Pssst...don't look now, but the Gov. is cleaning up some of the mortgage mess...shhhhhhhhh

[dixiegrrrrl]

In what appears to be a quiet move, most likely brought on by liability concerns, THIS is happening:

Ginnie Mae has halted the transfer of mortgage servicing rights from Bank of America (BAC) to a nonbank servicer because the bank is missing documents such as recorded mortgages and title policies on the underlying home loans.

Yep...over 10 years since missing mortgage paperwork fraud has been going on, and years after alternative media discovered and pointed out robo-signing and industry wide forgeries by banks and servicers to fake the lost paperwork, Ginnie Mae, a semi-private lender, has finally noticed a problem.

Ted Tozer, the president of Ginnie Mae, says he has held up the transfer of servicing rights by B of A "for an extended period" because the bank is not complying with agency's guidelines that require all mortgage documents be delivered to custodians in a timely manner.

"Issues are coming up now because documents are missing," Tozer said Tuesday. "It's a new phenomenon with the major banks getting out of the servicing business. We don't want to transfer the risk to a new servicer."

uh..no, Teddy, it is NOT a new phenonom...have you not watched tv or read the news for the last 10 years???
Hey, Teddy, have you not read DU, fer Christ's sakes...some of us have been writing about this since at least 2008.

It is unclear how widespread the problem of missing documents is in the transfers of mortgage servicing, Tozer says, and he does not want to single out B of A.
"I don't mean to sound like we're picking on B of A," he says. "I can't say if it's just B of A or not."

and

"As far as how big the issue is, we're not really sure,"

Pssst...teddy, it is ALL the major banks that took the loans and sold them off and tried to foreclose on missing paperwork mortgages.

Teddy boy has other stupid statements in the rest of the story, but be sure to note what is going on with the Big Banks trying to get out of servicing mortgages, and the fact the new NON-BANK servicers are also being investigated.
http://www.nationalmortgagenews.com/news/servicing/ginnie-mae-nixes-bank-of-america-mortgage-servicing-transfer-1041601-1.html

[1StrongBlackMan]

1. To be read later.

[bobalew]

2. Try since 2003 or so,

at the height of Fairbanks Capital's mortgage debauchery to unsuspecting hapless & financially unable to defend themselves High risk sub-Prime loan holders. The deliberate Falsely created "Late Payment" Scams & "Drive by" $900.00 "Appraisals" that ate up your otherwise on-Time mortgage payments was the beginning of this mess. These , By the way were Prime GW Bush Campaign contributers AKA "Pioneers", that got away with this crap in spite of a majority of States Attorney Generals & the SEC having Big cases against them.

[dixiegrrrrl]

3. yep. btw..the last line of the story at link tell the tale:

"If the loans defaulted, that's the major issue," said Tozer.
"These attorneys are getting so creative in their foreclosure defense you have to make sure all loose ends are tied up" on the defaulted loans.

So thanks to the efforts of a lot of homeowners, some of them here at DU, fighting against the robo-signing and illegal foreclosures,
the Ginne Mae guy is now discovering his loan guarantees are in trouble.
Finally.

[elleng]

4. ever heard of 'bundling,' ted???

[ms.smiler]

5. If a “recorded mortgage” is missing, that’s a problem in PA.

By statute a mortgage in PA must be filed within 6 months otherwise the mortgage is “fraudulent and void.” Oh, the many ways that securitizing mortgages has only created non-secured debt.

So first a homeowner needs to check the land records to see if their mortgage was ever filed in the first place, then check for any bogus/fraudulent/robo-signed Assignments.

The Wall Street banks created this mess and should get stuck with the liabilities.

Homeowners: Please check and make certain your mortgage was filed and if not, check the laws in your state.

[ms.smiler]

6. dixiegrrrrl, Fannie has made some policy changes and there is now a MERS Rider

https://www.fanniemae.com/content/announcement/sel1403.pdf

If that link doesn't work, please try a copy and paste in a new browser.

See page 4.

As I recall there were three states that had rulings that determined that MERS is not a beneficiary. That's actually a reason why MERS is not a lawful mortgagee in PA. So it appears they are starting to dance around the use of MERS.

[dixiegrrrrl]

7. Link and copy.paste did not work for me.

thought I had it but when I went back to page and checked, it was "error"