1 2 3 Do your own Securitization Audit!

Transcription

1 1 2 3 Do your own Securitization Audit! April This basic how to manual explains what documents are evaluated in a Securitization Audit, what to look for in those documents, and provides case law on standing when a failure can be proven. Know what you are getting

2 COPYRIGHT 2012 by K. Simonee Cromwell. All rights reserved. No photocopying or internet posting is allowed without the expressed written permission of K. Simonee Cromwell. Forwarding of the book is not allowed and is a violation of the Copyright Laws. Legal Disclaimer The information contained in this ebook is provided as a service to the Internet community, and does not constitute legal advice. We try to provide quality information, but we make no claims, promises or guarantees about the accuracy, completeness, or adequacy of the information contained in this ebook. As legal advice must be tailored to the specific circumstances of each case, and laws are constantly changing, nothing provided herein should be used as a substitute for the advice of competent legal counsel. Info to Fight Foreclosure is not a law firm, K. Simonee Cromwell is not an attorney, and nothing contained in this ebook should be deemed an endorsement or recommendation by infotofightforeclosure.com or K. Simonee Cromwell of any attorney or firm listed in this website. A description of areas of practice by an attorney or firm does not mean that any agency or board has certified the attorney or any lawyer in that firm as a specialist in any field of practice. 2

3 PREFACE With the massive foreclosure crisis gripping our country many experts and homeowners are seeking to understand what happened. The unbelievable, massive fraud that has been perpetrated by the financial institutions have lead many homeowners to take a stand against what they now know has been unmitigated greed run amok. One of the areas of attack in Foreclosure Defense is the Securitization Audit. A Securitization Audit evaluates the Trust Documents that created the REMIC 1 Trust and determines whether a specific Note ever actually made it into the Trust as per the Trust document requirements. Professional Audits can provide homeowners and their attorneys with certified documents that detail the failure of the REMIC Trust to actually take ownership of the Note and Deed of Trust /Mortgage as per the Trust Documents and provide testimony by the expert conducting the Audit. There are many firms providing Securitization Audits, and like any new service, there are good audits and stupid audits. Before investing any money in a Securitization Audit, a homeowner can do their own preliminary audit to see if there is a potential failure; then if there is, they are better positioned to discuss the failure with their attorney in determining both an appropriate legal strategy and vetting a qualified, professional auditor to help support their argument in court. This ebook is written in the hopes that it will prevent homeowners from being fooled again and parted with precious dollars they need to ensure they get the outcome they are seeking in their legal battle. 1 REMIC: Real Estate Mortgage Investment Conduit governed by Internal Revenue Codes 860A to 860G and typically New York Trust laws. (Governing law is detailed in the Trust documents) 3

4 Contents Legal Disclaimer... 2 PREFACE... 3 What Documents Do I Need In Order to Do a Securitization Audit?... 5 Where do I get the documents I need for the Audit?... 6 Evaluation of the Pooling & Servicing Agreement... 9 The Parties... 9 Conveyance Requirements FAILURE ONE - BREACH OF CONVEYANCE REQUIREMENTS Governing Law Identification of the REMIC Trust in Legal Documents FAILURE TWO BREACH IN IDENTIFICATION OF REMIC TRUST CLOSING DATE OF THE TRUST FAILURE THREE BREACH OF CLOSING DATE PURCHASE OF THE NOTES FAILURE FOUR The PSA calls to a different Purchase Agreement than what is recorded with the SEC or may be presented in Court EVALUATION OF THE PURCHASE SALES AGREEMENT SALES AGREEMENT DATE and PARTIES TO THE AGREEMENT CONVEYANCE REQUIREMENTS FAILURE FIVE BREACH OF CONVEYANCE REQUIREMENTS OF THE PURCHASE SALES AGREEMENT 16 EVALUATION OF THE MORTAGE SCHEDULES FAILURE SIX Violation of IRC 860D(c)(2) in identification of the REMIC ASSETS EVALUATION OF THE PROSPECTUS There Appear To Be Failures, Now What? Failure One Breach of Conveyance in the PSA Failure Three Breach of the Closing Date Failure Five Breach of Conveyance in the Sales Agreement Failure Two Identification of the Trust Failure Four PSA contradicts who purchased the Note Failure Six- Violation of IRC 860D(c)(2) in identification of the REMIC ASSETS CLOSING

