Judge
Romanchak shared that the Hawaii judiciary are very aware of the rising number
of these foreclosure and ejectment cases that are coming up in the courts, that
some jurisdictions are overwhelmed by these actions and that the appellate
courts are trying to get these cases immediately into mediation.
The hearing closed
with the Judge stating that there would be no eviction unless he made such a
ruling between now and next month. Don’t you wonder if Wall Street is already
hedging bets?
While the courts
appear to want settlements – it’s apparent that there is a disconnect between
the judiciary, the lawmakers and a comprehensive understanding of the shadow
banking scheme. The Phillips-Tehiva loan is alleged to be in a trust – but
never timely entered the REMIC trust and by New York
trust law which governs the trust, any assignment AFTER the trust closes is void.
The
Phillips-Tehiva loan was originated by Option One aka Sand Canyon which is no
longer in the mortgage real estate business… and Option One was already paid by
someone… possibly the Depositor for the Trust – but failed to record the sale
and transfer of the loan in the Hawaii Bureau of Conveyances until 3 years
after the Trust closed – and 2 years AFTER it went OUT OF BUSINESS. Now, by New
York statutes it appears that the assignment is void.
In most trusts, in
order to make modifications, the servicer must buy the loan out of the trust at
face value; and in order to reduce the principal or modify the loan they have
to be willing to take a loss. This is complicated by the fact that on Bloomberg Terminal the loan in the 1A1 tranche of the Trust [where it is
allegedly located] is current – fully paid to date.
Even
if the Tehiva loan were lawfully in the Trust – the loan is apparently paid – the tranche history show no losses.
Nearly half of the loans and tranches have been closed out – the assets are
rapidly depleting as the Trust is apparently winding down What the courts need
to realize is that, for example in this case, Wells Fargo is merely the Trustee
on behalf of the certificate-holders of a Trust and it doesn’t want another toxic asset on its books.
In fact, its
doubtful that they have room to hold another loan if the regulators were to
assess these Trust loans as assets of the bank.
Wells Fargo is
stuck with the position of protecting the certificate-holders from thousands of
$$$ in litigation, possibly another $3 million judgment or maybe just walking
away to pay for the sins of its predecessors. They certainly do not want a jury
trial on Maui.
Read more from Deadly Clear website. Click here.
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