Both Yves and Karl have nailed the problem. Click the link to read the Market Ticker post.
1. The loan closed in 2006.
2. The securitzation had a cutoff date of May 2006 for all transfers of mortgages to be made.
3. The PSA specifies the transfers that are supposed to take place to preserve the bankruptcy remote REMIC status of the trust. The note/deed of trust (or mortgage) should have been transferred at least three times in two true sales and an assignment. This didn’t happen.
4. Fast forward to Foreclosure Land 2010–the mills record assignments of the deed of trust, notice of trustee sale, and substitution of trustee, sometimes in the name of the servicer (wrong, not the owner), and sometimes in the name of the securitization trust (wrong, transfer cannot occur 4 years after the cutoff date; also deed of trust cannot be separated from the note without jeopardizing the security interest).
Thus, even if the “assignments” weren’t being performed by entry level robots for foreclosure mills fraudulently representing themselves as Vice President of major entities, the timing is all wrong, especially if the servicers or master servicers give a shit about preserving REMIC status.
But try to explain this to a judge in ten minutes or less.