Insights into Mortgage Securitization Audits

Securitization Audit Insights

Why Bloomberg Audits Focusing on CUSIP and Mortgage Resale Do Not Help in Foreclosure Defense

CUSIP codes are essential for identifying and managing mortgage-backed securities (MBS). However, they offer limited value in foreclosure defense cases.


Understanding the Limitations: Bloomberg audits focus on tracking mortgage resales through CUSIP codes, which is beneficial for investors but not for homeowners facing foreclosure. Courts prioritize procedural compliance and documentation validity over the resale history of a mortgage.


Effective foreclosure defenses focus on the chain of title, verifying proper assignments, and identifying procedural errors. Investigating documentation for robo-signing and ensuring compliance with laws like TILA and RESPA is crucial. Bloomberg audits do not address these aspects.


Homeowners should seek audits that provide actionable insights into the legality of mortgage assignments and procedural compliance, rather than focusing on CUSIP codes and mortgage resale data.


A comprehensive mortgage audit can reveal critical errors in the securitization process, providing a strong foundation for legal challenges and negotiations with lenders.


Effective Foreclosure Defense Strategies

1. Chain of Title Analysis: Homeowners should seek comprehensive audits that verify the proper assignment of the mortgage note and deed of trust. These audits can identify breaks or errors in the chain of title, providing a basis for legal challenges.


2. Robo-Signing Investigations: Forensic audits that examine the authenticity of signatures on mortgage documents can uncover instances of robo-signing. These findings can be used to challenge the validity of the foreclosure process.


3. Compliance with Legal Requirements: Ensuring that the lender has complied with all applicable federal and state regulations is crucial. Detailed audits can reveal violations of TILA, RESPA, and other laws, providing grounds for legal defense.


Supporting Case Law

1. Glaski v. Bank of America, N.A. (2013): In this case, the court held that a borrower could challenge a foreclosure based on allegations of defects in the chain of title. This highlights the importance of ensuring proper mortgage assignments in foreclosure defenses.


2. Jenkins v. JP Morgan Chase Bank, N.A. (2013): This case emphasized the importance of addressing breaches of contract. It affirmed that borrowers could not challenge the transfer of a mortgage based solely on procedural grounds unless they could show substantial breaches that affect the borrower's interests.


3. U.S. Bank National Association v. Ibanez (2011): The Massachusetts Supreme Judicial Court ruled that foreclosures based on invalid assignments were void. This case supports the argument that a proper chain of title is critical in foreclosure proceedings.


Conclusion

Bloomberg audits focusing on CUSIP codes and the resale of mortgages do not directly benefit borrowers in foreclosure defense. Instead, homeowners should seek audits that provide actionable insights into the chain of title, compliance issues, and procedural errors. These aspects are more likely to hold up in court and can form the basis of a robust foreclosure defense. For those interested in pursuing a comprehensive mortgage audit, our service provides detailed analysis covering these critical areas, ensuring you have the necessary tools to protect your rights and interests in foreclosure proceedings. For more information, visit FreeMortgageAudit.net.

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