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Is it identity theft or invasion of privacy?

They have stopped calling the certificates mortgage  bonds because they have nothing to do with the mortgages and they are not bonds.

Hat tip to “Summer Chione”

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This is a very good article that was written as an email. My compliments to the author.

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However, after additional analysis and reflection I think I have come to a different conclusion regarding identity theft by the banks. The securities that were sold were merely based upon data reported by the investment bank in its sole discretion — meaning the issuing investment bank (masquerading as an underwriter) could say anything it wanted and everyone else (including counterparties to hedge and insurance contracts) were contractually bound to accept such pronouncement.
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The actual asset that was securitized was the proceeds of a bet about the value of the fictitious portfolio or data arising out of specific events. All this was done under cover of a scheme in which the certificates that investors purchased were originally labeled as mortgage bonds. They have stopped calling the certificates mortgage  bonds because they have nothing to do with the mortgages and they are not bonds.
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As part of the illegal scheme they pretended to own the debt, note and mortgage of homeowners when in fact nobody did own it. And to corroborate the erroneous presumption that the loans were being acquired through purchase and sale they added personal information about the individual homeowners. So the securities were sold but apparently not the identities. And the identities of homeowners were not actually turned into any sort of commodity.
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So my current opinion is that, without consent of homeowners, they were name dropping and they were distributing confidential personal information to those who had no actual need to know that information, because the “investors” (i.e., victims) were buying into certificate accounts that conveyed no right, title or interest to any debt, note or mortgage.
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This means that if a claim exists it might be invasion of privacy. Such a claim would also highlight the fact that securitization of loans does not in fact exist.
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The following is Summer’s article:
=========================

CoreLogic is much more dangerous than you think. 

 

CoreLogic  is a Grey Lord of Black Knight (Fidelity Financial) and Investment Bank whose duty is to PUSH YOU in foreclosure by any possible means. They also manipulate your data in their system and prepare forged documents in foreclosures. 
Black Knight and CoreLogic are the actual  parties who originates and services your “loan” from money provided them by Investment Banks. 
 
All others are scam. So, don’t try to understand how default debt buyers like Truman Trust or Lone Star or BlackRock got your loan as “default debt”. They never did. 
 
They merely entered their password on Black Knight/CoreLogic’s system where information about your loan is listed as “defaulted” 
 
I use Rubic’s Cube as a sample to illustrate how Black Knight’s system works, just to visualize .
 
Generally, the cube has 6 sides which can rotate in all directions. You can only see the front of the cube – but not the mechanics. 
 
It used to be purely mechanical game, now it was invented electric self-solving Rubic’s cube. 
 
Now imagine that each side of the “cube” is DATA about your loan and other loans. Green side is performing loan; yellow is default, red is foreclosure, blue  are swaps ; white is options; orange are futures or hedge contracts. 
Anyone who has client number and password can get asset to DATA about your loan in its  square  of the cube. But the data always stays inside the cube, only sides are turned into different directions. 
 
Truman Trust  most likely has its client number and password in Black Knight/CoreLogic’s  system where DATA about your loan is shown as  default while Rushmore Servicer has its own password to present you copies of someone’s accounting entries as “evidence of ownership” .
 
This is how all possible players appear in Elle’s transaction. At some point all of them used Black Knight’s DATA about her loan to trade it while ALL transactions and money were handled by Black Knight/CoreLogic who paid insurance and taxes from investors money while Big Banks pocketed your escrow funds. 
 
 

While Black Knight uses its system Empower to originate about 62% of ALL loans since 2015; CoreLogic has numerous platform, one of which called Lending Pad. 

CoreLogic steal your identity, resell it to millions of other people (particularly predatory lenders)  without ANY consent from you or your knowledge; and place you under all possible undue hardships like bogus Flood Insurances – without any FEMA involvement. FEMA agreed to this scam because it means free easy money for them.  

CoreLogic is the one who appraise your property above market place to help banks to trade your identity at the higher price. 

CoreLogic is the one who secretly from you  maintain ALL your data, has access to ALL your credit reports forever. 

Lenders can request an Instant Merge credit report and find the most up-to-date borrower information available from the three major credit bureaus—Equifax, Experian and TransUnion.

HOW Merge Credit can get your information from major credit bureaus and WHY nobody tell you about transfer of your data to CoreLogic???

CoreLogic Flood Determinations are the most widely accepted and transferable Life of Loan Determinations on the market. Backed by more than 20 years of experience, CoreLogic guarantees that its Flood Determinations meet all federal regulatory requirements. Using the Standard Flood Hazard Determination Form from the Federal Emergency Management Agency (FEMA), the Flood Determinations provide all of the information necessary to determine whether flood insurance is available or required

This is slavery and terror. 

CoreLogic is  a part of First American Title (with whom they purportedly “spun” about 10 years ago. Thus, when you get a property Title Insurance from a smaller sham conduit “Title Company”, you get it from the Mafia. 
 
Either from CoreLogic’s FAM or Black Knight’s bundle of Title companies. Smaller “issuers” merely sell you CL or BK policies which will not cover anything. 
 

CoreLogic Integrates Credit and Flood Services with LendingPad

CoreLogic Integrates Credit and Flood Services with LendingPad

CoreLogic® (NYSE: CLGX), a leading global property information, analytics and data-enabled services provider, to…

Self-Solving Rubik’s Cube

Rubik’s Cube has been around for what seems like forever now, and has spawned an entire subculture devoted to so…

Neil Garfield Show

Find Neil Garfield Show at https://www.blogtalkradio.com/

Thursdays at 6pm EDT 3PM PDT

Show resumes Thursday, October 22, 2020

I’m slightly under the weather today.

But I did want to tell you about something I realized today in speaking with clients. It is something that all trial lawyers take for granted. And it’s something nobody who isn’t trial lawyer could ever understand unless it is explained.

You have all heard me say that it isn’t enough to be right. But I never actually told you why.

S + P + C = J

That’s Substance plus Procedure plus Credibility yields a result that is usually a final Judgment.

Here is how it breaks down:

SUBSTANCE IS ABOUT WHAT IS TRUE.

PROCEDURE IS WHAT IS TRUE FOR THE CASE

CREDIBILITY IS WHAT PERSUADES THE JUDGE

JUDGEMENTS ARE FINAL (AND USUALLY PROCEDURALLY CORRECT) EVEN IF THEY ARE SUBSTANTIVELY WRONG.

The substance of most foreclosure cases is that there is no loan account, there is no legal claimant and very often there is no plaintiff in judicial actions nor a beneficiary and non-judicial foreclosures. The documents are all fabricated, forged and backdated. Every exhibit submitted to the court as part of the prima facie case is substantively invalid, a legal nullity.

So why do homeowners keep losing?

Procedure sets up what is true for the case even if it contradicts real world facts. Procedure is what investment banks use against homeowners to pursue a claim in a case in which they are not even a named party.  Legal inferences and presumptions are procedural. If you can convince a judge that a document is facially valid and get into evidence then that document raises the inference or presumption of validity even if it was manufactured for court and has no relation to real world facts and events.

How do investment banks get away with that?

First they insert the name of a well known financial institution that everyone (including unfortunately homeowners and many lawyers who represent them) believes is the plaintiff, beneficiary or claimant. Then they get a law firm that seems big to file a lawsuit or notice of sale on behalf of the named bank.

Because the financial institution i.e., a bank like BONY Mellon, Deutsch, US Bank etc) has a longstanding brand and reputation the prosecuting lawyers are generally accepted as credible even though the named bank has no idea how their name is being used in any specific case and has no relationship to the homeowner transaction, its administration, collection or enforcement. This is true even if the lawyers have no retainer or even contact with the named bank that was inserted as Plaintiff or Beneficiary.

The credibility of the named bank is presumed until the court is shown that they cannot believe or should not believe that named bank is connected to the case. The fact that the named bank is not really involved makes no difference. And the credibility of the named bank cloaks the lawyers with credibility.

The homeowner on the other hand must establish credibility. It is generally presumed that an individual borrower is more likely to make extravagant claims than a bank with a 150-year-old history.

And there’s the problem. That is how judgment is entered in favor of a name that doesn’t even identify an actual claimant. If you don’t understand the problem then you can’t solve it.

 

Foreclosures in Securitization World: deny everything they have to say and then pursue discovery — but in discovery you focus on the issues that are central to every foreclosure — status and ownership of the debt. 

The danger is in the labels.

I have some devoted followers and readers who have been great contributors — doing research on the real action and dynamics between the homeowner on the one hand and all the intermediaries and people of interest on the other hand. One of the things recently raised was the discovery of who is listed as having paid tax or insurance or other expenses. The danger is in the labels.

The simple basic truth is that the banks are using a shell game that is based entirely on the false use of labels. So when we see something in writing we tend to assume it is probably true. Without that the entire securitizations scheme would have fallen apart before it began.

If you write a check to me for plumbing repairs, that label on the check “Plumbing repairs” does not mean in actuality that you expect me to do plumbing work nor that I will deliver such work. After all I’m a lawyer, not plumber. But if we both agreed to have the check made out in that manner it would be because we were concealing the true nature of the transaction. That still doesn’t mean that any plumbing work is ever getting done.

And, believe it or not, that is not illegal. In fact, just writing the check with that label on it raises an inference or legal presumption that this was payment for plumbing work. So when you walk into court the judge is already assuming that this is a dispute over plumbing work when in fact the agreement between us was for legal work. If some third party comes into the picture and either sues or defends a claim from either of us, they must respectfully challenge the label — “plumbing repairs” even though we all know that no plumbing work was done or intended.

You need to understand that there is a difference between the label on an account and ownership of it. And there is even a difference between ownership and the authority to make deposits and withdrawals.

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It is entirely possible to direct payments to “Ocwen” for example. The payments are forwarded to an intermediary who in turn forwards the payment (if electronic) or forwards the check to the Black Knight/CoreLogic system we have been talking about. With Check 21 and other practices this is all done in seconds.
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So your check to Ocwen gets deposited into an account labelled “ocwen” which is owned by Black Knight who has a contract with the investment bank in which it gives the investment bank or its agent full authority to make deposits and withdraw money.

