Skip to comments.And So It Begins.... (Countrywide Breach of PSA)
Posted on 10/18/2010 6:54:50 PM PDT by An Old Man
And So It Begins.... (Countrywide Breach of PSA)
Well well well what do we have here?
HOUSTON, Oct. 18 /PRNewswire/ --Today, the holders of over 25% of the Voting Rights in more than $47 billion of Countrywide-issued RMBS sent a Notice of Non-Performance (Notice) to Countrywide Home Loan Servicing, as Master Servicer ("Countrywide Servicing"), and to Bank of New York, as Trustee, identifying specific covenants in 115 Pooling and Servicing Agreements (PSAs) that the Holders allege Countrywide Servicing has failed to perform.
The Holders' Notice alleges that each of these failures has materially affected the rights of the Certificateholders under the relevant PSAs. Under Section 7.01 of the PSAs, if any of the cited failures "continues unremedied for a period of 60 days after the date on which written notice of such failure has been given ... to the Master Servicer and the Trustee by the Holders of Certificates evidencing not less than 25% of the Voting Rights evidenced by the Certificates," that failure constitutes an Event of Default under the PSAs.
Gee, three years on, but here it is, and here it comes....
I wonder if there might be a lack of conveyance, for instance? Or maybe some loans in there that wantonly violated the representations and warranties?
Oh wait - they tell us what (at least part) of their complaint is:
Instead, it urges the Trustee to enforce Countrywide Servicing's obligations to service loans prudently by maintaining accurate loan records, demanding the repurchase of loans that were originated in violation of underwriting guidelines, and compelling the sellers of ineligible or predatory mortgages to bear the costs of modifying them for homeowners or repurchasing them from the Trusts' collateral pools.
$47 billion in the pools eh? Uh, that could smart a bit, seeing as it's going to land straight back on Bank of America.
So much for "no material impact" eh?
Incidentally, do you think BAC knew this was going to come out tonight when they issued their little press release this afternoon claiming that they were all ok with the "Robosigning" nonsense?
I said up front that the robosigning deal and all the sound and fury related to it was a diversion intended to cover up the original failures in the underwriting and securitization process.
Heh BofA - want an umbrella?
And Bank stocks surge on THIS news. What is going on with WS. Are there some people or brokers that are manipulating the market?
My mortgage payments go to BOA, but I’m still not sure what all this means. How will it affect me, and everyone else that makes payments to BOA.
When I refinanced 2 years ago the first new payments went to Countrywide and I felt uneasy about that. After a few months the payments went to BOA, so I didn’t mind as much. But now, who knows what the heck is going on.
I’ll take any advise anyone wants to give at this point.
Yup, here it goes!
And wait till the flood of Motion for Quiet Titles hits the county courts in the coming weeks. Mine gets filed next week.
Sorry, but EVERY institution that had ANYTHING to do with mortgages, title insurance, MBS sales, etc. are ALL GOING DOWN.
Your first action is a RESPA QWR letter to whoever you mail your payments to, requiring that they identify all owners in interest to your mortgage and note.
After you have this information, go to your county courthouse and see who is the registered lienholder.
If they are NOT THE SAME and if there is ANY break in the chain of ownership as registered at the courthouse, its time to file a Motion for Quiet Title. KNOW what you are doing if you file this pro se, or hire a DAMN GOOD attorney otherwise.
And there were people who had as their only concern the possibility that someone might get a “free house.”
Well, don’t look now, boys and girls, but some really big turdage is about to hit an industrial-sized fan turning at about 10,000 RPM. It is entirely conceivable that the banks screw we taxpayers again... if the GOP has any brains in their plump posteriors, they’ll make a campaign issue of “no more bailouts for the banks!”
Not really understanding what is happening, but our home loan was “sold” (I guess that is the term) to BOA, and I hate BOA so we were not happy about that. Do we need to do something to make sure the title has not been messed with?
BOA got a bag of turds when it purchased Countrywide.
Thanks, I’ll get on with that now. Although not looking forward to it.
Exactly. And you know what's even worse? You STILL have idiots right here on FR who are so clueless that they think this is all just about "freeloaders" getting "free houses." They'll probably think that all the way up to the point where they get foreclosed on by a bank that they've never heard of, and to which they never owed a cent.
check out this from Forbes:http://www.forbes.com/2010/10/15/mozilo-sec-fraud-equities-markets-securities.html?boxes=Homepagemostemailed
I don’t think BAC can withstand this without another BO.
It’s time for the SEC to bite the bullet and let it go.
I wonder who talked BAC to buy this nightmare. it had to have some strange deal. NO RESPOSIBLE business whould have gone near CW.
According to some guy at HP,this Mozila guy will only be paying 16cents on the dollar in fines. When are people going to start going to prison over this mess.
Do you think it will be an outright bailout, or an attempt at legislation that would basically say “whatever documentation the banks have is now enough”?
I am trying to see a silver lining here, and all I can come up with is that lawyers will now have a lot more disposable income.
Oh yeah, CYA on this one.
I think any attempt to say “whatever documentation the banks have is enough” would be challenged and lose in the courts. There are 50 states, all with their own documentation requirements, who are being abused here. There are 50 states in which county recorders are being denied lawful recording fees for conveyance by the MERS mess. They all have standing, and I’m sure that every state’s governor and legislature would be reaming their Congressional delegations a new orifice if they tried something like that.
The Republican governors, legislatures and Congresslime excluded, of course.
I think the bailout takes the form of Fannie, Freddie and the Federal Home Loan Banks taking a dive on this one, recognizing a whole snootful of bad debt, and then asking Uncle Sugar to pour more money into them. It would be a disconnected process, stretching out over three or four quarters’ reporting periods, which would mean that only those of us with an attention span longer than that of a goldfish would be able to string the individual actions together into one coherent bailout narrative.
Yes, if you’re a lawyer who has as their specialty “real estate law,” you’re about to be gainfully employed for the next three to five years.
I thought Paulson pushed BAC to take on Countrywide? I remember paying close attention to this because our loan, taken out almost ten years ago, was somehow was sold to Countrywide where it stayed until last year when suddenly it was with BAC. We are the original owners of this house, built it on property my husband purchased back in the 60’s, but I’m starting to wonder what the title shows.
Never. I’m now convinced that no one will go to prison as a result of the fraud and corruption in the housing melt-down. They’re all going to pay fines under $0.20/dollar and walk away from this, perhaps never to work in banking or finance again.
At this point, nothing short of live disembowelment the bankers and seeing their severed heads crammed down on iron spikes will satisfy my sense of justice.
Now you know why. BAC is speeding up the foreclosures so they can unload all of the bad loans. the msm is saying the Banks are sitting on all the property waiting for property values to inch up. I don’t believe it. I think they knew this news was going to break, and tried to beat it with their own headline. I wonder if the msm will talk about this story tomorrow?
You know what gets me about this? as if people didn’t have enough to worry about. If Paulson had anything to do with BOA, buying CW he should go to jail. They should have been allowed to only buy the good loans.