Have you ever asked yourself, who is the holder of my mortgage note? Do you ever wonder what the life of your mortgage looks like? Just because you make your checks payable to Citibank or Bank of America doesn’t mean they own your loan. The fact is, they probably don’t even know who actually owns the note. Dan Edison with DTC-Systems performs securitization audits. He wanted to know the history of his own mortgage. He spent a year putting the diagram below together tracking the history of his own mortgage. Dan does this for a living and wanted to know the history of his loan and where it had been and the path taken to get their. He discovered that it had not taken the correct path.

What does all this mean for the average borrower? Unfortunately, not a whole lot as of now. Banks insist that nobody is losing a home to foreclosure without cause.  What will it take to get banks to work with homeowners? Once investors start to wake up to what is going on they will start to contact homeowners. This will likely only happen after a few investors get burned and realize that the securitization that they thought was so secure, isn’t very secure at all.

In addition, Dan found numerous errors while tracking his note; and keep in mind that Dan Edison was never behind in any of his payments.. With the recent nationwide news about robo-signers it has brought up a lot of concerns about the path of the note and deed of trust in securitization. Read through the diagrams below and keep in mind that this should not be considered a path to a free mortgage for people that have not made their payments. It does continue to create questions about who owns your loan, the legal path it has taken to get to that investor, and who has the legal right to foreclose on a property.  You don't really need to read or understand the diagram below,  as it's really meant as an example of how many opportunities exist for a note to get derailed.  You can always check your note using the MERS system to see if your note has been sold.  Use this link to see if your note has been sold. 


Mortgage Securitization Flowchart

Posted by The Cascade Team Real Estate on
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