How the Banks Played With Investor Money, Made Money and Claimed a Loss

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Editor’s Comment and Analysis: The passage below is taken from the PSA and Prospectus of a Wachovia “securitization” offering. Most of the documentation from most of the investment banks have the same or similar language since the same group of law firms wrote the boiler plate for all of them. I might add that I have a confidential source that some lawyers refused to participate and actually quit their jobs claiming that the scheme was illegal and probably criminal.

This is why Deny and Discover is so powerful. When you dig down you see that things are not as they  appear or are represented and what you thought was true, is not true. Both borrowers and investors in bogus mortgage bonds were the subject of a sting initiated by the banks on the premise that nobody would actually read and analyze these documents before investing and the borrowers being ignorant of the existence of such documents could not possibly pose a threat.

If you read the passages below carefully you can see how the banks took money from investors, made loans with part of the money, kept the rest, and then claimed losses causing insurance companies, credit default swap counterparties and the Federal government to bail out the banks when it was the investors and the borrowers who were the actual parties losing money.

The “seller” of the mortgage is actually given the right to retain title so they will have an insurable interest and something to sell, even though they are actually holding “title” for the investment pool. The passages below reveal the exposure to both investors and borrowers as a result of this practice and how the investors ended up with unenforceable mortgages and notes, and the homeowners ended up with defective title, and the county recorders offices had their system of recording forever corrupted by the illicit practice under cover of hidden disclosures that enabled the banks to pull off the largest economic crime in human history.

INSIDER TRADING: What they have not answered to is whether the bets against the very same bonds they were selling were violations of insider trading. They knew what they were going to do with the bonds and they knew the rate of defaults would skyrocket as the true terms of the fabricated notes started to kick in.

If the securitization plan was actually legal instead of being a lethal scheme, they would not have a statement and the investors, if they had seen it would not have agreed to such terms. The recordation of the mortgages and delivery of the notes would have been required as per the laws of most states. They would not have reserved the right to NOT record the mortgage which by their own admission could result in the investors priority position being diminished to zero, which is exactly what I have been saying for years.

Who in their right mind would agree to turn over $100 million to an investment bank from a managed fund that is required by law to virtually eliminate risk by investing in only the highest grade investments, when the prospectus says “security holders could lose the right to future payments of principal and interest to the extent that those rights are not otherwise enforceable in favor of the indenture trustee under the applicable mortgage documents.?”

PRACTICE HINT: Don’t stop drilling in discovery and make sure you or an analyst reads the documentation. There is a lot of material buried in that stack of print that supports the allegation that the lenders were pretenders and that the loan never made it into the pool. Provisions like the ones below allow the investment banks to trade the loans as if they were their own. Imagine if you bought 100 shares of stock and the broker started trading the stock in his own name — wouldn’t you have something to say about that? Imagine further that the broker borrowed money using the stock and created a loss which he now tells you is your loss.

From a 2002 Wachovia Home Equity 424B5 filing:

Non-Recordation of Assignments; Possession of Mortgages                        

     Subject to the conditions described in the servicing agreement, the seller will not be required to record assignments of the mortgages to the  indenture trustee in the real property records of the states in which the     related mortgaged properties are located. The seller will retain record title to the mortgages on behalf of the indenture trustee and the security holders.     

Although the recordation of the assignments of those mortgages in favor of the indenture trustee is not necessary to effect a transfer of the mortgage loans to the indenture trustee, if the seller were to sell, assign, satisfy or discharge any of those mortgage loans prior to recording the related assignment in favor of the indenture trustee, the other parties to the sale, assignment, satisfaction or discharge may have rights superior to those of the indenture trustee.

In some states, including Florida and Maryland, in the absence of     recordation of the assignments of the mortgages, the transfer to the indenture trustee of the mortgage loans may not be effective against certain creditors or purchasers from the seller or a trustee in bankruptcy thereof. If those other parties, creditors or purchasers have rights to the mortgage loans that are superior to those of the indenture trustee, security holders could lose the right to future payments of principal and interest to the extent that those rights are not otherwise enforceable in favor of the indenture trustee under the applicable mortgage documents.

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95 Responses

  1. The FEDSTERS have magically transformed themselves into the U.S. TREASURY DEPARTMENT by hijacking the traitor politicians…..THEY ALL NEED TO BE ARRESTED BECAUSE THE FED NEVER LENT WE THE PEOPLE ANY MONEY…..

  2. There were no trusts because these were not mortgage loans….they were credit swaps the FED turned into stocks & bonds and other “offerings”… these aren’t contracts ….security instruments….security entitlements ……or negotiable instruments …. The FEDSTERS are crooks…they are racketeering to gain more unjust enrichment.

  3. I am well aware the FEDSTERS have hijacked the U.S. TREASURY DEPARTMENT so they can steal it all from WE THE PEOPLE….however NO EX POST FACTO LAWS….IPSO FATSOS…

  4. This last mentioned document…APPLICATION OF THE UNIFORM COMMERCIAL CODE TO SELECTED ISSUES RELATING TO MORTGAGE NOTES, to me is really scary! This is like “gospel” from the UCC. It reads that no matter what they did or didn’t do in most cases, if they claim it, it theirs! However, it refers to negotiable instruments – not trusts which are governed by the PSA. I’m interpreting it that way at least. Is that correct???

  5. LOL….Funny how they are trying to cut out the FED middleman as if that whole thing never happened…..yeah right…!

  6. Payee to Funder……interesting how they don’t explain how the note got from the Payee to the Funder…..It is our legal right as the Maker to see a paper trail of how that transaction occurred & who that Funder is…..Regardless, the ….the Issuer of the Original Bill of Credit had to have Performed the task of paying Due Consideration to the Treasury before any transaction occurred in our names…..They are clearly trying to confuse people.