5 What Documents Do I Need In Order to Do a Securitization Audit? A Securitization Audit is done to determine whether or not your Note and Deed of Trust (or Mortgage) was ever actually conveyed to the REMIC Trust claiming rights to your Note and conducting (or threatening) the foreclosure. There are six key documents you need to start your audit: 1) A copy of your Note in its current state. The securitization of a Note typically involves the sale of the Note from the originator to a seller to a purchaser (and/or aggregator) to a depositor. You will need to look at the current state of your Note to determine if there have been any endorsements on the Note (or on an allonge 2 ) from the Originator to the other parties; and if so, which endorsements 3 were done. 2) A copy of any Assignments of your Deed of Trust and/or Mortgage. The first indication that your Note was securitized is typically through the filing of an Assignment in your county land records. This document will tell you the approximate date of when the assignment took place and between which parties the assignment occurred. 3) A copy of the Pooling & Servicing Agreement. The Pooling and Servicing Agreement ( PSA ) is the actual Trust Document that created the REMIC Trust. It details the conveyance requirements and timelines for certain activities to have occurred in order for an asset (your Note) to be a part of the REMIC Trust. It will also tell you which STATE laws govern the PSA and who the parties are to the PSA. 2 Allonge (from French allonger, "to draw out"), a slip of paper affixed to a negotiable instrument, as a bill of exchange, for the purpose of receiving additional endorsements for which there may not be sufficient space on the bill itself 3 Endorsement (alternatively spelt indorsement) may refer to: A signature on a negotiable instrument (such as a cheque) indicating a person's intent to become a party to the instrument. 5

6 4) The Purchase Sale Agreement. The Purchase Sales Agreement ( SA ) details who sold and purchased the Notes for the REMIC trust and what the conveyance requirements of the Sales Agreement. 5) The Prospectus. The Prospectus is what was given to the investors which details the loan path that was intended for the Note from its origination to being deposited (securitized) into the REMIC Trust. The PSA typically shows only part of the path; and the other part is detailed in the Sales Agreement the Prospectus will show the whole path that was intended during the securitization process. 6) The Mortgage Schedule. This is typically an excel spreadsheet containing all the attributes and identification of which Notes are intended to go into the REMIC Trust. Where do I get the documents I need for the Audit? Promissory Note in its Current State: Calif. Civ. Code 2943(5) (b)(1) mandates that within 21 days request, the beneficiary or its agent will deliver a true, correct, and complete copy of the Note. You will need to write to your Servicer and quote the above Code, requesting a true, correct and complete copy of your Note. Keep their response for your records. If you are not in California, you will need to do a search on Google, or one of the legal sites for your state and find out what the code is. You can just ask the Servicer but unless you quote a statute they typically will tell you no. You may also have to request a copy of the Note in discovery but the banks typically fight this tooth and nail for some reason. (This is DIFFERENT from asking to look at the original; I am suggesting here at this stage, you ask for a true, correct and complete COPY of the Note. Don t confuse this with the Produce the Note stuff). Also, the copy of the Note will not tell you the current owner Current Owner of the Note: With all the confusion about who owns what and paying servicers who don t actually own the Note, Congress stepped up and added a new TILA requirement in 6

