The “LSF9 Master Participation Trust” Story Unravels. It’s Just A Pseudonym That Holds Nothing.

Over the course of the last few months, new evidence and testimony have come to light in cases involving “U.S. Bank Trust, N.A. as Trustee for the LSF9 Master Participation Trust” that confirm what I have been saying for years now; this entity does not purchase (or sell), nor does it own, hold, or control any mortgage note. The following are excerpts from my most recent “Expert Disclosure” in a Massachusetts case:

Opinions and Facts Revealed

1. “VOLT” entities and “LSF9 Mortgage Holdings, LLC” are being intentionally and deceptively concealed from homeowners and the courts as the actual parties attempting to enforce the remedies of foreclosure.

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Attached as Exhibit 4 is a “FORM ABS-15G” filed with the SEC on 2/1/2021 by “LSF9 Mortgage Holdings, LLC.”  FORM ABS-15G is used for reports of information required under Rule 15Ga-1 and Rule 15Ga-2 of the Exchange Act of 1934.  Exchange Act Rule 15Ga-1 requires asset-backed securitizers to provide disclosure regarding repurchase requests with respect to asset-backed securities.  In the 2/1/2021 FORM ABS-15G, LSF9 Mortgage Holdings discloses itself as the “Securitizer” for the “VOLT 2019-NPL5” series of asset-backed notes and many other “non-affiliated” VOLT entities and their related series trusts, which was retrieved from the SEC’s publicly available search tool Edgar:

LSF9 Mortgage Holdings, LLC, as securitizer, is filing this Form ABS-15G in respect of all asset-backed securities transactions sponsored by it with outstanding securities held by non-affiliates during the reporting period: … (iv) VOLT LXXIX, LLC, Asset-Backed Notes, Series 2019-NPL5 … (Emphasis added).

In front of each series trust is an “LLC” entity.  For the VOLT 2019-NPL5 that entity is “VOLT LXXIX, LLC.”  A search of this entity on the Delaware Department of State’s Corporate Database reveals that it is registered in the State of Delaware.  See Exhibit 5.  This document was found on the State of Delaware’s official Division of Corporations governmental website https://icis.corp.delaware.gov.

As shown further below, these entities are separate and distinct from the named Plaintiff, to which the “Indenture Trustee” for these series trusts is “U.S. Bank, N.A.”  None of these parties are the Plaintiff.

In the Oregon Action, [Fay Servicing’s witness] testified that he verified the chain of title of the subject note and deed of trust, and that LSF9 MPT purchased the subject note and deed of trust directly from Beneficial Oregon, Inc. in 2015.  Likewise, [Fay Servicing’s witness] testified in this case that LSF9 MPT purchased the subject note and mortgage directly from HSBC.  However, when asked in the Oregon Action if it was LSF9 Mortgage Holdings—rather than LSF9 MPT—that purchased the subject loan, his testimony was that “[t]he purchase is made by HSF9 Holdings or LSF9 Holdings, which you asked about earlier … Holdings buys the document or they buy the loans, and then they get transferred to LSF9 [MPT] … But that happens within, like, a matter of a day, because it’s just signing agreements and then it’s another agreement.”  See Exhibit 2 at p. 79-81; see also id. at p. 68-69.  Then, when asked if there was an assignment from LSF9 Mortgage Holdings to LSF9 MPT, [Fay Servicing’s witness] testified “That, I do not know.”  Id. at p, 69.

When asked about VOLT 2016-NPL9, [Fay Servicing’s witness] testified as follows:

2. [Fay Servicing’s witness] testimony in this case reveals key admissions against Plaintiff’s own interests.

 i.Other trusts and other entities involved

 

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In this case, [Fay Servicing’s witness] testimony was as follows on Exhibit 3 at p. 64-65:

According to [Fay Servicing’s witness], the chain of title of the Defendant’s Mortgage and Note goes from HSBC Mortgage Services, Inc., “and then there were a couple other entities,” and then to LSF9 MPT.   It is precisely these “couple of other entities” that have clouded the title and are being routinely and intentionally concealed from homeowners, land records, and the courts.

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Never are these entities or “other trusts” disclosed, nor are any servicing agreements or powers of attorney documents between them and Fay.  According to LSF9 Mortgage Holdings’ SEC 15-G filing for fiscal years 2019 and 2020, the entity assigned to the 2019-NPL5 is “LXXIX, LLC.” (See Exhibit 4 and Exhibit 8). This entity was also registered in the State of Delaware on 8/13/2019.  See Exhibit 5.

Attached as Exhibit 10 is yet another Limited Power of Attorney document recorded in the Essex County, NJ land records on 3/4/2021 as Instrument #2021025700, which was retrieved directly from the Essex County governmental website.  This Essex County Limited Power of Attorney clearly demonstrates that the “Sellers hold the Mortgage Loans” and these Sellers are the VOLT LLC entities shown in Exhibit A of the document, to which the “Purchaser” and “Responsible Party” is “LSF9 Mortgage Holdings, LLC.”

 

This Essex County Limited Power of Attorney, which was executed by Caliber Home Loans, Inc., is self-evident that these VOLT LLC entities and LSF9 Mortgage Holdings are operating in the chain of title without disclosure, and are hiding behind the names LSF7, LSF8, LSF9, LSF10, and LSF11 Master Participation Trust; entities that do not hold the mortgage loans.

 

 

 

 

 

 

 

 

 

 

 

Bill Paatalo – Private Investigator

bill.bpia@gmail.com

1-888-582-0961