  7. Are you aware of this document – APPLICATION OF THE UNIFORM COMMERCIAL CODE TO SELECTED ISSUES RELATING TO MORTGAGE NOTES??? This Report of the Permanent Editorial Board is such an articulation, addressing the application of the Uniform Commercial Code to issues of legal, economic, and social importance arising from the issuance and transfer of mortgage notes. A draft of this Report was made available to the public for comment on March 29, 2011, and the comments that were received have been taken into account in preparing the final Report.

    http://www.ali.org/index.cfm?fuseaction=publications.ppage&node_id=86

    Interesting reading…

  8. http://www.veteranstoday.com/2012/12/14/the-federal-reserve-cartel-a-financial-parasite/

    above is one of a series of articles by Dean Henderson as excerpts from his book on the “Federal Reserve”

  9. I wouldn’t accept a dime of their debt and I wouldn’t file bankruptcy for these crooks to write off their fraud after they got bailed out, cashed in on their credit default swap insurance & then they will steal your property too. It’s complete criminal bullshit.

  10. If a state is non-recourse and or has anti-deficiency statutes, should a homeowner get stuck with a 1099 for debt forgiveness? IS it apples and oranges? In the absence of certain conditions, a legitimate lender can do one of two things, I think: he can write off any deficiency as uncollectable or he can 1099 the homeowner (which results in a lender expense to deduct on taxes). I can’t get a grip on this part today (like are these two the same thing); maybe someone else can.
    But, if a lender makes a loan which he knows is non-recourse and or opts for non-j foreclosure, which as I recall with my failing memory itself prohibits deficiency judgments, since he has knowingly given up his right to a deficiency, does that lender have a right to 1099 the homeowner? If he 1099’s the homeowner, the lender is actually getting a benefit from the deficiency. Can he? I know this may well be a stretch, but wanted to throw it out there anyway. If a lender may, this imo is how the law reads: When the lender gives up the right to a deficiency judgment, it may yet benefit from a deficiency by 1099’ing the homeowner (and as being done today from what I gather with no support of the deficiency figure). The whole thing irks me because you or I or anyone on normal, recourse contracts would have to demonstrate an attempt to collect before claiming a debt is uncollectable, and the bankster can’t do that because (when) he agreed to forego the deficiency. So the bankster gets a gimme: he can just 1099 someone without attempting to collect the debt (because he gave up the right in some states / circumstances)? IS it apples and oranges? Like I said, not being able to 1099 the homeowner (in certain situations) may be a stretch or sideways or nuts even, but wanted to throw it out with the potential end of the relief afforded homeowners staring at us.

    Here is MGIC’s Default Servicing Guide, which may be materially different than earlier one(s). This one is effective this month, way I get it:

  11. Here’s a copy of MGIC’s (a private mortgage insurance company)
    Loss Claim Form:

    It doesn’t answer the 64k question, at least for me, however. Is the claim made before or after a f/c sale? I thought such a form would answer that question. At No. 56, MGIC does ask for the HUD Settlement Statement from the most recent sale. Would that be the trustee’s sale? Which makes me wonder what documents are executed pursuant to a trustee’s (f/c) sale. Surely a buyer gets more than the trustee’s deed. The proration of property taxes comes to mind, for instance. And even if a bankster uses a “credit” bid and is the alleged successful bidder, there has to be some final accounting, like on those taxes, interest, etc. between the homeowner and the bankster -or – why not? If and when the homeowner doesn’t get such a statement, could she demand one? “How much of my alleged debt was satisfied by your foreclosure sale?” “How did you prorate the taxes and insurance?” If people live in a state which allows deficiency judgments (because – imo – the state has no one-action rule and is not a non-recourse state), why should a homeowner have to wait to see what amt might be claimed as to deficiency? If this info is not
    tendered to the homeowner, if the bankster lays a 1099 (or w/e) on the homeowner, all the homeowner gets is the bankster’s alleged
    bottom line, one number, not the figures that comprise that one number.
    No. 7 asks for the Insured’s Name. No. 17 asks for the servicer’s name if it’s different than the Insured’s. No. 20 asks for the payee’s name (I take it for the insurance check) if it’s different than the Insured. Attorneys and serious students of this insurance issue could look up
    case law involving claims disputes between MGIC, PMI, and any other insurers and claimants for some of these answers (who’s Insured, who’s payee, when was claim paid).

  12. That top level Holding Company that ALL OF THESE BANKS are borrowing their money from is…..THE U.S. TREASURY DEPARTMENT. Time to pay the piper…… THE AMERICAN PEOPLE ….back what these banks have stolen.

  13. Interesting article…..U.K. and U.S. agree on plan for failed banks….. at this link…. http://theunhivedmind.com/wordpress2/?p=12285

  14. Obama keeps saying the politicians need to close tax loopholes & simplify the tax code. NO…The U.S. GOVERNMENT needs to seize the FED….A PRIVATE BANK….not vice versa…..and pay the American people back what the FED stole from us via their perps on Wall Street.

  15. Poppy….All I can say is, I am working on it, and I have faith justice will prevail in my cases.

  16. stripes, we all know they belong in prison and this scheme is rampant, so how do you present your complaints, pleadings and responses? Have you made any headway through the court system to this point? I am as angry as you, how do we win is the issue?

  17. My comment below is RE the mortgage insurance….commercial guaranties…..all of their fraudulently induced contracts are meaningless because of FRAUD IN THE FACTUM…..AKA……THE ORIGINATION FRAUD….

  18. None of their rules apply because there is FRAUD IN THE FACTUM. That renders everything a nullity.

  19. I do believe Elizabeth’s heart is in the right place however, her social justice fixes make me cringe. These politicians are wimps……& cowards…..the FED should have been seized 4 years ago by the U.S. MARSHALLS & the Treasury should be issuing every American harmed by their CREDIT SCAM….. big fat checks…..clear title to all propertty. Forget this Democratic just MOVE FORWARD CRAP…these crooks belong in prison.

  20. It is my understanding the insurance can only be for the amount of the mortgage. Hence, if they file a satisfaction of deed in another state, copy the note and send it or sell it to a debt collector, a servicer, through a substitute trustee, they can file a foreclosure action and get the full amount, minus the fees of the debt collector. This is part of the reason we have all the forgeries and erroneous players.

  21. The Impact of Mortgage Insurance

    Posted on December 12th, 2012 by Mark Stopa

    Without question, the biggest untold story in the foreclosure crisis is mortgage insurance. Understanding how it works goes a long way in understanding why homeowners can’t get reasonable settlements in foreclosure cases.

    Many homeowners, when they take out a mortgage, have to pay for Private Mortgage Insurance, or PMI. The concept is simple – if the homeowner defaults, the mortgage company is protected, as an insurance company will pay the mortgage in full.