7 place that now allows you to request the Name of the owner of your Note (no more --- an investor garbage answers). You can source the owner of your note one of several ways: MERS if MERS is involved in your Note and/or Deed of Trust/Mortgage, then your documents will have a MERS ID number. Go to and enter either your MERS ID number, or property address. MERS will then provide the name of your Servicer and the investor who owns your Note. Fannie Mae/Freddie Mac: Go to the following sites and enter your information to source the owner of your Note. Your Servicer: Under the Truth in Lending Act, or TILA, the government has stepped in and told servicers that upon written request they must provide general investor information to the borrower. Write a letter to your servicer, citing 15 U.S.C. 1641(f)(2), a provision of TILA, and request that the servicer provide the name, address and telephone number of the owner of the mortgage. They are required by TILA to respond to you within 10 business days. If they choose not to reply to this request, 15 U.S.C. 1640(a), coupled with the Helping Families Save Their Homes Act of 2009, allows for recovery which can include actual and statutory damages, costs, and attorney s fees. Assignment of Deed of Trust and/or Mortgage: Most states have a statute that requires that the new beneficiary record an assignment of the Deed of Trust and/or Mortgage. The good news is that you can go to your local county recorder s office and look up the assignments YOURSELF. In my land records office they have computers that let you look through the documents online; then when you identify the ones you want, you fill out a request with the document number and they print off a copy for you. (Get certified ones). Make sure that you don t stop at the first one, scan ALL the records on your property and see what has been filed. 7

8 The Assignment will typically tell you who assigned the Deed of Trust/Mortgage to who, and when. In my case, Wells Fargo N.A. acting as an attorney in fact for New Century, did the assignment from New Century Mortgage directly to the REMIC Trust. This told me WHEN the assignment occurred (important when we are looking at the PSA s closing date) and between which parties. NCM to the REMIC Trust wasn t possible according to the bank the Note had been sold by NCM to NC Capital so how could NCM assign it to the REMIC Trust? Also, a deposit of the Note from NCM into the REMIC Trust is a violation of IRC (Internal Revenue Codes). But I will get into that later. The first thing you want to look at is the NAME of the REMIC Trust listed on the Assignment. You need that to get the next documents. Also, the REMIC may be named in your Notice of Default or the cover letter to the Notice of Default. You want the actual name of the REMIC Trust, not a placeholder name as well. If you are unable to find the SEC documents based on the REMIC Trust name on these documents, you will have to do a little research to figure out which one it actually is and that the use of a placeholder name on foreclosing documents is something your attorney should take a look at for further state statute violations. Pooling & Servicing Agreement, Purchase Sales Agreement, Prospectus and Mortgage Schedule. These documents can be found on EdgarOnline. Enter the name of the Trust then look for these four documents; keep in mind that a lot of the earlier REMIC filings did NOT include the Purchase Sales Agreement or Mortgage Schedule; so don t be surprised if you can t find those. If you can t, you will have to ask for those in discovery. But you definitely should be able to get a copy of the Pooling & Servicing Agreement and the Prospectus. EdgarOnline has instructions of how to locate and download documents; if you are still have a hard time figuring out EdgarOnline, our Who is Edgar? Gives step by step instructions with screen captures of what you should be seeing on line when looking for the documents. 8

9 You can also and request a certified copy of the documents. This is typically a FREE service by the SEC and can take several weeks to receive (I think 4 weeks is the average I have seen). If there is a cost they will notify you. Evaluation of the Pooling & Servicing Agreement Now you have the documents to start your preliminary analysis of the securitization of your Note. Typically the Pooling & Servicing Agreement is between two hundred to three hundred pages. This is the actual Trust Document that created the REMIC Trust. It details everything about the Trust and how it is it to be set up and managed. For purposes of this ebook we are going to focus on a couple of key areas and I am going to give you brief descriptions of the roles of the parties. The Parties At the beginning of every PSA is a description of who the parties are to the PSA. Familiar terms are: a. Depositor this is the entity that is issuing (selling the certificates) to the investors. This is the party who created the REMIC Trust. b. Purchaser This is the entity that purchased the Notes to put into the REMIC Trust. This may be the depositor but often it is an affiliate of the Depositor. c. Seller This is the entity that sold the Notes to the Purchaser. This is typically an affiliate of the originator of the Notes. d. Master Servicer This is the entity that is responsible for collecting the Note payments from the property owners. A master servicer may do the servicing themselves or have a subservicer (in some PSA s Wells Fargo is the Master Servicer and its dba division America s Servicing Company is the subservicer) e. Trustee This is the entity that receives the payments from the Servicer and distributes the money to the appropriate investors/parties. f. Document Custodian This is the entity that maintains all the paperwork on the REMIC Trusts the original Note and Deed of Trust /Mortgage, delivery receipts, etc. A lot of times the Trustee is also the Document Custodian. The Document Custodians have advanced document tracking systems that track every movement of every Note and Deed/Mortgage and any changes to these documents after the documents have been placed into their vaults. 9

