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Phone: 954-451-1230

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Services include: Expert Consultation Services, Strategy, Qualified Written Requests, Case Review and Reports, Forensic Analysis Referrals, Discovery , Motions, Pleadings, Complaints to AF and CFPB, Title and Encumbrance Analysis, and Case Analysis. We coach lawyers and pro se litigants. ALL 50 STATES.

MISSION STATEMENT: I believe that the mortgage crisis has produced manifest evil and injustice in our society. Pretenders with more money and more lawyers than any consumer or borrower are stealing homes from homeowners while they undermine the investments by Pension Funds.

LivingLies is the vehicle for a collaborative movement to provide homeowners with sufficient forensic and legal resources to combat banks who are using fictitious names and entities to cover up their malfeasance.

We provide thousands of pages of free forms, articles and discussion of statutes, case precedent and policy on this site. On www.lendinglies.com I provide paid crucial analytic and presentation services that enable lawyers and homeowners to confront the lies in attempted foreclosures.

Ask about our CONSULTATION SERVICES and LITIGATION SUPPORT.

Educate Yourself and Your Lawyer: Read this Blog and Purchase Books & Services from www.lendinglies.com

Law Firm Admits Absence of Creditor

Hat Tip Bill Paatalo

You are right, Bill. You can’t make this stuff up. But somehow judges still don’t want to believe it. How can you be attorney in fact for a nonexistent entity?

https://bpinvestigativeagency.com/law-firm-finally-admits-the-absence-of-any-mortgagee/

This is an attempt to avoid both criminal prosecution and bar discipline for misusing the license to practice law. But the end result inescapable. By admitting that there is an absence of any mortgagee the law firm is admitting that they do not represent any creditor because they don’t believe that the creditor even exists, much less that the law firm actually represents them.

This is all very counterintuitive. Why would a lawyer go to court without a client? Answer: the real client is someone who sees an opportunity to make money by suing on a claim that does not belong to them. The fake client is the nonexistent entity that has a name but no real existence much less ownership of the debt, note or mortgage.

Judges can’t seem to get past their bias that the foreclosure means that even if improperly done it will result in payment of the debt. If there is no creditor you can be sure that there is no payment of the debt that results from foreclosure. So what is that money when the property is sold? It is REVENUE.

Courts are granting revenue to any applicant who pretends that it is somehow connected to a creditor without naming any creditor and without actually showing authority from anyone who has paid value for any debt. 

How to Distinguish Between Ownership of the Debt, Ownership of the Note and Ownership of the Mortgage (or Deed of Trust)

Amongst the lay people who are researching issues regarding who actually can enforce a mortgage, there is confusion arising from specific terms of art used by lawyers in distinguishing between a debt, a note and a mortgage. This article is intended to clarify the subject for lawyers and pro litigants. The devil is in the details.

Bottom Line: In most cases foreclosures are allowed because of the presumption that the actual original note has been physically delivered to the current claimant from one who owned the debt because they both had paid money for it. In most cases merely denying that fact is insufficient to prevent the foreclosure because the court is erroneously presuming that even if the foreclosure is deficient the proceeds of sale will still go to pay the debt.

In most cases those presumptions are untrue but must be rebutted. And the way to rebut those presumptions is to formulate discovery that asks who paid for the debt, when and who were the parties to the transaction?

The  lawyers from the foreclosure mills will fight tooth and nail to prevent an order from the court directing them to answer the simple question of who actually owns the debt by reason of having paid value for it and thus who will receive the foreclosure sale proceeds as payment for the debt. The answer is almost always the same — the foreclosure mill is unable to identify such a party thus conceding the lack of subject matter jurisdiction and standing to bring the foreclosure action.

Eventually some party will be identified by changes in the law as being the legal owner of the debt. thus cleaning up the jurisdictional issue caused by utilizing parties who have neither suffered any financial injury nor are threatened with any such financial injury. But for now, the banks are stuck with the mess they created.

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GET FREE HELP: Just click here and submit  the confidential, free, no obligation, private REGISTRATION FORM. The key to victory lies in understanding your own case.
Let us help you plan for trial and draft your foreclosure defense strategy, discovery requests and defense narrative: 954-451-1230. Ask for a Consult or check us out on www.lendinglies.com. Order a PDR BASIC to have us review and comment on your notice of TILA Rescission or similar document.
I provide advice and consultation to many people and lawyers so they can spot the key required elements of a scam — in and out of court. If you have a deal you want skimmed for red flags order the Consult and fill out the REGISTRATION FORM.
PLEASE FILL OUT AND SUBMIT OUR FREE REGISTRATION FORM 
Get a Consult and TERA (Title & Encumbrances Analysis and & Report) 954-451-1230. The TERA replaces and greatly enhances the former COTA (Chain of Title Analysis, including a one page summary of Title History and Gaps).
THIS ARTICLE IS NOT A LEGAL OPINION UPON WHICH YOU CAN RELY IN ANY INDIVIDUAL CASE. HIRE A LAWYER.
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Transfer of debt is by payment for the debt. Payment means you have a legal and equitable right to claim the debt as your own. Payor is the new owner of the debt and the Payee is the prior owner of the debt. There are no exceptions.

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The note is evidence of the debt. It is not the debt.
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Payment of money to a borrower creates a debt or liability regardless of whether or not any document is signed.
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Signing a document promising to pay creates a liability regardless of whether or not there was ny payment of money. In fact, if someone buys the note for value they become a holder in due course and the maker is liable even if they never received any money, value or consideration.
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Enforcement of the debt alone is governed by statutory and common law.
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Enforcement of notes and enforcement of the security instrument (mortgage or deed of trust) is controlled strictly by the adoption of the Uniform Commercial Code (UCC).
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Article 3 UCC governs the negotiation and enforcement of paper instruments containing an unconditional promise to pay a certain sum on a certain date.
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Article 9 governs the transfer and enforcement of security agreements (mortgages and deeds of trust).
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Whereas Article 3 does not require the holder of the note to be the owner of the debt for purposes of enforcement of the note, Article 9 requires the holder of the mortgage to be the owner of the debt as a condition precedent to enforcement of the mortgage. No exceptions.
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Ordinarily the execution of the note causes the debt to be merged with the obligations under the terms of the note. But this is only true if the owner of the debt and payee under the note are the same party. If not, then the execution of the note creates two distinct liabilities — one for payment of the debt and one for payment under the terms of the “contract” (i.e., the note).
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Before securitization it was customary that the owner of the debt had paid money to the borrower as a loan, and the execution of the note formalized the scheme for repayment. Hence under the merger doctrine the borrower who accepted the loan and the maker of the note were the same party and the Lender of the money to the borrower was also the payee named in the note.
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Now this is not always the case and appears to be not the case in most loans, which is why the banks have resorted to fabricated backdated forged and robosigned documents. The Lender in many if not most loan originations was not the party named as payee on the note. And the party named as payee on the note had no authority to represent the interests of the lender. Where this is true, merger cannot apply. And where this is true, enforcement of the note is NOT enforcement of the debt. Rather it is enforcement of a liability created entirely by contract.
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Foreclosure of a mortgage must be for payment of the debt, not just the liability on the note. All states have case law that says that transfer of mortgage without the debt are a nullity. This executing and receiving an assignment of mortgage and even recording it is a legal nullity unless the recipient paid money for the debt and the transferor was conveying ownership of the debt because the transferor had paid money for the debt. If those conditions are not met the executed and recorded assignment of mortgage is a legal nullity and the title record must be viewed by the court as lacking an assignment of mortgage.
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The judiciary has not caught up with these discrepancies in most instances. Hence a judge will ordinarily presume that the delivery and endorsement of the note and the assignment of the mortgage was equivalent to the transfer of title to the debt, with payment being presumed for the debt. So while the law requires ownership of the debt by reason having paid for it, the courts presume that the debt was transferred along with the paper, subject to rebuttal by the maker and borrower.
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The rubber meets the road when in discovery and defenses the borrower raises the issue of who paid for the debt and when. In the current world of securitization the answer will be the same: the banks won’t tell you and they won’t admit that the party named as claimant in the foreclosure never paid for the debt, despite appearances to the contrary. 

