SPML/LMC anyone claimed for mis selling and unfair charges?

[midge61]

This might be a silly question but in that article i posted the FSA said they could not regulate the foreign owners of the mortgage books ONLY the administrators.

So if crapstones become the owners of SPML and then claim to have the legal right to possession would that not mean our mortgages come under the regulation of the FSA or would it still be a case of the SPV's holding the legal title? Would this not put the SPV's at more risk because the FSA would then have the right to look into the mortgage books if crapstone are claiming ownership?

 

Or am i getting so confused (not hard lol) that I am seeing it wrong?

[supersleuth]

Hi Midge, any mortgage taken out from 31 October 2004 is an FSA regulated mortgage irrespective of whoever owns it.

 

An FSA regulated entity must administrate the mortgage irrespective of who owns it. That's why the SPV has contracted with Capstone to Administrate the mortgages. The SPV sets the interest rate policies and the repossession policies and Capstones, pursuant to their contract with the SPV implements the SPV's policies, irrespective of whether the SPV's policies are in accordance with the MCOB rules or not.

 

Capstone's paramount allegiance is to the SPV, not the FSA regulator - they know the FSA is pure hot air and Capstone know that the FSA won't do anything to protect the consumer anyway. If the FSA wanted to look at what's going on with your SPML/LMC/Preferred mortgage, they could go to Capstone and have a look anyway. The FSA won't - toothless tiger or worse, they encourage breach of the MCOB rules through their abject apathy.

Edited January 4, 2010 by supersleuth

[wot2do?]

is this true ?

 

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"Please note that administration operates on an entity, rather than group basis. Just because one company is in administration, does not mean that its subsidiaries are also in administration. Where a Lehman UK company is not in administration then its affairs will remain under the control of its directors rather than the administrators."

[supersleuth]

Good point wot2do. Under the control of Ms Attia then, who has failed to file accounts, in violation of the Companies Acts, 1985 and 2006, and who is about to be, and should be, struck off.

 

It may be right that the parent's bankruptcy does not mean that its subsidiary is in administration, but the parent's administrator must liquidate the assets of the parent for the benefit of the creditors...which means...that the subsidiaries are affected because, the subsidiary is an assets of the parent company which value will form part of the assets that are liquidated to fund the creditors claims. That is why it is usual that the subsidiaries fall when the parent company is in liquidation.

 

BTW, if capstone has bought SPML, then why are there no new directors? When a company is sold, then there is usually a new board of directors appointed by the new owners to manage their newly acquired company. Is Ms Attia a director of Capstones too? If so, she's just playing manoeuvres. No change really just more skullduggery....and aren't CH also bringing criminal charges against Ms Attia too?

 

And one more thought, where did Capstone get the funding to pay for its alleged acquisition of SPML? You see, any money that Capstone has going spare would surely have been claimed by its parent's administrator seeing as it was owned by the parent and the administrator must have claimed all values from the subsidiaries to pay the parent's creditors. And the proceeds of the sale of SPML would have gone to the administrator/receiver too. Where's the fresh funding come from?..or is this just Ms Attia manoeuvres?..or is it just not true.

 

Final thought...he that controls the parent controls the parent's subsidiaries. Thus, the administrator/receiver would be in control of the subsidiaries....unless, the parent only had a minority shareholding in the subsidiaries, in which case, it's not a parent!

Edited January 4, 2010 by supersleuth

[wot2do?]

I am good for other things than just playing with ITBG?

[wot2do?]

What makes me laugh even more about ITBG? then his raps, is that he posts

 

HAVE YOU GOT THE GUTS TO HELP OTHERS?!

 

 

 

 

 

ITGG!

 

But !!!! check this out previously he posted

 

 

 

Lil'dotty, all

 

If you are going to court, and have filed your witness statement, stating your mortgage has been sold to the SPV in a true-sale securitisation(eg Eurosail), then you have a chance to set aside the possession. I did and the lender is to appeal. They tried the Pender ploy, but the evidence my solicitor and I had was enough.

