Rally in Tally: Homeowner Relief and Housing Recovery Act is a Sham and Shame

Editor’s Note: Due process requires that nobody be deprived of life, liberty or property without a judicial determination on the merits of claims against them. Non-judicial procedure runs a thin line that has not actually been tested constitutionally. Assuming it is valid by virtue of the “freedom of contract” doctrine, it still cannot be used to abuse and trick people into losing their homes when in fact the trickster has no interest in the loan, the property or the originating transaction. The attempt in Florida to increase the number of states using non-judicial procedure is abhorrent to anybody who conceives this country as a nation of laws. Non-judicial procedure is in my opinion, inapplicable to most, if not all, securitized loans.

The reason is simple: non-judicial foreclosure sales are meant to achieve judicial economy without prejudice to anyone. In securitized loans there are so many potential stakeholders that non-judicial sale prevents notice and due process and even encourages tricksters to use it against the interests of those who might have an interest. It not only increases moral hazard, it assures a growing cloud on the title of all properties that have been or will be the subject of foreclosure sales.

The pandemic effect on an already unstable marketplace is being amplified by these legislative attempts to legalize unjust enrichment of intermediaries who have no financial interest and who who are not subject to any financial loss for a loan, with it is performing or non-performing.

Posted by Malcolm Doney

The following letter was sent to all 14 members of the House Criminal & Civil Justice Council the day before the Bill was killed. We have reason to believe that it was instrumental in causing the death of that Bill and of the Senate Bill. It was authored by me assisted by three other founding members of Mortgage Justice an activist and educational not for profit. It is now widely circulated to many of the people going to the Rally in Tally. Any of your readers is free to use it as a tool to fight the fraudsters.
1. The Florida Bankers Association is attempting to use the power of the Florida State Legislature as an instrument to commit fraud upon its citizens and House Bill 1523 is inappropriately named The Homeowner Relief and Housing Recovery Act.
2. This Bill and its sister Bill in the Senate SB 2270 will not relieve any Homeowners and neither will it aid any Housing Recovery. On the contrary these Bills, if enacted, will add to the personal burdens of this States’ citizens, deepen the recession, add to the destabilization of communities, the breakup of families, an increase in blue collar crime and hundreds of millions of Dollars in lost Court revenue to the State.
3. HB 1523 adds to the deception in its introduction by adding to the ‘deadbeat borrowers myths’ [whereas it was deliberately planned and executed by Wall Street Investment Banks, Main Street Banks, mortgage lenders and their cohorts], falsely suggests that the cure is to expedite foreclosures to bottom out the market and that somehow this unsupportable economic theory will revitalize the economy, allow citizens to pay their taxes and Housing Associations to maintain communities.
4. If enacted, the passage of these Bills would shift the burden of proof to foreclose from the foreclosing parties to the homeowner, thus denying those homeowners their existing rights of due process and simultaneously, circumvent the recently imposed Supreme Court of Florida’s requirement placed upon foreclosing parties to substantiate under penalty of perjury that they have the legal authority to foreclose on real property given as security in a Mortgage to the true Owner of a Promissory Note and to engage in mandatory mediation. These requirements are the real reason for these proposed laws, because they can no longer hide their crimes from our Courts.
5. Because all members of the legislature are unaware of the fraudulent intent behind the Florida Bankers lobbyists who proposed this draft legislation we have concentrated most of our detailed efforts upon exposing the frauds rather than pointing out the serious deficiencies of the Bills as we know that other groups and individuals are adequately bringing such reviews to the attention of the legislature.
6. However, of paramount importance is the fact that lines 216 to 225 of the original draft clearly backdates the effect of these proposed laws to time immemorial. By the clever use of the words “agreed in substance in the security instrument” the drafters are seeking to remove the requirement contained in Florida Mortgages in clause 22 that all foreclosures must be conducted through the Judicial system by obliquely [but not specifically] referring to clause 16 in which the signor has acknowledged that the whole document is subject to Federal and State Law. The intent of the signing parties of all such Mortgages was that clause 22 of that unilateral contract would apply for the life of that instrument and that imprecise words such as “agreed in substance” would not be used in future laws to imply that they had agreed to a major change in the terms of those Mortgages and if enacted it will negatively impact basic human, property and contractual rights guaranteed under the Federal and State constitutions.
7. Mortgage Justice wishes to reveal that the truth behind the mortgage meltdown is:-
(a) The Housing Bubble was deliberately planned and implemented by Wall Street entities and the Main Street Banks.
(b) Mortgage and other loans were deliberately set up to fail.
