What the Media is Missing About the “Securitization” of “Mortgage” Loans

The Banks called it “The Hustle”. So why is anyone thinking it was anything other than a hustle?

Judges need to reconsider their positions. They need to make the choice between their false perception of a “free house” and a “get of jail free card.”

The plain facts are that those so-called REMIC Trusts do not and never have existed as operating entities. They exist on paper and have no legal significance because they never were in operation. It is not just that the paperwork was fabricated, back-dated and forged. It’s that the presumed transactions never happened. That is why Adam Levitin refers to it as “securitization Fail.”

Schedule A Consult Now!

=================================

Coming soon —- automated direct access to our calendar where you schedule your own consults.

WE HAVE REVAMPED OUR SERVICE OFFERINGS TO MEET THE REQUESTS OF LAWYERS AND HOMEOWNERS. This is not an offer for legal representation. In order to make it easier to serve you and get better results please take a moment to fill out our FREE registration form https://fs20.formsite.com/ngarfield/form271773666/index.html?1453992450583 
Our services consist mainly of the following:
  1. 30 minute Consult — expert for lay people, legal for attorneys
  2. 60 minute Consult — expert for lay people, legal for attorneys
  3. Case review and analysis
  4. Rescission review and drafting of documents for notice and recording
  5. COMBO Title and Securitization Review
  6. Expert witness declarations and testimony
  7. Consultant to attorneys representing homeowners
  8. Books and Manuals authored by Neil Garfield are also available, plus video seminars on DVD.
For further information please call 954-495-9867 or 520-405-1688. You also may fill out our Registration form which, upon submission, will automatically be sent to us. That form can be found at https://fs20.formsite.com/ngarfield/form271773666/index.html?1452614114632. By filling out this form you will be allowing us to see your current status. If you call or email us at neilfgarfield@hotmail.com your question or request for service can then be answered more easily.
================================

THE FOLLOWING ARTICLE IS NOT A LEGAL OPINION UPON WHICH YOU CAN RELY IN ANY INDIVIDUAL CASE. HIRE A LAWYER.

—————-

Pennymac and CW

http://fortune.com/2012/10/02/countrywide-its-baaack/

http://www.nytimes.com/2014/08/24/business/an-unfinished-chapter-at-countrywide.html?_r=0

“High Speed Swim Lane,”<<< another term for “The Hustle” which was run by Rebecca Mairone .

http://www.bloomberg.com/news/articles/2014-07-30/bank-of-america-s-countrywide-ordered-to-pay-1-3-billion

Even investigative journalists are missing the obvious. Either they lack the knowledge to report correctly on the subject or they have been instructed to stay away from Wall Street corruption. The plain facts are that those so-called REMIC Trusts do not and never have existed as operating entities. They exist on paper and have no legal significance because they never were in operation. An empty trust has no legal significance.

It is not just that the paperwork was fabricated, back-dated and forged. It’s that the presumed transactions never happened. That is why Adam Levitin refers to it as “Securitization Fail.” And that is the whole reason for fabrication, forgery, backdating and robo-signing of documents. If the transactions were real, nobody would have needed to go to DOCx, LPS (now “Black Knight”) et al to create the documents that created the illusion of reality.

The questions that have NOT been asked include but certainly are not limited to the following:

1. How could the Big Banks be carrying bad loans on their balance sheet? AND the corollary question is how they could be the seller of those loans. The answer is that they cast themselves  as the seller of loans so they could book “trading profits” on loans where they were not the lender. In doing so they were asserting positions that were diametrically opposed to the positions taken in foreclosure actions — that the “lender” was whoever is on the note and mortgage. So on one hand the TBTF banks are asserting they made the loans, they own the loans and they were losing money as a result of non-payment by the borrowers and the other hand they are having their puppet players assert that they are the lenders who originated or acquired the loan. Which is it? ANSWER: NEITHER! The banks used the money of all investors from a commingled fund undifferentiated by any of the Trust acronyms, and then claimed whatever was convenient. And nobody is talking about this crime. The investors are the ONLY parties with an equitable claim for payment but are not protected by either the false note or false mortgage — both of which were converted to the apparent ownership of dozens of players who participated in this scheme. In the meanwhile the Banks and servicers are eating away at any semblance of recovery for the investors by asserting improper claims for fees, costs and advances.

