“special servicing” fees

FROM A READER IN COLORADO ANSWERING “ANONYMOUS”

You raise a good point as to the servicer keep all the payments. As it has been proven in the two WAMU cases I have, the servicer(JPM not Chase Home Finance) is compelling the action under a bogus POA for the trustee. The trustee does not have control if the operation as the PSA has always shown the servicer was responsible for the foreclosure.

That however is the crux of the issue. The certificate holders put up money to gain an income stream although they thought they were backed by the notes which were never deposited. This scam was different than typical bank bond holder deals that were present before this mess started.

The servicer is in control of the “limited” replacement loans that need to go into the trust if one or two loans default but once the pool is shown to be failing the status is void and the default swap pays in to cover the “event”

I would say that the default swaps may have been multiple and created to cover multiple things. One swap may cover the income stream which is why the trusts still exist and the other covers the principle balance which under REMIC is not allowed to be placed back into the trust mid stream. This leaves the servicer and master servicer in control of it all.

The master servicer controls the REO and the Payout from the default swap covering the principle balance effectively holding the total balance of the top tier certificates and the REO valued at maybe 50%. Since they are prohibited from depositing the money back to allow the certificate holders to recoup their money under the IRS code they reinvest it most likely in buying the certificates that are valued at 5 cents on the dollar from the holders that got screwed.

This will lead to a huge windfall when they weather the storm with the tax payer money such as TALF which is so much more than the TARP money and effectively allows the banks to pledge the top level junk they hold for real time cash.

The trusts stay open as they are trying to bridge over the issue and play the inevitable boom bust history they have made us live in forever. The income stream comes from a separate swap that keeps the dividends paying but the value is shot to nothing making the bond holders want to sell and get out and the bank uses their money owed to buy them out and screw them another time.

The servicer is then charging “special servicing” fees at a huge rate while body dragging the homeowners intentionally inflicting emotional distress so they want to walk away. This helps break their spirit and helps eat up the payments that are coming in that they pocket since the dividends are paid from the other swap contract.

The servicer is the key as they have always and will always control everything and the homeowner gets intentionally abused and the investor has no clue. They want everyone to bailout and walk away from the houses and the investments because they have a plan to use that to make another round of huge bonuses. This is why they value the fraudulent loans at nothing because they are yet the real value of what is being laundered is the servicing rights and the collection of the REO.

Lender Processing Services was funded in 2008 by JP and BoA so that they could perpetuate the fraud of collecting zeroed out loans and now the big law firms that receive the f/c files are going public set to retain huge pools of mortgage notes and continue the game.

If anyone can say that this problem is happenstance and not premeditated racketeering at its most egregious I would say they are certainly fit to be judges or negative bloggers. The entire “foreclosure industry” was planned from the start in the late nineties and this is just part of the cycle they expect us to sit through. It is too well planned with the legislature passing all the little changes in law in preparation.

Conspiracy theory or real conspiracy coming to fruition? I know where I stand.

I created a coin phrase for this….compartmentalized fraud which goes well with plausible deniability and this cannot happen without a master mind that lays out the plan….who might that be?

32 Responses

  1. to Edgetraderplus:

    Congress has passed zero. Congress does very little without being pushed and prodded. That is up to the People.

    Sure, you can (so far, quite correctly) term it an “idle fantasy.” But I suggest you are overlooking the power of the Internet. Mr. Obama’s clever advisors were able to generate the movement that got him elected – and Democrats back in the Executive – by harnessing the Internet (and without the Internet, they could not have pulled it off). This is an election year. If enough people push the issue, then it has a shot. If nobody pushes, then it remains idle fantasy.

    The push capability of the “people” should not be underestimated – for good or bad results. Bill 101 in Quebec obliged the primary use of French in all transactions – a result of the push of the populace. Tax limitation bills and three-strikes laws in California all result from pushes of the people. You may not like the results, but you cannot deny the sourcing.

    I had a meeting with my own Congressman on this topic – he thought it was a great idea. You have 535 in the House to go cajole. Assume the Republicans all vote against it – so forget about them. But if you can convince the Democrats and Independents, then you have some possibilities. If you do nothing at all, then it all remains an idle fantasy. Your other recourse remains attempting to slog it out with judges who remain in large part uncomprehending. So most people end up losing.

    One man – Saul Alinsky – brought the mighty General Electric Co. to its knees, when he unionized the place some 80 years ago. He did it through mobilizing the public. And he had no Internet.

    It can be done. But it does require people to get off their duffs. So, folks, go pester your Congressman. Show up at those open meetings, talk about the pond scum that is using the Courts as a giant casino, and demand this simple change. Hey, if the “lender” only paid twenty bucks for your Note, why should you go pay $400,000? Hardly seems reasonable .