10 Conveyance Requirements The financial firms typically wanted to do true sales between entities so they did not have to be accountable for any fraud in the origination of the Note and to be bankruptcy remote so that the bankruptcy of one of the parties (like the predatory lenders Countrywide, WaMu, New Century) would not subject them to having the assets pulled back into the estate of the bankrupt company. Because of the desire to have these true sales they implemented conveyance requirements between all the parties of the PSA. In almost ALL of the PSA s this is section 2.01 of the PSA. Following is an example of the conveyance requirements in one PSA. Notice that the PSA calls for each and every party in the chain to endorse the Note to the next party in the chain; there is nothing that states a blank endorsement is allowed. You will have to read your PSA to see if blank endorsements are allowed or note Conveyance of Mortgage Loans. (a) The Depositor, concurrently with the execution and delivery hereof, hereby sells, transfers, assigns, sets over and otherwise conveys to the Trustee for the benefit of the Certificateholders, without recourse, all the right, title and interest of the Depositor in and to the Trust Fund, and the Trustee, on behalf of the Trust, hereby accepts the Trust Fund. (b) In connection with the transfer and assignment of each Mortgage Loan, the Depositor has delivered or caused to be delivered to the Trustee for the benefit of the Certificateholders the following documents or instruments with respect to each Mortgage Loan so assigned: (i) the original Mortgage Note (except for no more than up to 0.02% of the mortgage Notes for which there is a lost note affidavit and the copy of the Mortgage Note) bearing all intervening endorsements showing a complete chain of endorsement from the originator to the last endorsee, endorsed Pay to the order of, without recourse and signed in the name of the last endorsee. To the extent that there is no room on the face of any Mortgage Note for an endorsement, the endorsement may be contained on an allonge, unless state law does not so allow and the Trustee is advised by 10

11 the Responsible Party that state law does not so allow. If the Mortgage Loan was acquired by the Responsible Party in a merger, the endorsement must be by [last endorsee], successor by merger to [name of predecessor]. If the Mortgage Loan was acquired or originated by the last endorsee while doing business under another name, the endorsement must be by [last endorsee], formerly known as [previous name] ; So in my case, the Note was originated by New Century Mortgage, then according to the PSA, New Century apparently at some point intended to sell the Note to the Seller NC Capital, who then intended to sell it to the Purchaser the Morgan Stanley Mortgage Capital, who then intended to sell it to the Depositor Morgan Stanley Capital 1, Inc. (don t you love how all the names are so similar?). Based on the PSA there should be at a minimum FOUR endorsements! 1) New Century to NC Capital; 2) NC Capital to Morgan Stanley Mortgage; 3) Morgan Stanley Mortgage to Morgan Stanley Capital; 4) Morgan Stanley Capital to the REMIC Trust. So one would expect to see an endorsement chain from New Century to NC to Morgan Stanley Mortgage to Morgan Stanley Capital with a final indorsement to the REMIC Trust. Instead here is what is on my Note: As Professor Levitin says, A single endorsement in blank ain't gonna do it if this PSA means anything. And there were a lot of MBS investors who assumed that it was going to be followed. FAILURE ONE - BREACH OF CONVEYANCE REQUIREMENTS 11