If you sit down with pencil and paper you can understand that by hiding a 10% APR loan in a 5% APR portfolio they were able to “sell” the loan to the “trust” — on paper without any consideration — and book a false “trading profit” equal to the amount of the loan. Do the Math. The media is either ignoring the truth or don’t understand it.
Those trusts were never active, never got any money from the sale of their “mortgage backed securities”, never had a bank account and never had a financial statement, which on the reporting trusts would have been filed with the SEC. Instead they filed rule 15 forms saying they had nothing further to report.
They are hiding behind the cloak of another part of that rule that says reporting can stop when the number of investors falls below 300. But these trusts never had more than 300 investors at inception or any other time. They only filed on some of the trusts to give the appearance of propriety when in fact the BANKS were taking the entire proceeds of the sale of the mortgage backed securities issued BY THE TRUSTS and pocketing it. Then they used only as much of the Investor money as was necessary to give the appearance of a loan pool that was originated or acquired by the trust when no such transaction ever occurred. In short the were treating the offering of MBS issued by the Trust as though it was offering of the Bank. The “Trust’ was merely a 100% controlled entity of the Bank existing only on paper and not at law.

2. The same logic applies to the sale of the mortgage backed securities. The banks were not buying them, they were selling them. So the entire “loss” myth is merely a continuation of the fraud the Banks perpetrated on the investors and then the borrowers — violating the law and creating the illusion of a lender who was really not the lender.

That is important because it violates the federal law against the practice of table-funded loans. But more importantly, a party who does not loan money to a borrower has no right to be on the note and mortgage. And parties who make claims based upon the note and mortgage are really pursing their own interests and thus perpetrating a fraud upon the court, contrary to the interests of the investors whose money was procured by trick and deceit.

Lately some court have started allowing discovery to pursue this “theory” of the defense. The Banks are screaming. Enforcement of those discovery orders would reveal the true nature of the largest economic crime in human history. And the assumption expressed by many judges in open court that these are things that can be worked out by the parties later is belied by the fact that the Banks are continuing to steal what is left of the investments.

That “assumption” by the court is legislating from the bench and in direct conflict with Federal and State law regarding lending and property.

That assumption by the courts has opened a door to moral hazard that is wreaking havoc already on the West Coast and undoubtedly will soon be seen on the East Coast — total strangers discovering apparent debts owned by consumers in all sorts of loans, sending the “borrower” notices and then pressing for collection or even foreclosure. That is exactly what was revealed in the San Francisco, Osceola and dozens of other studies. Judges need to reconsider their positions. They need to make the choice between their false perception of a “free house” and a “get of jail free card.”

16 Responses

  1. I kid you not, on the eve before closing arguments for a jury trial in my Unlawful Detainer, the judge came out of his chambers to help the opposing counsel (trying to evict me) edit his Special Jury Instructions!
    I mean the judge was a foot away from me editing with his pen, the opposing lawyer’s special jury instructions!

    I am still pro se and watched it all with amazement. It was incredible.

  2. Ian, I have been through 4 lawyers. I have doubts about the current one, but I think the problem is that the lawyers as stated in a comment above by Dwight J is possibly the true problem. There is a good ole boys network, and the Bar Association of each state apparently is part of it. None will take a stand for right, and truly fight back against these liars trying to foreclose. I believe the lawyers have either been intimidated, or maybe threatened – with character assassination or isolation from their peers – or they have maybe been paid off or promised work. The LAST thing I want to believe is that they are incompetent, but that is a possibility. If so, I am embarassed FOR them that they would let a bunch of criminals outsmart them and do what looks to me like racketeering. And if I were an ethical lawyer in the midst of this, I would not want my reputation sullied by association with all this going on, to the extent that I would have to make it my own personal battle because that is the only way to protect the ETHICAL lawyers’ living. My own mortgage loan has at least 3 characteristics of fraud in it, that one lawyer who DOES understand SOME of the crime, O.Max Gardner III, grandson of a previous North Carolina Governor, O. Max Gardner, has in his list of loan fraud indicators that can be found online. That list indicates the likelihood that the lender or bank has committed fraud with respect to the mortgage. And unfortunately Mr. Gardner is sick himself, physically, he practices in the Western District of our state (I am in the Middle District) and he only files Bankruptcy. So still not a “real” foreclosure defense fight, and he is having to slow down some with respect to holding his “boot camps” where he is trying to educate the lawyers to even file Bankruptcy. I read where Mr. Gardner also usually files an Adversary Proceeding with the Bankruptcy (I THINK that is right, both are done together as part of the Bankruptcy). I would like to know what grounds he uses – my 4th and current lawyer can find nothing we can go after the forecloser for to contest the foreclosure with, nor could my 2nd or 3rd lawyers. Deutschebank is claiming to be the real party as Trustee for a Morgan Stanley trust, and the Servicer SPS Servicing (old Fairbanks Capital) filed the foreclosure claiming to have a Power of Attorney for the trust, although a copy of that was NOT filed with the Register of Deeds in our county when the foreclosure was filed. The 2nd lawyer let the pretender lender continue with foreclosure when the lender had not filed the assignment before starting the foreclosure – the 3rd lawyer pointed that out to me. That is a fatal defect in other states. In our state it seems the loan contract is the ONLY thing that matters – if the homeowner cannot pay the homeowner has breached the contract – game over. The lender only has to be a “Holder” of the paperwork, has to prove no real financial interest, and can show up claiming to be a bank or known mortgage lender, file notarized robo-signed paperwork and succeed in getting a foreclosure ruling and sale date from our Clerk of Court. (Who happens to be a lawyer himself and an Administrative Law Judge!) NONE of the problems or other states’ rulings re securitization of the loan count at all here, or have any sway in court, no matter the results in the other states. I believe there is a lot rotten in Denmark, or the state of North Carolina in my case, and am seriously thinking of moving to at least a judicial state where there are some KNOWN fighting lawyers.