    For years, I’ve been bothered at the concept that banks can keep foreclosing on homeowners even though I know that, at least on some percentage of mortgages, there’s an insurance company paying the bank in full. As I explained here, banks shouldn’t get to collect twice.

    How does this dynamic work in the real world? I found out today the hard way.

    I represent a client who has title to a property, subject to the mortgage, but wasn’t the borrower. Trying to think outside the box, I asked opposing counsel if the bank was interested in accepting a partial payout in exchange for releasing the mortgage or selling the note/mortgage to my client. I thought the concept was reasonable – there was no “moral hazard” since my client wasn’t the borrower, and the bank should cash out now so as to avoid fighting me in court.

    What was the response I got? Nope, can’t do it. Well, the bank can do a deal, but it won’t. Why? Because there’s mortgage insurance.

    The way this perverse system is set up, the insurance company will pay the bank in full, but only if the property goes to foreclosure sale. If/when the property doesn’t sell for the insured amount at the sale, then the insurance company’s obligation to pay the bank is triggered, and the bank gets paid in full. If, by some chance, the property sells for more than the insured amount, the insurance company doesn’t have to pay, but the bank collects from the proceeds of the sale.

    In both scenarios, the bank gets paid in full … so long as the foreclosure sale goes forward. And there’s the rub. The bank can sell the note/mortgage, or the bank can satisfy the mortgage for less than the full amount. But doing that would eliminate the bank’s ability to collect mortgage insurance … unless the insurance company consented to the bank cashing out without holding a sale. Predictably, the mortgage company refuses, hoping the property will sell for more than the insured amount at the foreclosure sale, so the insurance company won’t strike a deal with my client.

    This is the dynamic with many, many foreclosure cases. Banks could settle with homeowners. But why would they? There’s an insurance company just waiting to write them a check after the foreclosure sale. And if by chance a third party pays more than the insurance amount, the bank collects from the proceeds of the sale.

    So if you’re wondering why banks refuse to make what seem to be reasonable business decisions, wonder no more. There may well be an insurance company footing the bill … once the foreclosure sale takes place.

    Isn’t America grand? Banks get paid in full while homeowners can’t get reasonable deals because of the perverse dynamic between banks and insurance companies.
    Mark Stopa
    http://www.stayinmyhome.co

  22. Great news!

    http://www.washingtonpost.com/blogs/plum-line/wp/2012/12/12/its-on-elizabeth-warren-versus-wall-street/

    It’s on: Elizabeth Warren versus Wall Street

    Posted by Greg Sargent on December 12, 2012 at 3:17 pm

    Republicans have long derided Elizabeth Warren for describing herself as an intellectual godmother of Occupy Wall Street. Now the intellectual godmother of Occupy Wall Street will occupy the Senate committee that oversees it.

    The Senate Democratic leadership is announcing today that Warren will be given a seat on the Senate Banking Committee. As Forbes put it recently, Warren’s ascent to the Senate alone was “Wall Street’s worst nightmare.” This could make that nightmare a good deal worse.

    Warren’s appointment to the Banking Committee was expected; Ryan Grim broke the news some time ago. But today’s announcement will make it official.

    This is going to give Warren a choice perch from which to continue to press the crusade for Wall Street oversight and accountability. And it continues a battle between her and Wall Street that stretches back literally years. Warren, a consumer advocate and expert in bankruptcy law, angered Wall Street when she pressed state attorneys general to demand a huge settlement from major banks and financial institutions they were investigating for improper foreclosure procedures. Warren was also the inspiration behind the Consumer Financial Protection Bureau, which produced one of the ironies of her career.

    The big banks won a victory when Obama declined to appoint Warren to head the Bureau. But as a result, she ran for the Senate. Wall Street made a big bet on defeating her candidacy, investing huge money in opponent Scott Brown, explicitly because of Warren’s longtime advocacy for tighter Wall Street regulation and oversight. They lost. She won.

    And now Warren sits on the committee responsible for such regulation and oversight. As one hedge fund manager recently lamented: “At exactly the time that big banks don’t want more oversight — or another potentially activist regulator — that’s what they’re getting,” Or, as Andy Kroll recently put it: “Big banks versus Elizabeth Warren: It’s on (again).”

    Warren’s appointment to the committee is likely to anger some top Republican Senators who hate her relentless push for more oversight and have crusaded against her consumer protection bureau as an example of oppressive liberal governance. Indeed, some Republican Senators even joined Wall Street in lobbying against her appointment to head that bureau. Now she sits among them, and is likely to get into spirited fights with them over future battles involving Wall Street regulation. Indeed, some progressives see her as a good counterbalance to Dems on the committee who might be overly solicitous towards Wall Street, too.

    It remains to be seen what issues Warren will champion on the committee and what kind of influence she will be able to wield. A lot will depend on the larger tack Dems take in the next Senate. But if Warren’s candidacy served as a test of the political viability of a genuinely populist critique of Wall Street and a demand for real accountability and oversight, we will now see what her brand of populism looks like from a position of some influence inside the Senate itself.

  23. Yes BSE….They talk about that connection & many others in the you tube video….9/11 Coincidences part 17….

  24. BSE….I am sure you know the judges and the cops pension funds are invested in the banks…..the so called mbs’s and other investments. The judges are compromised because they are investors like Obama is an investor…..that is why they are all working in unison like a well oiled clock. However, they were in reality, robbed by the banks & Wall Street too…….their money is gone no matter how many properties they steal they got screwed too….Besides, the law is the law. No one is above the law.

  25. Stripes

    the Bin Laden family are business buddies with the Bush family ,\.

    This is telling of the real story. By the way the Bush family did not make thier money via Oil & Gas.

  26. Fires continue in neighborhoods across the USA. These eventually burn down your home. No insurance company will pay off on the policy. Judges refuse to prosecute for the crimes. Anyone else would be in jail . Clearly the judges are owned by the banks. Either they are dumb asses or cowards. Both explain their decisions.