12 NOTE: Also, Fannie Mae and Freddie Mac are sticklers about the indorsement process. First, they typically require that the first indorsement, if there is space, UNDER the borrower s signature NOT on the back of the signature page. The signature page should not be used until all of the space under the borrower s signatures is used up. Also, Fannie Mae and Freddie Mac require that the endorsement be a live, wet ink signature NOT a stamped endorsement. The only exception is the LAST indorsement (which could be a blank indorsement I suppose? ) may be stamped. IF a stamped indorsement is used, the Document Custodian is required to hold the corporate resolution authorizing the use of facsimile signatures and indentifies the individual and/or titles that are authorized to use the facsimile signature. If you have a Fannie Mae/Freddie Mac loan and want to read about their indorsement procedures, go to and go under our Tools for FREE Docs to down load, Fannie Mae/Freddie Mac Procedures and go to page 16 of the document. Governing Law The next thing you want to look for is the governing law of the contract, New York laws are very well settled on following the terms of a Trust so you have to know which Trust laws to research for determining the failures in the Trust documents and the impact of those failures. The quickest way to find the governing law is to do a search in the document for governing law if not you will need to scan the document and find it. The majority of the REMIC Trust name New York State law as the governing law because the Trust laws are so ancient and settled. The other common state is Delaware. Identification of the REMIC Trust in Legal Documents This section will detail WHAT name should be used on any legal documents done on behalf of the REMIC Trust. I found this under the Article II section of the PSA. My PSA calls for the use of the Name Morgan Stanley Capital 1, Inc. Trust 2006-NC2 but in the foreclosure documents they used the name, Morgan Stanley Loan Trust 2006-NC2 which one can assume is a 12

13 DIFFERENT REMIC Trust. (and in my case, I have a lot of supporting evidence such as Quit Claim Deeds and assignments between these two different Trusts). FAILURE TWO BREACH IN IDENTIFICATION OF REMIC TRUST CLOSING DATE OF THE TRUST This is when the REMIC Trust closes. The Internal Revenue Codes mandate that all Notes must be legally and validly conveyed (deposited) into the Trust by the Cutoff Date of the Trust; and that all paperwork must be completed no later than 90 days after the close of the Trust. (See Internal Revenue Codes 860A to 806G) This means no Notes in or out of the Trust (except for replacements) after this date. Failure to adhere to this means that the Note cannot be a part of the Trust. You will typically find three different dates, the date of the creation (which is usually the Cutoff date) of the REMIC Trust and on the first page of the PSA, the Closing Date and Cut off Dates can usually be found under the terms section of the PSA as well as other places but this is the quickest way to find the dates. In the PSA for the MSC1 Trust, the closing date is March 30, 2006, which meant all paperwork needed to be completed (all endorsements and assignments) by approximately June 30, However, the assignment of Deed of Trust wasn t done until March 28, 2008 and that Assignment was done directly from New Century to the REMIC Trust a violation of Internal Revenue codes! 13

14 FAILURE THREE BREACH OF CLOSING DATE Interesting enough, the PSA called for both Wells Fargo (the master servicer) and Deutsche Bank National Trust Company (the Trustee) to CERTIFY to the investors all the Notes were safely tucked away into the vaults of the Document Custodian with ALL required endorsements and assignments. The PSA is 200 to 300 hundred pages long so there is certainly more that can be evaluated for legal improprieties, but for an initial audit, the above three areas are the KEY items for consideration. PURCHASE OF THE NOTES The PSA will also detail where the Notes came from. In my PSA it states very clearly that the Notes were acquired through a Purchase Sales Agreement between Morgan Stanley Capital 1 and NC Capital which is in direct conflict with the actual Purchase Sales Agreement which claims the parties are the OTHER Morgan Stanley Company Morgan Stanley Mortgage Capital. FAILURE FOUR The PSA calls to a different Purchase Agreement than what is recorded with the SEC or may be presented in Court. 14

