Nationstar Executive Edward Hyne Testifies Aurora Bank Policies Included Forging Note Endorsements
Nationstar Executive Edward Hyne sat for a deposition in a bankruptcy case last month. Normally, this would not be a big deal. However, this time the Nationstar executive dropped a bombshell about the now-defunct Aurora Loan Servicing. He claimed in his deposition that Aurora doctored and forged Note endorsements on loans they were servicing.
Aurora Bank has since quit the financial industry. New York Community Bank acquired Aurora’s bank branches. Nationstar acquired their loan servicing.
Hyne states in his deposition that Nationstar’s position is that Aurora Bank, FSB policies included forging endorsements. The forgeries are an example the rampant endorsement fraud that plagues the mortgage industry.
The deposition is from a Chapter 11 bankruptcy proceeding in California filed by Allana Baroni. Baroni is an author and TV personality. She is an etiquette expert who describes her work as being a “social specialist”.
The celebrity etiquette specialist also included Wells Fargo and Bank of New York-Mellon in her bankruptcy filing. She also fought them with the zeal of a fat guy at an All-You-Can-Eat Chinese buffet. Both of those cases went to the 9th Circuit Court of Appeals.
Where there is smoke there is fire. How many other people have lost their homes because of note forgeries at Aurora?
Nationstar Executive Spills The Beans About Note Endorsement Fraud
The Nationstar executive made the following revelations about the note endorsement:
The Note itself is accurate but as to the page where the endorsements are there is, actually, the original Note has the endorsements on the backside of the signature page and this was an alternate second endorsement sheet that had been prepared by Aurora Bank, it’s my understanding. That’s why there was a discrepancy raised relating to the endorsements.
I don’t know if you would call it an allonge but they prepared a sheet that had new endorsements. So that it could be imaged with an image of the Note that was different from the original Note that already had the endorsements on the backside of the signature page.
(Former Aurora Employee Simon Ward-Brown) didn’t say that he was there when it happened physically at the time that it was occurring so he was trying. He believed that that is what happened based upon his knowledge of the servicing policies and processes at Aurora.
Aurora has an imaging system where they image their own documents. An employee of Aurora had looked at the images of the Note and saw that there was not an endorsement page image with the Note as part of the Note document. Even though the original Note has the endorsements on the back page of the signature page, it was Simon’s understanding or belief that an employee of Aurora then prepared a separate endorsement page for the purposes of completing the chain of endorsements for the image of the Note that they had in their system.
You can read the sordid details below:Baroni BK