Foreclosure's alphabet soup

Services for Real Estate Pros with S.P.O.C.H. a 501c3 Charitable NP

Before the practice of mortgage securitization became the darling of Wall Street, borrowers knew if they didn't make their payments, their loans could be foreclosed by either a local or national bank, credit union, FNMA, or FHLMC.  They also were told, emphatically, to contact their lender who would embrace their desire to keep their homes and, in most cases, offer a non foreclosure alternative in the form of a workout. 

Now, nobody really knows for sure who owns the loans, or who has the right to modify a non performing loan, or who has the right to foreclose.

Largely, Wall Street had been in charge of the mortgage lending business...  designing the loan products, establishing the criteria under which it would buy the loans and pay generous commissions to the loan brokers who produced them,  lending money often at no charge (warehouse lines of credit) to non bank loan originators, then buying and securitizing the loans.... making tens of millions perhaps hundreds of tens of millions of dollars in bond and securities trade.

In the last few years, we've read about SIVs  (structured investment vehicles); CBMSs (collateralized backed mortgage securities); CDOs (collateralized debt obligations); and MBS (mortgage backed securities)

Here is a representative list of presumed holders of mortgages who are foreclosing:

  • a TRUSTEE is one who holds legal title to a property in trust for the benefit of another person, and required to carry out specific duties
  • a NOMINEE is a person or firm such as a bank or a brokerage house into whose name securities or other property is transferred by agreement
  • a servicer is a company who administers the accounting of a loan, collects payments, cures defaults, or forecloses

Wells Fargo Bank Minnesota, N.A. as trustee for pooling and servicing
West Coast Realty Services, to an undivided 50% interest

Equity One, Inc., as Servicer for Nomura Home Equity Loan, Inc.,

US Bank National Association as Trustee 

Countrywide Home Loans, Inc, for the benefit of Greenwich Capital Financial 

Deutsche Bank National Trust Company, on behalf of Morgan Stanley ABS 

US Bank National Association, As Trustee For CSMC ARMT 2006-3 

Countrywide Home Loans Servicing LP for the Benefit of HSBC Bank USA, 

Wachovia Bank, National Association, as Trustee for WFASC Mortgage Assets 

Deutsche Bank National Trust as trustee of MASTR 2007-01 

Bank of New York as Trustee For The Certificateholders Cwabs Inc. Asse 

Countrywide Home Loans, Inc., for the Benefit of Hudson City Savings Bank 

HSBC Bank USA, National Association, as Trustee for the Holders of .... 

Deutsche Bank National Trust Company As Trustee for Morgan Stanley ABS 

Deutsche Bank National Trust Company as Trustee under the pooling and servicing agreement

HSBC Bank USA, National Association As Trustee For Nomura Asset-Backed 

Mortgage Electronic Registration Systems, Inc. As Nominee For FGC Comm 

LaSalle Bank National Association, As Trustee For Merrill Lynch Mortgage 

To be continued.  About 18 months ago, I wrote an essay, A Perfect Storm.  I should have written more about Payment Option Arms with NegAm.


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