 

ITBG?

on air

 

"I have absolute proof, from written evidence, that SPML is both balance sheet and trading insolvent.

 

Letter from Companies House on prosecution of director.

Evidence that SPML sold all its mortgages through securitisation, and is no longer the owner of them.

 

ITBG? As much as I like your rap's, you should share all your evidence with people like Super & Ryde and help them out, even if it is in private

 

To quote Lord Cagger

 

how do you like THEM apples!

;);)

[ryde]

ms attias current roles as listed by fsa

 

AXA01228 - Amany Attia

Details: Title/Forename(s)/Surname: Ms Amany Attia Commonly known as: the bitch from hell

Previous Name(s): Lehwoman

Status: Active Individual reference number: AXA01228 Controlled functions - Current

Controlled functions Firm name Start date CF1 Director Preferred Mortgages Limited 28/03/2008 CF1 Director Capstone Mortgage Services Limited 28/03/2008 CF1 Director Southern Pacific Mortgage Limited 28/03/2008 CF3 Chief Executive Southern Pacific Mortgage Limited 28/03/2008 CF3 Chief Executive Preferred Mortgages Limited 28/03/2008 CF3 Chief Executive Capstone Mortgage Services Limited 28/03/2008 CF3 Chief Executive (AR) Southern Pacific Mortgage Limited 28/03/2008

Edited January 5, 2010 by ryde

[ryde]

super

sorry to tax you, but this was posted sometime ago and no one was able to give an answer,your opinion would be more than welcomed,it was over a year ago but may give an indication of what will happen in the near future.

 

Lee Jones(from article in mortgage strategy) jan 2009

The Lehman Brothers UK sub prime mortgage book is up for sale after it reportedly failed to deleverage the books of both SPML and Preferred Mortgages.

PricewaterhouseCooper, Lehman Brothers administrators, has confirmed that second round bids for the portfolios have begun, with a bid date at the end of the month. The UK books have been packaged up with other mortgage assets from Ireland and Portugal. The sale also includes Capstone Mortgages, Lehman’s administrator that has 450 staff.

The administrator says the bidders are a mix of private equity investors and more established names in the mortgage market. It says the sale, which will include a second round of several other European mortgage books and the US mortgage adminstrator, will total around Euro 2.5bn.

PWC partner Graham Martin says: “We hope to sell the book and the servicing platforms together, as there is a synergy between them. As for bidders, there has been interest from private equity firms new to the sector, as well as players already in the market.”

Reports suggest that the sale could see the assets being sold for less than 50p in the £1. Former Edeus managing director Michael Bolton says brokers were previously written to last year with an offer to remortgage off the books for 70p in the £1.

Bolton says: “Obviously they couldn’t remortgage the borrowers last year, so now they are desperate to sell the books. The administrators will be lucky to get 50p in the £1 now, with house prices falling as they are.”

Martin could not confirm that the UK books had been previously touted, but did admit that some trading of non-performing assets had taken place.

 

You note that PWC are the administrator with the obvious power of sale and control.

Do not understand what they mean by saying they failed to deleverage the books of spml/pml.

 

There are some interesting insights in this trade periodical,put capstone,preferred and southern pacific in their search and see what comes up if you have 10 minutes.Our old friends capstone are here with the highest arrears charges in the industry (more than gmac )

heres the link

http://www.mortgagestrategy.co.uk/kensington-justifies-its-arrears-charges-as-mps-go-on-the-attack/189938.article

Edited January 4, 2010 by ryde

[supersleuth]

Hi Ryde,

 

Your question: Do not understand what they mean by saying they failed to deleverage the books of spml/pml.