Tonight! The Chase-WAMU Scheme —Laundering Money and Mortgages For Untaxed Profit 6pm EDT With NEW EVIDENCE

FORENSIC AUDITORS TAKE NOTE

Thursdays LIVE!

The Neil Garfield Show

or prior episodes

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

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See https://livinglies.me/2019/08/15/chase-laundered-wamu-loans-through-offshore-accounts-with-fictitious-names/

Bill Paatalo joins me on tonight’s edition of the Neil Garfield Show. That’s because as a forensic investigator (and former cop) he just recently unearthed the most damning evidence yet against Chase and their entire charade.

Chase never paid for, does not own and legally is not entitled to enforce the mortgages that were originated by WAMU.

The courts have been letting Chase foreclose on the presumption that the foreclosure sale proceeds were going to pay a debt. Paatalo’s new evidence underscores and corroborates the fact that Chase converted debt into revenue without ever putting up a single penny.

So far Chase has made hundreds of billions of dollars by foreclosing on loan agreements to which they are not a party and for restitution of a debt that Chase does not own. So even after foreclosure, the debt never gets paid. Foreclosure sale proceeds are received by Chase as revenue!

See Article 9 §203 UCC adopted in all 50 states

Chase Laundered WAMU Loans Through Offshore Accounts with Fictitious Names

Bill Paatalo has once again made a breakthrough in analyzing and investigating the Chase-WAMU connection.

see https://bpinvestigativeagency.com/did-chase-park-the-wamu-loans-in-off-shore-tax-haven-subsidiaries-evidence-says-yes/

Here is what we know:

  1. Washington Mutual (WAMU) was in the business of originating loans  not lending money.
  2. WAMU sold every originated loan before, during or after loan origination. Its securities subsidiary pocketed the profits and was liable for buy-backs which everyone knew could never be funded.
  3. This process resulted in the origination of of approximately $1 Trillion in mortgage loans.
  4. No assignments of mortgage were ever recorded in which WAMU was the assignor and WAMU executed the instrument. Some were attempted by Chase as “attorney in fact.”
  5. No indorsements of any promissory note was ever produced or signed directly by WAMU.
  6. While the debt, note and mortgage were sold by WAMU contemporaneously with origination (actually for a fee where WAMU did not fund the loan), a gap existed in the title record. The purchasers of the loans could have corrected the record with affidavits and court orders which could have been easily obtained with proof of purchase. One of the purchasers could even have been a Chase subsidiary.
  7. No effort was ever made on or off record by anyone to clarify the owner of the debt, note or mortgage.
  8. WAMU went bankrupt in 2008, its estate subject to the control of the US Trustee in bankruptcy.
  9. WAMU was seized and liquidated by the FDIC in 2008, as receiver of the estate.
  10. The FDIC never issued any power of attorney nor any assignment or endorsement of any loan because  there were no loans to assign or endorse in the WAMU estate. The estate did not own the debt, note or mortgage of any loan.
  11. Chase bought the WAMU estate on September 25, 2008. This included the servicing rights, if they existed, on loans that WAMU had originated. Many of these servicing functions had already been sold or transferred prior to the sale. The consideration for the entire deal was zero.
  12. Chase claimed servicing rights on every loan originated by WAMU.
  13. Chase then claimed ownership of the debt, note and mortgage on each loan even though they had been previously sold. This was a blatant lie.
  14. Chase then foreclosed on thousands of homes as if it was the party entitled to enforce the mortgage — i.e., the party who had paid value for the debt — a condition precedent to enforcement under Article 9 §203 UCC.
  15. The success of Chase in these illegal foreclosures, in most instances by default, resulted in windfall profits, most of which were recorded offshore to avoid taxes. Each time a property was sold the money proceeds were distributed as revenue to the participants who aided in the illegal foreclosure activity.
  16. None of the proceeds of sales of illegally foreclosed property was ever distributed to any owner of the debt.
  17. Thus Chase successfully converted assets to revenue, avoided taxes on windfall profits, and will argue that it was return of capital (payment of principal amount of loan) even though they never invested one dime in any of the WAMU loans at origination or acquisition.

How One Woman Beat the Banks by David Dayen

I’m not sure if I ever knew about this article but it seems accurate.

https://www.salon.com/2016/05/22/how_one_woman_beat_the_big_banks_the_amazing_true_story_about_how_wall_streets_mortgage_fraud_unraveled/

Keep the Envelopes! Attention Forensic Auditors! How to Show They Are Lying About Everything

The devil is in the details and it is in the details that actions don’t add up if one party is faking their status. 

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GET FREE HELP: Just click here and submit  the confidential, free, no obligation, private REGISTRATION FORM. The key to victory lies in understanding your own case.
Let us help you plan for trial and draft your foreclosure defense strategy, discovery requests and defense narrative: 954-451-1230. Ask for a Consult or check us out on www.lendinglies.com. Order a PDR BASIC to have us review and comment on your notice of TILA Rescission or similar document.
I provide advice and consultation to many people and lawyers so they can spot the key required elements of a scam — in and out of court. If you have a deal you want skimmed for red flags order the Consult and fill out the REGISTRATION FORM.
PLEASE FILL OUT AND SUBMIT OUR FREE REGISTRATION FORM 
Get a Consult and TERA (Title & Encumbrances Analysis and & Report) 954-451-1230. The TERA replaces and greatly enhances the former COTA (Chain of Title Analysis, including a one page summary of Title History and Gaps).
THIS ARTICLE IS NOT A LEGAL OPINION UPON WHICH YOU CAN RELY IN ANY INDIVIDUAL CASE. HIRE A LAWYER.
========================

Hat tip to Summer Chic

I have long described the practice of sending out correspondence and notices from, say for example PennyMac, from an address that has never been PennyMac. Summer Chic discovered with some snooping that the letter she received from “PennyMac” was sent from a Bank of America location. Bank of America claims no connection with PennyMac. In many such scenarios Bank of America claims no connection with the loan.