15 EVALUATION OF THE PURCHASE SALES AGREEMENT This document may be 50 to 100+ pages long. It details the sale of the Note between the parties most typically it is between parties 2 and 3 of the chain of title which I find fascinating. So in my case the only Purchase Sales Agreement with the REMIC s SEC documents is the intent of NC Capital to sell the Notes to Morgan Stanley Mortgage Capital. There is no sales agreement in the SEC documents of New Century selling the Note to NC Capital; and there is no sales agreement between Morgan Stanley Mortgage Capital and Morgan Stanley Capital 1. Those we had to ask for in discovery. The three key items you want to look at in the Purchase Sales Agreement are the date of the agreement, the parties to the agreement and the conveyance requirements. SALES AGREEMENT DATE and PARTIES TO THE AGREEMENT Did the sales agreement occur in time for the parties to both have a valid conveyance of the Note in order to sell the note? In my case, the Sales Agreement (we have two of them!) occurred on either December 1, 2005 or January 1, 2006 depending on which agreement you go by. The challenge here is there is no evidence that NC Capital actually had possession/ownership of the Note in order to sell the Note! Now this information on the breach of the sale date came from other discovery activities not through this evaluation. What this evaluation DID tell me was that we needed to ask when NC Capital (the seller) acquired the Note in order to be able to sell it through this agreement. CONVEYANCE REQUIREMENTS Just as the PSA S have conveyance requirements, so do the Purchase Sales Agreements. In my case Reynaldo Reyes testified that this agreement allowed for a blank endorsement as you 15

16 can see, he lied. This is a two step identification process. First under Section 9.02 of the Sales Agreement is the following little diddy: Note the reference to Exhibit A of the complete Mortgage File When you to Exhibit A the conveyance requirements are spelled out as follows: I have read these several times where does it say it can be an indorsed in blank without the intervening indorsements? We were given this document on the day of trial and did not get a chance to evaluate the document to challenge Reyes testimony. Make sure you don t make that mistake! If you get Reynaldo Reyes at your trial..nail the bastard..he lies. FAILURE FIVE BREACH OF CONVEYANCE REQUIREMENTS OF THE PURCHASE SALES AGREEMENT 16

17 EVALUATION OF THE MORTAGE SCHEDULES In every REMIC there are a series of Mortgage Schedules; these are typically excel spreadsheets that document the attributes of the Notes that are being sold in the Purchase Sales Agreement and are being deposited into the REMIC Trust. The schedule usually includes the address of the property, the name of the Promissory Note signer, the amount of the Note, and details of the Note. The banks use the Mortgage Schedule to show there was an intention to sell the Note to the parties (i.e. Purchase Sales Agreement and/or the REMIC Trust). The schedule of loans are integral to the formation of the REMIC Trust. IRC 860D(c)(2) Identification of assets. Formation of the REMIC does not occur until (i) The sponsor identifies the assets of the REMIC, such as through execution of an indenture with respect to the assets; and (ii) The REMIC issues the regular and residual interests in the REMIC. You should be able to find your Note on the schedule. My Note was on the schedule; if your Note is not on the schedule this is a failure. However, remember these schedules are EXCEL spreadsheets that can easily be manipulated with whatever information they want to put on it. So in your discovery you will want to ask for the chain of custody of the record and what precautions were used in confirming the Note was on the schedule when they banks says it was! In my case they CREATED a schedule to give us in discovery; then at trial brought one in a different one claiming it was the original. We were denied access to this obviously and did not get to investigate the authenticity of the document and its contents. FAILURE SIX Violation of IRC 860D(c)(2) in identification of the REMIC ASSETS 17