 

The leverage of a company is the amount of debt it has in relation to its equity. In other words, it is the ratio between that amount of equity and the amount of debt. Thus if a company has been capitalised with say 30K of capital and that capital was raised by - say, 10K in equity, raised from the shareholders and the other 20K raised by borrowing money, then the company's Debt to Equity ratio is 2:1. So the company is said to be leveraged to the ratio of £2 of debt for every £1 of equity.

 

When a company deleverages, it is said to be reducing its borrowings. Thus, according to the article, it appears that Lehmans mortgage books were funded by a borrowings and that they failed to pay back the borrowings i.e. failed to deleverage. These books of mortgages (more likely than not) would have been money that they borrowed in order to finance newly originated mortgages that would have been put in the "pipeline" ready to be securitised in the next securitisation issue.

 

Do not confuse this with the mortgage borrowers debts because the mortgages that are owed to SPML is SPML's assets (and not an SPML debt): in the context of leverage, it is the actual debts of the company, e.g. if they have a bank overdraft or the company borrowed money to fund the origination of new mortgages to new borrowers.

 

As to your other comments "You note that PWC are the administrator with the obvious power of sale and control." This article makes much more sense. The guy at Capstone must have given Keithybat a dud steer, can't see that Capstone could have bought out SPML at all. If Capstone and SPML have been sold, then it is more likely to have been sold to one of the vulture type funds, i.e. the private equity investors or some hedge fund.

 

Will have a look at the link and post up another comment if necessary.

Edited January 4, 2010 by supersleuth

[supersleuth]

ms attias current roles as listed by fsa

 

AXA01228 - Amany Attia

Details: Title/Forename(s)/Surname: Ms Amany Attia Commonly known as:

Previous Name(s):

Status: Active Individual reference number: AXA01228 Controlled functions - Current

Controlled functions Firm name Start date CF1 Director Preferred Mortgages Limited 28/03/2008 CF1 Director Capstone Mortgage Services Limited 28/03/2008 CF1 Director Southern Pacific Mortgage Limited 28/03/2008 CF3 Chief Executive Southern Pacific Mortgage Limited 28/03/2008 CF3 Chief Executive Preferred Mortgages Limited 28/03/2008 CF3 Chief Executive Capstone Mortgage Services Limited 28/03/2008 CF3 Chief Executive (AR) Southern Pacific Mortgage Limited 28/03/2008

 

See what I mean about the FSA's abject apathy. They haven't moved to strike off her FSA registration have they? She is in violation of offences under the Companies Act, and yet they maintain her as an FSA authorised person. So can the consumers really trust any FSA authorised person?

[ryde]

Would it therefore follow logically that these companies with the collapse of lehmans who appeared to fund the acquisition of the mortgage pools through their various entities such as Mable LBIE etc are actually balance sheet insolvent and trading whilst insolvent ,hence no accounts have been submitted ,all are overdue bar capstone who are administrators in any event and are paid a commission on collections by the spvs and this is the reason PWC appear to have been unable to achieve an offer of 50p in the £1 for them?

[supersleuth]

Theoretically that's a fair assessment. SPML etc were probably being funded through Mable (and or Storm Funding), so if they couldn't pay Mable back, then Mable probably couldn't pay their creditors either. It's the usual knock-on effect of a bankruptcy. PwC couldn't achive a 50p in the £1 sale of these books. But note that PwC didn't approach the mortgage borrowers to ask them if they were willing to give 50p in the £1 to raise money i.e. selling the mortgage asset back to the mortgagor/borrower. Even though there's not much opportunity to remortgage, if you can redeem your existing mortgage at 50p in the £1 then essentially you are asking for a remortgage loan with an LTV of 50%, thus, these mortgagors would have had much more chance of getting a loan for a mortgage of 50% of the value of their home.

 

Would like to know what price they got (if sold), just think, if they sold them for say 30p in the £ - what tragedy for the borrowers - being overcharged by the vultures when the mortgagor/borrowers could have redeemed for say 30p in the £ and saved all the social heartache. These city institutions would rather chuck families out on the street than deprive the city of screwing over the hardworking homeowners in this country. Just think it should have been relatively easy for the mortgagor to remortgage for a 30% LTV even in these times. Well, much easier than being grossly overcharged and repossessed...which is what will happen with the vultures.