Of course that might very well be true. Because in the securitization game the real records are kept at the investment bank (who at least WAS the real party in interest when the loan was originated or acquired)  and a central repository from which documents, notices and other instruments are created, signed, sent and filed. In most cases this central repository is Black Knight, which is the new name of Lender Processing Systems, (LPS) who had a subsidiary or division called DOCX.

This is why the claims of a “Boarding process” are pure fiction, because the records are always kept in the same place and never move.

DOCX you might remember is the place where most of not all document fabrications took place including signatures that were forged or robosigned. Fabrication as you know means that they were creating documents that did not previously exist. Those documents did not exist for only one reason, to wit: there was no transaction  to document so the document was never prepared until it was necessary to fake it for the purposes of foreclosures.

Incredibly Black Knight is now used as a trusted source of information about mortgages and foreclosures despite being the central entity (operating through third party contractors) from which false documents are created and used in foreclosures.

It was necessary to fake it because under the law, it isn’t enough to allege or assert that a borrower failed to pay. Failure to pay is only a breach as to the owner of the debt who is entitled to receive the payment because he/she/it paid money for the debt and the rights to enforce. But no such payment ever occurred. If there is no rebach there is no claim.

So in order to cover-up the illusions created by fabrications of documents, it was necessary to fake the sending, filing and serving of process of documents. While this was accomplished in some corrupt courts (one right here in Florida), ordinarily it was accomplished by sending the notices not from the central repository, Black Knight, which would make it obvious that it was all coming from one place, but from different locations around the country — hundreds of them.

So in our example, PennyMac agrees to let Black Knight use its name for notices, and Bank of America agrees to have the notice sent from one of its thousands of locations. In reality the notice came from Black Knight and neither PennyMac nor Bank of America know what is contained in the notice, nor do they care.

In court, as I have repeatedly said, it is unwise to try and allege and prove all of that, because you will never get access to the real records of Black Knight, Pennymac or Bank of America. If you could you would would have one big class action lawsuit against all three of those entities. It is well hidden under agreements that might never see the light of day.

BUT, you can use discovery and cross examination to gradually educate a reluctant judge so that he/she gets increasingly uncomfortable with what they are hearing. By using discovery effectively you could even bar the introduction of certain evidence and legal presumptions because you never received an acceptable response to your requests for discovery.

The questions are quite simple: using the envelope as evidence (after proper foundation testimony or as a exhibit for ID to be later admitted into evidence) you elicit the fact that either the entity does not maintain any address at that location and never did or that the witness doesn’t know and that the employer refuses to answer.

You are asking the question “Who sent this notice?” knowing full well it wasn’t the witness or his employer or anyone else in the chain of title. If the witness slips and answers truthfully (which happens occasionally) that it was Black Knight then you’re off to the races with questions about what Black Knight is doing sending out notices on a loan with which they supposedly have no connection and on whose behalf the notices were actually sent.

How to Use Forensic Auditors During Discovery

Discovery is a process that can be used in litigation. That means you have to be in court. Discovery is the process of asking for information that don’t already have or information that will corroborate information that you do already have. Almost by definition it is a fishing expedition. But the days in which you can throw out a wide net are over. Neither federal nor state judges will permit discovery unless it is specific, and relates directly to the functional narratives of the case proffered by both sides of the lawsuit.

Good forensic examiners are required to frame proper requests for discovery and to focus the narrative that will support those requests for discovery. Failure to do so will most likely result in either no answer from the opposition, or a slew of meaningless objections. The next step, a motion to compel, will only be successful if you can succinctly state why you are requesting this information and how it specifically relates to the defense narrative or the prima facie case of the party seeking foreclosure.

Unless you are successful in obtaining an order granting your motion to compel, any subsequent motion for sanctions or motion in limine will be summarily denied and your opposition will be able to introduce evidence that they refused to give you during discovery.

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GET FREE HELP: Just click here and submit  the confidential, free, no obligation, private REGISTRATION FORM. The key to victory lies in understanding your own case.
Let us help you plan for trial and draft your foreclosure defense strategy, discovery requests and defense narrative: 954-451-1230. Ask for a Consult or check us out on www.lendinglies.com. Order a PDR BASIC to have us review and comment on your notice of TILA Rescission or similar document.
I provide advice and consultation to many people and lawyers so they can spot the key required elements of a scam — in and out of court. If you have a deal you want skimmed for red flags order the Consult and fill out the REGISTRATION FORM.
PLEASE FILL OUT AND SUBMIT OUR FREE REGISTRATION FORM 
Get a Consult and TERA (Title & Encumbrances Analysis and & Report) 954-451-1230. The TERA replaces and greatly enhances the former COTA (Chain of Title Analysis, including a one page summary of Title History and Gaps).
THIS ARTICLE IS NOT A LEGAL OPINION UPON WHICH YOU CAN RELY IN ANY INDIVIDUAL CASE. HIRE A LAWYER.
========================

In every case in which you seek discovery against the foreclosing party, that party is seeking to conceal its weaknesses. They will raise objections, whether supportable or not. You should work with an attorney who is familiar with trial practice and a forensic auditor or examiner who can help you pass the following tests. An affidavit from a forensic auditor detailing why you need this information will go a long way toward supporting your argument in favor of an order compelling your opposition to give adequate responses to your request for discovery.

see The Tests You Need to Meet in Order to Get Discovery

If the data in question passes these two tests (yes, it’s relevant to the case, and no, it’s not privileged information) then the courts look at the following six factors laid out in FRCP Rule 26(b)(1) to help determine rulings on proportionality.

  • The importance of the issues at stake

  • The amount of information in controversy

  • The parties’ access to the information in question

  • The parties’ resources to obtain the information

  • The importance of the discovery in resolving the issues

  • Whether the burden or expense of the proposed discovery outweighs its likely benefit

How to track that PO Box When You Receive Notices or Statements

Courtesy of Summer Chic

Click Here to Look Up P.O. Box Information

2018 DOJ Lawsuit Reveals Securitization Equivalent to “Leprosy” According to Wall Street Insiders

see US v UBS Re: Countrywide, WAMU, Fremont, Am Home Mtge, And IndyMac (OneWest)

Although the US Department of Justice has never filed criminal charges against anyone, they clearly wanted to do so. Having been limited by some sort of executive direction, they have been filing civil complaints. Such cases often bear the name of an entity not publicly known as a player in securitization scheme that started 20 years ago.

