MFI-Miami, LLC

February 12, 2013 06:00 ET

MFI-Miami Warns Grandmothers Worldwide Could See Their Pensions Shrink Thanks to OCWEN and Deutsche Bank

DEERFIELD BEACH, FL--(Marketwire - Feb 12, 2013) - On 2/12/2013 Steve Dibert, President of MFI-Miami, an internationally recognized leader in investigating mortgage fraud, posted a warning on the MFI-Miami website to investors of REMIC Trusts that use Deutsche Bank as a Trustee and OCWEN Financial as a servicer that they could be facing serious tax consequences because of how the loans are being handled.

In the article, MFI-Miami uses two foreclosures in Michigan to illustrate how the actions of Deutsche Bank, OCWEN and the foreclosure law firms they hire to handle mortgage assignments and foreclosures could cost pension fund investors a 100% tax on their earnings for violating IRS Tax Rules.

Troy and Lea Etts live in Monroe County, Michigan and their loan is allegedly held by Securitized Asset Backed Receivables LLC Trust 2004-NC1. Three things were done by Randall S. Miller and Associates, the law firm representing Deutsche Bank and OCWEN that could classify the Etts' mortgage as a prohibitive loan for the Trust and could be a violation of Section 860 of the Internal Revenue Code governing REMICs:

  • The loan is to be recorded on the public record after the closing date.
  • Evidence from the Securities and Exchange Commission and the Monroe Register of Deeds indicate the mortgage was assigned into the trust after the Ettses were given notice their mortgage was going into foreclosure.
  • The Etts' mortgage assignment also contains what MFI-Miami alleges are forged signatures by women employed at OCWEN's headquarters in West Palm Beach, Florida.

The Etts' attorney, Kelli Meeks of the Level One Legal Services, finds the whole situation disheartening, "The continued and blatant disregard for the most fundamental rule of law is really no surprise considering the total lack of respect these organizations have to any legal authority."

Grace Beland lives in Kalkaska County and her loan is allegedly held by Morgan Stanley Structured Trust I 2007-1. It appears, Trott & Trott, the law firm representing OCWEN, also did the same things that could be considered a violation of Section 860 of the Internal Revenue Code:

  • Trott & Trott recorded the mortgage assignment to Morgan Stanley Structured Trust I 2007-1 on July 11, 2011, two days prior to advertising her foreclosure in her local newspaper and over fours past the the July 6, 2007 cutoff date as specified in the Trust agreements.
  • Grace Beland's mortgage assignment also contains what MFI-Miami alleges is notary fraud committed by OCWEN employees in their West Palm Beach headquarters.

MFI-Miami President Steve Dibert said, "These are just two examples of what we have found. I hate to say it, but it looks like OCWEN has a serious problem on their hands because we see this in the majority of the OCWEN loans we investigate. It is important to remember that the majority of the institutional investors of sub-prime REMICs are pension funds and any tax penalties will either be paid directly or indirectly by seniors who rely on the money income from these funds."

About MFI-Miami

Headquartered in Deerfield Beach, Florida and with an office in Milford, Michigan, MFI-Miami is an internationally recognized leader for investigating mortgage fraud, mortgage compliance, predatory lending and mortgage securitization. Contact Steve Dibert at 888-737-6344 ext. 701 or email for more information.

Contact Information

  • Contact:
    Stephen Dibert
    President, MFI-Miami
    Email: Email Contact
    888.737.6344Ext. 701(U.S. & Canada)