Edited January 5, 2010 by supersleuth

[ryde]

Don't think they were ever sold,cannot quite grasp what they were selling in any case as the spvs would own all the mortgage pool in any case having paid the consideration and they were completely seperate to the lehman insolvency.So what would any purchaser have got unless the spv were selling as well in order to realise their stake.

[Crapstone]

As I tried to say a while ago..Capstone have the rights to SPML and have taken over from them as the only viable part, with back-up should they (Capstone) fail. It's not enough to assume, you have to read, otherwise you are in for a mighty big fall.

 

Like I said it's not a playground..it's about keeping a roof over your head and as much money in your pockets as you can from these scumbags.

[ryde]

crapstone

what do you mean exactly by capstone having taken over the rights of spml can you direct me to your previous post as I must have overlooked it.

Do you mean they are authorised by spml to carry out litigation in their name?

Anyone undergoing litigation,have you received any letter of authorisation from spml/pml or the like that they have authorised capstone to carry out litigation in their name.I am in the same boat where capstone state they conduct all their business and have asked for a letter of authorisation from the lender giving such authorisation which may be difficult as the lender appears to have no employees.!

I cannot see how they can possibly execute a repo on behalf of the lender without producing full legal authorisation otherwise anyone could say they were authorised,the spv or the trustee for example.

[littledotty27]

what if spml have assigned the mortgage books over to capstone before going into administration,leaving spml with the toxic assets that they know they could not get rid of,leaving capstone to deliver the repos.

[eagleforms]

I have now had a chance to look through Capstone's reply to my queries. They maintain that their charges are perfectly justifiable, what a surprise. However, their answer to the relationship between Capstone, SPPL and SPML might be of interest. Firstly, they say my loan is with SPPL not SPML. They have sent me a paying in book to pay the mortgage and this credits my payments to SPML. Why am I paying SPML when they say that my loan is with SPPL?

They say that SPPL is the legal owner of the loan, Capstone adminisers it and it has not been assigned to Capstone. The beneficial interest of the loan has been transferred to Eurosail-UK 2007-4BL Plc. They say that the Declarations and Consents section of my loan application captures my consent to the transfer.

SPPL is an appointed representative of SPML for insurance mediation activities and has been registered as such with the FSA since 31 October 2004. Further registration details of SPPL can be found at Companies House. As I don't have insurance with them, it still begs the question of why I am paying SPML?

[supersleuth]

SPML et al., were in the business of (a) securitising loans and (b) making people homeless.

 

They would would originate mortgage and hold them on their books until the next scheduled securitisation issue (usually once a quarter). Therefore, it is entirely possible that between the last securitisation and the bankruptcy, they would have originated mortgages that did not get securitised because the bankruptcy prevented the next securitsed issue. Thus, there would have been loans in the "pipeline" that did not get securitised. Hence, they could have had a mortgage book that wasn't securitised.

 

As for any sale, that seems unlikely too because, a vulture fund buyer would have appointed new directors to the board. As for Capstone taking over SPML or any of its sister companies, that seems unlikely too, because Capstone is unlikely to have been able to fund any takeovers of its sister companies - and anyway - Capstone itself was up for sale too.

 

The administrators/receivers report would give details of any sale of the companies and details of how much they were sold for etc. Has anyone got the receivers reports that were filed at Companies House?

Edited January 5, 2010 by supersleuth

[ryde]

eagleforms

question is when did you take out your loan as may well be traceable from the prospectuses.

There are more notices re iminent insolvency of sppl and the requirement to notify the borrower(which i believe they legally have to do) that the legal title is to be transferred to the spvs in these cases the eurosail spv is posting these notices,so if your loan has been securitised with one of these spvs and it is more than likely it has your payment should be to them not spml.