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Once again the misdirection comes from knee jerk reaction to seeing a label. We are culturally conditioned to assume the label means something when it doesn’t. In the above example, if the transaction was real, the check would be made out and deposited into the account of Morgan Securities, for example. The homeowner/”borrower” of course has no clue about any of this and simply assumes he is paying his mortgage payment on an existing loan account owned by some “investor”. All of that could alternatively be labeled as “Plumbing Repairs.”
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But Morgan doesn’t want to receive the money directly because there is no business or legal reason it should be received by Morgan. Morgan holds no receivable from the homeowner/”borrower.” It is simply not entitled to receive that money even though it is happening every hour.
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All such payments are pure revenue that is untaxed because for tax purposes it is labelled as either return of loan or return of capital or it is labeled as off balance sheet and doesn’t show up at all. The real money transfers are recorded in a jurisdiction that asserts taxing authority and then waives all tax. Bermuda was popular when I last looked at this.
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For foreclosure defense you don’t need to prove any of that. You just need to know and believe it. Because then you can ask questions in discovery that you know they can never answer without admitting to tax fraud, theft, and other crimes.
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It is their LACK of answers that is the useful tool in this litigation and the law is very clear — if you persist in demanding discovery, motions to compel, motions for sanctions and motions and in limine you will most likely win the case hands down without any right of the foreclosure mill to refile.
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The banks want you to focus on how wrong the banks were in their behavior so you will make allegations that you will never be able to prove. The real defense is like Karate Kid (“no be there”). Just deny everything they have to say and then pursue discovery — but in discovery you focus on the issues that are central to every foreclosure — status and ownership of the debt.
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Neil F Garfield, MBA, JD, 73, is a Florida licensed trial attorney since 1977. He has received multiple academic and achievement awards in business and law. He is a former investment banker, securities broker, securities analyst, and financial analyst.
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FORECLOSURE DEFENSE IS NOT SIMPLE. THERE IS NO GUARANTEE OF A FAVORABLE RESULT. THE FORECLOSURE MILLS WILL DO EVERYTHING POSSIBLE TO WEAR YOU DOWN AND UNDERMINE YOUR CONFIDENCE. ALL EVIDENCE SHOWS THAT NO MEANINGFUL SETTLEMENT OCCURS UNTIL THE 11TH HOUR OF LITIGATION.
  • But challenging the “servicers” and other claimants before they seek enforcement can delay action by them for as much as 12 years or more.
  • Yes you DO need a lawyer.
  • If you wish to retain me as a legal consultant please write to me at neilfgarfield@hotmail.com.
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More Details on VendorScape, CoreLogic and Black Knight

Hat tip to “Summer chione”

So it is apparent that the banks are responding to discoveries about how orders are transmitted to lawyers, “servicers”, realtors etc.. While it is all the same playbook, they merely change the name of the characters. So internally the name VendorScape might still be used but externally, to the public, they are showing different names and even showing multiple names for the same “service”.

But is always the same, to wit: a central repository of data that has been robotically entered to support misrepresentations of investment banks that massage the data, control the reports, and initiate administration, collection and enforcement under the letterhead of “subservicers” who have almost nothing to do and are merely being kept alive to throw under the bus when this scheme explodes.

For those familiar with the game of Chess, think of the following entities as all being pawns whose existence is to provide a barrier to the encroachment of government or borrowers in litigation — and who can and will be sacrificed when the game explodes.

  1. Foreclosure law firms (“mills”)
  2. “Servicers”
  3. Trustee of REMIC Trust
  4. Trustee on Deed of trust
  5. MERS
  6. Companies that provide “default services”
  7. Realtors
  8. Property  Managers
  9. REMIC  trusts: remember that back in early 2000’s, the same trusts that are being named as claimants today were denied as having any existence or relevance. It was only after failure of naming a servicer or MERS that they fell back on naming the non functional trustee of a nonexistent trust as the claimant.
  10. Every other company that is visible to the investors and homeowners.

And keep in mind that the claims of a “boarding Process” or detailed audit of accounts when the name of one subservicer is changed to something else are totally and completely bogus. There is no transfer much less boarding of accounts. the fabricated accounts are always maintained at the central repository.

The argument over “business records” is sleight of hand distraction. There are no business records. Go do your research. You will see that nothing the banks are producing are qualified business records, muchless exceptions to the hearsay rule. 

It is or at least was universal custom and practice that before accepting  an engagement, lawyers, servicers and realtors needed to have an agreement in writing with their employer. In the wholly unique area of foreclosures, sales, REO and remittances this practice has been turned on its head.

As I have repeatedly said on these pages, lawyers in a foreclosure mill have no idea who hired them. They don’t know the identity of their client. They will and do say that their client is some “subservicer” (e.g. Ocwen), they file lawsuits and documents proclaiming their representation of some bank (e.g. Deutsche) with whom they have (a) no contact and (b) no retainer Agreement.

This is because all that Deutsche agreed to was the use of its name to give the foreclosure an institutional flavor. It is labelled as a trustee but it possesses zero powers of any party that could be legally described as a trustee. It has no fiduciary duty to any beneficiaries nor any right to even inquire about the business affairs of the trust — which we know now (with certainty) do not even exist.

So there is no reason for the foreclosure mill to have an agreement with Deutsche because (a) Deutsche has not agreed to be a real party in interest and (b) Deutsche has no ownership, right, title or interest in any loan — either on tis own behalf or as representative of either a nonexistent or inchoate (sleeping) trust with no assets or business or the owners of non certificated certificates (i.e., digital only). Indeed the relationship between Deutsche and the holders of certificates is that of creditor (the investors) and debtor (Deutsche acting as the business name only of an investment bank who issued the certificates).

So the lawyers in the foreclosure mill are misrepresenting its authority to represent. In fact it has no authority to represent the “trustee” bank.

So the banks have come up with a circular argument that is still erroneously used and believed in court: that because the subservicer (e.g. Ocwen) is the nominal client — albeit without any contact prior to the electronic instructions received by the foreclosure mill — and because the subservicer claims to be acting for either the trustee, teht rust or the holders of certificates, that eh lawyers can claim to be representing the bank, as trustee. In a word, that is not true.

So the foreclosure mill is falsely claiming that its client is the named “trustee” who has no power for a “trust” which has no assets or business on behalf of certificate holders who own no right, title or interest to any payments, debt, note or mortgage executed by any “borrower.”

Instructions from a third party with no right, title or interest that the lawyer should claim  representation rights for yet another party who has no knowledge, right, title or interest is a legal nullity. That means that, in the legal world, (like transfer of mortgage  rights without transfer for the underlying debt), there is nothing that any court is legally able to recognize and any attempt to do so would be ultra vires once the facts are known to the court.

The trick is to present it to the court in such a manner that it is unavoidable. And the best way to do that is through aggressive discovery strategies. the second best way is through the use of well planned timely objections at trial.

All of this is done, contrary to law and prior custom and practice to cover up the fact that all such foreclosures are for profit ventures.

That is, the goal is not paydown of any loan account, because no such account exists on the books of any creditor.

And that is hiding the fact that the origination or acquisition of the loan was completed with zero intent for anyone to become a lender or creditor and therefore subject to rules, regulations and laws governing lending and servicing practices.

They didn’t need to be a lender or creditor because they were being paid in full from the sales of securities and thus writing off the homeowner transaction. Bottom Line: There was no lending intent by the originator or acquirer of the loan. When the cycle was complete, the investment bank owned nothing but still controlled everything.

And the way they controlled everything was by hiring intermediaries who would have plausible deniability because they were using images and records that were automatically generated and produced based upon algorithms written by human hands — programs designed to facilitate foreclosure rather than report the truth.

So let’s be clear. Here is the process. The lawyer, realtor or subservicer knows nothing about the loan until it is time to foreclose. All activity that is conducted under its name is initiated by CoreLogic using the VendorScape system.

So when a lawyer, for example, comes to work, he sits down in front of a computer and gets a message that he doesn’t know came from CoreLogic under the direction of Black KNight who is acting under the strict control of the investment banks. There are no paper documents. The message on the screen says initiate foreclosure work on John Jones in the name of Deutsche Bank as trustee for the CWABS Trust 2006-1 on behalf of the certificateholders of CWABS Trust 2006-1 series pass through certificates.

Contrary to the rules of law and ethical and disciplinary rules governing lawyers, the lawyer does no due diligence to discover the nature his agreement with the naemd claimant, no research on whether the claim is valid, and requires no confirmation ledgers showing establishment of ownership of the debt and financial loss arising from cessation of payments. He/she sends notice of delinquency, notice of default and initiates foreclosure without ever seeing or even hearing about a retainer agreement with Deutsche whom he supposedly represents.

He/she has no knowledge regarding the status or ownership of the loan account. ZERO. By not knowing he/she avoids liability for lying to the court. And not knowing also provides at least a weak foundation for invoking litigation privilege for false representations in court, behind which the investment banks, Black Knight, CoreLogic et al hide. The same plausible deniability doctrine is relied upon by CoreLogic and Black Knight. They will all say that they thought the loan account was real.

But they all knew that if the loan accounts were real, the notes would not have been destroyed, the control over the loan accounts would have stayed close to the investment banks and compliance with lending and servicing laws would have been much tighter — starting with disclosure to investors that their money was being used to justify a nonexistent trading profit for the investment bank, and disclosure to homeowners that they were signing on for an inflated appraisal, immediate loss of equity, and likely foreclosure because after the origination, the only real money to be made off the loan was through foreclosure.

And both investors and borrowers were prevented, through the artful practice of deceit and concealment, from bargaining for appropriate incentives and compensation for assuming gargantuan risks they know nothing about.

This is like cancer and it is continuing. Nobody would suggest that we keep selling crops that were infected with ebola or which contained some tar substance that reliably and consistently produced cancer. The argument that a company or industry might collapse would not fly because in the end we value human life more than allowing companies to profit off of death and destruction. And the argument that allowing the judicial creation of virtual creditors who can enforce non existent debt accounts is going to save the financial system is just as pernicious — and erroneous.

Wall Street banks are merely protecting their profits. Don’t blame them for doing that. It is up to government and the public to stop it and arrive at something other than the false binary choice of either forcing people out of their homes or allowing a “windfall” to homeowners against the interest of all other honest people who make their mortgage payments. The real solution lies in reformation by judicial doctrine or through new legislation — but until that is completed, there should be no foreclosures allowed. Until it is determined how much concealed risk was piled on investors and borrowers, they should not be stuck with contracts or agreements that sealed their doom through concealment of material facts.

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Neil F Garfield, MBA, JD, 73, is a Florida licensed trial attorney since 1977. He has received multiple academic and achievement awards in business and law. He is a former investment banker, securities broker, securities analyst, and financial analyst.
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CLICK HERE FOR REGISTRATION FORM. It is free, with no obligation and we keep all information private. The information you provide is not used for any purpose except for providing services you order or request from us. Inthe meanwhile you can order any of the following:
*
CLICK HERE ORDER ADMINISTRATIVE STRATEGY, ANALYSIS AND NARRATIVE. This could be all you need to preserve your objections and defenses to administration, collection or enforcement of your obligation.Suggestions for discovery demands are included.
*
CLICK HERE TO ORDER TERA – not necessary if you order PDR PREMIUM.
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*
*
CLICK HERE TO ORDER PRELIMINARY DOCUMENT REVIEW (PDR) (PDR PLUS or BASIC includes 30 minute recorded CONSULT)
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FORECLOSURE DEFENSE IS NOT SIMPLE. THERE IS NO GUARANTEE OF A FAVORABLE RESULT. THE FORECLOSURE MILLS WILL DO EVERYTHING POSSIBLE TO WEAR YOU DOWN AND UNDERMINE YOUR CONFIDENCE. ALL EVIDENCE SHOWS THAT NO MEANINGFUL SETTLEMENT OCCURS UNTIL THE 11TH HOUR OF LITIGATION.
  • But challenging the “servicers” and other claimants before they seek enforcement can delay action by them for as much as 12 years or more.
  • Yes you DO need a lawyer.
  • If you wish to retain me as a legal consultant please write to me at neilfgarfield@hotmail.com.
*
Please visit www.lendinglies.com for more information.

