Accounting Platforms bypass Servicers

The contrived complexity of the securitized home "mortgage" industry is confounding lawyers, judges, homeowners, regulators and legislators. But it is no more contrived to great complexity than the use by Wall Street banks who were the largest securitizers, of what amounts to accounting tricks accomplished through intermediaries like Black Knight and Core Logic. ON the Chase side there was IBM Lender Processing Services.

Today on the Show Charles Marshall will break this process down with Bill Paatalo, exposing how discovery can be used in either judicial or non-judicial lawsuits to establish that what the public thinks of as the servicer of a loan, collecting payments on same loan, are in fact basically false fronts for mega payment platforms used by the Wall Street banks. This approach explains a lot, including why servicers so often during litigation, cannot provide cohesive or credible payment histories, or show they have real employees responsible for the chain of custody within the servicer of payments, accounting of same, etc.

The bottom line for our audience is that litigants can use the discovery process to force the exclusion of evidence presented by the banks and their faux servicers --- not least by taking away the business records exception to the hearsay rule. Which is to say, if the actual requirements of the business records exception are properly attacked through discovery used in ongoing litigation, then the evidence presented by the banks will typically be nothing but hearsay.