Mortgage Ownership Research
McDonnell Property Analytics (“MPA”) offers a Mortgage Ownership Research service that is designed to assist you in finding out who really owns your mortgage loan.
Uncover the True Owner of Your Mortgage Loan
At McDonnell Property Analytics (“MPA”), we offer a Mortgage Ownership Research service dedicated to revealing the genuine owner of your mortgage loan. It’s crucial to know that the entity collecting your monthly mortgage payments, commonly referred to as the mortgage servicer, often does not own or hold your note and mortgage, despite acting as if they do.
The True Mortgage Owner
The actual mortgage owner is typically a specialized entity, such as a common law trust, created to manage a pool of mortgage loans through a process known as securitization.
This separation between borrowers and lenders introduces third-party administrators, known as “servicers,” responsible for day-to-day operations. However, servicers have no contractual or fiduciary relationship with borrowers and may profit more from handling loans in default than those in good standing.
- Consumer Financial Protection Bureau Warning: On November 10, 2021, the Consumer Financial Protection Bureau issued a press release addressing this issue. They highlighted that homeowners make payments to servicers, but servicers are hired and fired by the loan owner, not the homeowner. This lack of choice leaves borrowers vulnerable to servicer abuse.
The Sandwich Position
One unintended consequence of securitization is that it places servicers in a lucrative “sandwich position” between borrowers and investors. This position can enable servicers to profit from both parties, impacting the mortgage contract’s integrity.
CASE STUDY – Wrongful Foreclosure
MPA’s Pennsylvania Client contacted us only recently to see if we could identify any defects in the foreclosure of her primary residence that might undermine an ejectment (eviction) action that is active and ongoing as of this writing (Nov. 2021). This was a tall order because Pennsylvania is a judicial foreclosure state and the trial Court issued a judgment of foreclosure on May 1, 2015, in favor of U.S. Bank, National Association, as Trustee for J.P. Morgan Mortgage Trust 2006-A5, which was upheld on appeal.
We researched the securitization of the J.P. Morgan Mortgage Trust 2006-A5 and discovered that HSBC Bank USA, National Association was appointed Trustee pursuant to a Pooling and Servicing Agreement dated July 1, 2006 and remains so to this day.
Therefore, U.S. Bank misrepresented its authority when, on May 6, 2011, it filed its Complaint in Mortgage Foreclosure. Because U.S. Bank failed to implead a necessary party, i.e., HSBC Bank USA, the Court of Common Pleas lacked subject matter jurisdiction and the foreclosure is void ab initio (from the beginning).
Because the underlying foreclosure is void, we have provided our Client with the grounds to ask the Court hearing the ejectment matter to vacate the judgment of foreclosure and dismiss the case before it.
Explore Our Case Studies
The Lesson
Understanding who genuinely owns your mortgage loan is the cornerstone of resolving disputes, exploring loss mitigation options, and defending your property against foreclosure. MPA’s expert analysts have access to private and public databases, enhancing our ability to trace your mortgage loan’s ownership—an essential step in determining who holds the legal right to enforce your note and mortgage.
By organizing the content this way, you create clear sections that address different aspects of the Mortgage Ownership Research service, making it easier for visitors to absorb the information. Each subsection is concise and focused on a specific topic, enhancing clarity and readability.
[1] Nov. 10, 2021, CFPB Takes Action to Prevent Avoidable Foreclosure: https://www.consumerfinance.gov/about-us/newsroom/cfpb-takes-action-to-prevent-avoidable-foreclosures/
Learn more about McDonnell Property Analytics
To learn more about how McDonnell Property Analytics may be of assistance to you, please explore our website and check out our case studies. You can contact us at (774) 323-0892.
