What You Need to Know About Mortgage-Backed Securities

Video Script Below

I’m Steve Kramer of the Kramer Law Firm. Today we’re going to be talking about things you need to know about mortgage backed securities. If you’ve been sued for foreclosure, if you look at the top of that lawsuit there’s going to be a name and it’s going to say “Plaintiff.” That’s who is suing you. Most of the time, the person who is suing you isn’t the person you took the loan with. What happened is you signed the loan with Bank of America, Countrywide – whoever it was – and they transferred that loan. And somewhere along the line it got transferred a bunch of times. Right? Well, when you signed a loan, you signed a loan for a couple hundred thousand dollars or whatever it was, a hundred, three hundred, two million – doesn’t matter. You signed the loan for a certain amount of money, they transferred that around, and they don’t like to move that sheet of paper around because that note is like a check that’s signed. If you get a paycheck from work and you signed the back of that, you leave it at the counter of Starbuck’s or whatever, somebody can come in, pick that up, and go cash it at the bank. And the same thing happens with your note. It’s just like a check and when it gets transferred, they sign it and then they move it around. Well what happens is because they don’t want to move it around they have a…they put it in a vault, alright? And they hire a company called MERS, Mortgage Electronic Registration Systems and that company tracks where this mortgage is at electronically. So instead of actually signing it and handing it over like you would a check if you had to endorse it, they actually move it around electronically. Now eventually how a mortgage backed security is created is you pool together a bunch of mortgages – tie all these notes together – and you do what’s called a “pooling and servicing agreement.” Right? And then, that’s where the magic happens. They take the stack of agreements, right? And they sell them as a mortgage backed bond to investors. So you have all these people investing in mortgage backed bonds just like the Florida Retirement System and all these big companies and mutual funds and all these different investment groups are investing in these mortgage backed securities. Now the reality is these people are called “certificate holders.” And these are the people who actually own your mortgage, right? And there’s a big issue here because you’re being sued with this guy – this plaintiff – that says that they own your mortgage but the reality is they don’t. Or that they didn’t attach the paperwork to show they owned it, meaning you had the deal with Countrywide – the mortgage says Countrywide, the note says Countrywide, everything attached to the complaint says Countrywide – but now you’re being sued by Deustche Bank Assets Securitization Trust 200ABCD, whatever. The point is that we can use this. We can attack a mortgage foreclosure and we can defend it with this information. We can attack it and we can check who the current owner is. We can bring in experts that can say “Hey. This isn’t the right owner of the note. The person who’s suing these people don’t have a right to file a lawsuit.” And this matters because accidents happen, lawsuits are filed where the plaintiff who says that they own the mortgage actually doesn’t. I’ve seen people who have been sued two times on the same house by different banks. So you get sued by bank US Bank here on lawsuit one and Bank of America here on lawsuit two, so now you got two lawsuits from different lenders who say you owe them money on one house. And that’s a problem. So the bottom line is if you look at the top of your foreclosure lawsuit and you see a name you don’t know, you see City Bank Assets Securitizations Trust 200ABCD whatever, then you probably have an issue with a mortgage backed security case and we can defend that. Why am I telling you this? Because you probably have questions and I deal with this every day. So I’d be glad to talk to you. You can call me at the number below and I’d love to talk with you. Also, if you’re watching this video on Facebook or YouTube, click the “Like” button below this way your friends and family can benefit from the information that I’m giving you. I’m Steve Kramer, the Kramer Law Firm. Thanks for watching.

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