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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CHAIN OF TITLE
The Sequence of Transactions
The actual transactions pertaining to the loan and security instruments are presented below in chronological sequence in the shaded boxes. Super-imposed in the white boxes are the notices that were sent to the borrowers by the servicers informing the former of changes of creditors on the subject loan.
1. Loan Granting
The subject loan was granted on April 24, 2009. The Fixed Rate Note names GSF Mortgage Corp.
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 & Assignment of Mortgage
On an unknown date, the Fixed Rate Note was purportedly endorsed by GSF Mortgage Corp. in
favor of Bank of America, NA.
On August 29, 2011, an Assignment of Mortgage was purportedly executed by MERS as Holder of
the Mortgage. This document names Bank of America, NA as the assignee.
3. Notice of Transfer of Ownership of Mortgage Loan
On December 13, 2012, Bank of America Home Loans informed the borrowers of the
“assignment, sale or transfer of ownership of the mortgage loan.” It states that the new
creditor is Bank of America, NA and that the loan was transferred to the new creditor on
December 3, 2012.
“assignment, sale or transfer of ownership of the mortgage loan.” It states that the new
creditor is Bank of America, NA and that the loan was transferred to the new creditor on
December 3, 2012.
4. Second Endorsement & Assignment of Mortgage
On an unknown date, the Fixed Rate Note was purportedly endorsed by Bank of America, NA in
favor of The Secretary of HUD.
On February 12, 2014, an Assignment of Mortgage was purportedly executed by Bank of
America, NA, successor-by-merger to BAC Home Loans Servicing, LP, formerly known as
Countrywide Home Loans Servicing, LP. This document names The Secretary of HUD as the
assignee.
5. First Change of Creditor Notification
On an unknown date, the Fixed Rate Note was purportedly endorsed by Bank of America, NA in
favor of The Secretary of HUD.
On February 12, 2014, an Assignment of Mortgage was purportedly executed by Bank of
America, NA, successor-by-merger to BAC Home Loans Servicing, LP, formerly known as
Countrywide Home Loans Servicing, LP. This document names The Secretary of HUD as the
assignee.
5. First Change of Creditor Notification
On February 20, 2014, Bayview Loan Servicing, LLC sent the borrowers a Change of Creditor
Notification. This notice informed the borrowers that effective January 28, 2014, the new
creditor on the subject loan was MF IIIc Pass-Through Trust.
6. Third Endorsement
On an unknown date, the Fixed Rate Note was purportedly endorsed by The Secretary of HUD
through Bayview Loan Servicing, LLC, purporting to be its Attorney-in-Fact in favor of Bayview
Acquisitions, LLC.
7. Third Assignment of Mortgage
On March 25, 2014, an Assignment of Mortgage was purportedly executed by The Secretary of
HUD through Bayview Loan Servicing, LLC purporting to be its Attorney-in-Fact. This document
names Bayview Loan Servicing, LLC itself as the assignee.
8. Fourth Endorsement
On an unknown date, the Fixed Rate Note was purportedly endorsed in blank by Bayview
Acquisitions, LLC.
9. Fourth Assignment of Mortgage
On October 27, 2014, an Assignment of Mortgage was purportedly executed by Bank of America,
NA, through Bayview Loan Servicing, LLC purporting to be its Attorney-in-Fact. This document
names The Secretary of HUD as the assignee.
10. Fifth Assignment of Mortgage
On October 27, 2014, an Assignment of Mortgage was purportedly executed by The Secretary of
HUD, through Bayview Loan Servicing, LLC purporting to be its Attorney-in-Fact. This document
names Bayview Loan Servicing, LLC itself as the assignee.
11. Second Change of Creditor Notification
On December 18, 2014, Bayview Loan Servicing, LLC sent the borrowers a Change of Creditor
Notification. This notice informed the borrowers that effective November 26, 2014, the new
creditor on the subject loan was Mortgage Fund IVc Trust 2014-MLU1.
12. Third Change of Creditor Notification
On October 5, 2015, Bayview Loan Servicing, LLC sent the borrowers a Change of Creditor
Notification. This notice informed the borrowers that effective September 30, 2015, the new
creditor on the loan was Mortgage Fund IVc Trust 2015-RN1.