You might not know VendorScape but it sure knows you

In a somewhat startling admission by CoreLogic, we now have an admission of many facts that might not have otherwise surfaced but for intensive and aggressive, persistent Discovery. I am not publishing the entire letter from them for privacy reasons. But it is worth mentioning that the letter was sent, after careful legal analysis, as a response to a complaint to the Federal Consumer Financial Protection Board — organized by Elizabeth Warren under the Obama administration. The response was (a) mandatory and (b) subject to charges of lying to a Federal agency.

The problem faced by CoreLogic was that on the one hand it IS and was the central repository of all data and electronic records for most residential loans in the United States. The main IT platform running several systems is called VendorScape which is owned, maintained and operated by CoreLogic pursuant to instructions from Black Knight (and perhaps others) who are serving the interests of investment banks who have no legally recognized interest in any of the alleged “loan accounts”.

But they don’t want the government or the public to know any of that because they are designating nominees to serve or pose as “servicers” who can be thrown under the bus at any that that foul play is actually addressed instead of settled (see 50 state settlement).

So here is what they said

Interesting.

image.png
And here is how it breaks down (legal analysis):
  1. VendorScape exists although they deny it is currently accessed through CoreLogic
  2. VendorScape is an “electronic case management system.” Taken in context with customs and practices in the industry in addition to simple logic, it is THE case management system and it is electronic which means that anyone with login credentials can get into it.
  3. VendorScape output consists of the following:
    1. centralized electronic workplace
    2. storage of “documents” — i.e., images not the original documents because they are not a records custodian for anyone. As the centralized place for “storage” it is VendorScape that is the source server from which all records are produced in printed reports that are merely generated from what is in VendorScape regardless of who added or deleted or changed anything.
    3. initiate workflows “defined by our clients”. This is odd wording.
      1. They appear to be saying that clients access the system and are simply using it as an IT platform to conduct business of the client.
      2. But VendorScape initiates workflows, which means that they have admitted that whoever is actually running VendorScape is making the decisions on when and how to initiate any action.
      3. Since the entire purpose of this system is preparation for foreclosure, the only logical conclusion is that it is a system to initiate foreclosures, notices of default, notice of delinquency etc. based upon human decision-making or automated decision making initiated by humans that control VendorScape.
      4. They will of course say otherwise and that seems to be what they are trying to say — that the client determines the definitions and circumstances of workflows.
      5. But dig a little deeper and you will find that the “client” has no right to make such decisions and that the decision is labelled as the decision of a client (e.g. Ocwen) by permission from Ocwen, who is not actually allowed to make such decisions and does not make such decisions. 
      6. So the reference to the  Client making such decisions is circular allowing anyone to say that it was CoreLogic or  VendorScape who made the decision (thus avoiding liability for Ocwen et al) OR to say that it was Ocwen, as they do in this letter.
  4. They admit that CoreLogic is the party who owns and maintains the storage and functions of the VendorScape system while at the same time implying that they have no connection with VendorScape.
  5. They assert that the data is owned by the clients. This is a common trick.
    1. The data is not owned by the clients because it doesn’t consist of any entries or proprietary information placed in the system by the client.
    2. The information or data is placed there mostly through automated systems controlled by Black Knight but operated by CoreLogic.
    3. Nominal “Servicers” (Ocwen e.g.), who are the “clients” actually have no way of knowing anything about a homeowner account until after it is placed in the system by third parties.
    4. This is why servicer records should not be admitted into evidence as exceptions (business records) to the hearsay rule.
    5. The deadly mistake by many lawyers in court is the failure to timely object to lack of foundation, best evidence and hearsay.
      1. A timely objection is one that is raised at the same time the admission of evidence is being considered by the court.
      2. Waiting until the end of questioning is spitting in the wind. It is already in evidence by that point.
      3. And the second mistake is that after the objection is sustained, the failure to move the court to strike the offending testimony and exhibits. That failure is equivalent to a waiver of the objection, thus leaving the offending testimony or exhibits in evidence.
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Neil F Garfield, MBA, JD, 73, is a Florida licensed trial attorney since 1977. He has received multiple academic and achievement awards in business and law. He is a former investment banker, securities broker, securities analyst, and financial analyst.
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FORECLOSURE DEFENSE IS NOT SIMPLE. THERE IS NO GUARANTEE OF A FAVORABLE RESULT. THE FORECLOSURE MILLS WILL DO EVERYTHING POSSIBLE TO WEAR YOU DOWN AND UNDERMINE YOUR CONFIDENCE. ALL EVIDENCE SHOWS THAT NO MEANINGFUL SETTLEMENT OCCURS UNTIL THE 11TH HOUR OF LITIGATION.
  • But challenging the “servicers” and other claimants before they seek enforcement can delay action by them for as much as 12 years or more.
  • Yes you DO need a lawyer.
  • If you wish to retain me as a legal consultant please write to me at neilfgarfield@hotmail.com.
*
Please visit www.lendinglies.com for more information.

Why Antitrust Legislation Should be Applied Against the mega banks

Securitization of data that is mischaracterized as securitization of debt has enabled the securities firms to write off the loan concurrently with funding it

I believe there is a very strong case for applying antitrust legislation against the big winners in the securitization game because they could and did apply multiple incentives to borrowers to accept loan products that were clearly losers from a business perspective. This blocked competitors who wanted to make real loans with real lenders and raised the risk of loss to consumers without any disclosure to the consumer, to government regulators or anyone else. All of this was performed at the same time that the risk of financial loss was entirely eliminated on any transaction with homeowners that was characterized as a loan.

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The big securities brokerage firms acting as investment “banks” were able to fund loans and then sell securities that were completely dependent upon data released by the same securities firms about the performance of the data, as announced by the securities brokerage firm in its sole discretion. Effectively and substantively they sold the same loan multiple times. But nominally there was no reduction in the loan receivable account because there was no loan receivable account.

*

 This effectively forced small community banks, credit unions and other lenders into the position of not competing — if they had offered the same incentives on real loans to homeowners, they would have suffered catastrophic loss. So they had to step out of lending, which would have been catastrophic or originate loans “for sale.”

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The result was an undisclosed reduction of risk of loss for everyone on the “lending” side. But the more pernicious result was that the bank practices also flooded the market with money such that salespeople were selling payments instead of price and the accuracy of appraisals was reduced as a factor in granting loans. This created a second antitrust impact — the price of homes was driven up by cheap money rather than demand for housing. But values remained the same because median income has been flat.
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The effect on consumers was that they all bought or financed homes based upon appraisals that were based upon the amount of the intended loan rather than the value of the property. So the net effect was that homeowners were forced into deals where they were taking an immediate loss of as much as 65% of the “price” of acquisition of the home or new loan. This was a hidden increase in the cost of credit. Amortizing the likely loss over the likely period of retention of the home increases the cost of credit far beyond usury prohibitions.
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The overall bottom line is that the big banks acting as unregulated lenders have grabbed a market share for lending that controls more than 80% of the market and heavily influences the rest of the market.
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Consumers suffer because they are not dealing with a party who could answer for damages resulting from violations of TILA and other lending and servicing statutes and because they are not left with either a lender or a loan account in real terms that is maintained as an asset on the books of any business. They are left with a toxic transaction in which they are strictly on their own when they discover the deficiencies in the lending process. They’re on their own because there is no actual creditor who claims ownership of their debt, note or mortgage.
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The risk of foreclosure is high, especially on those transactions in which the appraisal is far higher than the value of the home and especially where the transaction is labeled as an option loan in which the homeowner gets reduced payments for some specified period of time. In short, the failure to regulate the securities brokerage firms acting as investment “banks” and then as licensed commercial “banks” has so distorted the marketplace that no borrower can find a source of funds who will admit to being part of the the transaction, much less the lender in any specific transaction.
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Securitization of data that is mischaracterized as securitization of debt has enabled the securities firms to write off the loan concurrently with funding it, while at the same time pursuing foreclosures and other enforcement or “modification” processes in which they have been successful at pretending the loan account exists, that a party owns it, that a loss was sustained as a result of the homeowner’s “failure” to make payments on a nonexistent loan account.

*
Neil F Garfield, MBA, JD, 73, is a Florida licensed trial attorney since 1977. He has received multiple academic and achievement awards in business and law. He is a former investment banker, securities broker, securities analyst, and financial analyst.
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CLICK HERE TO ORDER PRELIMINARY DOCUMENT REVIEW (PDR) (PDR PLUS or BASIC includes 30 minute recorded CONSULT)
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FORECLOSURE DEFENSE IS NOT SIMPLE. THERE IS NO GUARANTEE OF A FAVORABLE RESULT. THE FORECLOSURE MILLS WILL DO EVERYTHING POSSIBLE TO WEAR YOU DOWN AND UNDERMINE YOUR CONFIDENCE. ALL EVIDENCE SHOWS THAT NO MEANINGFUL SETTLEMENT OCCURS UNTIL THE 11TH HOUR OF LITIGATION.
  • But challenging the “servicers” and other claimants before they seek enforcement can delay action by them for as much as 12 years or more.
  • Yes you DO need a lawyer.
  • If you wish to retain me as a legal consultant please write to me at neilfgarfield@hotmail.com.
*

Tonight! Piece by Piece — the Truth emerges. Paatalo and Marshall talk about the latest findings and admissions by the real players in foreclosures 3PM PDT 6PM EDT

Thursdays LIVE! Click in to the WEST COAST Neil Garfield Show

with Charles Marshall and Bill Paatalo

Or call in at (347) 850-1260, 6pm Eastern Thursdays

It’s getting increasingly hot in the kitchens of the investment banks that cooked up the fake securitization scheme. It has taken 20 years, so far, but now there are clear facts that “contradict” the lawyers who have asserted to the courts that they represent a bank, when they don’t, and that the bank owns the debt, which it doesn’t, or that some certificate holders or trust owns the loan account which they don’t. In fact, the inescapable conclusion is that eh loan account is completely wiped out concurrently with origination of the homeowner transaction.

As you will see in coming days we have uncovered admissions, on record, by CoreLogic about VendorScape and the role of CoreLogic — i.e. as central repository for all images, data and initiation of all actions concerning administration, collection and alleged enforcement of loan accounts that do not appear on the records of any company or financial institution.

Bill Paatalo has obtained intel through his private investigation tools to reveal explosive evidence that WAMU contracted with ACS Image Solutions to destroy loan files in August of 2008, a month before the September 2008 Receivership in BK which WAMU was forced into as a result of the meltdown of their overall accounting balance sheet in the summer of 2008. The establishing of this connection should lead to further legal developments, and we will discuss on the Show how this connection can be used in borrower litigation, both on the Plaintiff’s side and where the borrower is on the Defense side.

The ONLY reasonable or possible explanation for the destruction of what were purported to be original loan files is that they were not originals and they had no relevance because WAMU had long since divested itself of any interest in the debts, notes or mortgages. The contract with ACS might well be a cover for something that had already been done.