  27. Quelle Surprise! OCC Confirms that Big Banks are Badly Managed, Lack Adequate Risk Management Controls

    American Banker has an article up that is astonishing in that it tells us that the main regulator of national banks, the OCC, has confirmed one of our ongoing complaints: that the controls at the biggest banks are inexcusably weak. The OCC is the last place you’d expect to hear this from; historically it’s been a major enabler of banks playing fast and loose with the rules. And the implication is that bank execs should be wearing orange jumpsuits rather than getting multi-million pay packages.

    Read more at http://www.nakedcapitalism.com/#KLGBO5tB0hxbcplT.99

    Slow process but it would appear as though we are getting there…

  28. @ stripes

    At first I never gave the 5th a thought, until I started reading it, in its entirety. Okay, so every time we go into court and get ambushed, which is what it is, we have a RIGHT to not incriminate ourselves and further, not to allow testimony, not evidence, to be used against us that may be false.

  29. I am using all of the amendments & articles & laws afforded to me as a Natural Born U.S. Citizen. I believe the 9th is the most important…Article 9….WE THE PEOPLE….ARTICLE IX…..The enumeration in the Constitution of certain rights shall not be construed to deny or disparage others retained by the people…..ARTICLE VIII…..Excessive bail shall not be required, nor excessive fines imposed, nor cruel and unusual punishments inflicted…as well as the text of Federalist NO. 78 by Hamilton…which counterbalanced the tone of “judicial supremacist” and does by no means suppose a theory of a superiority to the legislative power. It only supports the power of the people is superior to both” (Marbury v Madison)……& the Takings Clause of the 5th Amendment of the Constitution which found its genesis in Section 39 of the Magna Carta, which declared that no land would be taken without some form of due process: “No freeman shall be taken or imprisoned or disseised, or exiled or in any way destroyed, nor will we go upon him nor send upon him, except by the lawful judgement of his peers or by the law of the land.”

  30. When I have tried much of what others have been using, instead of denying and asking for discovery I have failed. Now, I am using the Constitution, amendments 5, 7 and 14, the right to not incriminate oneself, and due process. Then I am amending my complaints to change the language where I say: I am not in default and challenge the paperwork. Also, I am filing a complaint against the recordation of the deed of trust naming: New Century, as they are not a lender and have no rights to claim the deed of trust gives them authority of the underlying note, as a broker/originator. The case is scheduled to be heard in February, in NC, but I am trying to get a continuance until June 2013.

    Also, have a claim and AP filed in Delaware, with the trustee of New Century, we just filed a Motion to determine the claim, non-dischargeable. I can almost guarantee the Judge in Delaware will scrap it…even though I have all of the paperwork to prove what is going on.

  31. Purchasing credit from the greedy FED middleman is not wealth or prosperity. That is what these politicians have stolen from us. That is a heinous crime. To make the masses believe borrowing credit from a middleman in the form of the FED was the beginning of our demise. We should have been borrowing from the Treasury direct all along at a nominal interest rate. There would have been none of this credit fraud.
    I agree with what Rick Santelli of CNBC just said…..America is a Republic…in a Republic the sovereignty rests with the people.

  32. You get my point here: Pelosi and her gang fly around in custom 757’s at taxpayers expense. This is insane. DC is way out of control and are bankrupting us at record numbers, while we are being legislated out of our property. I am lost for answers. It seems the foreclosure fight is the tip of the iceberg.

  33. I agree they are taxing tax. It’s all about collecting tax. These politicians who are mainly attorneys, have managed to turn nearly every dime we pay and spend into a fraudulently induced tax that they collect as usury by money laudering through the banks they are invested in. The American people are simply being robbed right in front of their faces and they don’t even know it. They are virtually slaves who are working for slave wages. Soon, if you don’t make a thousand bucks an hour you will be a welfare victim. We need a nationwide tax revolt on the mortgages & the taxes. Boycott the corps.

  34. A small bit of math:

    If I did a hundred dollars worth of work for my neighbor who is employed say by.., AT&T, she paid taxes on the money ($140.00 – fed and state taxes, SSI, etc) yield was $100.00. Now, I am expected to pay approximately 30% on the same $100.00 or if I am a corporation it goes into my corporate account and I pay approx. 28%, then is filtered through a personal account for another 30%, what I have left is approx. $42.00…subtract, SSI, Unemployment insurance, Health care mandate, liability insurance, worker’s comp., and workers pay, etc….you get the picture, you need over 110% of what you quoted for the job, or you cheat! If many self-employed people did not have access to credit, many would fail. We are being bled from every orifice.

    Not exact, but you get the point.

  35. Deutsche Bank, the Bin Laden family bank are war criminals. They should have been shutdown a long time ago. The arrogance of these investors is beyond belief. U.S. politicians as well as the judges are investors in these criminal organizations. For that reason alone, fraudclosures should have been halted a long time ago.

  36. Hey stripes

    Citi was originally owned and operated by Bin Ladens daddy.

  37. BTW…..I don’t give a damn about bank policy. They are felonious crooks who broke the law in the names of the American people. Therefore, their policies are a nullity and they wield no power in this country.

  38. stripes, I agree with E Tolle. Your posts are that of a whack or nut job and have nothing to do with the original editorial. I wish you would comment on the post at hand or complain elsewhere.

    People pass along stuff to take action or in a case I am personally aware of where a homeowner won a foreclosure dismissal and turned around and sued the bank, so that other can discuss merits to their case.

    The fiscal cliff is not germaine to this conversation, so yes, please…STFU!

  39. MS…the banking elite have a storm coming their way if they think they are going to force all us into bankruptcy in order to steal our property & therefore our country. There are enough of us who know the truth about what these crooks did to pushback and make a difference. The rule of law is the rule of law and it applies to everyone including the banks & their investors. The problem has been we were too uneducated to put up a fight. Well thanks to some really honest Americans, that is no longer true.

  40. I agree neidermeyer, the fiscal cliff and any new taxes are escalating tyranny & oppression by these traitor politicians. They should be ashamed. But they are greedy cowards too. It seems like these crooks want a reason to lock us up or shoot us. What a disgrace. They all should be impeached. We need to sue the pants off them.

  41. .The bank’s primary defenses against loss are its policies,
    procedures, and internal controls. These systems and guidelines are integral parts of the risk and insurance management program. They are only referenced and reviewed by bank personnel in times of crisis management

    Audit coverage insures the degree of controls that are followed. For example auditor controls require the Bank to adhere to a laundry list of provisos , as in the Protection Act of 1968 (12 CFR 21) (see Depositors Accounts examination procedures) directly relate to the risk management program.