If you read the complaint you will see how it was widely known and accepted that loans were being sold to consumers under circumstances where repayment would most likely never occur and where the value of the collateral was far less than the ultimate value of the loan. In my opinion, this demonstrates the fact that the original loan contract was not representative of the entire transaction. Nobody makes a loan knowing that it won’t be repaid. In fact if they do something like that, it can’t be considered actually a loan. It is either a gift or it is part of a larger transaction.

No reasonable person could conclude that the intent of Wall Street was to give a gift to every one of the homeowners who received money as a result of their scheme. That leaves only one possible conclusion, to wit: that the loan origination was only one part of a much larger undisclosed scheme, the existence of which was intentionally obscured and withheld from the borrower, whose name, signature reputation and home were not just material, but absolutely essential requirements for the success of the scheme.

The intent was clearly not to receive repayment of a loan. In fact all evidence currently available suggests that any money that has been received as a result of the “loans” to consumers was actually revenue disguised as principal, interest, or the proceeds of property sales – voluntary or involuntary. The current evidence strongly suggests that there was a complete conversion of the loan receivable from the category of “asset” to “income.”

All attributes of the debt and all revenue streams or profits from treating indirectly on the debt were sold for profit in which the participants in that revenue stream received at least 11 times the amount of the purported “loan.”

As part of the cover-up most of the revenue stream was reported as return of capital, implying that the conversion to income had never occurred. This enabled avoidance of substantial income taxes on regular trading income. The taxes lost to State and Federal Government were far in excess of the cost of various packages that were used to stimulate the economy after the crash caused by the very same investment bankers who had cheated the government out of the receipt of tax revenues, cheated homeowners, and cheated investors.

In order to maintain the illusion, which required concealment of the conversion of the apparent loan receivable from asset to income, it was necessary to bring foreclosure actions on those consumers who had stopped making payments. This was true even though the parties to whom they were making payments, were not collecting on behalf of any party who owned the debt by virtue of having paid money for ownership of the debt and the rights to enforce it.

But since the loan receivable had been converted from asset to income they had to create the appearance that the conversion had never occurred. And that is why we saw widespread fabrication, forgery and Robo signing of backdated documents that referred to nonexistent transactions. In reality it is simply not possible that anyone in the chain of title could have paid any money for ownership of the debt and the rights to enforce it; this was simply because none of those parties had ever funded the origination or acquisition of the debt.

As I stated in 2008 the process of securitization as it was being practiced by Wall Street, was roughly the equivalent of placing a variety of fruits into a food processor and blending the fruits into a fruit smoothy. The process of fabricating documents for foreclosures was the equivalent of taking this fruit smoothy and extracting the original fruits.

Somehow investment bankers convinced people who had controls over the levers of power in our government that the pain of the scheme should be borne entirely by homeowners and investors whose only role was that they were victims of the scheme and continue to be deprived of any participation in the revenue stream that could never have been produced but for investment bankers successfully deceiving both the investors and the homeowner’s into signing on to agreements that were essentially irrelevant to the actual scheme in play.

As you will see from reading the complaint filed by the Department of Justice against UBS, the insiders who were trading digitized certificates and contracts deriving value from an index that referred to a group of loans that were not owned by any of the participants, referred to the “pooling” and the derivatives as a bag of shit whose value was something less then leprosy.

And that is what is being enforced in foreclosure courts across the country. And somehow most homeowners continue to experience feelings of shame and regret for not giving even more revenue to players who will already profited in pornographic proportions to any money that was loaned. Those homeowners think that they are either paying a debt if they are making monthly payments, or they are giving up their house to pay a debt. If that was true, that none of the fabrication of documents, forgery or Robo signing would have been necessary.

Minus 0.5% Interest: Bank in Denmark will effectively pay qualified home buyers who take out a 10-year fixed rate mortgage

see Denmark Bank offers negative interest rate — how are they making money?

The answer is simple — the bank is not making money on the loan. It is making money by originating the loan. It is not making money by collecting interest, it is paying interest in exchange for the borrower’s signature. The bank is not taking any risk because the fees it collects from investment bank make it a lucrative deal for the bank, who doesn’t care whether the loan is repaid or not.

The bank losing nothing if the principal amount of the loan is not repaid because it has already sold the loan to an investment bank securitization scheme where the parts of the loan are sold resulting in proceeds of sales of the parts far exceeding the “whole” debt.

As I learned over the weekend in trying to explain what I am doing and my basic premise to a close friend who had no knowledge of finance and law the entire scheme is so counter-intuitive that it simply makes no sense to anyone who has not studied the subject. And nobody studies it unless they have reason for doing it.

A debt is a debt and a loan is a loan. But what if it isn’t?

In the mortgage meltdown era that started 20 years ago, borrowers were effectively paid to sign loan documents that reflected receipt of money in transactions that were called “loans” by the originators, sellers and facilitators who sold the more than 450  varieties of loan products to unsophisticated consumers, many of whom had no idea that they were signing away rights to a home that had been in their family for generations.

Those borrowers did not understand that they were being paid for their signatures, their reputations and their homes — and the information needed to make informed decisions and negotiate terms was being not only withheld but concealed.

The only difference between the American scheme and the Denmark scheme is that Denmark is upfront about it: “We’ll pay you if you will please sign these loan documents.”

In a world where information must be condensed into only a few words nobody takes the time to ask why any “lender” would do that or whether such a party could or should be allowed to pretend that it is a “lender.”

And certainly nobody is getting the information that would enable them to see that the transaction, disguised as a loan, is really and mainly a scheme to generate fees and profits through trading.

And not even the economists have taken much note of how this changes the “free market” notion that self corrects aberrant behavior. No correction occurred because the behavior was not aberrant. So borrowers could be and were enticed to sign papers that were not a  reflection of market forces adjusting for relative risk because one side — the origination side — had no risk.

Hence the advent of NINJA Loans. Repayment of a loan was incidental — not the point of the transaction. And that means it wasn’t really a loan. As long as that continues the entire financial system will be lopsided and the current system of predatory practices will be perpetuated — because there are neither governmental nor market forces in opposition to the investment banks.

This leaves both investors and borrowers in the silly position of being required to act as though they were — directly or indirectly — part of a loan transaction when in fact they had invested real capital and valuable property rights into a scheme in which they received either nothing or very little for their investment; and that is because neither the investors nor the borrowers actually knew and for the most part because they still don’t know the true nature of their investments and the legal rights they have for compensation for having been lured into an investment whose nature was unknown and where the parties to the transaction were both unknown and withheld.

At least in Denmark now negotiations have been opened. In order to restore “free markets” and the power of free market forces, we need to remove the impediments to the flow of free markets caused by severe asymmetry of knowledge. The borrower can now say,

“OK you are going to make a pile of money off of this deal, and you are offering 5 cents out of $11.00 in gross revenue. You can’t do the deal without me. So I want 50 cents. It’s in your interest to give me the 50 cents because that will help me pay the contractual payments in order to maintain the illusion that a single debt exists instead of hundreds of disparate parts that used to be the debt. If you don’t accept my counter offer I will find someone who will accept it. Or maybe I can find someone willing to pay me $1.00.”

