Canadian mortgage market have implications for. The changing market structure of the mortgage industry has implications for competition, but the. Representing the pinnacle of professional achievement in the Canadian mortgage industry, this inaugural event honoured the outstanding achievements and contributions of industry professionals in a variety of categories. The awards ceremony was a resounding success and we were proud to support this celebration of industry. ([email protected]) In the past ten years, hundreds of thousands of residential mortgages were bundled together (often in groups of about 5,000 mortgages), and investors were offered the opportunity to buy shares of e ach bundle. This process is called securitization. Each such bundle of residential mortgages was given a name, such as 'Soundview Home Loan Trust 2006 OPT-2.' Introduction To The Canadian Mortgage Industry Fourth Edition PdfIntroduction to the Canadian Mortgage Industry. Canadian Institute of Mortgage Brokers and Lenders. Canadian Association of Accredited Mortgage Professionals. Introduction to the Canadian Mortgage Industry: Author: Canadian Institute of Mortgage Brokers and Lenders: Edition: 3, illustrated. The name indicates information about the particular trust such as the year it was created (2006) and its contents (with OPT indicating that the loans in that particular trust were originally made by Option One Mortgage). Each such bundle/trust has a Cut Off Date identified in the trust documents (specifically, in the Pooling and Se rvicing Agreement). The Cut Off Date i s the date on which all mortgage loans in the trust must be i dentified. In short, a final list of all of the mortgages in the bundle is set out. Each trust also has a Closing Date which is the date that the individual mortgages are transferred to the Trust Custodian, who must certify that for each mortgage, the custodian has a mortgage note endorsed in blank and proof that the ownership of the note has been transferred. This proof is most often an Assignment of Mortgage. Most trusts included the following or equivalent language regarding the Assignments: “Assignments of the Mortgage Loans to the Trustee (or its nominee) will not be recorded in any jurisdiction, but will be delivered to the Trustee. Title insurance companies issued policies guaranteeing that the trust had clear title to the mortgages. When widespread defaults occurred, Trustees discovered that the laws regarding Mortgage Assignments varie d significantly from state to state. Many issues regarding such Assignments were simply unresolved. One of the most significant issues was whether Mortgage Assignments could be back-dated or have retroactive e ffective dates. This issue arose because Trustees and their lawyers discovered in the foreclosure process that the Assignments could not actually be located, or that certain states did not allow blank Assignments. To solve the problem of the missing Assignments, new Assignments were made and recorded. Because the questi on of retroactive Assignments had not been. Resolved, most of these Assignments did not set forth the actual date that the Assignment took place. The Assignments were signed and notarized as i f the transfer took place many y ears after the actual transfer date. The Assignments were prepared by specially selected law firms and companies that specialized in providing 'mortgage default services' to banks and mortgage companies. Introduction To The Canadian Mortgage Industry Fourth EditionIn jurisdictions with a high rate of mortgage defaults, ove r 80% of the filed Mortgage Assignments in the last three years were prepared and filed by the same five or six law firms and default processing companies. In many states, two such Assignments were prepared and filed. The first was prepared in the name of Mortgage Electronic Registration Systems as “nominee” for the particular bank or mortgage company. When MERS authority to file foreclosures and Assignments was challenged in most jurisdictions, with varying results, a non-MERS Assignment was prepared as well. In all of these cases, the Assignment was prepared to conceal the actual date that the property was acquired by the Tr ust. An examination of the Assignments filed showing the grantee as the Trust – such as “Soundview Home Loan Trust 2006 – OPT 2” – shows that most of these Assignments were prepared and filed in 2008 and 2009, when, in reality, the mortgages and notes were actually assigned – albeit defectively - prior to the closing date of the Trust. While the exact closing date can only be determined by looking at the trust documents, any Trust that includes the year in 2006 in its title most likelyclosed in 2006.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. Archives
January 2019
Categories |