Cape Cod Barrister

Do You Know Who "Owns" Your Mortgage???

I was in court the other day in Boston for oral argument in one of our predatory lending cases.  I joked with the defense lawyer and asked if he knew who his client was today. When the case started, he represented Ameriquest Mortgage, which made the loan, Ameriquest Servicing, which serviced the loan, and Washington Mutual, who had purchased the loan. Sounds pretty easy, right?

Well...not so fast.  Then, Citibank bought the servicing arm of Ameriquest and was servicing the loan, and Washington Mutual went bankrupt and JP Morgan then purchased some assets of Washington Mutual. To make matters even more complicated, if WAMU was the Trustee of a Securitized Trust, the Trust Fund still exists independant of WAMUS'  failure. I'm sure I've lost you by now, and it also makes my eyes roll up in my head. However, what it does reflect is how difficult it is for the federal government, not to mention the consumer trying to modify their loans, to wrap their arms around the current situation and try to bring some sanity and order to the modification process. "Don't try this at home" as they say.

In courts nationwide, including bankruptcy court, lawyers are beginning to successfully challenge foreclosures by demanding information identifying the true "holders" or owners of mortgages. Where this cannot be done, cases brought by banks to foreclose are being dismissed.  We intend to make this "holder" challenge in every case that we have.

The securitization process, i.e the bundling of loans, both good and bad, into investment packages sold throughout the world, is what has brought the  international financial community to it's knees. They made the process so complex, even they didn't understand it. What a shame that their own arrogance and greed  may turn out to be the tool that consumers and courts can use against them.