Who is the legal charge registered to at the land registry,will cost peanuts to find out and I believe you can do it online.

heres link for eurosail notices,sounds like capstone are trying to pull yet another lying ****** [problem]!

http://www.londonstockexchange.com/exchange/prices-and-news/news/market-news/market-news-detail.html?announcementId=10311765

Edited January 5, 2010 by ryde

[JonCris]

I wonder what the effect will be in that the asset has changed hands at a much lower value WITHOUT any benefit to the original borrower eg can the OB argue that they should be paying the lower value. & if not would that be unfair..... Think about it:confused:

[ryde]

I have now had a chance to look through Capstone's reply to my queries. They maintain that their charges are perfectly justifiable, what a surprise. However, their answer to the relationship between Capstone, SPPL and SPML might be of interest. Firstly, they say my loan is with SPPL not SPML. They have sent me a paying in book to pay the mortgage and this credits my payments to SPML. Why am I paying SPML when they say that my loan is with SPPL?

They say that SPPL is the legal owner of the loan, Capstone adminisers it and it has not been assigned to Capstone. The beneficial interest of the loan has been transferred to Eurosail-UK 2007-4BL Plc. They say that the Declarations and Consents section of my loan application captures my consent to the transfer.

SPPL is an appointed representative of SPML for insurance mediation activities and has been registered as such with the FSA since 31 October 2004. Further registration details of SPPL can be found at Companies House. As I don't have insurance with them, it still begs the question of why I am paying SPML?

 

IN my infinite ignorance

I forsee a big sucker punch being tried on here.

Capstone are appearing to say that they are not going to notify you of the legal assigment as they have to by law as you have already consented to it in the original contract.

The effect of this being that you cannot object and are presented with a fait accompli by the registered charge being re entered on the land registry without your knowledge or consent and preventing any objection by you on the grounds of original contract guarantee and the fact that if the new owner is in fact the spv as it should be ,your original contract was signed with a lender for a regulated FSA loan this was the reason you took it out and it has now been transferred to the non regulated spv and in effect become an unregulated loan.

 

OF VITAL IMPORTANCE TO ALL WITH SECURED LOANS WITH SPPL

Anyone with sppl must immediately get hold of the land registry and tell them that you wish to formally object to any re registration/transfer of the charge in the the name of a new legal titleholder for these reasons immediately. Explaining clearly what is happening.

TIME WILL BE OF THE ESSENCE

Edited January 5, 2010 by ryde

[napiernuts]

Post deleted to allow ITBG? to continue to live in his fantasy world.

 

Follow his ill informed and often incorrect advice at your own risk

Edited January 27, 2010 by napiernuts

[sohoscribbler]

What about those with secured loans with SPML? Does the same apply?

 

OF VITAL IMPORTANCE TO ALL WITH SECURED LOANS WITH SPPL

Anyone with sppl must immediately get hold of the land registry and tell them that you wish to formally object to any re registration/transfer of the charge in the the name of a new legal titleholder for these reasons immediately explaining clearly what is happening.

TIME WILL BE OF THE ESSENCE

[napiernuts]

Post deleted to allow ITBG? to continue to live in his fantasy world.

 

Follow his ill informed and often incorrect advice at your own risk

Edited January 27, 2010 by napiernuts

[mollie5549]

The ranking on Capstone Mortgage Services Ltd. (Capstone), rebranded from Southern Pacific Mortgage Ltd. (SPML), is affirmed as "ABOVE AVERAGE" as a subprime residential mortgage servicer in the U.K. The affirmation is justified because the infrastructure, staff, systems, processes, and parent are of the same calibre since the rebranding.

 

One and the same.....?

 

 

Taken from Standard and Poor's 2006 evaluation report.

 

 

Mollie

Edited January 5, 2010 by mollie5549
typo