Then Charles Marshall will discuss discuss how the COVID-19 eviction moratorium is being used in California’s Alameda County to protect formerly foreclosed Unlawful Detainer (UD) lawsuit defendants literally for a period of months now, and will continue to do so for months into the future.

Smaller Thieves Are Stealing from the Big Thieves on Wall Street

see https://www.nbcmiami.com/news/local/broward-attorneys-accused-of-foreclosure-scheme-with-convicted-felons/2303306/

Here is another case where failing to ask the question “why?” results in a lack of understanding of the process referred to as securitization of debt.

I have previously written at length about how the proceeds from a foreclosure sale are not going to anyone who is entitled to receive them. The article in the above link shows how those with a criminal mind accurately perceived the gap between entitlement and receipt. By intervening in the process, they made off with several hundred thousand dollars. And now they are going to jail.

BUT nobody is asking how the funds became available to criminal minds. AND the answer is that the funds were left because the complex system involving Black Knight and the investment banks sometimes fails and they forgot to designate a party to receive the funds for deposit into a commercial bank on behalf of an investment bank who neither owned nor controlled the debt.

This case corroborates the facts I have reported. The interesting thing is that these defendants are accused of stealing from parties who had no entitlement to the funds. So where is the victim, the loss and therefore the validity of the claim against the criminals? Having criminal intent is not a crime. And theft can’t substantively occur unless there is a victim from whom the money  or property was stolen.

So if you steal from a thief are you still guilty of theft? Maybe.

Lack of Research and Knowledge About Court Procedure and Rules of Evidence Will Bury You

There are many well intentioned people and lawyers who go into court to contest foreclosure cases with the expectation that the foreclosure mill must prove ownership and status of the loan. In plain language they don’t need to prove that because of a legal fiction called a “legal presumption.” That is a shorthand way of approaching evidence.

It creates conclusions of facts based upon common knowledge or legislative intent regardless of the truth of the matter. If the opposing party wants a different conclusion the opposing party must seek to rebut the presumption.

Rebutting the presumption is accomplished in only one possible way in foreclosure cases.

The homeowner will NEVER have actual evidence that the debt does not exist as a loan account on the books of any entity and will never have direct evidence that is admissible in court that the named claimant has no claim. So that is not a possibility. And arguing the case as if you did present such evidence is a fool’s errand.

But the same goal can be achieved if the foreclosure mill refuses to respond appropriately to direct questions in the discovery process. It is or appears to be an uphill battle but the key is merely persistence.

see https://livinglies.me/2020/10/02/boilerplate-answers-to-discovery-wont-cut-it-if-plaintiff-does-it-they-lose-the-claim-if-defendant-does-it-they-lose-the-defense/

  1. If a facially valid document is merely shown, it is presumed (at least at the pleading stage) that the original exists — even if it doesn’t. (see discussions about custom and practice in the industry to shred the original notes concurrent with the loan closing).
  2. A statement by affidavit or in testimony that the note is the original note signed by the maker (homeowner) is sufficient to get a facially valid document into evidence as the original even if it is not the original and was reconstructed expressly for trial to make it appear like an an original.
  3. Possession of that “original” is presumed to be evidence of delivery even though the note is a reconstruction.
  4. Delivery is presumed to convey a right to enforce even if there is nobody who could grant such right.
  5. The right to enforce gives rise to the presumption that the ownership of the underlying debt has been conveyed even though nobody paid for it — which is the only way you can legally own the underlying obligation.
  6. The presumed conveyance of ownership of the underlying obligation is the only thing that allows anyone to  foreclose on the security instrument pursuant to the state adoption of Article 9 §203 of the UCC — but all of that is legally required to be presumed in the absence of any rebuttal.

They don’t need to prove it. Under the rules of evidence the presumptions exist that they are who they say they are and the debt is what they say it is. YOUR burden is to show that they refuse to respond to inquiries about the status of the debt and its ownership. But it is more than that. You can’t just ask, you must ask in a venue where they are required to answer. This exactly where most lawyers and pro se litigants dig their own legal graves.

And the failure to respond won’t get  you anywhere unless you get a court to agree with you and enter an order commanding them to answer. And not even that will be conclusive until you get an order on sanctions after they violate the order compelling response. And the deal is not sealed until you get a definitive ruling on a motion in limine that says that due to their refusal to respond, they are prohibited from introducing any evidence of ownership or status of the debt at trial (i.e., motion in limine).

*
Neil F Garfield, MBA, JD, 73, is a Florida licensed trial attorney since 1977. He has received multiple academic and achievement awards in business and law. He is a former investment banker, securities broker, securities analyst, and financial analyst.
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FORECLOSURE DEFENSE IS NOT SIMPLE. THERE IS NO GUARANTEE OF A FAVORABLE RESULT. THE FORECLOSURE MILLS WILL DO EVERYTHING POSSIBLE TO WEAR YOU DOWN AND UNDERMINE YOUR CONFIDENCE. ALL EVIDENCE SHOWS THAT NO MEANINGFUL SETTLEMENT OCCURS UNTIL THE 11TH HOUR OF LITIGATION.
  • But challenging the “servicers” and other claimants before they seek enforcement can delay action by them for as much as 12 years or more.
  • Yes you DO need a lawyer.
  • If you wish to retain me as a legal consultant please write to me at neilfgarfield@hotmail.com.
*
Please visit www.lendinglies.com for more information.

Yes your loan documents were all shredded. No, not even the note survived

Hat Tip to Bill Paatalo, Private investigator. Kudos for investigative excellence.

see WaMu Loan Files – Shredding Procedures

When I first looked at mortgage loans in 2004 I was struck by one simple thing. There was an obvious movement, pushed by the banks, away from original documentation and towards reliance on images. At first I was confused. After all it was the banks who wrote the rules concerning the use of original documentation and the insistence on the availability of original documents.

In 2006-7 it became clear to me what was going on. The banks wanted everyone to rely on images because they didn’t and couldn’t account for the movement of the promissory note without giving a specific date, time and the parties to the transaction in which the underlying obligation has been acquired. Instead they relied on affidavits, declarations and trestiompony from robowitnesses, robo signers and robo offers who neither knew anything nor had any authority to do anything except sign on the dotted line without reading anything.

There were elements of this in the great papert crash of 1968-9, where certificates went missing and many were never recovered. Securities firms collapsed as they had to make good on securities they were supposedly holding for clients. I was there in 1968-9, Director of Securities Research, but consigned to counting stock and bond certificates. I know what happened.

The cheating firms had been selling the same certificate over and over again because they were all in “street name” which means they were legally owned by the firm. the only thing investors had were statements from the firm saying it was holding securities for their account.

With mortgage loans from the year 2000 until now, it occurred to me in 2007 that the only the plan could work was by destruction of the original loan documents. If all the major institutions adopted that stance then everyone would consider that the custom and practice of the industry. If they needed an “original” they would create it.

My “theory” was tested out in  the battlefield. Foreclosures were being filed in the name of MERS and in the name of servicers while at the same time denying the existence of any REMIC trust — an assertion which I think turned out to be true.

When the attempt to name MERS and the servicers failed utterly, the banks pivoted to saying that indeed there were REMIC Trusts and that they owned the loans — an assertion that was as untrue as the same assertions for MERS and the servicers. In order lend credence to the newest lie they hired banks like US Bank and Bank of New York and Deutsche to pretend that they were trustees for the REMIC trust — an assertion that was and remains wholly untrue.

That gave the action an institutional flavor and judges started allowing the foreclosures to proceed without any knowledge as to whether the trust existed, whether the debt existed and whether anyone had the right to enforce the debt, note or mortgage.

So beginning in 2007-8 I tested out the theory myself. I sent out hundreds of demands for documents and reconciliations to dozens of servicers.

Just as expected the requests were split into two types of response.

The first was based upon whether the loan was headed into or already in foreclosure, in which case they responded with copies of what hey said were original documents and records of the servicers — but without saying who the servicers were working for. but I already knew the answer to that. The servicers wer working for securities firms on Wall Street — not any REMIC trust or trustee.

The second type of response was more interesting. These were cases in which the homeowner was “current” (on payments that were apparently due on what turned out to be a nonexistent obligation). the response was zilch. No answer.

So I arrived at the conclusion that the documents did not exist and had been shredded contemporaneously with the loan closing, as crazy as that initially sounds. But it makes perfect sense if people are willing to trade on images instead of the real thing. You can always print more images — and sell them.

Which they led me to the conclusion that the documents were being printed to look like originals. But that came with a problem. Someone had to testify to the foundation of allowing those documents into evidence. If they knew what they were doing, they would need to lie. And most people are unwilling to lie in court because that involves jail for perjury.

So the banks hired people who knew nothing and would be kept from knowing anything except their duty to sign documents, the contents of which they knew nothing. These were newly minted documents without the borrower’s consent and attested to by a stamped signature of a person who was willing to accept actually very low wages for “signing” thousands of documents per week. Lorraine Browne at DOCS went to jail for that.

Every signature was worth hundreds of thousands of dollars in foreclosure proceeds but the signor, just like the homeowner who signed the loan documents originally, had no idea they were unleashing a vast revenue scheme in which salespeople were rewarded with more money than they had ever seen.

This is all pretty obvious now to people who have been litigating these cases for any length of time. But to judges, it is incomprehensible that anyone would shred a facially valid note even if there were defense against its enforcement. Promissory notes are cash equivalents. To judges that makes no more sense than  shredding a $10 bill. I explained to the skeptical listeners that you WOULD shred the $10 bill if its production would show that it was only $10 when you had represented it to be a $100 bill and had used manufactured images to convince people of that.

But that still left the question of proof of shredding because it is just too crazy to assume it to be true, Enter Bill Paatalo who keeps digging like I do. And he found the exhibit to the agreement between Washington Mutual and ACS Services in which the documents were images and shredded off-site and then the images were delivered — not original documents.

There you have it. And this is wholly congruent with representation from the Florida Bankers Association to the Florida legislature that the documents were customarily shredded at or near closing.

THE BOTTOM LINE: Don’t assume that the original documentation of the loan ws ever delivered to anyone. Without delivery there can be no possession. Without possession it is highly unlikely that they could ever prove the right to enforce.

*
Neil F Garfield, MBA, JD, 73, is a Florida licensed trial attorney since 1977. He has received multiple academic and achievement awards in business and law. He is a former investment banker, securities broker, securities analyst, and financial analyst.
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FORECLOSURE DEFENSE IS NOT SIMPLE. THERE IS NO GUARANTEE OF A FAVORABLE RESULT. THE FORECLOSURE MILLS WILL DO EVERYTHING POSSIBLE TO WEAR YOU DOWN AND UNDERMINE YOUR CONFIDENCE. ALL EVIDENCE SHOWS THAT NO MEANINGFUL SETTLEMENT OCCURS UNTIL THE 11TH HOUR OF LITIGATION.
  • But challenging the “servicers” and other claimants before they seek enforcement can delay action by them for as much as 12 years or more.
  • Yes you DO need a lawyer.
  • If you wish to retain me as a legal consultant please write to me at neilfgarfield@hotmail.com.
*
Please visit www.lendinglies.com for more information.