18 EVALUATION OF THE PROSPECTUS This is the document the Wall Street entity used in promoting the REMIC Trust to the Investors. In my case the Depositor and seller of certificates to the investors was Morgan Stanley Capital. In the Prospectus some of the things you want to look at are: 1) The Loan Path the Prospectus claims the Notes took from origination to securitization into the REMIC Trust 2) The REMIC Trust creation date and estimated closing date This information serves to confirm what you are seeing in the PSA and Sales Agreement. There are other potential aspects of evaluating the Prospectus for help in a foreclosure defense, but I would recommend that be discussed with a professional auditor. There Appear To Be Failures, Now What? This is where a really good attorney comes in handy! These failures all suggest that the Note did NOT make it to the REMIC trust and therefore, if that is who is claiming to be the beneficiary of your Note and Deed of Trust by the foreclosing entities, then they lack standing and the REMIC Trust is an interloper a stranger with no vested interest in your Note, your payments on the Note or in your property. YOU have a potential claim to fight and defeat your foreclosure! Failure One Breach of Conveyance in the PSA Failure Three Breach of the Closing Date Failure Five Breach of Conveyance in the Sales Agreement If you read the Adam J. Thomas Affidavit filed in US Bank v Congress (I am not kidding here!) or Adam Levitin s papers (google their names and their documents will come up) they both discuss the failure of the REMIC Trust to acquire the Notes a prescribed by the PSA document. The failure of to convey the Notes properly and on time is a violation of both Internal Revenue 18

19 Codes and New York Trust Laws (the PSA is governed by New York). Cases where the Courts found truth in these allegations are (Google the names of the cases and you can find the pleadings and rulings): Mass. Supreme Court: US Bank v Ibanez (also includes Wells Fargo v LaRace) Oklahoma: Deutsche Bank National Trust v. Brumbaugh Deutsche Bank National Trust v. Byrams California: Richie Walker v. BAC Alabama: US Bank v. Congress Also, go to and visit their Legal Lounge for an extensive listing of cases. One of the biggest challenges that needs to be considered is that the homeowner is not a party to the PSA so a homeowner cannot enforce the PSA nor should the homeowner try; pleadings have to accurately articulate the homeowner is demonstrating the PSA violations as evidence that the REMIC does NOT hold the Note and therefore cannot be a proper party foreclosing on the Note and Deed of Trust/Mortgage. ADDITIONAL CONSIDERATIONS: if there IS an endorsement in blank, then case law needs to be researched to understand the impact of a blank endorsement and one may want to consider asking for evidence of who affixed the blank endorsement, when they affixed the endorsement and under what authority. Some indorsement cases to review: Colorado 10 th Circuit Court BAP: Miller v. Deutsche Bank National Trust Failure Two Identification of the Trust Calif. Civ. Code 1558 mandates, it is essential to the validity of a contract, not only that the parties should exist, but that is should be possible to identify them. This Statute can be further extended to include that a party claiming beneficial rights should also exist; here in my Case the Morgan Stanley Loan Trust which is on 100 s of assignments of Deeds of Trust, Notice of Defaults, Trustee Deeds Upon Sales is a nonexistent entity. 19

20 Calfiornia: Jackson v. Grant In re Ramsey v. Vista Mortgage Failure Four PSA contradicts who purchased the Note The Purchase Sales Agreement states the Note was sold by NC Capital and then sold to Morgan Stanley Mortgage Capital; the PSA states the Sales Agreement was between NC Capital and Morgan Stanley Capital, I. Is there another Sales Agreement? Is the one that was submitted during trial the real Sales Agreement, or is there another one between NC Capital and MSC1? Does it matter? It is another inconsistently and impacts the chain of title requirements. Failure Six- Violation of IRC 860D(c)(2) in identification of the REMIC ASSETS Refer back to the conveyance issues as those cases also deal with the failure of the banks to identify the assets on the schedules. CLOSING If you have been able to identify some or all of the above failures and the key failures are the conveyance and closing date breaches, then I would definitely consider having a conversation about attacking the Standing of the Parties foreclosing with an attorney. An attorney who understands what they are looking at will be able to articulate to you what the causes of actions are for your state, will determine if there is justification for having an EXPERT do a professional audit and then provide the audit, an affidavit and have the credentials to testify in court what they found in the audit. The audit ONLY has value if you have the expertise of an Expert who can provide documentation and evidence that may be used in a court of law; otherwise why bother with an audit? They are going to tell you what you already know that is not what you pay for; you pay for a credible witness who can testify on your behalf, or at the minimum give you an affidavit for your pleadings. 20