This is a smoking gun. There better be criminal prosecutions on this.
4closeurefraud broke the story and posted the the Docx price sheet on Scribd
A bombshell has dropped in mortgage land.
We finally have some concrete proof of how widespread document fabrication was.
Not only are there prices up for creating, which means fabricating, documents out of whole cloth, note the extent. The collateral file is ALL the documents the trustee (or the custodian as an agent of the trustee) needs to have pursuant to its obligations under the pooling and servicing agreement on behalf of the mortgage backed security holder. This means most importantly the note (the borrower IOU) and title insurance.
Lender Processing Services’ DOCX Document Fabrication Price Sheet
You might want to run this by someone who actually works in the operations end of the mortgage industry before tossing out fraud accusations.
It is all in the terminology. If you ask a mortgage ops person what a final hud is and a CA title co what a final hud is – you will get two different answers. Why – because they each are looking at it from their respective regulatory viewpoint.
Recreate in the mortgage world generally means going to the digital storage system and printing off copies of the documents required. It may also include going to the recording county and pulling a copy of the recorded deeds, powers of atty etc. It may include contacting the appraiser and title company for copies of appraisals and titles. It may involve certifying the copies.
I’m not sure who got what when those loans were sliced and diced into CDO’s etc. or why an outside service would need to be hired to do this, but the originating mortgage bank should have had everything digitally stored. In the end – usually only the Note and Mortgage Deed exist on real paper. If you want paper versions of everything – it would all have to be recreated from the digital copy.
Then again, this would be procedure at the large Mortgage Banks as opposed to the smaller ones that are in deep doo. Who knows what they did or how they stored it.
Ok – so I went out to their site and looked at the services they provide. They do a variety of mortgages services including originating, closing and settlement of the loans. In other words, they act as the back office for small mortgage companies.
Recreate for them would be charging you that fee for them to print off and send you copies of the documents they handled in the course of originating and/or closing the loan.
Zero Hedge and Naked Capitalism would differ. Yves at Naked Capitalism is in the financial arena, familiar with how mortgages operate, and no dummy.
They are implying there were no docs to grab. And events in Florida seem to be showing that to be true as many foreclosures there are being stopped because the docs can’t be found.
http://4closurefraud.org/2010/10/03/naked-capitalism-homes-in-florida-seized-without-notice-of-foreclosure-suspicously-large-number-of-the-dog-ate-my-summons-filings/
PS Docx was shut down a while back.
I won’t speculate on what they know or don’t know in regards to the operations side, but my (many years of) experience has been that the front end has no clue about how the back end works.
My main contention is that words like create and recreate do not a smoking gun make. Not to mention, I find it hard to believe (naive, I know) that anyone would pass out a price list for their illegal actions. I don’t claim they are innocent of said illegal actions, only skeptical of the price list as smoking gun.