Not So Innocent: Transfer of Servicing Rights

When we receive the “new servicer” letter maybe in our QWR we should request the name of the loan boarding person (it should be readily available on the software platform) for our records. It could prove invaluable at some later date.

Livinglies's Weblog

Fundamental questions:

  • How can a “trust” change trustees without consent of the Trustor and/or beneficiaries? Is this statement true: The position of being a Trustee for a REMIC Trust is a salable, transferrable commodity that can take place without the knowledge or consent of the Trustor or the Beneficiaries? Hence were all those changes in Trustees void or invalid and who has standing to complain about it? If there is no Trustor and there are no beneficiaries it isn’t a Trust so no consent from the trust is required. That still leaves open the question “if not the trust, then who?”
  • How can a “trust” change servicers without the consent of the Trustor and/or beneficiaries? Is this statement true: Servicers can decide amongst themselves as to who will be designated the “servicer” on performing and non-performing loans without the consent and knowledge of the creditor. The corollary is that homeowners…

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