  2. Saturday 10 July 2010

    Jan van Eck:

    Your last post is not clear. Are you saying Congress has already passed a mechanism that is on place, per your 4th paragraph, or that it is up to the “people” to get Congress to pass some kind of legislation like it?

    If the former, why do you not cite an authoritative source that would be of benefit to pursue further? If the latter, idle fantasy.

    Your posts are like throwing a life preserver on a 10 foot rope to someone drowning, but 12 feet away.

  3. Great theories guys, judges in CA ain’t buying it though.

  4. to Bill Kay:

    This solution is perfectly straightforward.

    What is now happening is that the bottom-feeders are out in droves: outfits like Credit Suisse through the DLJ Mortgage Inc Subsidiary, and so forth. the Notes are either Paid or sold off for pennies, just like yours. The latest “buyer” is just a casino gambler, abusing the Court system to gain a windfall (and in most cases, quite successfully). You have little recourse, even in revenge; you cannot even go bulldoze the house into the ground like that fellow in Missouri, or vandalize it to keep them from reaping a windfall at your expense, as they have not paid anything of substance. They paid ten bucks. Maybe they paid 600. Whatever they paid, it is far less than the cost of the land. So the “house” part is pure gravy.

    But society has to keep this scum out of the frenzy, or it never ends; they will predictably keep buying “Notes” already paid, but not stamped Paid, and keep charging into the overloaded Courts who have no clue, and keep gaining possession of the land for re-sale for a quick buck.

    the logical way to end this is to use the mechanism of the FDIC; Congress simply by legislation declares that as a public-interest measure, any Mortgage cannot be foreclosed on for a dollar value greater than what the last Owner of the Note paid for the Note. Ergo, no more windfalls. Now Congress has no authority over private-money mortgages, so it uses the mechanism of loans that passed through FDIC-insured institutions, which is most loans that were generated. After all, the Congress is guaranteeing those institutions, so it is entirely reasonable and equitable for the loans that go through those institutions to come under the controls of Congress. It could broaden the net by adding other types of loans that mesh with Federal Institutional guarantees, e.g. loans that were in part insured by bailout funds.

    What happens? the Holder can still go collect on his Note, BUT he can no longer go use the Courts for casino purposes. The speculators are cut out of the loop. To accomplish this, you the voters have to go lean on your Congressman. Pass this one, and the real-estate and mortgage markets instantly stabilize. the Courts also get quite a bit of relief; nobody is going to spend a ton of money to foreclose on a ten-dollar Note.

    the solution is Political; you get it from the Congress. BUT (big but) the People (that’s you, folks) have to demand it – as a top priority. What is more important: endless debate about the immigrants climbing over the fences in Arizona, or the house you live in?

    You makes yer choice, and you pays yer money. That is how the political system works. So everybody get off your duff and go pester Congress with letters demanding this Statute. It is an election year.

  5. Jan van Eck, or anyone else in the know…

    Can someone please elaborate on:

    “Congress legislates that no Note that ever was in the hands of an FDIC-insured institution can ever be foreclosed on for more than the value of the last transaction.”

    My loans were sold for 6.2 cents on the dollar, so this would really help me out.

  6. Fruday 9 July 2010

    ANONYMOUS:

    As you probably well know, most lose for two reasons. Firstly, the judges are predisposed aganist those who are self-represented, , I prefer to use the term “defendiing,” more accurate. “Represent” means to act for another, a word of art in court. How can one who is defending him or her self be acting for another?

    Secondly, lawyers may not know alot about law, but they know court procedures, and they can most always win on knowlede of court procedures against one who does not and misses important steps in the process that leads to losing.

    However, a knowledge of court procedures AND good supporting case law to substantiate each argument is a potent combination.

    Cheers!

  7. edgetraderplus

    Good point about case law. Rarely does a borrower get past first base – courts shut them down. Our legal system has been hijacked.

    Have always said we need more – but people are too distraught to even try to organize.

  8. Thursday 8 July 2010

    Jan van Eck:

    Can you expand more about the mechanics or how what you say can be proven? If there are no supporting court cases, one could still create one based on the clarity of presentation, if such a presentation, as you suggest, can be made.

    Good post.

  9. Again some more impressive insight posted on NG’s site. Keep it coming..Never give up. Have a good night.

  10. Jan van Eck

    Thank you for your consistently helpful comments.

    You said “Congress legislates that no Note that ever was in the hands of an FDIC-insured institution can ever be foreclosed on for more than the value of the last transaction.”

    What legislation covers that requirement?