(c) The lenders shown on Promissory Notes and Mortgages were not the Lenders, but were misappropriating the use of their licenses to transact mortgage business in the various states and were funded by Wall Street Brokers from the proceeds of the sale of Derivatives in wrongly described AAA rated Mortgage Backed Securities, for which they were paid excessive ‘yield spread premiums’ as a commission.
(d) Notes and Mortgages were not sold in the secondary market, neither were they transferred into securitized mortgage pools. It was impossible for pretend lenders to sell what they did not own.
(e) Contrived sales in the secondary market were documented in the Securities and Exchange Commission’s public records to entitle these pretend lenders to avoid paying federal taxes upon their profits by appearing to comply with IRC 860 and ‘selling’ loans into Real Estate Mortgage Investment Conduits (REMIC). Documents filed in the SEC provide proof that all these mortgages failed to comply with IRC 860.
(f) SEC documents establish that none of the mortgage loans that they say were put into REMIC Trusts, ever reached those Trusts and that the majority of the ‘so-called’ Trusts were not Trusts but a form of perpetual LLC with zero reporting requirements filed in the State of Delaware for the benefit of those major Banks and/or GSEs, as the true beneficiaries of all the frauds. These ‘Trusts’ are named Delaware Statutory Trusts, they are neither Statutory, nor are they Trusts.
(g) The true beneficiaries of the frauds also sold undisclosed and unregulated multiple default insurances and credit default swaps sold through the International Swaps and Derivatives Association on every new mortgage created to guarantee receipt of multiples of sums they had pretended to lend as and when the planned defaults occurred.
(h) It is therefore a fact that in almost every mortgage foreclosure action the foreclosing entity is not the owner of the Note or the Mortgage, never lent any money, is an integral part of a criminally motivated group has already reaped criminal profits, will share in multiple proceeds from insurances, all the Notes have been deliberately eliminated as admitted to the Supreme Court of Florida by the Florida Bankers Association and all Notes are already paid in full.
8. Mortgage Justice understands that the above text contains major allegations of fraud levied against some of the biggest and most powerful institutions in the land and does not make these accusations lightly. We are fully prepared upon request given adequate notice to furnish irrefutable documentary evidence supporting those accusations and if required to justify them with documentary evidence are willing so to do in order to demonstrate why this proposed legislation must be unanimously rejected by the Florida Legislature for the benefit of its present and future citizens.
9. We also request Public Hearings be scheduled prior to any passage of these proposals and we suggest inviting all interested parties, including representatives of finance and banking who are apparently promoting these Bills, consumers and their advocates.
10. Finally, we refer you to informative videos that can be accessed via the Internet. In our opinion the most reliably informative and professional presentations of the truth behind the housing bubble are those involving the eminent Academic, Criminologist, Economist, Lawyer, Accountant, author of the book entitled ‘The Best Way to Rob a Bank is to Own One’ and a former lead regulator during the savings and loans crisis. Professor William [Bill] Black. To authenticate what we have revealed, please watch Bill Moyers’ PBS interview of Bill. WE BELIEVE this interview OFFERS AN EXCEPTIONAL OVERVIEW OF THE CAUSE OF THE ECONOMIC MELTDOWN AND FRAUD PERPETRATED BY THE BANKING INDUSTRY ON THE AMERICAN CITIZEN AND WE BELIEVE IT IS IMPERATIVE THAT YOU WATCH AND HEAR THIS VIDEO.
11. Bill Black submitted himself to further questioning in a recent five-part interview on an Internet news channel, Real News. Please watch and listen to these questions and answers also. Political rhetoric, spin and sound bites are no answer to the serious crimes exposed in these interviews. He speaks openly, with a sincere honesty and integrity, almost extinct in our country today. His interview makes us starkly aware that the Banks are striking at the heart of our Republic and government, in all of its branches, but especially the judicial branch. Now that Courts are more closely examining foreclosure cases filed against homeowners in Florida and other jurisdictions the truth is beginning to emerge. Courts in Florida and in many states are finding that the banks lack standing, are filing frivolous lawsuits and are unable to prevail when a homeowner enters a properly pled defense. Mortgage justice strongly believes that the preservation of citizen rights to defend these actions is as vital to the Citizens of Florida as it is to the banks to destroy it. Preserving those rights will establish the truth, disclose extensive violations of state and federal laws by the banking industry, put an end to the power of the banking industry in our state legislature and the resultant backlash of public opinion will reverberate throughout our nation and the world. After nearly destroying the Global Economy, after lowering by twenty percent the net worth of our citizens, and after borrowing billions from them and reaping record profits without any legislative reform or inquiry they now attempt to make it even easier to take the homes of the citizens and deprive them of their legal rights. We urge you to carefully consider, investigate and reject this proposed legislation on behalf of the homeowners and citizens of Florida.

for our members and the Citizens of the United States, April 12, 2010.