    Banks we operating on a contraction or scale in opposition to what they are taught and must adhere to for averting risk

    People have little chance of prevailing in these cases acting out of rage and content for bankers.

    * *These deals were brought in a series of offerings through privately placed registrations that operated under the radar .

    ** Tax shelter schemes that cash out the value of the mortgages basis in assets and future value over a 10 year hold.

    ** B of A settles for Billions here and Billions there and throws out another few billion for this and a couple Billion more. for that and the point is – – If your going to step out on a limb , spend a few bucks hiring away SEC and FTC attorneys ….if you can afford it!

    But what I can assure the critics of banking’s elite is this:

    From 2001 onward s the chance to grow bank liquidity attributed to depositors accounts by over 10 times the book value of the Pool . These origination’s were half baked cracker jack sub prime label pools that were never sold but merely “Held for Sale” as short term assets

    Bring in all the sub prime production one can generate and allege to have sold the assets . Hence the mortgages held as 10 year IO 30 year paper was as good as sold and moved off the balance sheet .

    The ring of the sub prime bell became Pavlovian with a waterfall of capital to beef up your banks balance sheet while your partnering up with the elite central banks of Europe and Asia.

    In this post 89 S&L hell that left past Execs in Prison cells is a calamity driven by the domestic and international demand for 1, 3 and 6 month LIBOR and swaps for short term commercial debt. The value of a mortgage from 2002 through early 2005 was up from 1.05 to 1000 percent in just over five years.

    In conclusion I ask you to consider this subject matter my view and a perspective from personal experiences. . . Second is the problem with a no Buy back or recourse provisions for loans sold….do not forget the buyer and seller are ONE IN THE SAME!

  42. @ STRIPES ,

    You said “The fact is, the FED is in default to the Treasury in our names. ”

    You are EXACTLY right ,,and that is the message we need to inject into any “fiscal cliff” OR “deficit spending” argument we have on any other forums ..

  43. Christine – don’t know how that hummer’s going to end, but it was nice to see a court panel not have much use for a bankster. One thing seemed clear to me – B of A was trying to rip him and who knows who else off for the 22k he had paid by initially leaving it off their sworn figures; the judges didn’t like any of it out of the bank. I hope the court comes up with sound reasoning for the homeowner because in the absence of an agreement, it’s true that prepayment gets used for princ reduction. I’ll say this: I’ve seen a bankster attorney in a pro se C-7 bk (no one I know, just my old hunting I used to do) submit a proof of claim for a loan in an amt which exceeded its face amt by about 3 times and there is no stinking way. I figured he was creating a tax loss for his client.

  44. After so many people lost their house to Deutsche Bank, this comes as a good news. Is the banking edifice starting to crumble worldwide?

    http://dealbook.nytimes.com/2012/12/12/top-deutsche-bank-executives-ensnared-by-tax-evasion-inquiry/

    Top Deutsche Bank Executives Caught Up in Tax Evasion Inquiry
    BY JACK EWING

    FRANKFURT – After a raid at company headquarters, Deutsche Bank disclosed Wednesday that two of its highest-ranking executives are a focus of a tax evasion investigation, dealing a fresh blow to the German institution’s already battered reputation.

    German authorities are looking into whether bank employees conspired to avoid sales tax on the trading of carbon emission certificates. As part of that inquiry, prosecutors are trying to determine whether Jürgen Fitschen, the co-chief executive, and Stefan Krause, the chief financial officer, played a role by signing certain tax forms.

    Stefan Krause CFO Deutsche Bank
    On Wednesday, about 500 police officers searched Deutsche Bank offices in Frankfurt, Düsseldorf and Berlin, as well as private homes. Mr. Fitschen and Mr. Krause are among 25 people who have been ensnared by the tax-evasion inquiry.

    The police arrested five people, who were not identified. Those arrested did not include Mr. Fitschen or Mr. Krause.

    Deutsche Bank said it was cooperating with the authorities but added that it had already revised the value-added tax reporting in question. ‘‘Unlike the Public Prosecutor’s Office, Deutsche Bank is of the opinion that this correction took place in due time,’’ the bank said in a statement. It declined to comment further.

    Top executives sign many documents, and it was not clear whether prosecutors believed that Mr. Fitschen and Mr. Krause were knowingly involved in an attempt to avoid taxes. Prosecutors could not be reached for comment late Wednesday.

    The investigation will only complicate the bank’s turnaround efforts.

  45. Bloomberg news reporting….. U.S. HOME SEIZURES rise to 5.4% as banks adjust to foreclosure flow. Damned crooks…there is going to be a lot of turmoil out of this if these crooks aren’t stopped.

  46. The founding fathers are rolling over in their graves. Talk about rank injustice. The Federal Reserve Banking System is the biggest fraud ever perpetrated on the American people. I also heard it was F.D.R who took America off the gold standard, not Nixon. Nixon broke the Bretton Woods agreement and that is supposedly why he got impeached. The banksters are evil. Money is the root of all evil.

  47. In the documentary Plunder the Crime of Our Time they talked about AIG, the Bank of China, owing 6 or 7 hundred trillion dollars in cds insurance claims in 2008. That is ridiculous. The fact is, the FED is in default to the Treasury in our names. Imagine the liability. That is why the cover up continues. This fraud began in 1982 under whose watch…? Who was in charge of the Treasury in 1982….? I think it was Alan Greenspan. These damned politicians are a disgrace. I hear the house of Saud controls half of the U.S. stock market. I know they invested billions in CITI I think in 2007. These foreigners all got banking charters to rob the Treasury. It is the biggest treason in U.S. History.

  48. they also tell the investor that the loans may be found to be illegal and unenforceable in some states where issued.
    so what. disclaimers abound.
    they say they’ll do this, they do that instead. doesn’t matter. it’s illegal. REMIC tax law. can’t depend on the Treasury department to enforce it; if they do I’ll be surprised.
    @gault-I think that the waterfall (subordination) and the fact that the PRINCIPAL tranches (owned by the banks, super senior) were paid first, and defaults resulted in CDS triggers, there was never enough to replace the payment streams owed. after all this time no claim filed with the bond insurer. All the money taken on the front end.