13. Fourth Change of Creditor Notification
On September 22, 2017, Bayview Loan Servicing, LLC sent the borrowers a Change of Creditor
Notification. This notice informed the borrowers that effective August 30, 2017, the new
creditor on the loan was Mortgage Fund IVc Trust 2017-RN4.
14. Response to Qualified Written Request
On December 20, 2017, in response to the borrowers’ Qualified Written Request, Bayview Loan
Servicing, LLC reiterated to the borrowers that the creditor on the loan was Mortgage Fund IVc
Trust 2017-RN4.
Examiner’s Comments
1. Break in the Chain of Title
Bayview Loan Servicing, LLC was the assignee of the Mortgage in the third assignment although
it was not the endorsee of the note in the third endorsement (Sequence No. 7).
In the succeeding (fourth) assignment, Bayview Loan Servicing, LLC purported to be Attorney-in-
Fact for Bank of America, NA in assigning the Mortgage to The Secretary of HUD while the note
was endorsed in blank by Bayview Acquisitions, LLC.
Again, in the fifth assignment, Bayview Loan Servicing, LLC purported to be Attorney-in-
Fact for The Secretary of HUD in assigning the Mortgage to itself. This time, it could not be
ascertained if the note was further negotiated through mere delivery by the unknown endorsee.
2. Separation of the Mortgage from the Note
2.1. Bank of America, NA informed the borrowers on December 10, 2012 that effective
December 3, 2012, the creditor on the loan was Bank of America, NA (Sequence No. 3).
Actually, the Mortgage had already been assigned by MERS as Holder of the Mortgage to
Bank of America, NA on August 29, 2011 while it could not be ascertained when the note
was endorsed. This means that Bank of America, NA was already the holder of the Mortgage
even before it became the creditor on the subject loan (Sequence No. 2).
2.2. The endorsee in the third endorsement was Bayview Acquisitions, LLC, while the assignee in
the third assignment was Bayview Loan Servicing, LLC.
2.3. The endorser in the fourth endorsement was Bayview Acquisitions, LLC, while the assignor
in the fourth assignment was Bank of America, NA, through Bayview Loan Servicing, LLC
purporting to be its Attorney-in-Fact.
The note was only endorsed in blank in the fourth endorsement while the Mortgage was
assigned to The Secretary of HUD.
2.4. It could not be ascertained if the note was further endorsed by mere delivery after the
fourth endorsement. The Mortgage was assigned (for the fifth and last time) to Bayview
Loan Servicing, LLC.
3. The Actual Transactions Compared to the Servicer’s Notices
3.1. Bayview Loan Servicing, LLC informed the borrowers on February 20, 2014 that effective
January 28, 2014, the creditor on the loan was MF IIIc Pass Through Trust (Sequence No. 5).
As of this date, the last endorsee of the note and the last assignee of the Mortgage was The
Secretary of HUD (Sequence No. 4).
3.2. Bayview Loan Servicing, LLC informed the borrowers on December 18, 2014 that effective
November 26, 2014, the creditor on the loan was Mortgage Fund IVc Trust 2014-MLU1
(Sequence No. 11).
As of this date, the last endorsee of the note was Bayview Acquisitions, LLC (Sequence No.
8) while the last assignee of the Mortgage was Bayview Loan Servicing, LLC itself (Sequence
No. 10).
3.3. Bayview Loan Servicing, LLC informed the borrowers on October 5, 2015 that effective
September 30, 2015, the creditor on the loan was Mortgage Fund IVc Trust 2015-RN1
(Sequence No. 12).
As of this date, the last endorsee of the note was Bayview Acquisitions, LLC (Sequence No.
8) while the last assignee of the Mortgage was Bayview Loan Servicing, LLC itself (Sequence
No. 10).
3.4. Bayview Loan Servicing, LLC informed the borrowers on September 22, 2017 that effective
August 30, 2017, the creditor on the loan was Mortgage Fund IVc Trust 2017-RN4 (Sequence
No. 13). This was reiterated by Bayview Loan Servicing, LLC in its response to the
borrowers’ QWR on December 20, 2017 (Sequence No. 14).
As of this date, the last endorsee of the note was Bayview Acquisitions, LLC (Sequence No.
8) while the last assignee of the Mortgage was Bayview Loan Servicing, LLC (Sequence No.
10).
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