P.S. Internet links – Please copy and paste the following links into your browser:- http://www.pbs.org/moyers/journal/04032009/watch.html

Then listen to – To rob a country, own a bank Pt5 – put this into Google and follow the links to 5 part video of Black on Real News.

Also essential viewing and listening to the latest on MSNBC,

17 Responses

  1. It is great that there is work in Florida to protect the homeowners right to get to court….but it is quite impossible to get there. We are Florida victims of mortgage fraud on a construction to perm loan. The title insurance company, bank and builder were in collusion in the fraud against us. Our closing documents were forged. Although we have been in litigation, three companies have financial superiority over us and is forcing us into financial ruin in legal fees. We believe that our attorney has been assisting in protecting the title company and after paying almost $50,000 in attorney’s fees we find that it will cost another $55,000 upfront to take the case to court. We have been paying interest only payments to the bank because the home only got less than %30 built and we were never able to convert the loan to a perm loan since the house did not get completed. We have reported and provided proof to every agency we can think of. We have proof of these fraudsters getting away with over $20 million in fraudulent mortgages but no one will hold these companies accountable! The title agency did not have Errors and Ommissions coverage (which is required by Florida law), and the title insurance company say they are not responsible for the agencies actions (even though they owned the agency when we closed on the loan). The bank issued out $241,800 of $420,000 loan and made improper payments. Therefore, liens and lawsuits against us prevailed. Thus far we had to pay over $24,000 to prevent foreclosure against us. So to allow Florida citizens the right to be heard is important if you can even get to that point. After three years, we really do not see any relief in sight.

  2. I was there. It’s an amazing experience. Thanks all of you for your support and your e-mails of your foreclosure stories. I copies your e-mails of your stories and handed to Legislators in Tallahassee.
    The Bad bill is not voted. Florida is safe for now but Bankster will try again. We are watching them and be ready to fight.

  3. So how did the rally in tally go?? Anyone hear?

  4. Bob Smith,

    Although I applaud your enthusiasm, I do not believe that “outing” (for lack of a better word) publicly is the way to go. I understand that the documents are recorded in the public record, but this just seems wrong.

    We want intellectual discourse with our leaders. We do not want to alienate them. It would be far more appropriate to send a letter or an email.

  5. Check this out. Really good…Dylan is the one to watch on TV on this issue…

  6. We need to go find these “assignments” and mortgage notes for the state senators and send them copies of their own mortgage deeds of trust and/or mortgage reassignments that pinpoint EXACTLY what we are fighting against.

    I just looked up Victor Crist’s Mortgage Deed in Leon County and it perfectly illustrates the point. MERS is listed as nominee for America’s Wholesale Lender. Dated 7/21/2005, right in the heart of this whole mess.


    Maybe after reading the letter, hearing from the Lawyers and Homeowners and then SEEING it in their own paperwork we can drive the point home..

    I urge everyone to go lookup their local senator and look for any of these documents and email copies to them. Look in Leon County (Tallahassee) and their home county for their mortgage docs. Watch for dates betweeen 2001 and 2008.

    Keep up the good fight…


  7. Why can’t we get the legislature to pass independent prosecutor authorization for all of this mess? Someone like Spitzer would do. He likes things that are sultry and slimy anyway, so he would be a perfect candidate. Plus, he has already been up AIGs bunghole in the past. Give him a $50 million budget and unlimited access and subpoena power and lets just see what happens.


