According to WAMU FRAUD.COM
Asset-Backed Security Trusts purchased Notes are not Loans entitled to Trust Deeds
The "Lender" named in the Note and Deed of Trust or Mortgage (e.g. WAMU) did not fund the transaction, and therefore was not really the "Lender." They acted only as a "Nominal Lender" only named in the Note to facilitate the creation of a Deed of Trust or Mortgage to secure the Note as a Loan, when it was not a Loan, but was rather an Investment Security.
Securitization is one type of structured finance, and in the case of WaMu as a "Nomimal Lender" applies to the inclusion of most "Notes" into Asset-backed Securities. No loans were funded by the "Nominal Lender", in this case WAMU. It can be alleged in court that the "Nominal Lender" was paid in full, plus received a commission.
The Deed of Trust or Mortgage cannot secure an Investment Security. Thus the Homeowner was tricked into thinking he was a Borrower in a Loan, when he was instead a Seller of a Note to an Investment Trust.
Can a "nominal Lender" that did not fund the transaction, but rather fraudulently allowed its name to be put on a Note and Deed of Trust or Mortgage to trick a Homeowner into signing a Deed of Trust or Mortgage to secure an Investment Security, assign a Beneficial Right it never had to another Beneficiary?
WAMU is the Servicer. Trust wording also calls it the Originator however the Trust purchased the Notes directly. WAMU did not fund the loan.
The Trust was fully formed before the purchase. It wired the funds into escrow. The originator almost never funds directly to sell it.
Fraud may be alleged in that the Borrower was tricked into believing it was a loan to procure a Deed of Trust or Mortgage, and the true nature of Transaction was not disclosed.
Fraud may also be alleged (after research) that the Pool Insurance paid off the Investors after multiple Defaults and Foreclosures. If they were paid, why can they foreclose on the homeowner?Further, fraud may be alleged in that the Deed of Trust (UCC 9) is invalid for an Investment Security (UCC 8) (you cannot have both). A foreclosure is improper, and should be voidable.
Consult with your attorney if you suspect you are the victim of fraud by securitization.