Over the last few years, I have conducted many investigations involving the “America’s Wholesale Lender” and “Countrywide” fact pattern. Though these cases have many similarities, no two cases are exactly alike. Such is the case in a recent investigation involving these entities in North Carolina.
For those of you who originated a loan with either of these parties, check your closing documents closely. In this particular case, a broker took the application and submitted the file to “America’s Wholesale Lender” for approval. During the underwriting process, a “Good Faith Estimate” was provided that shows the following:
This disclosure states that the “lender” is (or will be) “America’s Wholesale Lender” either acting as itself, or as agent for Countrywide Bank, N.A. This disclosure in and of itself is deceptive.
At the closing table, the borrower was provided with the federal “HUD-1 Settlement Statement” naming the “lender” as follows:
On this “HUD-1,” fees are paid to and from “America’s Wholesale Lender” (AWL) as follows. This is proof that AWL was the lender and source of funds on the subject loan.
However, the named “lender” on the Deed of Trust and Adjustable Rate Note was “Countrywide Bank, N.A. – a federal savings bank.”
In this particular case, MERS is also named as the beneficiary and nominee for lender and lender’s successor and assigns. So by these entities’ own admission in the “Good Faith Estimate,” the named lender on the Deed of Trust was not really the lender, but rather an agent of the lender. And to make matters worse, MERS was acting as the nominee/agent for the lender’s agent. This is a serious problem folks! The security instrument and note fails to identify the true lender/creditor/source of funds.
Now I should also add the following facts:
There is no subsidiary named “America’s Wholesale Lender.”
2. There is also no record of “America’s Wholesale Lender” being registered in the State of North Carolina.
So the facts are self explanatory. This case represents an illegal, non-existent, unregistered “lender” funding a loan while hiding behind the mask of “Countrywide Bank, N.A. – Federal Savings Bank.” And by the way, don’t let anyone convince you these entities were the same. It’s simply not true.
Oregon Private Investigator – OR PSID# 49411
April 6, 2014