  9. I am a loan auditor and witness who has experience also on my own family foreclosure cases. I have examined many documents, including those filed in the SEC. First obvious pointer to the loans never reaching the REMIC Trusts that they documents purport to confirm is that the lender is not the first named in the Mortgage Loan Purchase Agreements, but a newly formed Corporation is the first named in a series of purported transactions. That entity is described in these Agreements as Seller. No evidence is offered as to how this ‘seller’ obtained the security or the note from the lender. Break in chain of title No. 1. Of course all readers of this site know that the money came from the proceeds of the sale of derivatives which was used to table fund the loans and therefore the ‘lender’ never owned the loan and never sold it in the secondary market.
    Still concentrating on the Mortgage Loan Purchase Agreements they purport to pass title through at least one other newly formed entity – a LLC – before reaching the Trustee, but if we know, as we do, that the Notes have been eviscerated and part of the monthly payments is going elsewhere than to the certificate holders, then we know the actual documents could not have passed to them and the wording of the various SEC documents prove that to be the case. The next step is to investigate if the pretend Trust is filed in the Secretary of State’s records in the State of Delaware. A simple google search as to the meaning of a Delaware Statutory Trust reveals that it is in fact a business entity for the benefit of its Owners, its rules are the same as a LLC, but there is no annual filing fee or return required. The entity stays on the record as an entity in good standing unless and until the original bankster filer tells the Secretary of State to remove it. I have also reviewed Mortgage Loan Purchase Agreements that clearly state that the Trust is Owned by the entity who filed the documents and that the Trustee does not have the power to sue and be sued, that being reserved to the Owner(s).

  10. Malcolm Doney- how long did it take you all to craft that letter? While I don’t think or act like an elected representative, I am pretty sure that any of that ilk would feel lightheaded, wipe their brow halfway through it, get a queasy feeling in the pit of their stomach, put the letter down, and stare out the nearest window for a while, before picking up the phone, dialing a number(s) and saying ____ to whom? What a great piece- one question: why haven’t we seen any mention, explanation or discourse on Delaware Statutory Trusts? Or perpetual LLCs? Can you please give us some input on the phony trust scenario? I have been scratching my head for 6 months or more trying to hypothesize about inactive trusts, nonexistent trusts, winding down of a trust’s affairs, which is difficult starting from scratch. Can you comment? Thanks again.

  11. “Watching Dick Fuld is making me ill” said Andrew. Well, if anyone, like me, is a keen observer and student of body language, they would know that Fuld, Dimon, Lewis, et al are liars. Unbelievable as it sounds, several others Pandit being one of them, don’t seem to know what anyone underneath them was doing. (duh) A few of them are simply idiots, perfectly suited for their jobs- they are greedy, lazy, no qualms about lying, have a sense of entitlement, not exceptionally bright- in other words, they’re qualified.

  12. Malcom, please email me at tina@cmclender.com
    I would like to talk to you. I am gathering up a group just like yours here on the west coast.
    Tina Butler

  13. WOW what a message. Excellent.

  14. I have been watching the hearings on CSPAN. Watching Dick Fuld, former CEO of Lehman is literally making me feel really ill.

  15. Good job Malcolm!

    Below is what we sent en-masse. It was prepared by a Certified Fraud Examiner who’s identity is in confidence.

    There comes a point of saturation after which the lethargy of the the legislative branch, having been been repeatedly informed and shown clear, undeniable evidence of the massive criminal fraud behind the foreclosure crisis, can only be viewed as tacit approval and complicit aiding and abetting of the criminal fraud itself.

    It is very concerning that elected officials may be incriminating themselves as accessories after the fact should they vote in favor of FL HB1523 and FL SB2270.

    Unlawful and false affidavits of indebtedness, parties filing foreclosure who are not parties to the transaction, false endorsements and/or allonges that merely contain a stamp on a blank piece of paper with no identifying features of the property it claims to attach itself to, and mere copies of purported documents being passed off as original documents.

    Is it possible to walk into a bank with a copy of a check and expect the teller to cash it- of course not. A copy of a check is no more negotiable than a copy of a promissory note. I have seen assignments of mortgage that have so much white sticky strips all over the face of the document where there is writing on top and underneath the white strips, assignments of mortgage that state BOGUS as the grantor, and assignments of mortgage that have witnesses signing as a completely different name than the typed name under the signature line.

    In addition, if, between 2001 and 2007, you or anyone in your family signed a mortgage backed promissory note, I urge you to hire any of the top fraud examiners in your state to review what may be an eye opening experience. Sometimes, personal experience is the best educator.

    All of the above mentioned items are fraudulent. From this point going forward, legislators are hereby noticed that that there is enormous fraud occurring on practically each and every foreclosure filed against homeowners each and every day.

    By ignoring the rampant fraud perpetrated by illegal parties, legislators automatically become accessories after the fact which is a crime. By voting in favor of HB1523 and SB2270 legislators are a party to the fraud which is a prosecutable offense.

    Furthermore, legislators eagerness to sign their names to a bill that will literally result in extraordinary harm to their constituents is causing red flags to go up that they personally may have an undisclosed relationship with the parties pushing so hard to get these bills passed so quickly.

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