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PSA VIOLATIONS ARE REAL -BOMBSHELL CASE --Hendricks-v-US-Bank-June-6-2011 -NY Trust Theory Used in decision- LOANS NEVER MADE IT INTO TRUST

PSA VIOLATIONS ARE REAL -BOMBSHELL CASE --Hendricks-v-US-Bank-June-6-2011 -NY Trust Theory Used in decision- LOANS NEVER MADE IT INTO TRUST

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Published by 83jjmack
THE PSA VIOLATIONS ARE REAL FOLKS!!

Here, please take note that the judge rules that someone can foreclose. It is not the securities trust. It is the original lender. That is unacceptable to Wall Street.. Wall Street cannot afford to admit they defrauded investors, which is what a foreclosure in the name of the original lender amounts to.

The court uses the NY Trust Laws and determines that the note/loan never made it into the securities trust. Wall Street does not even follow their own PSAs.
THE PSA VIOLATIONS ARE REAL FOLKS!!

Here, please take note that the judge rules that someone can foreclose. It is not the securities trust. It is the original lender. That is unacceptable to Wall Street.. Wall Street cannot afford to admit they defrauded investors, which is what a foreclosure in the name of the original lender amounts to.

The court uses the NY Trust Laws and determines that the note/loan never made it into the securities trust. Wall Street does not even follow their own PSAs.

More info:

Published by: 83jjmack on Jun 13, 2011
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11/22/2012

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STATEOFMICIDGANWASHTENAWCOUNTYTRIALCOURT
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JAMESHENDRICKS,etal.,Plaintiffs,CaseNo.10-849-CHHon.ArchieC.Brown
Y.
USBANKNATIONALASSOCIATION-ASSUCCESSORTRUSTEETOBANKOFAMERICA,etal.,Defendants.
______________________________1
JamesFraser(P57297)AttorneyforPlaintiffsW.JeffreyBarnesCo-CounselforPlaintiffs,ProHacViceWilliamG.Asimakis,Jr.(P46155)MatthewR.Rechtien(P71271)AttorneysforDefendants
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OPINIONANDORDERDENYINGINPARTANDGRANTINGINPARTDEFENDANT'SMOTIONFORSUMMARYDISPOSITIONANDGRANTINGPLAINTIFF'SMOTIONFORSUMMARYDISPOSITION
Heldin
Ann
Arbor,MichiganonJune
6,
2011AfterreviewofthepleadingsandargumentinCourtbycounselfortheparties,andreviewofsupplementalpleadingsfiledbythePlaintiff,theCourtgrantsthePlaintiffs'MotionanddeniestheDefendants'Motionforthereasonssetforthbelow.PlaintiffsexecutedanAdjustableRateNoteandMortgageonOctober30,2006infavorofDefendantFirstFranklin,asLender,andtoMortgageElectronicRecordingSystems,Inc.("MERS"),asMortgagee,astotheirrealpropertycommonlyknownas5888ParViewDrive,YpsilantiTownship,Michigan.OnoraboutDecember15,2009,PlaintiffsreceivedaletterfromcounselrepresentingHomeLoanServices,Inc("HLS"),claimingtobetheserviceroftheloan,andthatthemortgageloanwas
in
defaultasofSeptember1,2009.
1
 