  49. Too big to fail and too big to jail:

    http://www.huffingtonpost.com/2012/12/11/hsbc-too-big-to-jail_n_2279439.html

    Listen to the clip with Barofsky…

  50. About the bank charter. Loans can only go bank to bank. It doesn’t matter if Bayview claims to be an investor. The bank selling the investment had to have held title to what they were selling investments in, by legal assignment, otherwise that sale was fraudulent. That is racketeering…that is bank fraud by the bank.

  51. Sounds like they could be racketeering to gain unjust enrichment. Have you taken a look at your public property records….? Was there ever an assignment recorded? See if the bank recorded anything. The originator may have conveyed the title to Bayview & Bayview may reconvey the title back to the originating bank to try & create a chain of title for the Originator.

  52. Stripes, now we’re getting somewhere. Bayview is claiming to be the new servicer, do they have to have a bank charter to claim that status? I know they’re not real bright since they got the account number wrong, the loan amount wrong and after I sent a QWR to them they called me at 7:19 in the morning, again a couple days later and when I answered they would speak and then sent a couple of collection letters but haven’t responded to the QWR in violation of the FDCPA.

  53. Federal judges are giving the State of Illinois politicians 6 months to make a new gun law that will allow conceal & carry legal in Illinois like in 49 other States. Gov Quinn & Mayor Emanuel are freaking out..they don’t want it of course. They should think of it as a good way to deter crime IMHO..I don’t see the Wild West has broken out in the other 49 States. Time for Illinois to vote out these Democrats.

  54. I am really sick & tired of Piers Morgan talking about taking our guns away every night. He is not an American, he should zip it. The truth is, criminals will always find a way to get weapons. Criminals don’t purchase their weapons legitimately. If the price of freedom is to die defending it and our rights, then so be it. The Constitution said nothing about the right to bear arms should only be in our homes either…that is another dangerous lie.

    Amendment II ……A well regulated Militia, being necessary to the security of a free State, the right of the people to keep and bear Arms, shall not be infringed.

  55. @beau….. Plaintiff must prove at the onset of their Foreclosure action, a cause of action that is at least a casual connection between the injury and the conduct complained of – the injury has to be “fairly traceable to the challenged action of the defendant, and not the result of the independent action of some third party not before the court.” (Simon v. Eastern Kentucky Welfare Rights Org., 426 U.S. 26, 41-42, 1976).

  56. Okay beau…When did I say I have it worse than anybody else…? I certainly do not….I know a lot of people who are in a lot worse shape. I try to help anyone who asks. Bayview you say….? I have had my dealings with them in my business property fraudclosure. They are a third party debt collector. Go to your States Financial Professional Bureau of Regulations and look them up. They most likely don’t have a banking charter in your State.

  57. Stripes, yep, I knew your next approach was going to the “I’ve had it worse than anyone, poor me, etc, etc.” Ok, here you go (and only because you asked). I got an adjustable loan with Country Wide, fought with them to modify, got the mod. and (surprise) they breached it and I quit paying altogether. Then came BofA and the threats. Told them to foreclose if they didn’t like it. They went to a foreclosure mill and did just that. Started reading and asking questions in this forum. Entered into a three month trial mod. with the pending foreclosure pushed back a week at a time. The three month trial ran into six months. They kept “losing” documents.. Through information on this forum, I was advised that that type of behavior was normal and, being in a non-judicial state, I needed to file suit. I stopped making payments and filed suit. Went to the county recorder and pulled documents complete with docx robo-signed recordings and went to court. BofA balked at my mention of discovery and suggested we try to work things out. After negotiations and corresponding threats, BofA withdrew the foreclosure. They recently sold the account to Bayview and the process starts again. During this same time frame I was fighting with Citi over the second and made them go away, not to mention the cc folks. Additionally, and the cause of all of this was because the government closed my business and indicted me in an attempt to have me rat out half the world. After three years of telling them to kiss my ass, they offered a single misdemeanor and “thanks but we don’t want your help”. And so, I’m sorry, what have you been up to?

  58. [...] Filed under: bubble, CDO, CORRUPTION, currency, Eviction, foreclosure, GTC | Honor, Investor, Mortgage, securities fraud Tagged: ownership of bond, ownership of loan, ownership of note, recordation, Wachovia Livinglies’s Weblog [...]

  59. JG,

    Actually, I was pretty surprised by how much we fork up in taxes day in, day out. We don’t even think about it but everyone and his brother has his hand in our pocket.

  60. Yeah…..cry me a river Louise…..

  61. Yes, unfortunately the bad penny is back. She still is messing up this forum. I read some of the documents that came from the bank. There were not many, but it was long, very light in the color of its print and very small. I had to read it with a magnifying glass. It was an ” Asset Purchase” agreement and also the Trust Agreement that stated clearly that all assignments or other legal matters must follow the appropriate state law, i.e., all assignments must be filed at the county level in the Registrar of Deeds office or fill in the name for your state. Opp. counsel claimed that there was no Pooling and Servicing Agreement. I assumed that it contained the smoking gun.

  62. That was an interesting video. Sounds like another bankster gone wild and trying to take advantage of the little guy. No doubt this bank owes a ton of moolah on this guys loan and they are being strong armed by their investors. They are all dirty greedy criminal bastards. The bank is in default to the Treasury…case closed.

  63. First of all, beau….the question was for E. Tolle….How do you know what I have done to try & save this country from these crooks…? The truth is, I have fought more battles than you could even imagine. I am in the trenches fighting these crooks everyday and have been fighting every entity imaginable for at least the last 5 years. What have you done…?

  64. NG – I’m just so appaulled, it’s hard to believe that isn’t made up. I mean, I don’t think it is, of course; it’s just unbelievable. I recently got the tip of fas 125,was it, true-sale accounting, but I’m prob not going to be able to do anything with it myself, But, I believe they retained insurable interests, right or wrong.
    Anyone: I haven’t been able to get an answer: did the commitments to the tranches exceed the amt of p & i on the loans?
    Christine – thanks for the list of taxes. I’ve often wondered about those but never got around to hunting. Years ago, it cost an employer a little over a dollar eleven to pay an employee a dollar and that was w/out health care. It was fica,, st and fed unemployment, and I forget. Just now, I don’t actually believe in raising taxes on the wealthy or anybody.
    I believe in things like audits and for the U.S. to stop paying foreign
    defense contractors 20.00 an hour for locals they pay 1.00 an hour.

