Gianna Miceli and a co-speaker argue that servicers foreclosing on homes often lack standing because they don't own the underlying debt, only an assignment of the note. When a servicer brings a foreclosure without owning the actual debt, they claim it's fraud and potentially a securities law violation.
Is this securities fraud?
Everything that they are doing is fraudulent. Okay. There is nothing that is done proper. Ask yourself this. When you have a document and there is a sale, if I'm going to sell something, right. I would put paid to the order of Donald Duck. All right? And I would sell it to Donald Duck, and then I would do an assignment to Donald Duck. Why? To memorialize the sale of the tangible promissory note. Right. The assignment is done in parallel to support it. So, for example, we have an investigation. There's a endorsement to the servicer, and then there's an assignment to the servicer. And most people say, oh, snap, Joe. Oh, my God, they've got the note. They have an assignment. Yeah, but they don't have the debt.
Right?
Right.
It has to have all the parts. Now, do the rights to the note extend to the deed of trust?
No, those are two separate docs, two separate dots. Right. To the note, do not extend to the mortgage. Do not extend to the deed of trust, Period.
So when foreclosures are being brought into suits, the people bringing forth the servicers, they do not have standing because they do not own the debt.
Correct. They're coming in, and what usually happens is they'll have an attorney come in. Now, the attorney is claiming to bring in evidence. But if you look up the case, Trinsley vs. Pagliaro, the attorneys can either be attorneys or the attorneys are witnesses. They cannot be both. And usually that is what happens. They come in and they play both sides of the fence. I'm here acting for Fannie Mae, or I'm here. They won't give you the name of the investor. I'm here for the investor. Well, are you a witness or are you the attorney? Because you can't be both. Yeah, but yet they play both sides.