Here is what is needed: Changes in the policy of enforcement as to unfair trading and dealing, securities violations, income tax violations and false reporting of assets and income. In any society the object is to protect and secure the rights and privileges of the people — not the corporate behemoths who regard the people as food.

All borrowers in all deals that are actually securitization schemes should have full disclosure regarding the fees and profits (as already currently required but not enforced under the Truth in Lending Act) so that they have their right to know the party with whom they are doing business and the ability to choose between vendors or purveyors of these securitization schemes and at least have the knowledge needed to effectively negotiate compensation. That was the whole point of TILA.

When the markets are not actually freely operating, free market forces cannot be in play. That is the point of government — to make the players act according to the rules to preserve free market flows, information and natural forces propelled by self interest.

Attention Accountants: Follow Up to Forensic Loan Seminar

see NON GAAP REsults Being reported by Entities Trading in new and old Derivatives

Recent reporting by companies involved in the creation and trading of various instruments that are designated to be “derivatives” or contracts on derivatives clearly shows a disclosure that they are not reporting results in accordance with GAAP. I don’t know how the SEC deals with such disclosure, since reporting requirements under the rules governing the SEC and companies reporting under those rules, clearly were choir compliance with accounting standards promulgated by the to the Financial Accounting Standards Board and previously the American Institute of Certified Public Accountants.

The the point here, just to reiterate, is that employing GAAP, which is required by law, would reveal that there are no entities that actually carry debts subject to derivative claims. Under current law, this leaves no creditor with authority to collect on the note or to enforce the mortgage. Parties receiving the proceeds of payments made by borrowers or proceeds of sales – both voluntary and involuntary – are receiving income.

If they are receiving income that they are not receiving assets, like cash or property. Foreclosure laws are intended to provide a method of restitution to creditors who otherwise would be subject to an actual financial loss caused by the failure of the borrower to repay the loan.

If the failure of the borrower to repay the loan merely results in the loss of expected revenue and not in a loss to an asset designated or deriving its value from a loan receivable, there is no law in existence that allows property to be involuntarily sold to satisfy the desire of any party to obtain revenue, even if that revenue was not a windfall.

I believe that only a CPA with experience in auditing could provide the testimony for the foundation of the defense narrative in which the homeowner is revealing the lack of ownership of the debt and the lack of a party identified as being the owner of the debt by virtue of having paid money to acquire the debt.

But I also believe that forensic examiners, auditors and reporters play an important part in getting to the point where such testimony could be proffered by the homeowner or the lawyer representing the homeowner.

To be clear, I am suggesting that the best practices would include employment of a forensic auditor, a CPA, and a licensed attorney with experience in trial law. For the attorney, that means experience in actually going to trial dozens of times. For the CPA that means experience in digging beyond data entries by management and purported receipts in the records of the Company. For the forensic auditor that means experience in dissecting the content and signature blocks unrecorded documentation, correspondence, statements and notices.

Chase-WAMU: Is it time to Declare Non Judicial Foreclosure Unconstitutional As Applied?

Faced with a notice of foreclosure sale from a company claiming to be the trustee on a deed of trust, homeowners in judicial states are forced to defend using well known facts in the public domain that are not evidence in a court of law. This is particularly evident in scenarios like the Chase WAMU Agreement with the FDIC and the US Bankruptcy Trustee on September 25, 2008.

In my opinion the allowance for nonjudicial foreclosure in circumstances where a new party appears under a lawyer’s claim that the new party is the beneficiary under a deed of trust under parole claims of securitization is an unconstitutional application of an otherwise constitutional  statutory scheme.

All such foreclosures should be converted to judicial and the claimant must prove the essential element under Article 9 §203 UCC that it has a financial interest in the debt because they paid for it. Forcing homeowners to prove that such an interest does not exist is requiring homeowners to have access to knowledge that is unavailable and solely within the control of the party falsely claiming to have the right to enforce the deed of trust and promissory note.

In my opinion this is an unconstitutional application of an otherwise constitutional statutory framework. In plain language it favors expediency and moral hazard over truth or justice.

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GET FREE HELP: Just click here and submit  the confidential, free, no obligation, private REGISTRATION FORM. The key to victory lies in understanding your own case.
Let us help you plan for trial and draft your foreclosure defense strategy, discovery requests and defense narrative: 954-451-1230. Ask for a Consult or check us out on www.lendinglies.com. Order a PDR BASIC to have us review and comment on your notice of TILA Rescission or similar document.
I provide advice and consultation to many people and lawyers so they can spot the key required elements of a scam — in and out of court. If you have a deal you want skimmed for red flags order the Consult and fill out the REGISTRATION FORM.
PLEASE FILL OUT AND SUBMIT OUR FREE REGISTRATION FORM 
Get a Consult and TERA (Title & Encumbrances Analysis and & Report) 954-451-1230. The TERA replaces and greatly enhances the former COTA (Chain of Title Analysis, including a one page summary of Title History and Gaps).
THIS ARTICLE IS NOT A LEGAL OPINION UPON WHICH YOU CAN RELY IN ANY INDIVIDUAL CASE. HIRE A LAWYER.
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I have received questions, most notably from Bill Paatalo, the famed Private Investigator who has provided so much information to lawyers, homeowners and a=everyone else about the foreclosure crisis relating to non judicial foreclosures and the Chase-WAMU farce in particular. Here is my answer:

If what you’re saying is that the FDIC never became the beneficiary under the deed of trust, that is correct. But the legal question is whether it needed to become the beneficiary under the deed of trust. As merely a receiver for WAMU the question is whether WAMU was a beneficiary under the deed of trust and the answer is no because they had already sold their interest or presold it before origination.

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If WAMU was an actual beneficiary then the FDIC was the receiver for the beneficial interest held by WAMU. If that is the case the FDIC could have been represented to be beneficiary on behalf of the WAMU estate for foreclosures that occurred during the time that FDIC was receiver.
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If WAMU was not an actual beneficiary and could not, as your snippet suggests, sell what it did not own, then the FDIC’s receivership is irrelevant except to show that they had no record of any loans owned by WAMU.
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One key question that arises therefore is what is a beneficiary? In compliance with Article 9 §203 UCC I think all states that a beneficiary is one who has paid value for the debt, owns it and currently would suffer a debit or loss against that asset by reason of nonpayment by the borrower. Anything less and it is not a beneficiary. And if it isn’t beneficiary, it cannot instruct the trustee to send out notices as though it was a beneficiary.
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So any notice of substitution of trustee, which starts the whole foreclosure process is bogus — i.e., void as in a nullity. The newly named trustee does not possess the powers of a trustee under a deed of trust. Hence the notice of default, sale and trustee deed are equally bogus and void. They are all nullities and that means they never happened under out laws even though there are lawyers claiming that they did happen.
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Despite the Ivanova decision in California declaring that such foreclosures can only be attacked after the illegal foreclosure, this is actually contrary to both California law and the due process requirements of the US Constitution.
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With more and more evidence of fake documents referring to nonexistent financial transactions, the time is ripe for some persistent homeowner, with the help of a good lawyer, to challenge not only the entire Chase-WAMU bogus set up, but to get a ruling from a Federal judge that the abr to preemptive lawsuits to stop collection or foreclosure activity is unconstitutional as applied.
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In nonjudicial states it converts a statutory system which is barely within constitutional bounds to an unconstitutional deprivation of property and civil rights without due process, forcing the homeowners to come up with answers and data only available to the malfeasant players seeking to collect revenue instead of paying down the debt.

