Investors Are Starting to Understand How They Are Being Screwed — Just Like Borrowers

Hat Tip to Dan Edstrom in Northern California, our senior securitization analyst for finding this report.

Investors Have Had Enough!!

“If Citibank wants to settle with the Justice Department and [Attorney General] Eric Holder, that’s fine. Just please don’t settle with investors’ money. Because that’s whose money it is,” Fiorillo says. “It’s not Citibank’s money. I’ve said it 100 times and I will continue to say it. I am now leading a louder and louder chorus with people who have had enough of this.”

See Links Below

I know this stuff isn’t easy, but managers of pension funds and hedge funds and other such mutual or discretionary funds should have realized that the Banks were “settling” claims against the Banks with investor money. And if they dig deeper they will find two things:

1. That the Trusts were unfunded, the loans were not secured and the appraisals and terms were manipulated to close rather than to assure payment as promised to the investors.

2. That underneath this mess, the banks actual profits offset their claimed losses 100:1 — THAT money belongs to the investors as well — or it is owed back to borrowers as undisclosed and fraudulent proceeds of fake transactions. (See TILA and RESPA). In this case it should be accompanied by treble damages, interest, return of all payments, and disgorgement of all undisclosed profits arising out of each “closing.” These things WILL happen, but only when investors and borrowers join hands directly and compare notes.

For the first time major players representing the investors in the Great Mortgage Bond Sting are speaking loudly and uncensored. They don’t like losing money and they don’t like settlements in which investor money is used to pay the fines and penalties. They DO like modifications which are preferable to costly foreclosures but that is not good for servicers and lawyers who DO want foreclosures.

And under all of this is a simple fact — nearly all the borrowers would sign a real mortgage or deed of trust that did not involve fraud or fabricated documents. Investors are just starting to realize that the borrowers have been fighting a battle that inures to the benefit of investors — pointing out that the servicing companies and trustees and lawyers are all acting under fictitious powers from fabricated documents that exclude the best interest of either the investors or the borrowers.

After sounding like a broken record for 7 years it seemed that nobody would listen to me — at times — but persistence is my strongest suit. Those loans are NOT enforceable just as has been consistently alleged in the investor lawsuits and the suits brought by insurers, government agencies, law enforcement, and counterparties to hedge contracts. The Banks never owned the loans  but they pretended to own them as long as they could make money pretending to own them. The Banks never owned the Bonds, but that hasn’t stopped them from selling $3 TRILLION in bonds to the Federal reserve.

And because arrogance that succeeds breeds escalating behavior of the worst kind, the Banks who committed atrocities in the financial world are settling — using the money that investors gave them for a return on their investments so they could continue to pay pension benefits to pensioners.

Maybe it will be sooner rather than later when the obvious solution is finally adopted. When investors and borrowers find a different way of getting together — rather than through servicers who are aiming to screw both sides in foreclosures that are wrongful fraudulent, illegal and immoral. The only winner in foreclosures are the intermediaries. The real parties in interest both come out losers.

http://archives.financialservices.house.gov/media/file/hearings/111/testimony_-_fiorillo_4.14.10.pdf

http://www.nationalmortgagenews.com/news/regulation/government-mbs-settlements-leave-private-bondholders-unsettled-1042165-1.html?utm_campaign=daily%20briefing-jul%2018%202014&utm_medium=email&utm_source=newsletter&ET=nationalmortgage%3Ae2837381%3A560364a%3A&st=email

15 Responses

  1. Correction. Stock up on NON parishable foods and fierwood. That one missed word changed the entire meaning. Watch the Energy Markets. The Dirty Hands New Playing Field. You see how they left the housing market.

  2. I see that after all these years ML you still don’t get it. Its not about Christine. Its about Disclosure. You lost your condos over 10yrs ago. You didn’t even know usa then. Anyone who tells you anything but what you want to hear is satanic according to you.. Have you noticed that pattern/habit? I have. You did it to all the legal eagles here. Stop It! Stay focused if you want to know the Truth and Stop the Blaming Game!

  3. @ MY COOKIE JARS
    if you want to defend Christine that is your choice.
    She has zeroed in on peoples cases when she doesnt know all the facts . bECAUSE OF HER BANKING AND GOVERNMENT knowledge it makes it all the more harmful.