OnoraboutDecember22,2009,inresponsetoalettersentbyPlaintiffs,FirstFranklinsentalettertoPlaintiffssayingthatPlaintiffsinquiryhadbeenreceivedandtheywouldreceiveananswershortly.OnoraboutDecember30,2009PlaintiffsreceivedaletterfromcounselrepresentingFirstFranklinLoanServicesofPittsburgh,Pennsylvania,claimingtobetheserviceroftheloan,informationinconsistentwiththeearlierDecember15,2009letterfromHLS.FirstFranklinLoanServicesclaimedthatitassigned,throughanassignmentdocument,themortgageloan
to
Defendant,U.S.Bank,N.A(''USB'').TheassignmentdocumentstatedthatMERSassignedtheMortgageandPromissoryNotetoUSBonOctober30,2006,however,itwasrecordedwiththeRegisterofDeedsonDecember30,2009.SubsequentlyonJanuary21,2010,counselforHLSwroteanotherlettertoPlaintiffsagainclaimingtobetheserviceroftheloan.USBproceededtoforecloseonthePlaintiffs'property,andUSBpurchasedthepropertyattheSheriffssaleonFebruary1,2010.TheCourtin
ResidentialFundingCo.,LLe.VGeraldSaurman,--NW2d,2011WL1516819,Mich.App.,April
21,
2011
(No.
290248,291443)C'RFC")
wasdecidedbya2-1majorityandisbindingprecedentonthisCourtatthispointintime.MERSTheRFCCourtexplainedthatMERSwasdevelopedasamechanismtoprovideforthefasterandlowercostbuyingandsellingofmortgagedebt.ByoperatingthroughMERS,thesefinancialentitiescouldbuyandsellloanswithouthavingtorecordamortgagetransferforeachtransactionbecausethenamedmortgageewouldneverchange;itwouldalwaysbe11ERSeventhoughtheloanswerechanginghands.MERSwouldpurportedlytrackthemortgagesalesinternallysoastoknowforwhichentityitwasholdingthemortgageatanygiventimeand,ifforeclosurewasnecessary,afterforeclosingontheproperty,wouldquitclaimthepropertytowhateverlenderownedtheloanatthetimeofforeclosure.AsdescribedbytheCourtofAppealsofNewYork,in
MERSCORP,Inc
v.
Romaine.
8NY3d90,96;861N.E.2d81(2006):In1993,theMERSsystemwascreatedbyseverallargeparticipantsintherealestatemortgageindustrytotrackownershipinterestsinresidentialmortgages.Mortgagelendersandotherentities,knownas11ERSmembers,subscribetotheMERSsystemandpayannualfeesfortheelectronicprocessingandtrackingofownershipandtransfersofmortgages.MemberscontractuallyagreetoappointMERStoactastheircommonagentonallmortgagestheyregisterintheMERSsystem.TheinitialMERSmortgageisrecordedintheCountyClerk'sofficewith"MortgageElectronicRegistrationSystems,Inc."namedasthelender'snomineeormortgageeofrecordon
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theinstrument.Duringthelifetimeofthemortgage,thebeneficialownershipinterestorservicingrightsmaybetransferredamongMERSmembers(MERSassignments),buttheseassignmentsarenotpubliclyrecorded;insteadtheyaretrackedelectronicallyinMERS'sprivate'system.IntheMERSsystem,themortgagorisnotifiedoftransfersofservicingrightspursuanttotheTruthinLendingAct,butnotnecessarilyofassignmentsofthebeneficialinterestinthemortgage.[Footnotesomitted.]ThesoleissueinRFCwaswhetherMERS,asmortgagee,butnotnoteholder,couldexerciseitscontractualrighttoforeclosebymeansofadvertisement.ForeclosurebyadvertisementisgovernedbyMCL600.3204(1)(d),whichprovides,inpertinentpart:[A]partymayforecloseamortgagebyadvertisementifallofthefollowingcircumstancesexist:
-~
***
(d)Thepartyforeclosingthemortgageiseithertheowneroftheindebtednessorofaninterestin.theindebtednesssecuredbythemortgageortheservicingagentofthemortgage.ThepartiesinRFCagreedthatMERSwasneithertheowneroftheindebtedness,northeservicingagentofthemortgage.Therefore,MERSlackedtheauthoritytoforeclosebyadvertisementondefendants'propertiesunlessitwas"theowner...ofaninterestintheindebtednesssecuredbythemortgage."Thequestion,then,waswhatbeingthe"owner...ofaninterestintheindebtednesssecuredbythemortgage"requires.InRFCthedefendants'indebtednesswassolelybaseduponthenotesbecausedefendantsowedmoniespursuanttothetermsofthenotes.Consequently,inorderforapartytoownaninterestintheindebtedness,itmusthavealegalshare,title,orrightinthenote.ThecourtinRFCdeterminedthatPlaintiffs'suggestionthatan"interestinthemortgage"issufficientunderMCL600.3204(d)(1)iswithoutmerit.Thisisnecessarilyso,astheindebtedness,i.e.,thenote,andthemortgagearetwodifferentlegaltransactionsprovidingtwodifferentsetsofrights,eventhoughtheyaretypicallyemployedtogether.A"mortgage"is"[aJ,conveyanceoftitletopropertythatisgivenassecurityforthepaymentofadebtortheperformanceofadutyandthatwillbecomevoiduponpaymentorperformanceaccordingtothestipulatedterms."Themortgageehasaninterestinthe
property.
Themortgagorcovenants,pursuanttothemortgage,thatifthemoneyborrowedunderthenoteisnotrepaid,themortgageewillretainaninterestinthe
property.
Thus,unlikeanote,whichevidencesadebtandrepresentstheobligationtorepay,amortgagerepresentsaninterestinrealpropertycontingentonthefailureoftheborrowertorepaythelender.Theindebtedness,i.e.,thenote,andthemortgagearetwodifferentthings.AstheCourtdeterminedinRFC,thisCourtfindsthatMERSdidnothavetheauthoritytoforeclosebyadvertisementonPlaintiffs'property.Pursuanttothemortgages,PlaintiffswerethemortgagorsandMERSwasthemortgagee.However,itwastheDefendantlendersthatlentPlaintiffsmoneypursuanttothetermsofthenotes.MERS,asmortgagee,onlyheldaninterestin
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