  65. stripes, the problem is that you remind me of the citizens of South Park in the comedy of the same name. When there’s an issue all they do is stand are and go “rabble, rabble, rabble” without really doing anything about the problem. I’ve been on this forum for years (and been helped immensely by people who are here to actually help) and yelling “commie” at everybody really doesn’t do jack.

  66. Is the microchip in Obamacare…? Your damned right it is. The media is completely mum….It is criminal to conceal the true facts of that law. Even creating a healthcare law is completely communist. These politicians are way out of bounds mandating laws through taxes…..and the Supreme Court justices are a disgrace for going along with it.

  67. LOL…crawling back from the depths of the truth is more like it. It’s like the Book of Revelations has come to life. I have never in my life heard as many horror stories as I have heard in the last 4 years. These people must all be crazy or lying… ? Yeah right. Defamation of character may not be a crime but, if tons of people were blasting me day & night on a worldwide forum, & it wasn’t true, I would at least want to address some of these issues and clear up these accusations. These are serious accusations. Millions of Americans believe there has been a coup de tat of our Treasury & these people are communists. This is a horror show.

  68. Matt Weidner is one of my heroes. I love his honesty and a few others like Neil. Thank You.

  69. What exactly is it that I have said that bugs you so much E Tolle…? I am very mild compared to some bloggers….I know you are a troll but why am I such a threat…? This stuff is not a secret. It does not really matter to me what agency you work for, what you are trying to do is despicable …. lying is the scourge of humanity. Why not let people do their own fact checking instead of blasting me….? I don’t really know why you want me off of this site. Most of the people who visit here already know this stuff is all true.

  70. Someone with common sense and a heart. Hopefully politics won’t rot him too soon…

    http://www.governor.ny.gov/press/12122012banksmortgageexpediteinsurencehomeowners

    Andrew M. Cuomo – Governor
    Governor Cuomo Announces Banks and Mortgage Servicers to Expedite Insurance Payments to Homeowners
    Printer-friendly version

    Measures Will Eliminate Bureaucracy Preventing Homeowners From Receiving Insurance Funds

    Grace Period on Mortgage Payments Also Extended an Additional Three Months

    Albany, NY (December 12, 2012)

    Governor Andrew M. Cuomo today announced that major banks and mortgage servicers will take action to expedite insurance payments to New York homeowners. Currently, insurance claim checks must be endorsed by the banks or mortgage servicers before homeowners can cash them, causing frustrating delays at a time when the money is needed for home repairs or for living expenses. These new actions will enable the insurance companies to get the money to homeowners faster.

  71. Posted on youtube by Matt Weidner. That pro se has guts! And brains! Watch him go against B of A.

  72. So, didn’t New century, Countrywide, MaWu, Chase, RBC…the list is very long of those who misled investors, homeowner’s, etc…and “intentionally” lied about their condition and the LOANS, they sold, over and over again.

  73. Funny how the culprits keep accusing each other of the same misdeeds and yet, nothing appears to change. Is this the new game in town? Everybody, screw everyone else! When it starts smelling for you, create a diversion by pointing out how much more stinky it is on the other side! The fact is that, wherever shit comes from from, the more you move it, the more it stinks… and throwing it around doesn’t make it any better.

    BofA’s Suit Over Taylor Bean Fraud Allowed by Judge to Proceed

    2012-12-12 — businessweek.com

    “Bank of America sued in federal court in Washington in October 2010 after the FDIC denied the bank’s claims against Colonial Bank and another financial institution in receivership that bought fake mortgages from Ocala Funding, according to the complaint.

    The bank “alleges that Colonial actively concealed its own financial condition, as well as the financial condition of TBW and Ocala, and that these misrepresentations allowed the fraudulent scheme to continue undetected for at least seven years,” Rothstein wrote. ”

  74. Well E

    There are a few postings here that look vaguely familiar, even with name changes.

  75. While censorship’s against the first amendment, tossing a loud-mouthed whack-job off of a private website is not. She’s gotten a well placed boot before, and is overdue for another swift kick.

    Neil, or Dan, if you’re reading this, WordPress has an IP ban plugin that will keep her from continuing to crawl back up from the depths of her tortured insanity and landing back here on LL. Do us all a favor…..nip her diatribe mid sentence. The world will be a much better place.

  76. Listening to Bernankes ramblings on CNBC…he’s mumbling a lot about the dangers of the fiscal cliff & some other threats. Blah..blah..what an evil little extortionist.

  77. Sure sounds like commie crapola….quiet the slaves….the red Chinese business model ….

  78. Now, now E. ToLLe..censorship is against the First Amendment.

  79. E TOLLE……LMAO….ARE YOU COMMENTING FROM RUSSIA OR CHINA……?

  80. I’m simply looking for the petition that will finally shut stripes the fuck up.

  81. My local news reporting….In a survey…..CHASE is #1 in customer satisfaction …..

  82. I agree we need ideas but please don’t insult my intelligence by suggesting signing petitions at .Gov websites is going to stop these crooks. The local news reported today that Walmart security guards are shooting & killing shoplifters… therefore, I am staying the hell out of these Corporate stores for good.

  83. IMHO beau, this has everything to do with fraudclosure…..what good does it do to stay silent…? The FED robbed us via WALL STREE and the TRAITOR POLITICIANS turned around and handed the U.S. TREASURY DEPARTMENT TO THEMSELVES & THEIR CRIMINAL INVESTOR FRIENDS ON WALL STREET… FOR FREE…. these CRIMINAL FELONS are invested in everything WE THE PEOPLE PAID FOR….& if I believed everyone already knew this….I wouldn’t be wasting my time.

  84. Right on stripes

    The government has aided and abetted these crimes. What hope is there when the government is participating in the crime?

  85. Stripes, all good points but what good does it do to “preach to the choir”? The more this issue is placed square in the face of the folks not on this forum the better.

