New Residential Investment Corp Explains Why Trusts Are Utilized; To Evade State Laws

Here is a perfect example and explanation of why the “rent a charter” scheme has been ongoing since the financial crash in 2008, and it comes directly from one of the largest investment firms dealing in “Mortgage Servicing Rights” (MSR’s) – New Residential Investment Corp. (New Rez). Here is a disclosure made in New Rez’s 2013 Annual Report:

Certain jurisdictions require licenses to purchase, hold, enforce or sell residential mortgage loans, and we may not be able to obtain and/or maintain such licenses. 

Certain jurisdictions require licenses to purchase, hold, enforce or sell residential mortgage loans, and we may not be able to obtain and/or maintain such licenses. Certain jurisdictions require a license to purchase, hold, enforce or sell residential mortgage loans. We currently do not hold any such licenses. In the event that any licensing requirement is applicable to us, there can be no assurance that we will obtain such licenses or, if obtained, that we will be able to maintain them. Our failure to obtain or maintain such licenses could restrict our ability to invest in loans in these jurisdictions if such licensing requirements are applicable. In lieu of obtaining such licenses, we may contribute our acquired residential mortgage loans to one or more wholly owned trusts whose trustee is a national bank, which may be exempt from state licensing requirements. We may form one or more subsidiaries to apply for certain state licenses. If these subsidiaries obtain the required licenses, any trust holding loans in the applicable jurisdictions may transfer such loans to such subsidiaries, resulting in these loans being held by a state-licensed entity. There can be no assurance that we will be able to obtain the requisite licenses in a timely manner or at all or in all necessary jurisdictions, or that the use of the trusts will reduce the requirement for licensing. In addition, even if we obtain necessary licenses, we may not be able to maintain them. Any of these circumstances could limit our ability to invest in residential mortgage loans in the future and have a material adverse effect on us.

My investigations and involvement in discovery efforts are beginning to expose many of the hidden parties who are really pulling the strings behind foreclosure actions both judicially and non-judicially, and these parties are using not only fake trusts to evade state licensing requirements and various laws, they are using some of the largest “servicing” companies to lie and cover-up their collection activities. Lately, I have been catching them red-handed in their lies.

In this example, New Rez admits that it was diving into their business before they were assured of obtaining any required licensing. Many of the entities I am now uncovering under New Rez’s umbrella still remain unlicensed. This is a good explanation as to why assignments are bounced back and forth to fake trusts. It also explains why the self-proclaimed “servicers” will never produce any accounting records and will not disclose where the money goes.

Most (if not all) foreclosures now involve the buying and selling of MSR’s (and Advance Receivables) with the intentional concealment of these unlicensed, unregulated, and unscrupulous debt collectors who deal primarily in mortgage data. I actually have evidence in a case where these vultures, and the fake servicer, contractually agreed to “delete” everything once the mission is accomplished to foreclose and liquidate the properties.

It is important to understand that these parties will fabricate documents and change their story at the drop of a hat if exposed too soon. This is why it is important to investigate early and have an aggressive plan of attack.

Bill Paatalo – Private Investigator – OR PSID# 49411

bill.bpia@gmail.com