Here is what the Florida Banker’s Association Said to the Florida Supreme Court in 2009

see Florida Bankers Assoc Comment Letter

It is a reality of commerce that virtually all paper documents related to a note and mortgage are converted to electronic files almost immediately after the loan is closed.

Individual loans, as electronic data, are compiled into portfolios which are transferred to the secondary market, frequently as mortgage-backed securities.

The reason “many firms file lost note counts as a standard alternative pleading in the complaint” is because the physical document was deliberately eliminated to avoid confusion immediately upon its conversion to an electronic file. See State Street Bank and Trust Company v. Lord, 851 So. 2d 790 (Fla. 4th DCA 2003).

Verification adds little protection for the mortgagor and, realistically, will not significantly diminish the burden on the courts. The amendment is not needed or helpful.

 

 

Careful what you say in “Hardship Letter”

Modifications are tricky. They are trickier than you think. First of all the offer is made by a company who has no right to act as “servicer” or to change the terms of your contract. By changing the apparent lender or creditor to the named servicer, the agreement is probably tricking you into accepting a virtual creditor in lieu of a real one.

But the most important trick is that what they are really looking for is a direct or tacit acknowledgement of the status and ownership of the debt. So if you say that this “servicer” did something or that “lender” did that, you are admitting that the company who presents itself as servicer is inf act an authorized entity to administer, collection and enforce your loan.

And if you refer to a “Lender” you are directly  or tacitly admitting that a creditor exists and they own the loan and that raises the the almost irrebuttable presumption that the “lender” has suffered financial injury as a direct and proximate result of your “failure” to pay.

Not paying is not a failure to pay, a delinquency or a default if the party demanding payment had no right to do so. So if you admit the default in your “hardship” letter you are putting yourself into the position of defending against compelling arguments that you waived any right to deny the default or the rights of the parties to enforce the debt, note or mortgage.

I recognize that there is the factor of coercion and intimidation in executing a modification (just to stop the threat of foreclosure, regardless of whether it is legal or not). But the question is whether the entire process of modification is a legally recognizable event.

If the offer comes from someone who has no ownership or authority to represent the owner of the underlying obligation then the offer is a legal nullity. But if it is accepted then there is a possibility that the homeowner might be deemed to have waived defenses. Also if the beneficiary of the agreement and the payments made would go to a party who does not own a loan account then the agreement has been procured by misrepresentation or implied misrepresentations.

Proper pursuit of discovery demands will most often result in an offer of settlement and modification that is simply too good to refuse. The reason is that your opposition  has no answers to your question that would not constitute an admission of civil or even criminal liability.

*
Neil F Garfield, MBA, JD, 73, is a Florida licensed trial attorney since 1977. He has received multiple academic and achievement awards in business and law. He is a former investment banker, securities broker, securities analyst, and financial analyst.
*

FREE REVIEW: Don’t wait, Act NOW!

CLICK HERE FOR REGISTRATION FORM. It is free, with no obligation and we keep all information private. The information you provide is not used for any purpose except for providing services you order or request from us. In the meanwhile you can order any of the following:
*
CLICK HERE ORDER ADMINISTRATIVE STRATEGY, ANALYSIS AND NARRATIVE. This could be all you need to preserve your objections and defenses to administration, collection or enforcement of your obligation. Suggestions for discovery demands are included.
*
CLICK HERE TO ORDER TERA – not necessary if you order PDR PREMIUM.
*
CLICK HERE TO ORDER CONSULT (not necessary if you order PDR)
*
*
CLICK HERE TO ORDER PRELIMINARY DOCUMENT REVIEW (PDR) (PDR PLUS or BASIC includes 30 minute recorded CONSULT)
*
FORECLOSURE DEFENSE IS NOT SIMPLE. THERE IS NO GUARANTEE OF A FAVORABLE RESULT. THE FORECLOSURE MILLS WILL DO EVERYTHING POSSIBLE TO WEAR YOU DOWN AND UNDERMINE YOUR CONFIDENCE. ALL EVIDENCE SHOWS THAT NO MEANINGFUL SETTLEMENT OCCURS UNTIL THE 11TH HOUR OF LITIGATION.
  • But challenging the “servicers” and other claimants before they seek enforcement can delay action by them for as much as 12 years or more.
  • Yes you DO need a lawyer.
  • If you wish to retain me as a legal consultant please write to me at neilfgarfield@hotmail.com.
*
Please visit www.lendinglies.com for more information.

 

Boilerplate Answers to Discovery Won’t Cut It. If Plaintiff does it, they lose the claim. If Defendant does it, they lose the defense.

see https://www.natlawreview.com/article/district-court-requires-plaintiff-to-disclose-evidence-about-noneconomic-loss

I have been writing, lecturing, and just saying the same thing since 2006. Homeowners don’t need to prove anything. The objective in Foreclosure Defense is to prevent the claimant from pursuing their claim. If you are not willing to do all the necessary   work and to make certain you have it right, then you are not litigating, you are complaining. The strategy is accomplished by using the following tactics:

  1. Wordsmithing the right very specific questions and demands that go right to the heart of the case — the existence and ownership of the debt (loan account).  Both lawyers and homeowners seem to be shy about doing this because they are afraid of receiving an answer they won’t like. No such response it will be forthcoming. In fact no answer will be forthcoming and that is the point. The most they can ever do is obscure and evade. They do this with objections or with the responses that are meaningless and boiler plate.
  2. File a motion to compel along with a memorandum of law citing to relevant cases that are exactly on point.
  3. Get a hearing on the motion to compel. At the same time get a hearing on objections raised by your opposition. Prepare an order in advance of the hearing so the judge can see exactly what you’re asking for. The order should NOT specify punishment. It should only say that your motion is granted, that the following questions must be answered, and that the “bank” must respond to following requests for production must with the documents requested within ___ days. Prepare for the hearing in a mock presentation.
  4. Assuming you win on your motion to compel, having a lawyer in the courtroom representing the homeowner will greatly improve the chances that your lawyer will literally write the findings and rulings of the court. This will decrease the amount of wiggle room that the opposing attorney will try to insert.
  5. You might consider a motion to strike whatever response they file as being unresponsive to the discovery demanded, and contrary to the rules of civil procedure.
  6. There will still be no response — or no meaningful response. All they have are presumptions (not actual facts). You are entitled to rebut those presumptions by asking for facts. They must answer — but they won’t because they can’t.
  7. File a motion for sanctions. along with a memorandum of law citing to relevant cases that are exactly on point.
  8. Get a hearing on the motion for sanctions. At the same time get a hearing on any new objections raised by your opposition. Prepare an order in advance of the hearing so the judge can see exactly what you’re asking for. The order should specify punishments including (a) striking the pleadings (b) dismissing the foreclosure (c) raising the inference or presumption that the loan account does not exist for purposes of this proceeding (“law of the case”) (d) raising the inference or presumption that the ownership of the loan account cannot be established for purposes of this proceeding (“law of the case”) and (e) awarding the homeowner with costs and fees associated with the discovery dispute. It should say that your motion is granted, recite the history of bad behavior, and give them one more chance to purge themselves of contempt that by compliance with the order on the motion to compel within ___ days. Prepare for the hearing in a mock presentation.
  9. There will still be no response — or no meaningful response. All they have are presumptions (not actual facts). You are entitled to rebut those presumptions by asking for facts. They must answer — but they won’t because they can’t.
  10. File a motion for contempt of court along with a memorandum of law citing to relevant cases that are exactly on point.
  11. Get a hearing on the motion for contempt. At the same time get a hearing on any new objections raised by your opposition. Prepare an order in advance of the hearing so the judge can see exactly what you’re asking for. The order should specify punishments including (a) striking the pleadings (b) dismissing the foreclosure (c) raising the inference or presumption that the loan account does not exist for purposes of this proceeding (“law of the case”) (d) raising the inference or presumption that the ownership of the loan account cannot be established for purposes of this proceeding (“law of the case”). It should say that your motion is granted, recite the history of bad behavior, and give them one more chance to purge themselves of contempt by compliance with the order on the motion to compel within ___ days. Prepare for the hearing in a mock presentation.
  12. File a motion in limine along with a memorandum of law citing to relevant cases that are exactly on point.
  13. Get a hearing on the motion for in limine. At the same time get a hearing on any new objections raised by your opposition. Prepare an order in advance of the hearing so the judge can see exactly what you’re asking for. The order should specify that the claimant is barred from introducing evidence on the status or ownership of the debt and barred from introducing any evidence (testimony or exhibits) from which the court might apply presumptions of ownership, loss, right to enforce. It should say that your motion is granted, recite the history of bad behavior. Prepare for the hearing in a mock presentation.
  14. File a motion for summary judgment along with a memorandum of law citing to relevant cases that are exactly on point.
  15. Get a hearing on the motion for summary judgment. At the same time get a hearing on any new objections raised by your opposition. Prepare an order in advance of the hearing so the judge can see exactly what you’re asking for. The order should specify that judgment is entered because the claimant is barred from introducing evidence on the status or ownership of the debt and barred from introducing any evidence (testimony or exhibits) from which the court might apply presumptions of ownership, loss, right to enforce. It should say that your motion is granted, recite the history of bad behavior. Prepare for the hearing in a mock presentation.
Neil F Garfield, MBA, JD, 73, is a Florida licensed trial attorney since 1977. He has received multiple academic and achievement awards in business and law. He is a former investment banker, securities broker, securities analyst, and financial analyst.
*

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CLICK HERE FOR REGISTRATION FORM. It is free, with no obligation and we keep all information private. The information you provide is not used for any purpose except for providing services you order or request from us. Inthe meanwhile you can order any of the following:
*
CLICK HERE ORDER ADMINISTRATIVE STRATEGY, ANALYSIS AND NARRATIVE. This could be all you need to preserve your objections and defenses to administration, collection or enforcement of your obligation.
*
CLICK HERE TO ORDER TERA – not necessary if you order PDR PREMIUM.
*
CLICK HERE TO ORDER CONSULT (not necessary if you order PDR)
*
*
CLICK HERE TO ORDER PRELIMINARY DOCUMENT REVIEW (PDR) (PDR PLUS or BASIC includes 30 minute recorded CONSULT)
*
FORECLOSURE DEFENSE IS NOT SIMPLE. THERE IS NO GUARANTEE OF A FAVORABLE RESULT. THE FORECLOSURE MILLS WILL DO EVERYTHING POSSIBLE TO WEAR YOU DOWN AND UNDERMINE YOUR CONFIDENCE. ALL EVIDENCE SHOWS THAT NO MEANINGFUL SETTLEMENT OCCURS UNTIL THE 11TH HOUR OF LITIGATION.
  • But challenging the “servicers” and other claimants before they seek enforcement can delay action by them for as much as 12 years or more.
  • Yes you DO need a lawyer.
  • If you wish to retain me as a legal consultant please write to me at neilfgarfield@hotmail.com.
*
Please visit www.lendinglies.com for more information.

