Move Over Hanoi Jane! Freddie Mac And Citizens Bank Are Now Spitting On Disabled US Marines By Trying To Illegally Foreclose On Them

Move over, Hanoi Jane! Jane Fonda’s antics during the Vietnam War are nothing compared to what Freddie Mac and Citizens Bank are doing to our veterans. Namely, Kurt Davis in New York. 

Freddie Mac and Citizens are jerking around retired disabled US Marine Kurt Davis. Trust us, Citizens conduct is far worse than anything Jane Fonda did to our veterans in 1972 and it’s pretty appalling.

Now, Marine veteran Kurt Davis could be homeless. So instead of just calling him a baby killer, they’re trying to illegally steal his home.

In June 2019, Kurt Davis refinanced his mortgage with a Freddie Mac backed mortgage from Premium Mortgage for $274,572.00.  

In February, 2020 Premium Mortgage transferred the loan to Citizens Financial.

Then the COVID-19 pandemic hit America 2020. As a result, Kurt Davis lost his job as a machinist.

During the pandemic, doctors diagnosed Kurt with severe diabetes. Doctors also diagnosed him with other debilitating health issues that are making him slowly go blind. This left Kurt Davis unable to work. In November, 2020, Kurt asked for a forbearance agreement from Citizens. He also applied for SSI disability.

The CARES Act required Fannie Mae and Freddie Mac to give forbearance agreements to homeowners with Fannie, Freddie and FHA loans if the homeowner asked for assistance.

Instead, Citizens gave Kurt Davis an ultimatum. Davis could take a loan modification with a payment that included inflated escrow payments or face foreclosure. 

For two years, Kurt and his wife struggled to pay for his medication, food and the modification. 

Freddie Mac and Citizens Initiate Foreclosure 

On January 31, 2023, lawyers for Citizens Bank have no idea who their client actually is or if they even have standing to foreclose.

The foreclosure complaint filed by Matthew Minniefield of Cooper Erving & Savage LLP says they represent Citizens Bank NA as the Plaintiff. However, paragraph 11 of the foreclosure complaint states that Freddie Mac is the owner of the note and mortgage. 

Cooper Erving & Savage reaffirmed Freddie Mac’s ownership earlier this year when the Davises applied for another loan modification. The law firm stated Freddie Mac denied the loan modification. There are multiple issues with this.

1. REMIC rules specifically state note securitized trusts have no-say in the servicing of the mortgage loan. As a result, mortgage servicers have sole authority in regards to the servicing of the loan. This included accepting loan modifications or proceeding a foreclosure action. So more than likely Matthew Minniefield is pulling a fraud on the court. 
2. The Davis’ loan does not appear in the Freddie Mac database. We know because we looked. We also called Freddie Mac. Freddie Mac claims they never held this loan.
3. There are also no note endorsements or mortgage assignments recorded on public record or in the case to show Freddie Mack had an ownership interest. 
4. If Freddie Mac did or does have an ownership interest, where is the proof of it? 

How Freddie Mac Loans And Foreclosures Work

When a person applies for a Fannie Mae or Freddie Mac loan, the lender puts the applicant’s information into an automated approval system known as Desktop Underwriting. Once the loan conditions are cleared, then Fannie Mae or Freddie Mac (in Davis’ case, Freddie Mac) gives the lender the clear to close. 

What is not commonly known is according to Freddie Mac guidelines, Freddie Mac is at all times the owner of the note and mortgage. 

However, when a Freddie Mac mortgage goes into default, Freddie Mac sells the servicer a portion of the mortgage and note. Usually it’s like .5% or 1%. This is done so the servicer can foreclose in their name. Freddie Mac doesn’t want to give the perception that the federal government is taking homes.  

Yet, this creates a problem for Cooper Erving & Savage LLP. Well, aside from the fact they don’t know who their client is, it creates a standing issue. The note endorsement shows no endorsement from Freddie Mac or to Freddie Mack since 2019 when was signed. There are also no mortgage assignments from Freddie Mac or to Freddie Mac in the loan file or in the litigation file.  

It boils down to who legal standing to foreclose on the Davises, Freddie Mac or Citizens Bank? It looks like Cooper Erving & Savage has some explaining to do to the judge in this case. Or, they could do one of two things. They could file leave to file an amended complaint or withdraw the case and start over again.  

Read More About Freddie Mac Foreclosures On MFI-Miami.com