Tonight! How to Use Bankruptcy Cases of Originators and Fronts for Investment Banks 6PM EDT Neil Garfield Show

Thursdays LIVE!

The Neil Garfield Show — WEST COAST

with CHARLES MARSHALL AND BILL PAATALO

or prior episodes

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

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see How to Use Bankruptcy Cases of Loan Originators

Following up on the show two weeks ago, Charles and Bill delve deeper into the issue of how investment banks are using names instead of entities, and in all cases using  both names and entities to put apparent veils between the investment bankers and the liability they created for illegal lending, servicing, collection and foreclosure.

We look today at the case of Bolduc v Beal Bank to show a way forward for borrowers suing defendants like Ditech and Aurora, who have been in Chapter 11 bankruptcies and Chase who has been one of several banks who have used bankruptcies of front organizations like DiTech and Aurora to create the illusion that the bank owns loans that have long since been sold into thousands of pieces in the secondary market.

2008 Schack Decision Reminds Us How Something “Nefarious” Is Happening

Without a party actually getting hurt by nonpayment, why should anyone pay their mortgage?

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GET FREE HELP: Just click here and submit  the confidential, free, no obligation, private REGISTRATION FORM. The key to victory lies in understanding your own case.
Let us help you plan for trial and draft your foreclosure defense strategy, discovery requests and defense narrative: 954-451-1230. Ask for a Consult or check us out on www.lendinglies.com. Order a PDR BASIC to have us review and comment on your notice of TILA Rescission or similar document.
I provide advice and consultation to many people and lawyers so they can spot the key required elements of a scam — in and out of court. If you have a deal you want skimmed for red flags order the Consult and fill out the REGISTRATION FORM.
PLEASE FILL OUT AND SUBMIT OUR FREE REGISTRATION FORM 
Get a Consult and TERA (Title & Encumbrances Analysis and & Report) 954-451-1230. The TERA replaces and greatly enhances the former COTA (Chain of Title Analysis, including a one page summary of Title History and Gaps).
THIS ARTICLE IS NOT A LEGAL OPINION UPON WHICH YOU CAN RELY IN ANY INDIVIDUAL CASE. HIRE A LAWYER.
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see Deutsche Bank National Trust Co_Justice Schack

It is worth remembering when the foreclosure tidal wave began and the banks were at least as arrogant as today creating sham entities, sham addresses, sham  documents, fabricated instruments with sham people. And it is worth remembering several judges, Judge Arthur Schack among them, who stood up to the great powers of our nation and simply told the banks to follow the law or give up their claim.

  • This is the decision where Judge Arthur Schack stated his refusal to accept obvious irregularities as follows:
    • All at the same Suite Number at the same West Palm Beach address undoubtedly controlled by Ocwen subject to instructions from various investment bankers: Goldman Sachs, HSBC Bank, N.A., Ocwen Federal Bank FSB, and Mortgage Electronic Registration Systems, Inc.
    • Jeff Rivas signing affidavits on behalf of multiple entities all within the same time frame
    • only if it presents to the Court within thirty (30) days from the date of this decision and order: an affidavit from Jeff Rivas describing his employment history for the past three years; and, an affidavit explaining why it shares office space at Suite 100, 1661 Worthington Road, West Palm Beach, Florida 33409

Needless to say nobody ever heard from the lawyers again in that Castellanos decision. Why? Because they had nothing to say that would not have further undermined their scheme to defraud the country and homeowners.

If securitization was the actual game then a real group of investors would have purchased a real group of loans; but that is not what happened.

If a real group of investors had purchased a real group of loans then they, or their authorized representative would have had the right under the laws of every state to foreclose on property when the borrower ceased payments. But that isn’t what happened either. The investors didn’t buy the loans in either form or substance. They have no right to foreclose in law or inequity.

If anyone had paid money to anyone for ownership of the debts they would have paid value for the debts and be the owner of the debts and be qualified in every way to be called the mortgagee under a mortgage deed or beneficiary under a deed of trust. But that isn’t what happened either. Instead we have multiple parties fronting a crowd of rotating servicers whose sole purpose is not to allege the basic elements of debt collection and foreclosure but rather to obscure them.

If there existed any party who had paid money and had acquired the debts, then fabrication of documents and robosigning, the hallmark of the foreclosure crisis, would have been unnecessary. But it was necessary because there was nobody to sign any document declaring that they were the creditor — i.e., the party who had a financial interest in the debt such that they would lose money if the debt was not paid.

All those problems exist because the Wall Street Banks got greedy and created the holy grail of investment banking: what if you did an IPO and never had to account for the proceeds of the sale of those securities?

The real question is not why should you give homeowners a windfall over some technical problems with the paperwork; no, the real problem is why would you give the banks and all their affiliates even more revenue through foreclosure than they had already received, which was at least 10 times the principal of the amount of the loans?

The answer to the first question is that no, homeowners should not get a windfall because of technical problems with paperwork. Creditors, real creditors that is, should be able to execute corrective paperworks, affidavits and filings to correct merely technical errors.

The answer to the second question is that if the “loan transaction” was strictly a revenue deal and not a loan of money where someone would lose money if the money wasn’t being repaid, then commons sense and the law (UCC Article 9 §203) clearly stands for the proposition that nobody should be able to foreclose on a home in order to just receive revenue.

There simply must be a debt and a creditor who has paid value and owns that debt. The fact that the banks can’t come up with such a party is evidence that the law is out of whack with the innovations of Wall Street and malfeasance on Wall Street. But without a party actually getting hurt by nonpayment, why should anyone pay their mortgage?

Practice Hint: The problem is that the investment bank who advanced funds for origination or acquisition of the loan sold off everything about the loan. In the end it was left with nothing but profit.

But while selling off various attributes of the debt the investment banker never actually sold the debt, which enabled the investment banker to sell more and more “attributes” of the debt, both real and imagined, until the market was saturated with all sorts of certificates, contracts, insurance policies and bets and options organized as the securitization infrastructure.

And THAT is why we have $1 quadrillion in “nominal” value of instruments in the shadow banking market that is scaring the crap out of all central bankers who are in charge of the only actual currency which is worth a mere $75-$80 trillion.

