Comments on: Treasury to Urge Lenders to Finish More Home Modifications http://homemortgage911.com/treasury-to-urge-lenders-to-finish-more-home-modifications/ Home Mortgage News Wed, 06 Jan 2010 03:29:56 -0600 http://wordpress.org/?v=2.8.6 hourly 1 By: elkathy http://homemortgage911.com/treasury-to-urge-lenders-to-finish-more-home-modifications/comment-page-1/#comment-13 elkathy Fri, 04 Dec 2009 01:33:51 +0000 http://homemortgage911.com/?p=89#comment-13 The reason that loan modifications have only "trial" modifications is because a permanent contract would require identification of the actual owner/creditor of the mortgage/note. In response to the May 2009 TILA Amendment that requires identification of the actual owner/creditor of the mortgage/note, the Federal Reserve submitted an Interim Opinion. The Opinion clearly states that servicers, trustee, trusts (investors) in pass-through securities - are not the owner/creditor. The owner/creditor is the bank on whose balance sheet the mortgage/note is accounted for. The FASB (Financial Accounting Standards Board) has already issued mandatory rules that require all off-balance sheet conduit "trusts" to be accounted for on the actual balance sheet of the acquiring bank by January 1, 2010. Thus, no longer can attorneys hide behind "trustees" or "trusts" to conceal the actual identity of the balance sheet owner/creditor of mortgages/notes. Further, loan modifications, in order to be permanent, MUST identify the actual owner/creditor of the mortgage/note, and cannot be executed under the name of a mortgage servicer (unless the servicer has purchased the mortgage/note - in which case the servicer must disclose this information). When Congress initiated the TARP program to bail out financial institutions (apparently to save the US economy/financial system), Congress trusted that the financial institutions would play fair to modify outstanding mortgages/notes for Americans that were also victims of the financial collapse. However, Congress placed too much trust in the financial institutions, as few financial institutions had any intention to cooperate. All must be warned. Do not sign a loan modification without identification of the actual current owner/creditor of your mortgage and mortgage loan. Any such signature continues the fraud that perpetrated the original financial crisis, and causes a future crisis by fraudulent conveyance of mortgage title to American homes. Our courts will be overwhelmed with challenges that will not be resolved for years - if ever. Taxpayers will find that the burden is placed on their children and grandchildren - to bail out. At this point, a bail out may not ever be possible. Proceed with caution. The reason that loan modifications have only “trial” modifications is because a permanent contract would require identification of the actual owner/creditor of the mortgage/note. In response to the May 2009 TILA Amendment that requires identification of the actual owner/creditor of the mortgage/note, the Federal Reserve submitted an Interim Opinion. The Opinion clearly states that servicers, trustee, trusts (investors) in pass-through securities – are not the owner/creditor. The owner/creditor is the bank on whose balance sheet the mortgage/note is accounted for. The FASB (Financial Accounting Standards Board) has already issued mandatory rules that require all off-balance sheet conduit “trusts” to be accounted for on the actual balance sheet of the acquiring bank by January 1, 2010. Thus, no longer can attorneys hide behind “trustees” or “trusts” to conceal the actual identity of the balance sheet owner/creditor of mortgages/notes. Further, loan modifications, in order to be permanent, MUST identify the actual owner/creditor of the mortgage/note, and cannot be executed under the name of a mortgage servicer (unless the servicer has purchased the mortgage/note – in which case the servicer must disclose this information).

When Congress initiated the TARP program to bail out financial institutions (apparently to save the US economy/financial system), Congress trusted that the financial institutions would play fair to modify outstanding mortgages/notes for Americans that were also victims of the financial collapse. However, Congress placed too much trust in the financial institutions, as few financial institutions had any intention to cooperate.

All must be warned. Do not sign a loan modification without identification of the actual current owner/creditor of your mortgage and mortgage loan. Any such signature continues the fraud that perpetrated the original financial crisis, and causes a future crisis by fraudulent conveyance of mortgage title to American homes. Our courts will be overwhelmed with challenges that will not be resolved for years – if ever. Taxpayers will find that the burden is placed on their children and grandchildren – to bail out. At this point, a bail out may not ever be possible.

Proceed with caution.

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