Recent Items  Banks Looking Further Than Robo Signers; “Lost
Note” Affidavits a Point of Failure  Posted on by  As readers no
doubt know, we’ve indicated from early on in the foreclosure
crisis that problems with foreclosures of mortgages held by
securitizations went well beyond the now well known “robo
signer” issue. The most difficult to resolve and apparently
widespread problem is the failure to convey the note (the
borrower IOU) properly to the trust (the legal entity that holds
the notes on behalf of the investors) as specified in the
pooling and servicing agreement.  Kate Berry of American Banker
reports that the banks that are reviewing their internal
processes are looking beyond the robo signers’ verification (or
more accurately, failure to verify) borrowers’ indebtedness. One
area of vulnerability being highlighted is the use of “lost
note” affidavits. We had flagged this earlier as a possible way
the banks could be finessing their failure to convey the notes
correctly to the trust. In particular, th