Fraud, Anyone? Another Type of Mortgage Document Fabrication Finally Getting Attention « naked capitalism


This article from June 2011 addresses the banks creating endorsements for notes after the fact to show standing to the court and allow a final judgment of foreclosure to be entered.

The specific situation addressed is as follows: the bank files a note with its complaint naming a predessessor in interest as the lender and party entitled to enforce the loan agreement. In that situation the plaintiff is not entitled to a judgment in its favor and the case will eventually be dismissed by the Court. To correct this problem and allow a judgment to be entered, the bank submits an allonge containing an endorsement in blank appearing to give the plaintiff standing. The problem is that no one can know when the allonge was created.

An allonge is an attachment to a note that is traditionally used when there is no more room on the original document for additional endorsements. However, currently banks use an allonge even when there is ample room for additional endorsements on the note. This leads suspecious minds to assume the reason the allonge is necessary is that it was created after the note was filed with the lawsuit with the Court.

For a much more detailed explanation see the article below:

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