There are lots of issues here. Apparently Freemont is the original lender and the mortgage nominated MERS as the lender's representative. The mortgage was securitized, ultimately ending up with Deutsche Bank as a trustee for investors. Once foreclosure became imminent, the system had to get the right to foreclose lined up with the entity who planned to do so, hence the corporate assignment you speak of. What it means in essence, is the property can now be foreclosed upon. Subtle issues need the attention of an attorney. Did Freemont, now in bankruptcy, really transfer the mortgage, or did an attorney for Deutsche Bank do it under some apparent authority from the MERS corporation. These are sophisticated issues that need to be addressed by an attorney familiar with these issues.
Deutsche Bank now has the legal power to foreclose on the property if it is in default. MERS is Mortgage Electronic Registration Systems. It is used by lenders to register and hold trust deeds in own name until foreclosure is needed.
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Without looking at the entire document, it appears that Fremont Investment & Loan is the original lender and the mortgage nominated MERS as the lender's representative. The mortgage was likely securitized into a private-lable mortgage security trust (MBS) with Deutsche Bank named as a trustee for investors.
Most of these Assignment of Mortgage while on the surface appear to give Plaintiff banks the right to foreclose, savvy homeowners are challenging the big Wall Street banks to prove they have "proper standing" to pursue the foreclosure action especially if the endorsements that appear on the bottom of their promissory note does NOT conform to the strict requirement of the Trust's PSA.
I recently had a federal foreclosure case dismissed by Judge Pallmeyer on October 11, 2011. As a nationally recognized leader in Mortgage Foreclosure Defense Education & Litigation, our firm successfully defeated Plaintiff's Complaint by filing A Motion to Dismiss for Lack of Standing. See Deutsche Bank v. Bodzianowski (11 cv 1950)
Judge Pallmeyer ruled that Deutsche, a major Wall Street bank, lacked standing to foreclosure on an Illinois homeowner. Standing is the threshold question in every federal case. Plaintiff was NOT the original lender and sought to establish standing by endorsing the Promissory Note and assigning the Mortgage directly to the Trustee . While Plaintiff pled that it was the legal holder of the Note and Mortgage, it failed to convey the mortgage file according to the terms creating the Trust (Pooling and Servicing Agreement - PSA) and New York trust law. A Promissory Note is an asset of the trust and should have an "unbroken" chain of endorsements from the Originator (original lender) to Sponsor to Seller to Depositor and then to the Trustee, sequentially. In other words, the act of the Trustee receiving an instrument that does not have ALL of the intervening endorsements is void. Although Plaintiff argued that it has standing because the Promissory Note, a negotiable instrument, is governed by the Uniform Commercial. However, the UCC permits parties to agree to a more exacting method of transferring the notes to the trust and in this case the parties did so inside the private-label mortgage-backed security (MBS) trust.
As such, we are encouraging all Illinois homeowners to check to see if their loan was securitized in a private-label MBS anytime between 2003 - 2007. If you do not know the answer to this question, we would be happy to help.
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