  86. This is all about creating a global Wall Street slave plantation. These Fed & Bank investors want everyone working for spit…on their Corporate Wall Street Government slave plantation that they created via MASSIVE CRIMINAL FELONIOUS WALL STREET FRAUD….these scummy politicians have allowed these Central Bank crooks to hijack the Treasury…and all of our small businesses, pensions, livelihoods, utilities, natural resources, food healthcare, wealth & property.

  87. We are all going to wake up broke & homeless one day soon..Max Keiser says April will be the end of freedom & independence 8n America. These foreign & domestic crooks are going to seize it all. These politicians are all the lowest form of life. I was watching Debbie Wassermann Schultz being interviewed by FOX news….these politicians are absolute, complete communists disguised as they give a shit about the people…..they don’t……at all.

  88. Think about this..Wall Street has received $50 trillion + in bailouts & 20 million fraudclosures since Obama became President….and now they want to tax us $16 trillion more….? & the media isn’t sounding the alarm bells ….! No…they are telling the politicians to RISE ABOVE D.C…& tax us into complete communism…..!

  89. I don’t believe the politicians are going to pay any heed to any petition against Wall Street or the Banks because they are Wall Street & the Banks. These traitors handed the peoples wealth….the U.S. TREASURY over to the FOREIGN & DOMESTIC INVESTORS….OBAMA NATIONALIZED THE TREASURY TO THE WALL STREET CROOKS WHO ROBBED US.

  90. Folks, just an FYI….I don’t know if I’m the first or only one to do this but I filed a petition at We The People that calls for criminal prosecution of the big banks and wall street for their fraudulent dealings. It needs 25,000 signatures to get some traction, so go sign it and lets kick some a$$. https://petitions.whitehouse.gov/

  91. That’s right Christine… 70% or more of our income is a fraudulently induced tax….the politicians have turned everything into a tax for the benefit of themselves & the investors……their criminal friends on Wall Street. The mortgages….the utility bills….the credit card bills… the car payments….the insurance payments…..even our food bills…..WE THE PEOPLE pay for all of it upfront & these investor crooks…both foreign & domestic, pocket all of the payments as USURY….& THEY DO NOT PAY FOR ANYTHING…! They invest in everything we pay for…IT’S A TICKET TO RIDE….ON THE BACKS OF THE AMERICAN PEOPLE…

  92. CNBC reporting Lloyd Blankfein says…. American austerity is coming….with tax hikes that we all will have to pay.

    That’s right America….BLOG THIS EVERYWHERE….these lousy rotten traitor politicians are going to bankrupt the America people to pay for the crimes of Wall Street. The FED & BANK INVESTORS have been planning on doing this for decades …..Make no mistake, these criminals fully intend to seize all of our wealth and create complete communism. Make no mistake, these are their evil plans…& ALL of these traitor politicians are invested in it….They will get filthy rich off of the fraud of creating complete communism in America. That includes the Obama administration…….This is what Obamacare is for… they will completely control us through their microchipped technology…they are already doing this to a large extent but, it is going to get much worse and much more oppressive. This is why they want our guns.

  93. The whole piece wasn’t all that interesting but here is an except worth looking at.

    Taxes, anyone? I’ll take mine… rare.

    Washington, D.C.
    ..HELLO!
    Are all the calculators broken??

    Building Permit Tax
    CDL License Tax
    Cigarette Tax
    Corporate Income Tax
    Dog License Tax
    Federal Income Tax (Fed)
    Federal Unemployment Tax (FU TA)
    Fishing License Tax
    Food License Tax
    Fuel Permit Tax
    Gasoline Tax
    Hunting License Tax
    Inheritance Tax
    Inventory Tax
    IRS Interest Charges (tax on top of tax)
    IRS Penalties (tax on top of tax)
    Liquor Tax
    Luxury Tax
    Marriage License Tax
    Medicare
    Tax
    Property Tax
    Real Estate
    Tax
    Service charge Taxes
    Social Security Tax
    Road Usage Tax (Truckers)
    Sales Taxes
    Recreational Vehicle Tax
    School Tax
    State Income Tax
    State Unemployment Tax (SUTA)
    Telephone Federal Excise Tax
    Telephone Federal Universal Service Fee Tax
    Telephone Federal, State and Local Surcharge Tax
    Telephone Minimum Usage Surcharge Tax
    Telephone Recurring and Non-recurring Charges Tax
    Telephone State and Local Tax
    Telephone Usage ChargeTax
    Utility Tax
    Vehicle License Registration Tax
    Vehicle Sales Tax
    Watercraft Registration Tax
    Well Permit Tax
    Workers Compensation Tax
    (And to think, we left British Rule to avoid so many taxes)

    STILL THINK THIS IS FUNNY?

    Not one of these taxes existed 100 years ago…
    And our nation was the most prosperous in the world.

    We
    had absolutely no national debt…
    We had the largest middle class in the world…
    And Mom stayed home to raise the kids.

    What happened?
    Can you spell ‘politicians’!

  94. Please allow me to add….this is not debt……these were promises made to investors that the Govt Corp cannot possibly keep. The Quadrillion in debt Wall Street created off of the backs of WE THE PEOPLE was oversold and is unsustainable. Besides…..they all made quintillions & got $50 trillion in bailouts…AIG CREDIT DEFAULT SWAP INSURANCE……20 million fraudclosures & the FED owes the AMERICAN PEOPLE QUINTILLIONS in ORIGINATION FRAUD & USURY……

  95. We are nuts to be doing business with these crooks. I understand people need to eat & pay bills but, treason is treason.

    Bloomberg news reporting, Sen McConnell said today …Suddenly, it’s all “tax hikes” in Obamas offer. Oh boo hoo…why haven’t they impeached him by now…? Harry Reid said the tax hikes have to happen…! yeah right….Just say it…..the investors want it all…
    I say tax revolt and boycott the crooks. The movie Obama 2016 warned these politicians were going to tax us at 100% of our income in the traitor’s second term. The obamanation is coming & no one is going to like what these traitors are planning. Not the judges or the attorneys. This is complete communism being installed right before our eyes under the disguise of debt that WE THE PEOPLE ALREADY PAID……..WE WERE ROBBED……THIS IS DEBT THE GOVT CORP OWES….

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