Tuesday, March 5, 2013

The Tangled Mortgage Web Between JPMorgan Chase Bank NA, the Federal Home Loan Bank, & Washington Mutual Mortgage Securities Corporation

What became of loans in which the Lender was identified on Deeds of Trust and mortgages as Washington Mutual Bank, FA during the months when WaMu had allegedly stopped securitizing their home loans?

Was Washington Mutual Bank FA a shill for Washington Mutual Mortgage Securities Corporation?

Were these loans sold to the Federal Home Loan Bank?

An interesting document has come to light regarding the servicing relationship the Federal Home Loan Bank (FHLB), JPMorgan Chase Bank NA (Chase), and Washington Mutual Mortgage Securities Corporation (WMMSC).  (See link below.)  WMMSC is a wholly owned subsidiary of Chase.  This may be important to finding Washington Mutual Bank FA mortgages that were sold or pledged before the FDIC Receivership of Washington Mutual Bank.

The Federal Home Loan Bank Servicing Released Guide contains information about the Washington Mutual Mortgage Securities Corporation - Federal Home Loan Bank Servicing Released Program.  This programs offers the ability to sell servicing rights to Chase on loans sold to the FHLB.  This program is for the use of FHLB approved Sellers to sell servicing rights to Chase.  (See Chapter 1 - Custodial Documentation for program eligibility.

The Guide is for the use of the Federal Home Loan Banks, the lenders from whom they purchase loans, and Chase.  Lenders are referred to as Participating Financial Institutions  (PFIs).

The Seller must be:
  1. An approved FHLB Seller;
  2. Use JPMorgan Custodial Services;
  3. Have executed the JPMorgan Chase Servicing Purchase & Sell Agreement.
Seller closes the loan by one of two methods:
  1. MERS (Mortgage Electronic Registry System) as Original Mortgagee (MOM); or
  2. MERS as the Assignee.
  3. Must include:  Mortgage Electronic Registry System, Inc, PO Box 2026, Flint, MI 48501-2026 and telephone 888-679-6377.
The Chase MERS Organization Identification Number is 1008246.

Custodial Files should contain the following documents:
  1. The original Note, endorsed in blank without recourse.
  2. Applicable evidence of assignment via MERS.
  3. Certified copy of mortgage sent for recording,
  4. Certified copy of any additional documents sent for recording (i.e. Deed, Power of Attorney).
The Purchase File referenced as the Servicing File must be delivered to Chase within 2 days of the FHLB Settlement Date.

DEFAULT INSURANCE:   In the event the mortgage loan was sold by the Seller to FHLB, the mortgage loan is required to be insured as to payment defaults by a primary mortgage insurance policy to the extent required by the FHLB.

TITLE INSURANCE: The mortgage loan is covered by an ALTA form of Lender’s Title Insurance Policy or other generally acceptable form of policy of insurance acceptable to FHLB, as applicable, issued by, and the binding obligation of, a title insurer acceptable to FHLB, as applicable, and qualified to do business in the jurisdiction where themortgaged property is located, insuring the Seller, its successors and assigns, as to the first priority lien of the mortgage in the original principal amount of the mortgage loan (or the extent that a mortgage note provides for negative amortization, the sum of such original principal amount and the maximum amount of negative amortization in accordance with the mortgage note), and against any loss by reason of the invalidity or unenforceability of the lien resulting from the provisions for the mortgage providing for adjustment in the mortgage interest rate and monthly payment.  Where required by state law or regulation, the mortgagor has been given the opportunity to choose the carrier of the required title insurance unless the premium for such insurance was not paid by the mortgagor. Additionally, such Lender’s Title Insurance Policy affirmatively insures ingress and egress, and against encroachments by or upon the mortgaged property or anyinterest therein.The Seller is the sole insured of such Lender’s Title Insurance Policy, and such Lender’s Title Insurance Policy is in full force and effect and will be in force and effect upon the consummation of the transactions contemplated by the Agreement and will inure to the benefit of the purchaser of the mortgage loan without any further act No claims have been made under such lender’s title insurance policy, and no prior holder of the mortgage, including the Seller, has done, by act or omission, anything which would impair the coverage of such lender's title insurance policy. If the mortgage loan has a negative amortization feature, the lender's title insurance policy provides coverage in the amount of 110% of the initial amount of the mortgage loan.

If the doc stop for mailing the loan docs is  2210 Enterprise Dr Florence SC.  Is this evidence that certain mortgage loans made by Washington Mutual Bank FA went into the covered bonds program with FHLB?  In October 2007 a Deed of Trust recorded in Oakland, California state

Recording Requested By: 
Washington Mutual Bank FA
Return to:
Washington Mutual Bank FA
2210 Enterprise Drive
Florence, SC 29501

Custodial Files are delivered to:JPMorgan Custody Services
(318) 699-2610
Chase Records Center
Attn: FHLB Files
700 Kansas Lane
Mail Code LA4-2153
Monroe, LA 71203




Acknowledging Rob Harrington of BPIA for providing this source.  Thank you to Rob.

More information:



  1. Are you aware that in printed securitization circulars to investors WaMu FA stated that it would pretend to be the owner of the notes and mortgages although only remaining the loan servicer since were it to go into receivership it could protect the loans by claiming FDIC protections for the securitized assets?

  2. Is anyone aware WASHINGTON MUTUAL BANK FA still exists and is active?


  3. or the fact WMMSC was not registered until 2006 and then dissolved in 2008? Check for yourselves. IL and WA are important.