BRACE FOR WORST YEAR OF THEIR EXISTENCE
Posted on January 10, 2011 by Neil Garfield
COMBO Title and Securitization Search, Report, Documents, Analysis & Commentary
We all know the expression about the light at the end of the tunnel being an oncoming train. Title agents and title carriers are in the middle of a tunnel intersecting with other tunnels each with a light of an oncoming train. In a word, they don’t have nearly enough money to pay off all the claims since they issued multiple policies on the same crap. These title policies, overall, may total as much as $15 trillion or more.
They insured the homeowner, the “lender”, the aggregator of mortgage loans (who didn’t have them), the trust for the pool, the third party beneficiaries (investors) of the pool etc. “How do I owe thee, let me count the ways.” Their agents closed most of the 60 million transactions that were registered on MERS and many others as well.
Any title examiner who now looks at the title record, especially in view of the IBANEZ Massachusetts Supreme Court Decision, see also ibanez-decision-analyzed, cannot issue a commitment letter much less a policy without adding exceptions to the schedule that includes virtually all transactions relating to the mythical securitization infrastructure whose documents provided the blueprint for action, copied from the REMIC statute, part of the Internal Revenue Code. The fact that these parties never followed the blueprint or the law is almost besides the point.
These title companies were suckered in by the same tactics used with the rating agencies and reputation of the megabanks. The problem is that it is the job of the title company to know, regardless if someone is lying. And it stretches any reasonable belief system to think that these closing agents doing about 1 closing every 20-30 minutes, did not know that the money they were getting as escrow agent or closing agent wasn’t coming from the party disclosed as lender. So besides the “Should have known” criteria it is obvious that the title agents and presumably the title examiners, and therefor the title companies had ACTUAL knowledge of the fraud.
For over three years I have been saying that this boils down to a simple title problem and that a lawsuit to quiet title is the ultimate answer to the issue. The title record is completely corrupted with wild deeds. Just because they have title insurance doesn’t mean the title is good — quite the contrary it just means the title companies are liable for whatever happens after that. And so it is possible that the agents in the mythical securitization chain have another bonanza on their hands — getting paid yet again, for the fifth time, on the same transactions.
Meanwhile none of these payments get credited to the investor who is the creditor and lender, thus the obligation is not reduced by the payments, thus the borrower is held to owe more money than the lender actually lost.
Now the question is what do they do about people who want title policies on “new transactions.” If they issue the exception then they are admitting that the original policy was wrong, whether they wrote it or not. If they don’t, they are out of business because most homes are effected by this monstrous corruption of our title system.
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