Tonight! Is it time to sue Black Knight? 6PM EDT 3PM PDT The Neil Garfield Show

Thursdays LIVE! Click in to the Neil Garfield Show

Tonight’s Show Hosted by Neil Garfield, Esq.

Call in at (347) 850-1260, 6pm Eastern Thursdays

Tonight I will discuss the curious case of blatant economic fraud on the entire country by investment banks. They figured out how to eliminate the risk of loss on lending, how not to be labelled as a lender subject to lending laws, and who pursue collection, administration and enforcement of obligations that do not exist.  And then by denying the receipt of funds that paid off the loan on their own books they continue to operate as though the loan exists, and to designate fictitious entities who are falsely represented by foreclosure mills as owning the defunct obligation.

Specifically we explore how to stop this scheme from operating at all.

Foreclosure litigation is like the game of Chess. The banks line up a set of pawns for you to fight with while their real players hide behind multiple layers of curtains. In my opinion it is time to subpoena Black Knight to the table in most instances. Make them produce documents and answer questions. Note that with Chase (and possibly Wells Fargo) there are periods of time when they had their own alter-ego to Black Knight, so forensic investigation is required.

Black Knight, fka LPS (Lender Processing Services), owner of  DOCX and employer of Lorraine Brown who went to jail for fabricating tens of thousands of documents to create the false impression that homeowner obligations still existed and that some designated hitter (e.g., US Bank as trustee for the registered holders of pass through certificates issued by the SASCO Trust a1-2009) owned the obligation.

And then following that logic, since they own  the obligation, the refusal of the homeowner to pay the obligation is assumed to have produced a loss (financial damage). And then, following the logic, being the owner of the obligation and having suffered a loss that was caused by the homeowner’s refusal to pay, the lawyers declare a default on behalf of this designated hitter. And then they foreclose.

The possibility that there is no obligation and that there is no financial loss suffered by anyone  is currently thought of as stupid theory, thanks to the prolific PR efforts of the investment banks. And yet there is not a single case in which any foreclosure mill has produced any admissible evidence regarding the establishment or current status of the account reflecting ownership of the alleged homeowner’s obligation. Not a single case where actual loss has been in the pleading or notices. For two decades this game has been played by investment banks.

In addition, after the origination  or acquisition of the apparent loan transaction,  a new player is introduced (e.g. Ocwen), who claims to have been hired to service the loan accounts that are apparently owned by the designated hitter. But Ocwen only partially “services” the account. It might  have authority to act as agent for the designated hitter,  but the designated hitter has neither authority or ownership of the obligation. So Ocwen is a designated hitter for who ever is really doing the servicing. That party is in most cases Black Knight. In the Chess analogy Black Knight is the Knight who serves its masters (investment banks) and is willing to sacrifice itself and the self-proclaimed “servicers” to protect the King (investment bank).

This means that all records, payment history and document handling does not originate with Ocwen, but rather with Black Knight, who is actually answering to an investment bank who receives both proceeds from homeowner payments, and proceeds from illegal foreclosure sales. And the investment bank receives it as off balance sheet transactions that are actually revenue that is untaxed.

So interrupting the game of foreclosure mills in using “representatives” employed by “servicers” like Ocwen undermines the admissibility of any testimony or evidence from that representative, including foundation testimony for the admission of “business records” as an exception to the hearsay rule. It also brings you one step closer to the King. The harder they fight against you for doing this the more confident you will become that you have hit a nerve — or rather, the achilles heal of this entire scheme that would be a farce if it wasn’t so real.

And lawsuits against the designated hitter might have more credibility if you included not only the designated fake servicer but also the real servicer like Black Knight. And remember the truth is that in virtually so-called loans the end result is that there is no lender and there is no loan account on the books of any company claiming ownership of the obligation. They all get paid in full from “securitization” of the data.  But that means that they never sold the debt, which is an absolute condition precedent and standing requirement for bringing a claim.

So when US Bank is named as a claimant by lawyers, those lawyers have had no contact and no retainer agreement with US Bank who is completely unwilling to grant such right of representation for litigation in their name. But for a fee they are willing to stay silent as long as they don’t really need to do anything. And when Ocwen comes in as servicer, they have no original records and they did not board the records of another servicing company. They merely have access to the same proprietary database maintained and owned and operated by Black Knight who has full control over entries (largely automated through the use of lockbox contracts and then scanned), changes and reports.

So maybe it is time to subpoena  Black Knight who serves as the representatives of the investment banks and maybe it’s time to sue them for being party to a scheme specifically designed to deceive the courts and homeowners.

Take a look at a submission I just received from Summer Chic:

I received the rest of prop.  taxes from 2017 and here is a very interesting detail I want to share.

On November 6, 2019 Black Knight (who deny any involvement to my property*) filed a legal case against PennyMac whom BK accused on theft of their trade secrets and removed from their system.

Almost immediately customers started to complain that PennyMac is unable to perform their “servicing” due to a “major glitch” in their “updated system”.

In other words, PM is NOT able to conduct any functions without access to Black Knight’s MSP.

Since 2017 my taxes were purportedly paid by Caliber – whose tax PO Box  was different than PO box for my check payments.

On Sept. 15, 2019 PennyMac purportedly “paid” my taxes.

But on December 31, 2019 (!) my taxes were paid  by CoreLogic while the receipt shows as Coreligic-PM. I assume these were Spring taxes (which are due in March) because I don’t see any March receipts.

On September 16, 2020 my taxes were again paid by CoreLogic , now without any reference to PennyMac.

During all time in question CoreLogic repeatedly deny any relationship to my property even though they also conducted appraisal for my property via  la mode appraisal software.

In other words, it is clear who handles all escrow accounts.
*On June 15, 2016, or the same day as I filed my application for the loan, Black Knight  ordered Flood Map determination acting on behalf of Perl. Determination was done by CoreLogic who is allowed to use FEMA’s forms and who owns a Hazard Map determination company.
*
Neil F Garfield, MBA, JD, 73, is a Florida licensed trial attorney since 1977. He has received multiple academic and achievement awards in business and law. He is a former investment banker, securities broker, securities analyst, and financial analyst.
*

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CLICK HERE FOR REGISTRATION FORM. It is free, with no obligation and we keep all information private. The information you provide is not used for any purpose except for providing services you order or request from us. Inthe meanwhile you can order any of the following:
*
CLICK HERE ORDER ADMINISTRATIVE STRATEGY, ANALYSIS AND NARRATIVE. This could be all you need to preserve your objections and defenses to administration, collection or enforcement of your obligation.
*
CLICK HERE TO ORDER TERA – not necessary if you order PDR PREMIUM.
*
CLICK HERE TO ORDER CONSULT (not necessary if you order PDR)
*
*
CLICK HERE TO ORDER PRELIMINARY DOCUMENT REVIEW (PDR) (PDR PLUS or BASIC includes 30 minute recorded CONSULT)
*
FORECLOSURE DEFENSE IS NOT SIMPLE. THERE IS NO GUARANTEE OF A FAVORABLE RESULT. THE FORECLOSURE MILLS WILL DO EVERYTHING POSSIBLE TO WEAR YOU DOWN AND UNDERMINE YOUR CONFIDENCE. ALL EVIDENCE SHOWS THAT NO MEANINGFUL SETTLEMENT OCCURS UNTIL THE 11TH HOUR OF LITIGATION.
  • But challenging the “servicers” and other claimants before they seek enforcement can delay action by them for as much as 12 years or more.
  • Yes you DO need a lawyer.
  • If you wish to retain me as a legal consultant please write to me at neilfgarfield@hotmail.com.

 

Thousands of Homeowners Win Against the Banks: Here is Why You Never Hear About It

you made all that revenue possible by signing a note and mortgage in favor of someone who was not lending you any money. Nobody told you about that. And nobody told you that you were not entering a transaction in which there was a lender and borrower. There was only a borrower.

The simple fact is that the banks are breaking the law every time they attempt to administer, collect or enforce a debt. This is true in all cases where securitization is part of the deal. And securitization is in play 99% of the time even where no mention of securitization is made in the claim brought against a homeowner. The banks are breaking the law because there is no debt, no claim and no creditor. The money they receive from “successful” foreclosures is pure profit. They have no right to even be in court much less get a “remedy” that is limited to creating more revenue.

Buying or owning a house is the largest single investment for most families. And yet, nearly all of them leave the keys on the counter when they are threatened with foreclosure. They are completely ignorant of the fact that they have been cheated, that more money might be owed to them, and that there is no debt to pay or to be enforced. So the banks have succeeded in using the fact that most homeowners don’t understand what they are walking away from. 96% of all foreclosures are uncontested — thus reinforcing the belief that the foreclosures are legal and valid.

Of the remaining 4% about half of those accept modification agreements or cash for keys agreements that effectively change the entire loan agreement into one in which the homeowner as borrower now accepts a virtual lender rather than a real one, thus enabling virtually anyone to make a claim. The “modification” agreement comes with no warranties or ownership of the debt, note or mortgage. But the homeowner must agree that he/she/they will accept the named servicer as if they were a creditor and to disregard what happens outside of the relationship between the “servicer” and the homeowners.

The modification agreement is probably subject to challenge because it is based upon a number of false premises, first among them that the “servicer” is not a servicer for anyone who has paid value and therefore owns the obligation. Therefore the authority of the servicer from the named claimant is irrelevant. If they don’t own the debt they can’t claim injury to their asset. I usually suggest that the if the homeowner is disposed to accept the agreement, the homeowner might get still better terms by demanding that the named claimant (e.g. BONY Mellon, US Bank, Deutsche) acknowledge and accept the modification agreement., Funny thing.

That request is ALWAYS rejected — because the servicer does not represent the interests or assets of the named claimant. They can’t supply that acknowledgement because the “trustee” won’t give it. They won’t give it because if they did, that would make them really involved in the transaction rather than just being window dressing.

So then you come to those who fight persistently. Unfortunately, it usually takes a lawyer to win. Anyone can litigate — it’s your constitutional right. But generally speaking (Not always) the winning homeowner is in that position because there as a competent trial attorney litigating the case. Out of the 2% who actually fight persistently with a lawyer who knows what to do and does it (motions, discovery, etc), 2/3 of them win. that might seen like a small number. But applied against he number of foreclosure cases filed over the last 15-20 years it means that around 150,000 homeowners have won or settled their cases on satisfactory terms.

Satisfactory terms means that they either received a substantial reduction in principal (20%-90%) plus waiver of all arrearages and restoration of credit reports, or they received a cash payment in the hundreds of thousands of dollars. The lawyers made money (a lot of it), the homeowner was made whole and the foreclosure was either cancelled or allowed as part of the settlement agreement without any negative credit report.

So why doesn’t anyone hear about it? It’s because the settlement agreement makes it clear that the homeowner may not release, authorize or otherwise disclose anything about the case, the agreement or anything else.

Here is an example of the wording you find in such documents.

