Certified Forensic Loan Auditors, LLC

 
  Upcoming Classes

Search CFLA's Article Archive:

Investor Syndicate At Hundreds of Billions And Growing

subprimeshakeout.com | August 15, 2019

by Isaac Gradman

Heard on this Street this week: the super-secret Syndicate of MBS Investors discussed previously is gaining momentum. A confidential source has informed me that some of the largest institutional investors in mortgage-backed securities have now joined the group, bringing the amount under management to ”hundreds of billions of dollars in MBS investments.” The source further informed me that this number is expected to swell to a “jaw-dropping dollar figure.”

As discussed before, the Syndicate hopes to amass enough representation in enough securitizations throughout the country to take over those trusts pursuant to the terms of the respective Pooling and Servicing Agreements (PSAs). These contracts often require 25% class ownership to petition the Trustee to take action and 50% ownership to fire the Trustee or Master Servicer.

Once the Syndicate has reached critical mass, it reportedly will approach the Trustees of a number of deals to present evidence of Servicer misconduct and request the Trustee to take action to remedy Servicer breaches (including firing the Servicer). If the Trustee does not comply, the Syndicate plans to fire the Trustee and Servicer, and install friendly institutions in their place.

At that point, the Syndicate would likely pursue two major courses of action: 1) take over the servicing of the deals and begin servicing the loans in the trust in accordance with bondholder wishes (including liquidating or modifying loans in default, depending on which option makes the most economic sense over the long term) and 2) pursue remedies against originators for losses caused to the pool. This second prong would involve pouring over loan files obtained from the prior servicer to look for breaches of reps and warranties in the origination and underwriting of the loans. This will almost certainly lead to a jump in mortgage litigation seeking to compel originators to buy back or repurchase loans that were improperly originated (to the extent these originators are still solvent).

Again, loan files are critical, because they reveal the fundamental characteristics of each loan and the underwriting determinations made in the approval of such loans. Though certain plaintiffs have recently made strides towards forcing servicers like Countrywide to turn over loan files (see also Order Granting Motion to Compel in Syncora v. Countrywide), the acquisition of these all-important documents remains a difficult proposition. Investors are increasingly coming around to the idea that the only way they will be able to obtain these files is by force–namely, firing Servicers and taking over their duties and documents.

I will continue to provide updates on this fascinating development as they become available, and expect that we’ll begin to hear more about the Investor Syndicate in the mainstream media in the coming months. Stay tuned…

 
Order Cutting-Edge Services Now   Quiet Title Packages from Licensed Attorneys
     
CFLA Sponsored Attorney Links   CFLA Training Academy

 

Back to August 2019 Archive

"CFLA was founded by the Nation's Leading Foreclosure Defense Attorneys back in 2007 to serve the Foreclosure Defense Industry and fight pervasive Bank Fraud. Since opening our virtual doors, CFLA has rapidly expanded to become the premier online legal destination for small businesses and consumers. But as the company continues to grow, we're careful to hold true to our original vision. For us, putting the law within reach of millions of people is more than just a novel idea–it's the founding principle, just ask Andrew P. Lehman, J.D.. With convenient locations in Houston and Los Angeles, you can contact Our National Account Specialist and General Manager / Member Damion W. Emholtz at 888-758-CFLA (2352) for a free Mortgage Fraud Analysis or to obtain samples of work product, including cutting edge Bloomberg Securitization Audits, Litigation Support, Quiet Title Packages, and for more information about our Nationally Accredited and U.S. Department of Education Approved "Mortgage Securitization Analyst Training Certification" Classes (3 days) 24 hours for approved CLE & MCLE Credit (Now Available Online)".

SEE BELOW- http://www.certifiedforensicloanauditors.com

Call us at 888-758-CFLA (2352)

 

 

 

 

 

 

 

 

Bookmark and Share

spacer

Facebook Like us on Facebook
Twitter Follow us on Twitter
YouTube View our YouTube Videos
LinkedIn Connect to us on Linkedin

 

BBB Logo

 

spacer

Contact us or view our Sample Documents & Audits by completing the form below.

 

 

 

DVD Sets Only $99

 

FREE Mortgage Fraud Analysis

 

Order Cutting-Edge Services Now

 

Quiet Title Packages from Licensed Attorneys

 

Affiliate Services

 

CFLA Sponsored Attorney Links

 

Take-Home Education Package

 

The True News Network

 

Rubenstein Business Law

 

Atighechi Law Group

 

Scunziano & Associates

 

Foreclosure Defense LLC

 

Get Certified to Perform Mortgage Securitization Audits

 

CFLA Training Academy

 

Expert Witness Services

 

Cutting Edge Expert Securitization Reports

 

CFLA Credit Cards

 

Breaking News

 

Letters to the Editor

 

CFLA Weekly Newsletters

 

Code of Ethics

 

Testimonials

 

Instructional Videos

 

Job Opportunities

 

License Opportunities

 

MARS Rule

 

Product Samples

 

Resource Links

 

Servicer Information

 

Foreclosure Laws

 

REST Report

 

Quiet Title Packages from Licensed Attorneys

 

Advertise on CFLA

 

Advertising Space: Mortgage Securitization, Quiet Title

 

Certified Forensic Loan Auditors, LLC
13101 West Washington Blvd.
Suite 444
Los Angeles, CA 90066

Phone: 888-758-CFLA (2352)
Mobile Users: CLICK TO CALL
info@certifiedforensicloanauditors.com

   
 
CFLA IS NOT A LAW FIRM AND DOES NOT PROVIDE ANY LEGAL ADVICE. CFLA DOES NOT OFFER FORECLOSURE CONSULTING OR FORECLOSURE RELIEF
SERVICES. CFLA DOES NOT OFFER OR ASSIST WITH ANY LOAN MODIFICATION SERVICE. CFLA ALWAYS RECOMMENDS THAT CLIENTS RETAIN COMPETENT COUNSEL IN THEIR RESPECTIVE JURISDICTION. CFLA HAS A FREE PROGRAM TO REFER CFLA CLIENTS TO LAW FIRMS IN NEARLY EVERY STATE AND CFLA
DOES NOT CHARGE OR OBTAIN REFERRALS FEES FOR THESE SERVICES. SERVICES NOT OFFERED TO RESIDENTS OF THE STATE OF NEVADA.

 
Home About Us Privacy Policy Terms of Service Disclaimer SERVICES Careers Contact Us
 
COPYRIGHT © 2007-2017 Certified Forensic Loan Auditors ™ All rights reserved