Shelby was actually pretty good, but then Johanns and Bennett went to some length to try to pretend the banksters weren’t doing what they were doing.
Johnson: Does the law need to be change?
Levitin: It’s not the law, it’s compliance w/the law. What was governing securitization was private contractual law. Servicers allowed to contract around UCC in Pooling and Servicing Agreements. Generally requirements set forth in PSAs not followed. A good reason for PSAs to be written the way they are: bankruptcy remote. If you don’t have that chain of endorsements, it’s going to be very difficult to prove you’ve got the chain of transfers in BK remoteness.
Levitin: This is a problem with following the law.
Johnson: What were barriers to recognizing doc problems that exist.
IA AG Tom Miller: People coming forward in foreclosure issues.
Johnson: What are the conflicts of interest?
BOA Desoer: “We do not take seconds into consideration” when modifying a first. 2nd Lien not an obstacle, does not get taken into consideration.
Chase Lowman: Second liens do not get in way of modifying first.
Tester: [referring to cases he’s followed in MT] It’s not a pretty picture. [Describes constituent told by BoA not to make any payments] Can you tell me how servicer can ever tell homeowner not to pay a mortgage.
BoA Desoer: That is not what we should be telling homeowners.
Tester: Would you attribute this to employee that screwed up.
BoA Desoer: We will reinforce that aspect of communication to our teammates. [cont’d.]