Validating fradulent documents
Finally, even if the procedures had been proper, the temps were required to meet such aggressive production timetables and were so laxly supervised that it seems unlikely that their work was done well.
This account confirms what foreclosure defense attorneys have reported for some time: that servicers have been engaging in document fabrication for some time.
This raised the ugly specter of what was called “securitization fail,” that investors had been sold securities that they had been told were mortgage backed when they might in practice not be.
The whistleblower said very few people (under 20%) had prior experience with mortgage documentation.(Regular readers of this blog will recall that mortgage notes are endorsed to convey ownership, and in foreclosures, attorneys often challenge the foreclosure if the borrower note does not show a complete and unbroken chain of endorsements to the party initiating the foreclosure).Mortgage notes that failed this review were sent to a neighboring section.They would later come back to the review team to check if the fixes and fabrications had been done correctly.Not only is having Wells Fargo tamper with documents in this way dubious in many cases (more detail on that shortly), but amusingly, the bank does not even appear to be terribly competent at this sort of falsification.