    That is potentially a very powerful defense since the trustees tend to be FDIC-Insured institutions and they often claim to be holders. If the note is no longer in the trust then a demand to see the specific accounting is even more important (and would not require 3rd party payment info).

  11. David,
    “if you want to sell a security make it complicated. If you want to buy a security look for something simple. In the complex there is fraud, in the simple there is usually just fundamental cash flow, finance and economics.” ~by Neil Garfield

  12. Could someone help interpret what this means…?

    I found the Trust with our loan within Maiden Lane Holdings… These are laid out in tables…
    I noticed they’ve changed the name of the Trust from CWALT 2007-7T2 to CWALT_07-7T2 X but the Cusip ID is the same…?

    Maiden Lane Holdings – CUSIP – 02147BBJ3
    As of 1/29/2010
    Desciptor – = – CWALT_07-7T2 X
    Current Principal Balance or Notional Amount = 81,127,000
    As of 3/31/2010
    Desciptor = CWALT INC 2007-7T2
    Current Principal Balance or Notional Amount = 79,656,000

    —————————-

    I also have the original Trust info…
    CWALT INC – Alternative Loan Trust 2007-7T2 – D-10 1/25/2008 EX 99.1
    Section called – Certificateholder Monthly Distribution Summary
    Class = X <<– that “X” is RED on the report
    Cusip = 02147BBJ3
    Description Class = Strip IO
    Recombination Classes = N/A

    On this particular report there are countless “Classes” A-1, A-2, etc – with information amounts and each has a CUSIP ID etc – however, wherever our CUSIP number is – the class has a RED X in the field..?
    Does anyone know what that means…?

  13. Folks, it would be prudent to remember what is happening to those Notes which were paid by the insurers through the credit-default swaps. The Notes are still sitting out there, but never stamped “Paid.” Yet the investors in the tranches (in theory) supported by these Notes settled out for say 5 cents/dollar. They no longer have a claim against the Notes. The Credit-default swap was contracted on a non-recourse basis, so AIG and the other insurers have no claim on the Notes. So where does that leave the Notes?

    Answer: in the hands of the “servicers” and the foreclosure attorneys. And what do they do? They proceed to “foreclose” on the Notes, notwithstanding that the Notes are already Paid (just not paid by the original Obligor). And since the Courts (and the Obligors) have no inkling about the Payments made by AIG et al, the Courts just go approve the foreclosure.

    It is not that the Notes are being bought for 5 cents/dollar; many are not being bought at all – they are just so much left-over chaff after the defaults of the trust tranches and the restoration payments by the insurers. These Notes are conveniently stamped as Indorsement “in blank” so whoever gets their hands on the Notes can go collect them, under the antiquated ideas of the UCC. To no surprise, a whole new industry of bottom-feeders has sprung up.

    Fraud? Of course. The defense? Easy: Congress legislates that no Note that ever was in the hands of an FDIC-insured institution can ever be foreclosed on for more than the value of the last transaction. Record the sale of Note (or assignment of mortgage) as $10? OK – that is all you can collect on. Let the homeowner pay the $10 and close out the file. But until Congress acts (and YOU put the screws on your Congressman to act) the fraud, charade, and rape of the homeowners will merrily continue -to the profit of the New Yorkers who dreamed it all up.

  14. It is not a question that people are passionate… but it does the host of this blog no service when people talk about blowing up buildings etc. This is an OPEN forum which can and is read by parties of all interests… and we owe it to Neil and his staff to stay on point, discuss and share pertinent information that will be to the greater benefit of all.

    We all have very strong opinions, feelings and emotions surrounding the issues at hand.. the lid is coming off this Pandora’s Box, quite not as fast has some one like… but it is quite obvious that the perpetrators are not able to cover their track’s fast enough… and that in part is due to the rapid dissemination of events, knowledge and experience that takes place on blogs like this… let’s all keep in going forward!

    With that the “servicer” issue is KEY… especially the non-bank GSE servicers that are currently operating under the radar without any regulation. The “servicer” is the Achilles Heal here and they need to be dragged out into the Sunlight by both investor and borrower.

  15. The only way to get to the bottom is to open the records of the trust to see if it is getting payments and from where. If the trust as is the case in mine the WMALT 2007 OA3 the value as reported by the trustee has dropped over $800M and the lower level tranches have been dissolved. I would assume that 1009s have been issued for the losses by the investors and used as tax deductions.

    So collecting on the amount of the mortgage at full face value would be double dipping, correct? Add that to the over syndication of the pools(having more investors than and receivable money in excess of the stated principle) and you can see the true cost of the credit and all fees incurred creates a usurious situation.

    In many societies the penalty for usury was death.

    If you take the cost of providing credit in a standard mortgage that includes the profit made in the securitization and total it as one single transaction you exceed all limits for usury.

