Consumer complaint received 2015-08-27
Company: KEYCORP
State: NY
Product: Mortgage
Sub-product: Home equity loan or line of credit
Issue: Loan servicing, payments, escrow account

Complaint:
Attachment for Keybank : Foreclosure Fraud Revealed : Your Mortgage Documents Are Fake! 
Thu, XX/XX/XXXX - by XXXX XXXX you know about foreclosure fraud, the mass fabrication of mortgage documents in state courts by banks attempting to foreclose on homeowners, you may have one nagging question : Why did banks have to resort to this illegal scheme? Was it just cheaper to mock up the documents than to provide the real ones? Did banks figure they simply had enough power over regulators, politicians and the courts to get away with it? ( They were probably right about that one. ) A newly unsealed lawsuit, which banks settled in XX/XX/XXXX for {$XXXX} XXXX, actually offers a different reason, providing a key answer to one of the persistent riddles of the financial crisis and its aftermath. The lawsuit states that banks resorted to fake documents because they could not legally establish true ownership of the loans when trying to foreclose. 
This reality, which banks did not contest but instead settled out of court, means that tens of millions of mortgages in America still lack a legitimate chain of ownership, with implications far into the future. And if Congress, supported by the Obama administration, goes back to the same housing finance system, with the same corrupt private entities who broke the nation 's private property system back in business packaging mortgages, then shame on all of us. 
The XX/XX/XXXX lawsuit was filed in U.S. District Court in both North and South Carolina, by a white-collar fraud specialist named XXXX XXXX, on behalf of the federal government, XXXX states and XXXX cities. XXXX banks, mortgage servicers and document processing companies are named in the lawsuit, including mega-banks like XXXX XXXX, XXXX XXXX, XXXX and XXXX XXXX XXXX. 
XXXX, who fell into foreclosure herself in XX/XX/XXXX, researched her own mortgage documents and found massive fraud ( for example, one document claimed that XXXX Bank, listed as the owner of her mortgage, acquired ownership in XX/XX/XXXX, four months after they first filed for foreclosure ). She eventually examined tens of thousands of documents, enough to piece together the entire scheme. 
A mortgage has XXXX parts : the promissory note ( the IOU from the borrower to the lender ) and the mortgage, which creates the lien on the home in case of default. During the housing bubble, banks bought loans from originators, and then ( in a process known as securitization ) enacted a series of transactions that would eventually pool thousands of mortgages into bonds, sold all over the world to public pension funds, state and municipal governments and other investors. A trustee would pool the loans and sell the securities to investors, and the investors would get an annual percentage yield on their money.XXXX for XXXX XXXX XXXX XXXX, XXXX XXXX, New York XXXX : XXXXXXXXXXXX : ( XXXX ) XXXX : ( XXXX ) XXXX XXXX at ( XXXX ) XXXX Committee for the Seventh Judicial DistrictAttorney Grievance XXXX XXXX XXXX, XXXX XXXX, NY XXXX ( XXXX ) XXXX : ( XXXX ) XXXX : Complaint False Claim Act Violation Neglect and Fraud Upon the Court Lacking Real Party of Interest Rule 17a BY XXXX XXXX XXXX, XXXX XXXX XXXX Falsely claiming to be the owner/holder of the mortgage ; Predatory claims : TILA RESPAHAMPrelated claims & Breach of contract/breach of trial mod ( HAMP XXXX ) Debt collection claims ( state and federal ) Wrongful foreclosure Consumer protection statutes ( DTPA ) Dear : Grievance Committee for the Seventh Judicial District XXXX XXXX XXXX and XXXX XXXX XXXX are involved in fraudulently invoking the jurisdiction of the court ; IS NOT THE HOLDER OF THE NOTE NOR ANY DEED ATTACH! Did mail out any Default because they are not the Real Party of Interest andFEIN XXXX Fraudulent Foreclosure

Company response to consumer: Closed with explanation