Three-quarters of mortgage assignments issued to and from JPMorgan Chase (JPM: 40.26 +1.82%), Wells Fargo (WFC: 27.8201 +1.20%) and Bank of America (BAC: 11.09 +2.50%) during 2010 in the Southern Essex Registry of Deeds in Massachusetts are invalid, according to an independent review of documents.
An audit performed by McDonnell Property Analytics revealed 75% of mortgage assignments are invalid, 16% of mortgage assignments in the Southern Essex Registry are valid and 9% of assignments are questionable. About 27% of invalid assignments are fraudulent, McDonnell said, while 35% are robo-signed and 10% violate the Massachusetts Mortgage Fraud Statue.
McDonnell said it could only determine the financial institution that owned the mortgage in 60% of the cases reviewed. There are 683 missing assignments for the 287 traced mortgages, representing about $180,000 in lost recording fees.
"What this means is that the degradation in standards of commerce by which the banks originated, sold and securitized these mortgages are so fatally flawed that the institutions, including many pension funds, that purchased these mortgages don’t actually own them," according to analysts at McDonnell. "The assignments of mortgage were never prepared, executed and delivered to them in the normal course of business at the time of the transaction."
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