  1. Confidentiality and Notices: As a material inducement and an indivisible part of the consideration to be received by Defendants to enter into this Agreement, the Parties agree that it is appropriate to maintain any discovery exchanged in the Litigation, this Agreement, the terms of this Agreement, and the settlement provided for herein (collectively, the “Information”) as confidential on a going forward basis as of the date of this Agreement. Toward that end, Plaintiff agrees that he and her attorneys will neither disclose nor reveal to any person or entity or directly or indirectly publish, publicize, disseminate, or communicate to any person or entity the Information on a going forward basis as of the date of this Agreement, including but not limited to a prohibition on Plaintiffs and his attorneys posting or otherwise disclosing Information on the Internet or any other paper or electronic media outlet (including but not limited to news organizations websites or newspapers, email, biogs, Facebook, MySpace, Twitter, etc.). The only permitted disclosure of Information hereunder is to the persons or entities specifically identified in subparagraphs (i) through (ix) below, and the confidentiality obligation of Plaintiff’s attorneys is intended to provide for confidentiality to the full extent of, but no further than permitted by, the applicable attorney ethics or disciplinary rules.
  2. The Parties may provide a copy of this Agreement and/or describe the terms and conditions of this Agreement within any lawsuit before a United States court of competent jurisdiction only in response to a Court order to that The Parties further agree that, if they or their attorneys receive legal process designed to disclose any Information deemed confidential under this Agreement, the disclosing Party will provide advance written notice to counsel for the non-disclosing Party within three (3) business days of receiving such subpoena, court order, or other legal process, so that the non-disclosing Party has the option of taking steps to protect the confidentiality of this Agreement, its terms, or any Information deemed confidential under this Agreement;
  3. The Parties may provide a copy of this Agreement and/or describe the terms and conditions of this Agreement to their respective officers, directors, employees, attorneys, financial advisors, accountants, insurers, auditors, and other professional advisors who regularly have access to Information of this type in order to perform their duties, or with whom the Parties may consult regarding any aspect of this Agreement, provided that such persons or entities first agree to maintain this Agreement, the terms of this Agreement, and the settlement provided for herein as confidential;
  4. Non-Disparagement. Releasors and their attorneys will not, directly or indirectly, make any negative or disparaging statements against the Releasees maligning, ridiculing, defaming, or otherwise speaking ill of the Releasees, and their business affairs, practices or policies, standards, or reputation (including but not limited to statements or postings harmful to the Releasees’ business interests, reputation or good will) in any form (including but not limited to orally, in writing, on any social media, biogs, internet, to the media, persons and entities engaged in radio, television or Internet broadcasting, or to persons and entities that gather or report information on trade and business practices or reliability) that relate to this Agreement and the Information (as defined above) or any matter covered by the release within this Nothing in the Agreement shall, however, be deemed to interfere with each party’s obligation to report transactions with appropriate governmental, taxing, or registering agencies. Nothing in this Agreement prohibits or limits Plaintiff or Plaintiffs counsel from initiating communications directly with, responding to any inquiry from, volunteering information to, or providing testimony before, the Securities and Exchange Commission, the Department of Justice,

So the bottom line is that the choice between challenging and leaving is a deeply personal one and that there is no one right answer. But the choice to leave should not be based on the erroneous myth that you can’t or shouldn’t win. these people have received many times the amount funded at your loan closing and have closed off the account on their own books. They have not only been paid, they have made more money posing as lenders than they ever could have by actually being lenders. And you made all that revenue possible by signing a note and mortgage in favor of someone who was not lending you any money. Nobody told you about that. And nobody told you that you were not entering a transaction in which there was a lender and borrower. There was only a borrower.

*
Neil F Garfield, MBA, JD, 73, is a Florida licensed trial attorney since 1977. He has received multiple academic and achievement awards in business and law. He is a former investment banker, securities broker, securities analyst, and financial analyst.
*

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CLICK HERE FOR REGISTRATION FORM. It is free, with no obligation and we keep all information private. The information you provide is not used for any purpose except for providing services you order or request from us. Inthe meanwhile you can order any of the following:
*
CLICK HERE ORDER ADMINISTRATIVE STRATEGY, ANALYSIS AND NARRATIVE. This could be all you need to preserve your objections and defenses to administration, collection or enforcement of your obligation.
*
CLICK HERE TO ORDER TERA – not necessary if you order PDR PREMIUM.
*
CLICK HERE TO ORDER CONSULT (not necessary if you order PDR)
*
*
CLICK HERE TO ORDER PRELIMINARY DOCUMENT REVIEW (PDR) (PDR PLUS or BASIC includes 30 minute recorded CONSULT)
*
FORECLOSURE DEFENSE IS NOT SIMPLE. THERE IS NO GUARANTEE OF A FAVORABLE RESULT. THE FORECLOSURE MILLS WILL DO EVERYTHING POSSIBLE TO WEAR YOU DOWN AND UNDERMINE YOUR CONFIDENCE. ALL EVIDENCE SHOWS THAT NO MEANINGFUL SETTLEMENT OCCURS UNTIL THE 11TH HOUR OF LITIGATION.
  • But challenging the “servicers” and other claimants before they seek enforcement can delay action by them for as much as 12 years or more.
  • Yes you DO need a lawyer.
  • If you wish to retain me as a legal consultant please write to me at neilfgarfield@hotmail.com.
*
Please visit www.lendinglies.com for more information.

 

Watch that modification agreement. You are being forced to accept a virtual creditor instead of a real one.

“Morality is an existential threat to commerce and politics. Although we legislate morality we refuse to enforce it. It is OK to lie to consumers or borrowers but not OK to lie to a financial institution who by the way is lying to you.” Neil F Garfield, October 2009 speech to regional bankruptcy conference in Phoenix Arizona.

The proposed modification agreement is an attempt to force or coerce the borrower into accepting a NEW term of the loan agreement that any attorney would advise against, to wit: acceptance of a designated creditor instead of a real one.  

The transmission of a proposed Modification Agreement by a “servicer” like Ocwen, PHH, SPS. SLS, Bayview etc. would be mail fraud if it was sent via USPS. It seeks to extort a signature from the borrower that directly acknowledges and accepts the existence of a virtual creditor.

The obligation was funded by a third party (investment bank) who did not take ownership of the debt, note or mortgage.

The reason the investment banks didn’t want ownership is that they were in the business of lending money without being subject (at least on the surface) to long standing federal and state statutes and common law restricting the behavior of lenders and requiring full and fair disclosure of the terms of the transaction. 

I recently received another modification agreement to review. The true nature of the agreement only appears when you read it carefully. If you do that, it is obvious.

In any normal circumstance where the lender existed and owned the underlying obligation because it had paid value for the note and mortgage, the lender, or its successor would be identified as such. And the Lender or Successor would insist on being named for its own protection, lest some third party claiming to be servicer runs off with the money.

This is not only custom and practice in the commercial banking and investment banking industry, it is also the only way, without committing legal malpractice, to draft such an agreement to protect the creditor from any intervention or claims.

But if you look carefully you will not see any reference like this: “Whereas, ABC was the owner of the loan account, note and mortgage and was succeeded by XYZ who purchased and paid value for said debt, note and mortgage on the __ day of ___, 2020,

Here is my recent analysis:

The modification agreement is very helpful because it corroborates what I have been saying.
*
The agreement first states that the parties to the agreement are the debtor, xxxxx yyyyy, and then two other parties, to wit: New Residential Investment Corp., [NewRes] who is not identified as to its role or relationship to the yyyyyyy loan, and Ocwen Loan Servicing LLC, [Ocwen] who is identified as the servicer or or agent for NewRes.
*
NewRes asserts in the public domain that it is an REIT. But records show that it grew out of a loan servicing business, which I believe to still be the case. In any event there is no representation or warranty in the modification agreement that states or even implies that NewRes is a creditor or lender. That status is raised by implication for the benefit of Ocwen. And who Ocwen is really working for is left out of the agreement altogether.
*
The statement that Ocwen is servicer for NewRes does not make Ocwen a servicer for the loan account. Unless NewRes is or was the owner of the account who paid value for the underlying debt, Ocwen’s agency might exist but it had nothing to do with the subject loan. This is why homeowners need lawyers arguing these points which, for most people, dulls the brain. “Because I said so” may work in the house with children but it was never intended to be accepted in courts of law.
*
So far the banks have fooled courts, lawyers and homeowners into thinking that this type of legal gibberish can be used with impunity and  that this gives the lawyers free license to characterize it in any way that is convenient for the success of a false, illegal and fraudulent foreclosure case. And they can do so because the lawyers are protected by the overly broad doctrine of  litigation immunity.
*
Authority is not magic. It can only occur if the loan account is owned by a creditor who paid value and authorized Ocwen to act as loan servicer or agent in their stead. Such a creditor would have the legal right to grant servicing rights to Ocwen in a servicing agreement (not a Power of Attorney).
*
When challenged, Ocwen is obliged under law to answer simple questions: (1) from whom did you receive authority to administer, collect or enforce the debt, note or mortgage? Is the grantor of such authority a person or entity that has paid value for the underlying obligation? If not, is the grantor representing a person or entity that has paid value for the underlying obligation?
*
Absent from the agreement is any reference or assertion or even implied assertion that NewRes paid value for the debt, or even the assertion that NewRes is the owner of the debt, note or mortgage.
*
This absence, in my opinion, is evidence of absence, to wit: that NewRes is not the owner of the debt, note and mortgage and does not maintain any entry in its bookkeeping records reflecting a purchase of the subject loan or any loan — at least not from anyone who owned it.
*

No such transaction could have occurred because the obligation was funded by a third party (investment bank) who did not take ownership of the debt, note or mortgage. In other words, there was nobody to pay and so payment was not made.

*
Instead the agreement says that Ocwen will be called the “Lender/Servicer or agent for Lender/Servicer (Lender).”
*
This statement corroborates my conclusion and factual findings that there is no loan account in existence, and therefore no creditor who possesses a legal claim for equitable or legal remedies to pay for losses attributed to the loan account as a result of the action or inaction of a homeowner.
*

If there was a party who had the yyyyy loan on its bookkeeping or accounting ledgers as an asset receivable it would be there because that entity had paid value for the debt — the key element and condition precedent to both ownership of the debt and the authority to enforce the note or mortgage.

Without authority from the owner of the underlying debt there is no legal foundation supporting the allegation that the claimant is a holder with rights to enforce. The allegation may be enough for pleadings but it is not enough for trial. Further the court has no authority to apply any legal presumptions arising out of the possession of the note unless the creditor is identified.

*
The agreement is clearly an attempt to insert Ocwen as the lender for purposes of the agreement. But Ocwen is not the lender nor a creditor nor even an authorized servicer on behalf of any party who has paid value for the underlying debt. NewRes appears to be yet another nominee in a long list of nominees and designees to shelter the investment banks from liability, even while they pursue profit by weaponizing administration, collection and enforcement of loans. 
*

The modification agreement is an attempt to force or coerce the borrower into accepting a term of the loan agreement that any attorney would advise against, to wit: acceptance of a designated creditor instead of a real one.  

