Wait, what? Isn’t this what we have been saying? I have received a Wells Fargo document entitled “Conduit Loan Servicing: Who’s Who and What’s What?” I don’t know when this was written but it refers to the first quarter of 2010 and it bears a Wells Fargo logo and contact information of the authors.
It’s also interesting because loan modifications are often declined with the excuse that the “investors” wouldn’t approve them. In contrast, in 2009, in Arizona federal bankruptcy court, I heard a Wells Fargo executive in charge of loan modifications testify that they never even submitted the mods to investors because they would need 25% approval under the terms of most PSAs.
Notice too that there is no discussion of potential conflicts that a Master SErvicer might have, if its parent company was the underwriter of the securitization and it owns the residual tranche.
Here’s the full document with…
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