  4. The other countries are fed up to we lost the Gentlemans Agreement with the World Bank inn 2010. They have new trade agreements, and banks. They are leaving the US petro dollar. Stock up on parashable foods and firewood. If you’ve never gardened, now is a good time to learn. Learning a 2nd language is advisdable. When they don’t accept dollar payment and you have no gold, you don’t get goods. When they ran out of gold they used the land … Get It?

  5. No! She is just pissed about our Gov decisions they are making for us but not disclosing it to us. You would be to if you looked beyond the FCs. Why 8 million familes were sacrificed for the benifit of the US? What God gave them the power to choose who? I mean really, betting on our defaulting? For Gain? Unjust Enrichment? Intentionally defaulting us because if they didn’t … Well let’s just say that would leave them losing the bets and having to pay instead of collecting. Think about it!

  6. I don’t think that at all. I THINK SHE WAS A NASTY PERSON AND WANTS TO SEE THIS GREAT COUNTRY OF OURS FALL.

  7. Good grief ML! Attacking Christine when she can’t defend herself. Says a lot about you. She was one of the most Truthful People here! Harsh but Honest! You just couldn’t except the Truth.

  8. Good read on Wachovia / Wells as investment fund custodians trying to Kalicki a mentally infirm client – http://www.courts.ca.gov/opinions/nonpub/B251980.PDF

  9. In NYC they have a saying they will kill for a closet. To me this is too true and why i go to the police over and over about the downstairs tenant having electronic harassment devices including an ADS gun
    microwave gun and an Electric magnetic pulse EMP.

    Why should anyone be allowed to have this in their possession especially a felon I never heard of this stuff till i and my dog were getting zapped Just like I had to fight back against my fraudulent foreclosures many years ago most people had no idea what i was saying.- look how different it is today thanks to all the fighters on the
    internet.

  10. Bill Black is so right. The more you look the more you see.

    Aside from the financial riboffs, there is a sadistic nature to the people who joined
    the bad guys of this massive fraud. I see it in the nature of the attorneys, and the judges who made this happen to our country.

    I am again seeing it in the people running my REIT, from the leasing agent who has two felonies for credit card fraud and how he is the one who takes everyones social security numbers and all the renters financial information .

    I see it in the tenant they put in below me that has a very sadistic nature, IT IS THE TENANTS SADISTIC NATURE THAT MADE ME NOTICE and start checking his background

    It is the same sadistic nature I saw in Christine that made me notice her. It is one thing to fight back against your enemy but entirely different to get pleasure in hurting and joyous in ruining another persons life. Look back into the players that have interfered in your life
    And you can separate those with a survivalist nature and those with absolute meanness. I hope to get my properties back if these two the leasing agent and the tenant downstairs doesn’t kill me and my little dog before. Now that all my financial info and social security have been stolen they have accomplished the first part of their plan and that is to steal my property I have fought so long and hard for.

    When I came to this REIT I was very much into the fight and would say to everyone I will get my properties back. And my mistake was saying it to the leasing agent cause when I said it to the leasing agent he said “I could use one of them” and his attitude since then was to get a lien against me .

  11. they are making too much money in the market to care at this point

  12. Neil, how do we find out who the investors are for the alleged trust that is foreclosing on us. If you look at the 8K or 10K filings the investors are listed in code. Does anyone know how to decipher this code?

  13. e:mailed Vincent Fiorillo at doubleline …..

  14. With OCWEN’s settlement OCWEN is paying only about 6½% of the total fine… they’re hitting investors for all of the rest … SCUM
    **********************
    “Ocwen agreed to pay $127.3 million to the CFPB, while $2 billion is to be paid by investors in the form of principal relief given to distressed borrowers over three years. “

  15. I have always said that it would take the rich guys to want their monies in order to solve this mess, and with Blackrock suing it starts that cycle. Neil just said that the Fed purchase $3 trillion in mortgage bonds……wake up it the Fed involvement that allowing this crap.

    The Fed is the regulator for the bank holding companies, who are the parents of the banks! When the regulator puppet is put in charge at Treasury in Giethner and then followed up by Citi own ingrown clown in Lew, but before these two clown was a CDO making Paulson from Goldman!

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