So if people just stopped paying on their mortgage loan the securitization infrastructure built over each residential loan would collapse to something like 1/10 of 1% of the nominal value. And the next bailout would be to pension and related retirement funds.

So if you are a homeowner you are wondering the answer is yes. You were selected to pay for the wrongdoing of investment banks and basically nobody else. And when you lose your home in foreclosure those same players are laughing because although they turned your life into misery they just made another $300,000 in INCOME.

 

How to Access Visual and Audio Materials from Free Forensic Audit Seminar on August 2, 2019

So I think I have done this right. My apologies for people who did not see the visual presentation of the PowerPoint presentation. I am still trying to figure out what went wrong.

In the meantime you can download the PPT or PDF Visual PResentation and download the audio file from the presentation and, as requested by many, the outline of   what was contained on the audio-visual presentation. There is no requirement that you had attended the seminar in order to download, listen and see.

You can download those files by going to a folder anmed “Free Forensic Audit Seminar 8-2-19” on Box.com in the account of GTC Honors, Inc. by clicking on the following link:

FREE FORENSIC AUDIT SEMINAR 8-2-19

My suggestion is that you

  • first download the pdf version of the PowerPoint Presentation
  • then download the audio version
  • then download the written outline

When reviewing these materials you might want to print out the written outline on which you can add your own notes.

In order to experience the presentation as it was, first launch the visual presentation on your screen and then start the audio. You will need to advance by hand each slide.

LASTLY I WANT FEEDBACK ABOUT THIS PRESENTATION. I KNOW THE VISUAL PRESENTATION DIDN’T WORK SO IT OBVIOUSLY WAS NOT PERFECT. BUT I HAVE NOT RECEIVED EVALUATIONS FROM PEOPLE WHO ATTENDED. I PLAN MORE SEMINARS, AND I WANT TO GET THEM RIGHT. I NEED YOUR FEEDBACK TO DO THAT. PLEASE USE THE FOLLOWING LINK TO SUBMIT YOUR EVALUATION:

SUBMIT EVALUATION OF FREE FORENSIC AUDIT SEMINAR

 

Get out your pen! Write comments to CFPB!

The Consumer Financial Protection Board (CFPB) is considering rule changes that might negatively impact consumers. Unless a substantial number of consumers write in with specific comments, there will be further dilution of both the authority of the CFPB and its enforcement of even the most basic aspects of consumer protection.

To register your comment go to

Write a comment to CFPB

Here’s what I wrote:

CFPB rules should use accounting rules as promulgated by the Financial Accounting Standards Board and the American Institute of Certified Public Accountants.

Specifically I refer to two things. (1) Collection of money as revenue is not the collection of a debt which is an asset and (2) debt collectors and putative creditors must be required to provide proof that they are the owner of the debt, to wit: that they have the subject debt reported on their financial statements as an asset and that they have acquired the debt through payment of money or other consideration.

Parties seeking money by self-describing as debt-collectors should be barred from doing so and should incur substantial liability if they are seeking revenue instead of debt collection. If any party seeks to collect money or force the sale of property to obtain money for the sole purpose of generating revenue the CFPB should impose sanctions.

Any party seeking or threatening to foreclose on property pursuant to a security instrument (mortgage or deed of trust) must establish that the security instrument is (a) still legally existent (e.g., not subject to TILA Rescission) and (b) that such claiming party has paid value for the debt and currently owns the debt as its own asset — or, provide proof that it’s acting under specific identified authority from a specific identified third party who has paid value for the debt and currently owns the debt as its own asset.

Mr Cooper: Now You See It Now You Don’t — Maybe They Own Debt and then Again Maybe Not: 10Q report to SEC

READ SLOWLY, Breathe, repeat

Mr Cooper 10Q

Finally a Judge Asks the right Questions about TILA Rescission and Invites Briefs

The time may now be coming where the court systems and Federal and State legislatures must come to terms with two inescapable legal facts:

(1) That borrowers who sent TILA rescission notices — and particularly those who sent them within 3 years of consummation of the mortgage — still own the land that was deemed “lost” in foreclosure.

(2) That such borrowers possess valid claims to recover title. possession and money damages. 

It was bound to happen and now it has. In one case, a judge is asking the following questions and inviting briefs on the following subjects:

  1. What is the effect of the failure to return consideration upon an attempt to exercise the right of TILA Rescission?  
  2. What is the effect on rescission if the borrower continues to pay? 
  3. Does TILA pertain to refinancing?