  3. Well, of course they lack integrity…lacking integrity is the only way to really get ahead in this slave system we all live under. As they say—scum floats to the top. The biggest prizes and rewards this system offers, ALWAYS go to the most corrupt, most psychopathic, most immoral and most evil alleged members of society.

  4. DwightNJ-
    Yes I am aware that the legal profession is populated w fakes, pretenders, incompetents, and those who will lie to a client just because they see an easy source of fees, while having no interest or knowledge of the subject for which they are being hired. (Foreclosure defense)
    Furthermore, so many attorneys believe that the homeowners are “deadbeat borrowers” and the financial industry approaches sainthood in the view of the legal profession. I don’t know if this is because they watch so much TV, or because they have no critical thinking skills, or because they are easily led by others, or being as they spend their lives reading and following what others write(laws), that they have never had an original thought? I toss these things around in my head continually.

  5. Unfortunately, your lawyer is/or does not get it. I hope you have the funds and time to appeal your case.

  6. Tonycat-
    That is alot
    To
    Swallow. Is
    Your atty competent?

  7. In our nonjudicial state of North Carolina, the ONLY thing that matters is we homeowners had a contract with the “lender” and have breached it. NONE of the securitization fail arguments that the current holder(s) of the paper or their agent acting to foreclose for them (agent being the servicer, SPS) mean anything, nor can securitization problems be used as a defense by us homeowners. Robo-signing is only a technicality, too, filing the paperwork years later is common so is OK actually, according to our lawyer. Presumably this would be the same case with notarizations by notaries whose commissions have expired by the time the paper was backdated and filed. It does not matter that neither the third party debt collector (the servicer – SPS) is NOT registered with the Secretary of State’s office to do business in this state, has not been for years, nor is the previous servicer Bank of America who was also the lender after acquiring our loan from Countrywide. Bank of America happens to have their home office in this state, provides a lot of business financing, and so I guess that is the reason the usual rules do not apply. In our state a debt collector, such as the third party debt collector mortgage servicer, is also required to be registered with our North Carolina Department of Insurance. Haven’t seen any evidence of that on Bank of America or SPS paperwork,either – usually this is stated there along with a license number. But I am being obliged to allow the servicer – SPS – to foreclose as a “holder”, as agent for Deutschebank, and a Deutschebank employee not an SPS employee showed up for the foreclosure hearing, claiming they were representing the lender. Does anyone besides me see anything wrong with this picture? Yet our lawyer cannot find anything wrong with all this, the transfers, they don’t matter, everything is supposedly in order and we cannot find any grounds to contest this or stop the loss of our home. And I do not know who to trust anymore.

  8. As with anything you need that example and at the start of the financial crisis was Washington Mutual Bank (WaMu) that was a ‘failed bank”! 1.3 million Ginnie Mae pooled loans that on Sept 25, 2008 no longer have a party that holds a debt because WaMu does not exist.

    Neil talking about reporters when this dude does not read any of these comments dating back several years! Neil and other first kept up this house for free when homeowners have paid year of principal & interest payments is a two party contract.

    One cannot vote or petition the court if they are dead!

  9. Louise- can u pls provide a link to that article? Thx

  10. We should all write to Citibanks treasury secretary LEW. It would be a start. Neil draft a letter and we will all send it in unison

  11. Get the judges financial statements dated from 2007- present. Believe me you will see that there’s all bank stocks in their portfolio, additionally just like the teachers pension funds, they are all attached to REITs so are the judges pensions

  12. Here’s a good example of fraud : Rali series trust registered in the State of MN as they claim to the SEC ? Not true..! No Declaration of Trust for the entire Rali Series was ever filed in MN, which has been confirmed by the MN Secretary of State. If there is no Declaration of Trust then there is no Trust.

  13. TBTF is code for government corruption
    The Judges chose the side of evil for what think is gonna save their pensions

    Obama is the Evil Haman. Who brought Trump upon us
    NEVER AGAIN

  14. I just read an article that states something to the effect that the “scam” is so big and out of control, nobody knows how to deal with it??

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: