Marguerite DeSelms, Individually and as Trustee of the Circle Road Revocable Living Trust Dated November 11, 2010 v. Bank of New York Mellon, fka The Bank of New York

The securitization of a mortgage into a closed trust require that the servicer carry PMI on every loan, and that any default is paid in full by the collection of that insurance, satisfying the mortgage. In the instant case, the insurance recovery was not credited to the borrowers account, unjustly enriching the lender. Ambac Assurance came before the district court and admitted in their opening brief that they paid this trust in full but the lender never credited that payment to the Appellant’s mortgage account. This was accomplished in the name of a trust which no longer existed, by obtaining foreclosures in the name of an unlicensed, non-registered trust. This entity sought a triple-bonanza of payouts from the parties connected to these mortgages by obtaining three sepa­ rate payouts—first, by filing fraudulent class actions and false billing statements; second, by collecting PMI proceeds without crediting Petitioners’ mortgage; and third, by profit on sale of Petitioners’ property. The Questions Presented Is: Whether a non-existent entity, who could not law­ fully securitize a note and mortgage into an already closed trust, have standing or capacity to do business, acquire a mortgage and foreclose?