Tag Archives: borrowers

LASP™ Lesson 12: Recap and Wrap Up

LASP™ Lesson 12: Recap and Wrap Up At last, we’ve reached the end of the Loan Audit School for Professionals™ series. This is lesson 12 and this is the wrap up. By now, you’ve worked through your workbook, and you understand the steps to auditing.

It starts with preparation: find a quiet place to work, gather all your documents, a pencil, your worksheets, a calculator, a ruler, and maybe something to drink.

Work your way through the workbook and follow the steps, and keep track of the findings of your research. There is a checklist in the back of the book, along with space to write down your notes, and remember that you can also use the space provided in the worksheets provided with the workbooks.

One last thing: don’t forget to check the Loan Audit Tips category for updates! That’s where I will put the new things I find in between the versions of the digital materials.

For those of you who need some help with writing, I have asked my friend Amanda Collins from the Grammar Doctors to write a guest post and film a follow up video with me to share some secrets to writing a great report that accurately conveys your findings to your clients and attorneys.

Go here to get the DIY for Professionals workbook, and here to get the DIY for Borrowers product.

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LASP™ Lesson 11: Securitization Basics and Discussion of Evidence

LASP™ Lesson 11: Securitization Basics and Discussion of Evidence This is Lesson 11 of my video lesson series for professionals. If your brain is fried after the previous two, this one’s easy! This lesson is about the basics of securitization and the evidence related to it. You may already be familiar with this information if you’ve been paying attention for the last several years.

A lot of people may not realize that there are many types of debt that gets packaged as a security and sold to investors. Your car loan and credit cards might be securitized. Think about it: if you were a bank, would you want all that sitting on your books? Probably not. A bank is not making money unless it’s loaning money. Selling off debt it is owed allows it to free up capital. This is one reason why the banks have resisted regulation to hold more capital in reserve — they can’t make money on it if they can’t loan it out. Banks are definitely profit driven as we’ve seen in the past five years. There are multiple financial incentives for a bank to foreclose instead of modifying, and the point of these lessons is to help you find an incentives to work with you instead of foreclosing on your house.

The biggest and most obvious issue with securitization of residential loans is that there were so many loans being originated that proper paperwork was just not feasible. They turned to MERS to track securitized loans. This seems like the most obvious explanation to me, anyway.

Go here to get the DIY for Professionals workbook, and here to get the DIY for Borrowers workbook.

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LASP™ Lesson 10: Locating and Understanding the Mortgage Schedule on the PSA

LASP™ Lesson 10: Locating and Understanding the Mortgage Schedule on the PSA I’m pleased to present Lesson 10 of Loan Audit School for Professionals! We’re down to the last several lessons and I’m excited to bring these lessons to a close this week.

In this video, I cover how to find the Mortgage Loan Schedule on the PSA and how I found a loan on a mortgage schedule. I also cover how to to read the information on the columns.

I mention the Securitization Handout that I uploaded to Issuu. I know it looks like something a child could draw, but sometimes simpler is better when it comes to visualizing how things come together. You can use the process of elimination with this handout to figure out what happened to your loan.

I know I’ve said this before, but we are looking at things from the reverse, and it requires some analytical thinking and putting together the puzzle pieces to figure out what happened. You never know what you’re going to find, and that’s why it’s important to do your own investigative work into finding out the facts of your own loan.

Something else I want to mention: if it’s taking you awhile to really grasp these concepts don’t worry! Just keep going on with the lessons. Watch the videos several times if you have to, and work through the workbook several times if you need to. I did not reach the level of understanding that I have overnight, and it’s OK if you don’t either. This is complicated stuff, especially if you have a full plate elsewhere in your life.

Go here for the DIY for Professionals product and here for the DIY for Borrowers.

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Sale on DIY Mortgage Review Digital Products!

Sale on DIY Mortgage Review Digital Products!This is just a short post to share a special discount code with my FIN readers! It’s been awhile since I offered a promotional code, and I want to welcome all the new readers.

I like getting deals myself, so I’m excited to share a promotional code with you: Use FINSpring2013 to get 20% off everything in the DIY Mortgage Review store, including DIY Mortgage Review for Borrowers and DIY Mortgage Review for Professionals.

This code is good through April 11, 2013 at midnight, so hurry!

*Instructions for coupon code: Visit DIY Mortgage Review to take advantage of this offer. Once you make your selections, a box will appear in your cart for the promotion code. Enter FINSPRING13 and click “Update Cart” to see the new price. Then, check out as usual with Paypal.

By the way — it’s not necessary to have a Paypal account to make purchases at DIY Mortgage Review. You will be prompted to enter your payment information if it’s a payment method other than Paypal.

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LASP™ Lesson 8: Reviewing the Chain of Ownership

Here is the video for Lesson 8, which is about reviewing the chain of ownership.

I generally only look for information that is available publicly, so my review of the transfer of the loan would be the documents recorded against the property at the county recorder’s office, and how to look look at public sources to find out other parties who may have an interest in your loan and property.

You can also review the DIY for Borrowers series video for more on how to review the Chain of Ownership. The bottom line is that the transfers from party A to B to C have to make sense.

I know this is a tough subject to master. Sometimes I wonder if I’m the crazy person for figuring this all out. Very few people, many lawyers included, still do not understand the problems with the transfers of ownership in the loan documents and how that’s a problem under many laws.

In some states, there’s not much you can do, frankly, because the courts don’t like those arguments. Sometimes those problems with court rulings can be overcome when you have great rulings. It’s been my experience that a presumption can be overcome with good facts and evidence.

I’m not kidding when I say I am working with an attorney who has been taking foreclosure defense cases who JUST started to understand the problems with the foreclosure transfer documents. And it’s hard to explain it all, even with a blog like this one.

Generally speaking, if the DOT/Mortgage has been transferred, the Note should have been transferred at the same time. I just looked at a case where the Allonges to the Note were created at closing, with the mortgage broker signing the Allonge from the pretender lender to the investor, and then signing the second Allonge from the investor to the mortgage pool. He signed both with different titles for two different companies, which is a classic example of the authority issues we commonly see in foreclosure documents. I pulled up his employment information on LinkedIn as evidence in support of our allegations that he was not a VP of the originating bank, nor had any affiliation with a pretender lender.

The transfer of the Note would probably have been fine (except for the Note should be endorsed instead of using an Allonge) if the Mortgage had been assigned immediately after closing, but it was not assigned until two or three years after the loan’s origination and with robo-signers and robo-notaries.

By the way — this is the whole concept behind the UCC and the note split from the deed argument. In this situation, it’s clear that the Note was split from the mortgage, because there is no chain of custody that matches up with the dates. Because the case is in a state where that’s a viable argument, it has a decent chance of being taken seriously there.

Learn more in the DIY for Professionals, available here.

Here’s the video lesson:

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