Why the Trusts are Busts: RBS is the tip of the Iceberg

Yesterday RBS settled with US authorities in the name of “so-called residential mortgage-backed securities.”  They took in over $30 billion and only have to pay about 20% of the theft.  No criminal charges apply. See: rbs-fine-mortgage

Of  importance to homeowners and foreclosure defense lawyers is that they make the obvious connection, to wit: if the securities were not mortgage-backed, then the trust never owned the mortgages that were described generically in the prospectus. If the trust had owned mortgage loans, then the securities would have been mortgage backed, in which case there would have no charges against RBS much less a settlement.

THAT means that the Trusts could never be named as Plaintiff in judicial states or beneficiary in non-judicial states without misrepresenting the nature of the so-called trust that existed only on paper and frequently incomplete paper that did not include signatures or exhibits. The mortgage loan schedule was never attached in any trust. The MLS attached to the PSA was specifically disclaimed in the prospectus as being there by way of example only and that none of the “loans” described in the MLS actually existed, but would be replaced by real loans.

Assuming the Trust existed on paper, the Trust either (a) never received, directly or indirectly, the original loan documents or (b) the trust did receive the loan paperwork but has received no authority to do anything with it. The Trust is therefore not a creditor, not a lender, not a servicer and not an agent for a creditor from whom the trust could have received authority to enforce. The trust becomes a sham conduit used for the purpose of foreclosures and otherwise was ignored.

Attorney Charles Marshall:

cmarshall@marshallestatelaw.com

619-807-2628