*
This is further evidence of deceptive servicing and lending practices. They are evading the responsibility imposed by law to identify the creditor and the authority to represent the creditor. They are evading the responsibility imposed by law to provide an accurate accounting for the establishment and current status of the alleged obligation.
*
The reason for this behavior is that there is no current obligation claimed by any company to be owed to them as a result of ownership of the loan account arising from a transaction in which value was paid for the underlying debt.
*
Accordingly there can be no authority to act as servicer, agent, or “acting lender”, nominee or designee.
*
Neil F Garfield, MBA, JD, 73, is a Florida licensed trial attorney since 1977. He has received multiple academic and achievement awards in business and law. He is a former investment banker, securities broker, securities analyst, and financial analyst.
*

FREE REVIEW: Don’t wait, Act NOW!

CLICK HERE FOR REGISTRATION FORM. It is free, with no obligation and we keep all information private. The information you provide is not used for any purpose except for providing services you order or request from us. In the meanwhile you can order any of the following:
*
CLICK HERE ORDER ADMINISTRATIVE STRATEGY, ANALYSIS AND NARRATIVE. This could be all you need to preserve your objections and defenses to administration, collection or enforcement of your obligation.
*
CLICK HERE TO ORDER TERA – not necessary if you order PDR PREMIUM.
*
CLICK HERE TO ORDER CONSULT (not necessary if you order PDR)
*
*
CLICK HERE TO ORDER PRELIMINARY DOCUMENT REVIEW (PDR) (PDR PLUS or BASIC includes 30 minute recorded CONSULT)
*
FORECLOSURE DEFENSE IS NOT SIMPLE. THERE IS NO GUARANTEE OF A FAVORABLE RESULT. THE FORECLOSURE MILLS WILL DO EVERYTHING POSSIBLE TO WEAR YOU DOWN AND UNDERMINE YOUR CONFIDENCE. ALL EVIDENCE SHOWS THAT NO MEANINGFUL SETTLEMENT OCCURS UNTIL THE 11TH HOUR OF LITIGATION.
  • But challenging the “servicers” and other claimants before they seek enforcement can delay action by them for as much as 12 years or more.
  • Yes you DO need a lawyer.
  • If you wish to retain me as a legal consultant please write to me at neilfgarfield@hotmail.com.
*
Please visit www.lendinglies.com for more information.

Another Homeowner Victory In Hawaii! Gary Dubin, Attorney

US Bank v Compton 9335344481 Hawaii 2020 Dubin

So here is yet another example of litigation done correctly. This case demonstrates that the courts can and will be convinced to rule in favor of homeowners when the correct issue is raised at the right time in the right way. Here are some quotes from the case:

“Compton asserts that the evidence which U.S. Bank sought to admit through (1) the “Declaration of Indebtedness and on Prior Business Records” by Carol Davis (Davis), a “Document Execution Specialist” employed by Nationstar Mortgage LLC d/b/a Mr. Cooper (Nationstar), as servicing agent for U.S. Bank, attached to the Motion for Summary Judgment, and (2) the “Declaration of Custodian of Note” by Gina Santellan (Santellan), a “custodian of original loan records” employed by The Mortgage Law Firm, PLC (TMLF CA), attached to U.S. Bank’s “Supplemental Memorandum in Support of Its [Motion for Summary Judgment],” was hearsay and not admissible evidence.

“someone purporting to be a “custodian or other qualified witness” must establish sufficient foundation upon which to admit the note. In Wells Fargo Bank, N.A. v. Behrendt, 142 Hawai5i 37, 414 P.3d 89 (2018), the Hawai5i Supreme Court ...

“Davis does not attest to being a custodian of records, but an authorized signer for Nationstar.

“Davis declaration does not state that U.S. Bank possessed the Note at the time the Complaint was filed, merely stating that “[U.S. Bank] has possession of the Note,” and that based on Nationstar’s records, U.S. Bank “by and through Nationstar had possession of the original Note prior to 01/24/17, the date of the filing of the complaint in this foreclosure.”

“although Davis attests to Nationstar incorporating the records of Bank of America, the “Prior Servicer,” and relying upon the accuracy of those records, Davis does not aver that she is familiar with the record-keeping system of Bank of America or the lender Countrywide, which purportedly created the Note and signed the blank endorsement. Thus, Davis’s declaration failed to establish the foundation for the Note to be admitted into evidence. Behrendt, 142 Hawai5i at 45, 414 P.3d at 97; U.S. Bank N.A. v. Mattos, 140 Hawai5i 26, 32-33, 398 P.3d 615, 621-22 (2017).

“Santellans’ declaration does not establish the foundation for admission of the Note to establish possession. That is, like the Davis declaration, Santellan does not attest that she has “familiarity with the record-keeping system of the business that created the record to explain how the record was generated in the ordinary course of business.” Behrendt, 142 Hawai5i at 45, 414 P.3d at 97 (quoting Mattos, 140 Hawai5i at 32, 398 P.3d at 621); Fitzwater, 122 Hawai5i at 365-66, 227 P.3d at 531-32) (determining that while there is no requirement that the records have been prepared by the entity that has custody of them, as long as they were created in the regular course of some entity’s business, the witness must have enough familiarity with the record-keeping system of the business that created the record to explain how the record was generated in the ordinary course of business) (quotation marks omitted).

“Viewing the evidence in the light most favorable to Compton, as we must for purposes of a summary judgment ruling, we conclude that there is a genuine issue of material fact as to whether U.S. Bank had standing to initiate this foreclosure action when it was commenced. Accordingly, we conclude that the Circuit Court erred in granting U.S. Bank’s Motion for Summary Judgment.

“Based on the foregoing, the Judgment and the “Findings of Fact, Conclusions of Law and Order Granting Plaintiff’s Motion for Summary Judgment against All Defendants and for Interlocutory Decree of Foreclosure,” both entered on August 10, 2018, by the Circuit Court of the Second Circuit, are vacated. This case is remanded to the Circuit Court for further proceedings consistent …

Tonight! Lehman Bankruptcy 8 Years Later: Muddied Waters Cover Fraudulent Activities 3PM PDT 6PM EDT

Thursdays LIVE! Click in to the WEST COAST Neil Garfield Show

with Charles Marshall and Bill Paatalo

Or call in at (347) 850-1260, 6pm Eastern Thursdays

Great Gig if you can get it: Lehman Brothers in their bankruptcy (BK) here in 2020–yes 2020–is having to respond to a proof of claim (POC). It was filed in the Lehman BK by Nationstar (nka Mr. Cooper) along with a stipulation which effectively confirms the POC.

The stipulation is to the effect that Nationstar is affirmed to have a right to collect from the debt originator Lehman on the same mortgage debt — which in a typical scenario they would be restricted from collecting solely from the Individual Borrower–in other words the bulk of the listeners to the Neil Garfield Show.

As Bill will discuss, the Obligation under the Note section of the POC at issue here states that: “The Note Holder may enforce its rights under this Note against each person individually or against all of us together. This means that any one of us may be required to pay all the amounts owed under this Note.”

Then on the Show today Charles Marshall will drill down into the latest Covid-19 impacts to civil legal procedure, foreclosure auctions, and unlawful detainer cases, including addressing foreclosure and eviction moratoriums.

Bank Stocks Tumble After They Report $2 Trillion in Money Laundering

see https://markets.businessinsider.com/news/stocks/bank-stock-prices-report-trillion-suspicious-flows-money-laundering-icij-2020-9-1029607556?utm_campaign=browser_notification&utm_source=desktop#

So the banks themselves have disclosed the fact that they were laundering money for all sorts of people. And while they probably were paid higher fees than normal money transfers, that doesn’t completely explain why banks, of all business entities, did such a thing on such a wide scale. I have an explanation.

First of course is the fact that they were making these disclosures to regulators who had no capability of even reading the disclosures, much less acting upon them. The argument about regulation is a false choice. There is no argument. Corporations, limited partnerships, trusts and yes, banks are creatures of the state — they are legal fictions whose existence is entirely dependent on state and Federal law. There is no corporation in the natural world. They are allowed because government decided they facilitate commerce, and capitalism in particular. It’s the government that allows them to exist and it is the government that should therefore regulate them. There is no such thing as a free market if only some of the players are allowed to dictate the terms of play. That’s fascism. In the case of false claims of securitization of loans, there is no free market if nobody knows what is really happening. That’s fraud.

Second, this reminds me of 2008 when Bernie Madoff was exposed for committing the “largest economic” crime. That reveal diverted attention from an economic crime that dwarfed the $60 billion that Madoff took. Investment banks converted data about loans into “assets” deriving their value from bets about — rather than ownership of — the loans. In so doing they were able to print counterfeit money. They sold the “data” multiple times without ever having to credit the debt account because there was no debt account. They drove up home prices by selling payments that homeowners could afford in a failing deal based upon falsely inflated appraisals. Then to add insult to injury, they foreclosed on millions of homes. They are about to do that again, with the number of foreclosure filings and reported “delinquencies” (on loan accounts that don’t exist) soaring.

Third, illegal money laundering for terrorists, drug cartels and criminals was a cover for how the banks moved trillions of the money they siphoned out of the U.S. economy. Buried in these reports are clues to what they did with the money. We already know that Goldman Sachs became the leading owner and operator of storage and distribution for precious metals. Where do you think that money came from?

It’s doubtful that our government will find any effective way of clawing back $ trillions of dollars taken out of the US economy and leaving us in fragile condition. But that doesn’t mean we shouldn’t stop them from doing it again. Every foreclosure is another highway robbery. There is no loan account, there is no loss and the money they get from any payments by borrowers or any sales of property goes into the pocket of the investment banks who, in turn, park it off shore for rainy days. When they need money for bonuses, reserves or earnings announcements they need only “repatriate” the stolen money in the form of trading profits.

Pizza delivery guys started earning hundreds of thousands of dollars selling what appeared to be loan products and inreality were invitations to self-sabotage. If something looks too good to be true, then it is too good to be true. The banks wouldn’t hire, much less pay, someone with no formal education, training or experience selling “loan products” unless the investment banks (i.e. securities brokerage firms) were making a thousand times their normal fees through sleight of hand.

*Neil F Garfield, MBA, JD, 73, is a Florida licensed trial attorney since 1977. He has received multiple academic and achievement awards in business and law. He is a former investment banker, securities broker, securities analyst, and financial analyst.*

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  • But challenging the “servicers” and other claimants before they seek enforcement can delay action by them for as much as 12 years or more. 
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What do the ten (10) biggest frauds in human history have in common?

see https://www.forbes.com/pictures/efik45ekdjl/10-qwest-communications-2/#775bab806de4

ANSWERS:

  • They are all based upon making S–T up out of thin air and then piling multiple layers of lies on the dung heap they labeled as “value.”
  • With the exception of Lehman, the list does not include the largest frauds leading up to the 2008-2009 economic crash.
  • In each case government regulators stepped back and let the “free markets” play out to make the needed corrections.
  • In each case there was no free market because the most important information was both withheld and actively concealed.
  • In each case the fraud was at least partially successful for a time because the size of the fraud made it seem unlikely that it could be a fraud.
  • In each case they filed documents with a government authority and then relied on those self-serving documents to cover up their fraud.
  • In each case most analysts on Wall Street knew about the fraud and said nothing.
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