Fraud Digest Lynn Szymoniak, Esq.

TRUSTS USING LENDER PROCESSING SERVICES DOCUMENTS IN FORECLOSURES

Lynn E. Szymoniak, Esq., December 7, 2010

As scrutiny of mortgage documents continues in Congress and in the press, attention turns to the trustees and mortgage-backed trusts that have relied heavily on these documents to foreclose. Many of the trusts that relied on mortgage assignments prepared by Docx/Lender Processing Services in Alpharetta, Georgia, the fraudulent practices of Lender Processing Services were the focus of an investigative report by Reuters News Service on December 6, 2010. The report challenged the company’s frequent assertions that the document preparation problems were limited to one office and a short period of time.

Investors and homeowners can look to the following series of trusts that are among those that have used Docx-prepared documents almost exclusively in foreclosures. In thousands of cases, the trusts listed below have been unable to produce the mortgage assignments held by the trustees’ document custodians and have instead used Docx-prepared Assignments. In almost all of these cases, the trustees claimed that they acquired these mortgages many years after the trusts’ closing dates, and often AFTER the foreclosure actions were filed by the trustees.

The following 150 trusts, holding mortgages with a combined value of approximately $100 Billion, relied almost exclusively on Docx Assignments to foreclose:

• 13 American Home Mortgage Asset Trusts, with Deutsche Bank National Trust Company and Citibank as Trustee;
• 12 American Home Mortgage Investment Trusts with Deutsche Bank, U.S. Bank, Citibank, and Bank of NY Mellon as Trustee;
• 10 Ameriquest Trusts with Deutsche Bank as Trustee;
• 5 Argent Trusts with Deutsche Bank as Trustee;
• 4 Asset-Backed Securities Corporation Trusts with U.S. Bank and Wells Fargo as Trustees;
• 14 Bear Stearns Trusts with Citibank; U.S. Bank and Wells Fargo as Tustee;
• 12 Carrington Mortgage Loan Trusts with Deutsche Bank and Wells Fargo as Trustee;
• 7 Citigroup Mortgage Loan Trust with U.S. Bank and Wells Fargo as Trustee;
• 4 Deutsch Bank Alt B Trusts with HSBC as Trustee;
• 16 Harborview Trusts with Deutsche Bank as Trustee;
• 20 Option One Mortgage Loan Trusts with Wells Fargo as Trustee;
• 14 Soundview Home Loan “OPT” Trusts with Deutsche Bank and Citibank as Trustee;
• 7 Structured Asset Investment Loan Trusts with U.S. Bank as Trustee; and
• 12 Structured Asset Securities Corporation Trusts with U.S. Bank and Wells Fargo as Trustee.