledge, the original note never left the possession of Countrywide, and that the original note appears to have been transferred to Countrywide’s foreclosure unit, as evidenced by internal FedEx tracking numbers. She also confirmed that the new allonge had not been attached or otherwise affixed to the note. She testified further that it was customary for Countrywide to maintain possession of the original note and related loan documents.

An allonge is a rider, if it was never recorded, then we have a problem. This is a fucking crime, hell the crime of the century. I am beginning to wonder just how many times they leveraged these mortgages.

Originally Posted by michaelr

this is bombshell testimony.

notegate!!!!!111!!

It looks like this could set off a chain of events that may be the demise of BOA. It appears they could be forced to buy back these umm...err..."securities".


Reading the article a couple of time over, I have come to a stunning conclusion. If anyone has money in BOA I would get it out. Their debts are hidden, and their spreadsheets are far from accurate. The bank is insolvent.

Here is the article.........Countrywide Mortgage Document Errors May Doom Bank Of America

Errors my ass.

Originally Posted by Gypsy

What about the people who already had their homes seized after a foreclosure? Do they have any recourse?

I do not know Gypsy, I think that would be answered soon however. The congress is trying their best to convince Obama to recall his pocket veto and legalize this crap. The hard thing to swallow here is the fact that the securities, and in their own right are dangerous and the reason behind the EU Blastzone problems and many others have nothing backing them. A Mortgage backed security without the mortgage backing. 401's and lots of pensions are riding on nothing at all. Another thing, the federal reserve has trillions invested in these things. If this is a systemic failure of the MBS system, forget everything I said about the economy, and multiply it by...gee I dunno...a thousand...more??!!

Rawstorydotheads chime in........

If proven, Countrywide’s mortgage fraud could threaten Bank of America

"There's been talk on the street for years that banks didn't send the notes up the line when they did securitizations," Max Gardner, a consumer bankruptcy attorney, told Daily Finance. "But this is the first time I've seen someone under oath admit there was a policy not to deliver the notes. I had to read it twice to make sure that's really what she said, but she did: It was customary."

I do believe this will be a systemic problem.....you peeps better hope I am wrong, but I don't see why this would be limited to Countrywide and Bank of America.

WoW!! This is unbelievable. What next?

Originally Posted by anonnymous

WoW!! This is unbelievable. What next?

I dunno, what can you do after commiting the largest counterfeit scheme the world has ever seen?....oh shit, have your government make it legal like.

I wonder what is going to happen when these things mature, and I will keep on eye open. This may be the new norm and if Goldman is involved, the crash you will hear will be felt to the far reaches of the universe.

Originally Posted by michaelr

I dunno, what can you do after commiting the largest counterfeit scheme the world has ever seen?....oh shit, have your government make it legal like.

I wonder what is going to happen when these things mature, and I will keep on eye open. This may be the new norm and if Goldman is involved, the crash you will hear will be felt to the far reaches of the universe.

What really pisses me off is the DOJ simply will not prosecute these thieves. No one his held accountable.

Originally Posted by anonnymous

What really pisses me off is the DOJ simply will not prosecute these thieves. No one his held accountable.

Well if they don't then I would suggest that they are in cahoots with these banks and the goal is to tank the world economy.

Look at the Blastzone, the problem derived from securities that became worthless, when the countries attempted to pay their debts with them, the banks all but laughed, then when it was brought to the banks attention that they were guaranteed, well the banks said yes by AIG who is all but belly up. Now all this happened because the mortgages that supported the securities went belly up due to massive foreclosures. Just imagine what it means if their were no backing to these securities....I mean Jesus Christ, just the thought makes me sick.

My Blastzone explanation is oversimplified, yet accurate enough for this conversation, and fairly spot on, not real sure about the laughing part however...