Finding Pooling and Servicing Agreements is Key to Killing Your Foreclosure Case!
May 28th, 2010 | Author: Matthew D. Weidner, Esq.
If you’re being sued by any entity acting as a trustee, i.e. “US BANK as trustee for the HP Series 2006-c Certificate Holders”, you need to be aware of a variety of issues that may be helpful in your case. I will start another series of video blog posts on the “Capacity Argument”, because this argument works in nearly every case, but it is particularly appropriate in cases where Plaintiff is an exotic, alphabet soup Foreclosure Frankenstein.
Individual mortgages originated by lenders like New Century and Argent were pooled into groups of approximately 8,000 mortgages from around the country to form a Mortgage Trust which held mortgages which had (on paper at least) cumulative values of between 10-12 million dollars. These mortgages that were grouped together and given a name like “HSI ASSETT SECURITIZATION CORPORATION TRUST 2006-OPT2″. Interests in these mortgage trusts were then sold to teachers unions, investment funds and other institutional sources around the world. Before selling the interests in these trusts, the institutional investors were required to prepare the contract that would govern the rights between the depositor of the mortgages, trustee of the new trust and the company that would be responsible for collecting payments from homeowners and sending those payments out to those who had invested in the trust. This contract is called the Pooling and Servicing Agreement. The important thing about the Pooling and Servicing Agreement is you will find in virtually every case that all of the parties who are involved violate nearly every provision of their own Pooling and Servicing Agreement. This has important consequences that we will talk more about later, but the Securities and Exchange Commission rules requires these trusts to provide important other reporting information that was widely ignored or worse, falsified by the entities in control of these trusts. Finding such information can be a key to defending your case.
