Consumer complaint received 2023-01-21
Company: WELLS FARGO & COMPANY
State: TX
Product: Mortgage
Sub-product: Other type of mortgage
Issue: Closing on a mortgage

Complaint:
The promissory note as well as the XXXX  The promissory note as well as the XXXX  is comprised of an unambiguous chain of title When a promissory note is sold or assigned, it therefore must be recorded in public record to maintain a perfected chain of title for the security. 
I received no notice of transfer of servicing. There is none on public record. 
If there is a break in the chain of title, then bifurcation occurs where the XXXX  points to one party, while the promissory note points to another party. Once bifurcation occurs, then the security has been broken. 

The alleged mortgage was created by Long Beach Mortgage company who then went bankrupt, transferred tXXXX XXXX XXXX then, transferred to Wells Fargo and then finally to XXXX  The originally promissory note has generated multiple millions yet, I as an uniformed participate to this securities transaction have received no proceeds but, only stress. I have suffered a XXXX XXXX behind this fraudulent system. 

WHAT IS A SECURITIZATION? 
In the mortgage securitization process, collateralized securities are issued by, and receive payments from, mortgages collected in al collateralized mortgage pool. The collateralized mortgage pool is treated as a trust. This trust is organized as a special purpose vehicle ( XXXX ) and a qualified special purpose entity ( XXXX  ) which receives special tax treatment. The XXXX is organized by the securitizer so that the assets of the SPV are shielded from creditors of the securitizer and the parties who mange it. This shielding is described as making the assets bankruptcy remote. 
To avoid double taxation of both the trust and the certificate holders, mortgages are held in XXXX XXXX XXXX XXXX XXXX ( XXXX ). To qualify for the single taxable event, all interest in the mortgage is supposed to be transferred forward to the certificate holders. 
The legal basis of REMICs was established by the Tax Reform Act of 1986 ( 100 Stat. 2085, 26 U.S.C.A.

47, 1042 ), which eliminated double taxation from these securities. The principal advantage of forming a XXXX for the sale of mortgage-backed securities is that the XXXX are treated as pass-thru vehicles for tax purposes helping avoid double taxation. For instance, in most mortgage-backed securitizations, the owner of a pool of mortgage loans ( usually the Sponsor of Master Servicer ) sells and transfers such loans to a XXXX, usually a trust, that is designed specifically to qualify as a XXXX, and, simultaneously, the XXXX  issues securities that are backed by cash flows generated from the transferred assets to investors in order to pay for the loans along with a certain return. If the special purpose entity, or the assets transferred, qualify as a XXXX, then any income of the XXXX  is passed-through and, therefore, not taxable until the income reaches the holders of the XXXX, also known as beneficiaries of the XXXX trust XXXX 
Accordingly, the trustee, the XXXX, and the other parties servicing the trust, have no legal or equitable interest in the securitized mortgages. Therefore, any servicer who alleges that they are, or that they have the rightm or have been assigned the right, to claim that the are the agent for the holder of the note for purposes of standing to bring an action of foreclosure, are stating a legal impossibility. Any argument containing such an allegation would be a false assertion. Of course, that is exactly what the servicer of a securitized mortgage that is purported to be in default claims. 
The same is the case when a lender makes that same claim. The party shown as Lender on the mortgae note was instrumental in the sale and issuance of the certificate to certificate holders, which means they knew that they were not any longer the holder of the note. 
The XXXX is a weak repository and is not engaged in active management of the assets. So, a servicing agent is appointed. Moreover, all legal and equitable interest in the mortgages are required by the XXXX to be passed through to the certificate holders. Compliance with the XXXX and insulating the trust assets from creditors of third parties ( who create or service the trust ) leads to unilateral restructuring of the terms and conditions of the original note and mortgage.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation