The findings in this examination are factual although they are here provided for informational purposes only and are not to be construed as legal advice. The borrower or the reader, as the case may be, was or is advised to consult a competent legal professional in connection with the contents of this report and its proper use.
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< Previous: Section 3B - Securitization, Part 2
CHAIN OF TITLE
The Sequence of Transactions
The chronological sequence of the transactions pertaining to the loan and security instruments is presented herein. This sequence considers the transfer of the loan to the trust under the procedures required in securitization.
The actual transactions are in the shaded boxes and the required transactions are in the white boxes. While a required transaction may be considered complied by a corresponding actual transaction, the sequence does not draw the conclusion that the loan is now owned by the trust.
Explanation
1. Loan Granting & Execution of Deed
The loan was granted on August 29, 2007. The Fixed Rate Note names Countrywide Bank, FSB as
the originating lender.
The Mortgage was executed on the same date. MERS is named as nominee for the lender and
mortgagee.
2. First Endorsement
On an unknown date, the Fixed Rate Note was endorsed by Countrywide Bank, FSB in favor of
Countrywide Home Loans, Inc. (see Transfer Transactions; Endorsements; 1. First Endorsement).
Countrywide Home Loans, Inc. was the seller for CHL Mortgage Pass-Through Trust 2007-18, the
trust which purportedly securitized the subject loan.
3. Second (Blank) Endorsement
2. First Endorsement
On an unknown date, the Fixed Rate Note was endorsed by Countrywide Bank, FSB in favor of
Countrywide Home Loans, Inc. (see Transfer Transactions; Endorsements; 1. First Endorsement).
Countrywide Home Loans, Inc. was the seller for CHL Mortgage Pass-Through Trust 2007-18, the
trust which purportedly securitized the subject loan.
3. Second (Blank) Endorsement
On an unknown date, the Fixed Rate Note was endorsed in blank by Countrywide Home Loans,
Inc. (see Transfer Transactions; Endorsements; 2. Second Endorsement).
4. Endorsement & Assignment in Securitization, Originating Lender to Seller
As a loan that was securitized into CHL Mortgage Pass-Through Trust 2007-18, the Fixed Rate
Note should have been endorsed and the Mortgage should have been assigned by Countrywide
Bank, FSB, the originating lender to Countrywide Home Loans, Inc., the seller not later than
three months of the trust’s closing date on September 28, 2007 (see Securitization; About the
Securitization Trust; 10. Other Provisions Governing the Transfer of Mortgage Loans).
5. Endorsement & Assignment in Securitization, Seller to Depositor
The Fixed Rate Note should have been endorsed and the Mortgage should have been assigned by
Countrywide Home Loans, Inc., the seller to CWBMS, Inc., the depositor not later than three
months of the trust’s closing date on September 28, 2007.
The Fixed Rate Note should have been endorsed and the Mortgage should have been assigned by
CWBMS, Inc., the depositor to The Bank of New York, the trustee not later than three months of
the trust’s closing date on or September 28, 2007.
7. First Assignment
On August 5, 2009, an Assignment of Mortgage was executed by MERS. This document names the
assignee as The Bank of New York Mellon, formerly known as The Bank of New York as Trustee
for CHL Mortgage Pass-Through Trust 2007-18 (see Transfer Transactions; Assignments; 1. First
Assignment).
8. Second Assignment
On July 22, 2011, an Assignment of Mortgage was executed by MERS as holder of the Mortgage.
This document names the assignee as The Bank of New York Mellon, formerly known as The Bank
of New York as Trustee for CHL Mortgage Pass-Through Trust 2007-18. (see Transfer Transactions;
Assignments; 2. Second Assignment).
Assignments; 2. Second Assignment).
Examiner’s Comments
1. The documents that were presented in this examination do not show full compliance of the
series of endorsements and assignments from the originating lender to the seller, from the seller
to the depositor and from the depositor to the trustee as required by the trust’s PSA.
2. The endorsements do not indicate if they were intended to transfer the loan to the trust on or
before December 28, 2007 or within three months of the trust’s closing date on September 28,1. The documents that were presented in this examination do not show full compliance of the
series of endorsements and assignments from the originating lender to the seller, from the seller
to the depositor and from the depositor to the trustee as required by the trust’s PSA.
2. The endorsements do not indicate if they were intended to transfer the loan to the trust on or
2007 in order for the loan to qualify for inclusion into a REMIC which was the sole purpose that
the trust was established and which transfer would otherwise be void under the New York
Estates, Powers and Trusts Law.
3. The Fixed Rate Note has been endorsed twice. The first endorsement can be considered a
compliance of the first endorsement requirement, which is from the originating lender to the
seller.
The second endorsement is in blank. This can be considered as a compliance of the second
endorsement requirement if it could be ascertained that the endorsee was CWMBS, Inc. Without
a basis for such ascertainment, it can only be assumed that the actual endorsee was CWMBS,
Inc.
The third endorsement requirement can be considered complied if it could be ascertained that
the note was negotiated further by mere delivery after the blank endorsement. Without a basis
for such ascertainment, it can only be assumed that such a negotiation took place from CWMBS,
Inc. to The Bank of New York.
4. The Mortgage is twice purported to have been assigned to the trustee, but not by CWMBS, Inc,
the depositor but by MERS, which could only have executed the assignments as nominee for
Countrywide Bank, FSB, the originating lender. The second assignment is a mere duplication of
the first.
5. The assignments include or purport to include the note. A New York court has ruled that MERS
has no authority to transfer the note which it does not own; thus, the assignments transfer no
rights to the note or cannot be made basis upon which to claim the right to enforce its terms.
6. The date of any of the assignments cannot be assumed to be the date of the actual loan
transfer, otherwise nothing remains to be proven that the timing of the transfer did not qualify
the loan for inclusion into a REMIC.
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