Office of the Attorney GeneralOffice of the Attorney General

March 13, 2014March 13, 2014

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Land TrustsLand Trusts The Fidelity Land Trust Company, LLC The Fidelity Land Trust Company, LLC

("Fidelity") solicited Florida homeowners by ("Fidelity") solicited Florida homeowners by representing that it could work with property representing that it could work with property owners to cancel their current mortgage. owners to cancel their current mortgage.

Using Fidelity's program, the homeowner was Using Fidelity's program, the homeowner was required to deed his/her home to Fidelity required to deed his/her home to Fidelity which then would file a quiet title lawsuit that which then would file a quiet title lawsuit that claimed the existing mortgage was not valid.claimed the existing mortgage was not valid.

These lawsuits were often brought against the These lawsuits were often brought against the mortgage originator or record lender to cancel mortgage originator or record lender to cancel the mortgage for alleged improprieties, such the mortgage for alleged improprieties, such as not recording the assignment of the as not recording the assignment of the mortgage or violations of pooling and mortgage or violations of pooling and servicing agreements.servicing agreements.

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Often, the lender that was served was the last Often, the lender that was served was the last to file an assignment of mortgage but was no to file an assignment of mortgage but was no longer the holder of the note and mortgage, longer the holder of the note and mortgage, and consequently did not bother to respond and consequently did not bother to respond to the lawsuit. Fidelity then would obtain a to the lawsuit. Fidelity then would obtain a default judgment and ask the court to default judgment and ask the court to invalidate the mortgage.invalidate the mortgage.

These quiet title actions were held to be These quiet title actions were held to be frivolous and without merit by decisions in frivolous and without merit by decisions in Florida state and federal courts on a case by Florida state and federal courts on a case by case basis.case basis.

Fidelity illegally charged homeowners Fidelity illegally charged homeowners thousands of dollars in upfront fees to enter thousands of dollars in upfront fees to enter their program. their program.

Land TrustsLand Trusts On December 17, 2013, Broward Circuit On December 17, 2013, Broward Circuit

Judge Michael Gates issued Final Judge Michael Gates issued Final Judgment against The Fidelity Land Judgment against The Fidelity Land Trust Company, LLC in the lawsuit Trust Company, LLC in the lawsuit brought by the Attorney General for brought by the Attorney General for violation of the Florida Deceptive and violation of the Florida Deceptive and Unfair Trade Practices Act ("FDUTPA"). Unfair Trade Practices Act ("FDUTPA").

Judge Gates entered Final Judgment Judge Gates entered Final Judgment declaring, adjudging and ordering: declaring, adjudging and ordering: 1) Fidelity's acts and practices are unfair 1) Fidelity's acts and practices are unfair

and/or deceptive in violation of the Florida and/or deceptive in violation of the Florida Deceptive and Unfair Trade Practices Act; Deceptive and Unfair Trade Practices Act;

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2) all quitclaim deeds or warranty deeds 2) all quitclaim deeds or warranty deeds executed and/or recorded subsequent to executed and/or recorded subsequent to January 1, 2010 in the State of Florida January 1, 2010 in the State of Florida transferring title to The Fidelity Land Trust transferring title to The Fidelity Land Trust CompanyCompany, , LLC as grantee in fee simple or LLC as grantee in fee simple or as trustee or in other fiduciary capacity as trustee or in other fiduciary capacity are rescinded and deemed null and void are rescinded and deemed null and void ab initio; ab initio; and and

3) a permanent injunction barring Fidelity 3) a permanent injunction barring Fidelity from rendering services that claim to from rendering services that claim to cancel previously recorded mortgages. cancel previously recorded mortgages.

Land TrustsLand Trusts The Final Judgment entered by Judge Gates The Final Judgment entered by Judge Gates

on December 17, 2013 is significant on December 17, 2013 is significant because of the effect on title to real estate because of the effect on title to real estate that was deeded to Fidelity. that was deeded to Fidelity.

Titles to homeowners' residences that were Titles to homeowners' residences that were deeded to Fidelity may be clouded. deeded to Fidelity may be clouded.

The Final Judgment establishes that deeds The Final Judgment establishes that deeds to Fidelity were void to Fidelity were void ab initioab initio and thus have and thus have no legal force or effect. no legal force or effect.

A copy of the Final Judgment is currently A copy of the Final Judgment is currently being recorded in all 67 County Clerk's being recorded in all 67 County Clerk's Offices in the State of Florida. Offices in the State of Florida.

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Suits are in various stages of Suits are in various stages of litigationlitigation Whitestone Capital TrustWhitestone Capital Trust Become the Bank LLCBecome the Bank LLC Cambridge Land Trust Company LLCCambridge Land Trust Company LLC Hartford Land Trust Company LLCHartford Land Trust Company LLC