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Mortgage Assignment Fraud

The document discusses mortgage assignment fraud, specifically the creation of pre-dated or backdated fraudulent mortgage assignments and endorsements to conceal the true chain of ownership or demonstrate possession of a note when foreclosing on a property. These fraudulent documents are often discovered in servicers' or MERS' files and were created solely to assist in concealing prior fraud or abuses. Dismissal of foreclosure actions could result if it can be shown the foreclosing entity does not own the note, made false court representations, lacked authority, or did not have possession of the note with all indispensable parties present.

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Mark Anaya
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375 views1 page

Mortgage Assignment Fraud

The document discusses mortgage assignment fraud, specifically the creation of pre-dated or backdated fraudulent mortgage assignments and endorsements to conceal the true chain of ownership or demonstrate possession of a note when foreclosing on a property. These fraudulent documents are often discovered in servicers' or MERS' files and were created solely to assist in concealing prior fraud or abuses. Dismissal of foreclosure actions could result if it can be shown the foreclosing entity does not own the note, made false court representations, lacked authority, or did not have possession of the note with all indispensable parties present.

Uploaded by

Mark Anaya
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOC, PDF, TXT or read online on Scribd
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MORTGAGE ASSIGNMENT FRAUD

The discovery of pre-dated, backdated and fraudulent assignments of mortgages or


endorsements either completely filled in or left blank to be filled in before or after the fact to
support the future allegations of a foreclosing party. These fraudulent assignments are typically
discovered by examiners in the servicers files or MERS files when MERS acts on the servicers
behalf. These documents are created for the sole purpose of assisting in concealing known
Frauds and abuses by originators, prior servicers and are designed specifically to conceal the true
Chain of ownership of a borrower’s loan.

A common practice by some banks party to or victims of this kind of fraud is the fraudulent
Concealment from the court and the borrower that the financial institution does not have
Possession of the note. Of special note is the use of known false, fraudulent, and forged affidavits
And assignments by those institutions unable to demonstrate their possession of the original note.
The effects and implications are more far reaching than a borrower simply having their debt
Extinguished. Debt extinguishment or dismissal of foreclosure actions could be obtained if it can
be shown the entity filing the foreclosure:
1. Does not own the note;
2. Made false representations to the court in pleadings;
3. Did not have the proper authority to foreclose;
4. Does/did not have possession of the note;
5. All indispensable parties (the actual owners) are not before the court or represented in the
pending foreclosure action.
This kind of fraud is not difficult to detect once you know the indicators.

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