See HOW TO FRAME TILA RESCISSION IN YOUR PLEADINGS

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GET FREE HELP: Just click here and submit  the confidential, free, no obligation, private REGISTRATION FORM. The key to victory lies in understanding your own case.
Let us help you plan for trial and draft your foreclosure defense strategy, discovery requests and defense narrative: 954-451-1230. Ask for a Consult or check us out on www.lendinglies.com. Order a PDR BASIC to have us review and comment on your notice of TILA Rescission or similar document.
I provide advice and consultation to many people and lawyers so they can spot the key required elements of a scam — in and out of court. If you have a deal you want skimmed for red flags order the Consult and fill out the REGISTRATION FORM.
PLEASE FILL OUT AND SUBMIT OUR FREE REGISTRATION FORM 
Get a Consult and TERA (Title & Encumbrances Analysis and & Report) 954-451-1230. The TERA replaces and greatly enhances the former COTA (Chain of Title Analysis, including a one page summary of Title History and Gaps).
THIS ARTICLE IS NOT A LEGAL OPINION UPON WHICH YOU CAN RELY IN ANY INDIVIDUAL CASE. HIRE A LAWYER.
========================
The Tila Rescission Statute 15 USC §1635 requires, as a condition precedent to demanding payment of the borrower’s debt, that the parties who received money from the borrower arising out of the loan agreement return all such money to the borrower first before anyone can make a claim for repayment. This is why bank lawyers have long advised their arrogant bank clients that failure to follow the rules set forth in the TILA Rescission statute could not only result in loss of enforcement of the mortgage which is automatic, but also loss of the right to enforce the debt.
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The investment houses, who were the real parties in interest behind the origination or acquisition of residential loans, have long been bullying their way through the TILA Rescission statute since it undermines the value of the derivative infrastructure built and sold over every loan. Thus far they have succeeded in getting virtually all courts. except the Supreme Court of the United States, to go along with the bank narrative regarding 15 USC §1635. In plain terms they got what they wanted: judges ignored TILA rescission and entered orders as though it didn’t exist. But it did exist by operation of law and the US SUpreme Court said so.
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Failure to return consideration bars collection of the debt. And there are two other things that the “lenders” are required to do as conditions precedent (return cancelled original note, which we all know they don’t have, and file a satisfaction and release of the mortgage in the county records so that the world will know that rescission has occurred. This is the replacement for cancellation of the loan agreement. The new “agreement” is set forth by the statute.
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The judge doesn’t ask “effect on what?” The mortgage in all events is void, by operation of law. Neither the borrower nor the  creditor can effectively take any out of court action that changes that.
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There is no unilateral or bilateral action that can be taken by either or both parties to change something that is effective “by operation of law.” The only exception MIGHT be (and probably WILL be) that rescissions sent outside the 3 year period of expiration could conceivably be ignored, but if they are recorded in county records only a party with legal standing could have the rescission notice removed from the chain of title with a court order.
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And the problem for the banks is that they have no party who could be defined as a creditor — a party who had paid value for the debt and owns the debt, to wit: a party to whom the debt is currently owed. Another way of saying it, if you were listening to to the forensic auditor seminar last Friday, is that only a party who was carrying the borrower’s debt as an asset on its balance sheet as a loan receivable could claim the status of owner of the debt i.e., creditor.
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The genius of the way securitization has been practiced with respect to residential loans, is that there is nobody who takes a loss from nonpayment of any debt. Nobody is entitled to actually receives the borrower’s payments or the proceeds from a foreclosure or other sale. The money that is received therefore, is revenue upon which they pay no tax because they report it as repayment of debt rather than income. This explains why you can’t get a straight answer on “who owns my debt.” The answer is nobody. But that answer is counter intuitive which is another way of saying nobody wants to actually believe that.
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The issue is whether the borrower’s should forfeit their homes on a scheme that was based upon receipt of revenue rather than repayment of debt?
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TILA Rescission highlights this problem because it cuts down the veil or curtain behind which the banks hide. There is no more loan agreement and there is no more note or mortgage from which all sorts of legal presumptions can arise. While I would have thought this day would come sooner we finally have our first judge asking the right questions. Thus the hard “talk” begins.
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  • What is worrisome is the Judge’s use of the word “attempt.” He phrases the questions in the context of an “attempt at rescission” rather than the event of rescission. Either the rescission was sent or it wasn’t. In Jesinoski v Countrywide that is the end of the issue. If it was sent then TILA rescission is effective by operation of law. There is no attempt which insinuates that TILA rescission is a claim rather than an action with legal consequence. There is no attempt and there is no claim.
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Paying on the mortgage is only to protect the borrower’s credit rating and prevent action to foreclose on the mortgage that does not exist but will obviously be treated as existing in the current judicial climate. It does nothing to effect what has already occurred by operation of law. The loan agreement is cancelled and with it the note and mortgage became void. The only consequence, rather than effect, is such payments increase the amount of money due back from the parties to whom the money was given or from  parties who originated the loan agreement under TILA or unjust enrichment. No person, whether borrower or lender, can “waive” a legal event that occurred by operation of law any more than they can ignore a court order without being in contempt of court.
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TILA does pertain to refinancing. I don’t know what is meant by instant “circumstances.” Many “modifications” are actually refinancing. The creditor has changed and remains concealed. The entire purpose of the banks in modification is to validate what is otherwise a void or unenforceable loan agreement using undue duress or even extortion to get the borrower to sign away rights.

US Bank and Deutsch Agree That They Should NOT be named as Plaintiffs in Foreclosures

see US bank Brochure

 

People forget that Deutsch issued a directive to all servicers to cease using its name when initiating foreclosures. The investment banks fought back and apparently paid Deutsch more money in fees for the use of its name. That was around 2011. You might find the article on this blog about it.

In the above link US Bank in a brochure produced by US Bank pretty much says the same thing. Keep in mind that this is a compromise of language to provide cover both the investment bank that sells the certificates and creates other derivative investment products on the one hand, and US Bank who is merely renting out its name. US Bank is trying to thread the needle. They want no liability from any of the potentially illegal transactions conducted while using its name, nominally, in foreclosures and even Pooling and Servicing Agreements.

This is how they write and publish it:

U.S. Bank as Trustee: As Trustee, U.S. Bank Global Corporate Trust Services performs the following responsibilities:

• Holds an interest in the mortgage loans for the benefit of investors [Editor’s note: Not really true. It holds a claim to bare legal title to loan agreement for the benefit of the investment bank]

• Maintains investors/securities holder records [Editor’s Note: Also not true. Only the investment bank maintains such records. US Bank has no access to the names of investors nor any transactions ever conducted with them in the name of any trust in which US Bank is named as trustee.]

• Collects payments from the Servicer [Editor’s note: also not true. US Bank handles no money in connection with any account or any borrower or any servicer and does not disburse them. That is done by the party named as Master Servicer although that term is probably also a misrepresentation.]

• Distributes payments to the investors/ securities holder [Editor’s note: Not true see above.]

Does not initiate, nor has any discretion or authority in the foreclosure process [Editor’s note: True but it does allow its name to be sued as though it was initiating the foreclosure action. This is why I keep bringing up the issue of whether the lawyer who asserts that he or she represents US Bank actually does represent US Bank since US Bank has no interest in the outcome of litigation, receives no foreclosure proceeds, and the lawyer is taking directions strictly from the servicer or in turn is getting instructions from the investment bank.]

• Does not have responsibility for overseeing mortgage servicers [Editor’s note: Thus it is not a trustee in the legal or traditional sense. It has no duties.]

Does not mediate between the servicer(s) and investors in securitization deals  [Editor’s note: True but they are still a co-conspirator in misrepresenting their role in the securitization deals because they are being paid for the use of their name to make the deal look institutional even though it is strictly a private sham]

Does not manage or maintain properties in foreclosure [Editor’s note: True and another example of how US Bank does nothing in connection with any activity relating to any loan claimed to be part of the “trust.”]

Is not responsible for the approval of any loan modifications [Editor’s note: True and an admission that it has no control, which means it is not a trustee even if it is named as a trustee].

All trustees for MBS transactions, including U.S. Bank, have no advance knowledge of when a mortgage loan has defaulted. Trustees on MBS transactions, while named on the mortgage and on legal foreclosure documents, are not involved in the foreclosure process. [Editor’s note: True and they have no knowledge afterwards. In short, they have no knowledge unless requested to say they do because of successful discovery during litigation and an order from the court that US Bank must respond].

 

7 spots now open for Forensic Auditor Seminar Tomorrow

I had saved a few spots and now there are a handful people who have not responded to the invitation. If you want to participate in the seminar write to neilfgarfield@hotmail.com. I will look for those emails once around 9am EDT tomorrow morning, whoever responds will be admitted in order of the emails received until the remaining spots are filled.

I am also going to try and record the presentation using Quicktime which I have never used before. Looks simple enough. If it works then I will make the recorded seminar available.

Also for the lawyers, I meant to apply for CLE credits and completely forgot. I know there is a procedure for getting CLE accreditation after presentation. I’m already an accredited CLE presenter. If you want the credits then write to me at neilfgarfield@hotmail.com and ask. I’ll do it. I can apply for 2 credits. 1/2 credit can be used toward ethics.

 

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