    The pools were sold usually at 105% of par, the broker charges a point or two, the pretender lender charged up to 5% which was usually the cap for the originator, the aggregator got a piece, the depositor got a piece, and the pool was over subscribed. This is all in effect the cost of doing business and the total needs to be combined to verify the cost of credit.

    On a $1M mortgage let’s tally it up.

    Loan = 1,000,000
    Origination= 10,000-20,000
    Originator(pretender) fee= 50,000
    Aggregator= 10,000
    Depositor= 10,000
    Pooling profit at 5%= 50,000

    Total collected in balance from investors= 1,130,000

    Fees as a percentage of the loan @ 13% which in any instance puts securitized loans in excess of HOEPA starting in 2005. If the loan cost exceeds 8% in points there are specific types of loans that are expressly prohibited such as Neg Ams and “stated” or no doc loans.

    The structure using originators as pretenders and warehouse lenders(not included above but fits in the 5%) helps the securitizer evade HOEPA and usury limits.

    They state for the purpose of gaining REMIC exemption that all sales are separate and absolute “sales” of the assets which under UCC a “true sale” requires completed transfer, FOR VALUE, in good faith.

    To complete the requirement value has to be paid, if they paid each party for the transfer the price would be part of the cost. The parties were not separate as the registered place of business for each was typically the same location.

    They either count the total amount in the cost of the loan or they evaded taxes by not following their own rules.

    No borrower should be ever be required to shoulder the burden of truth to verify this info.

    Most of the loans exceed usury and HOEPA which makes them VOID, the ones that don’t can defend using unclean hands for tax evasion.

    The government covers it all up at the detriment to the populace of which we should rise up with the largest Qui Tam case and claw back ALL the money from the banks. We can simply create co-op style credit unions out of the ashes with oversight by the members.

    Enough is enough.

  16. Wednesday 7 July 2010

    Yet another insightful, interesting post by ANONYMOUS. Thank you for your ongoing contributions.

    The wins in court will come one at a time, and then each person can do what they choose, to build on each success. I am taking information from many of the cases provided here and on the Weidner blog to create a forceful and responsive pleading. I will post it on this site when finished, maybe another week. It will be a real time example of what is being submitted in a Cook County case.

    It remains focused on what I call the basics, fighting standing through a challenge of faulty assignments, which is, once again, a jurisdictional issue. A success in challenging jurisdiction gets the case dismissed, and one can argue law, in the process, not emotion.

    Of course, courts are not always sympathetic to adhereing to law when the court is one of equity, where foreclosure cases are heard. I am of the mind that courts get away with it because too many who defend themselves are ill-prepared to deal with procedure. Foreclosuremills are v skilled at procedure, and they most often “win” based on that alone.

    Still fighting.

  17. Greetings Posters! As usual another great post by a veteran of our fight to STOP the TERRORISTS that prey upon us daily.

    There’s not a CONSPIRACY THEORY! What there is aiding and abetting Attorney’s and Judges. Their on the right track by hitting up the Shapiro Group as they represent the majority of the banks!

    Interesting enough they were down as the board of directors for NARS as well besides doing the foreclosures for all the majors. Citimortgage is just the brink on the disqualifications for this nightmare!

    Judges are involved as well or else I wouldn’t of received two separate recusals for their theft of my home. So I surely agree with all of you! The question is are there any bankers, attorneys or judges left that follow the law? Or will they finally start ousting them? The whole bunch from the AG, US Attorney, US Federal Dist Ct. Bk judge to the other judges who recused and attempted to throw me under the bridge for the way I have to pay my bills! Which means NO MONEY UNTIL A REAL BANKER IS FOUND! HA!

    All I’ve asked for is a VALID PRODUCT FOR QUALIFIED BUYERS so I can AVOID the whole diaster we’re being forced thru for the sake of the one’s ROBBING US BLIND!

    Instead all you find is someone out to rob you blind by any type of service you may say you need usually. It’s outrageous!

    Stand by what you’ve been taught is the LAW your whole life and your wrong! Really 10 days or less and I could make $50m to help put money into homeowners hands. But no real bankers with authority to do shit…

    I also heard OBAMA has hit a rather large private family up for 10T for some reason….Anyone know why? I really hope the attorneys and bankers around our country are looking at this…I believe in very few anymore.

    I believe very few sites are worth posting on as well. So I hope no one minds I advertise for the one’s worth a dam…

    Livinglies.wordpress.com
    mattweidenerlawblog
    msfraud.org
    foreclosurehamlet.org
    suijurisclub.net

    Be blessed Always,

    Kathy

  18. I talked to someone about a year ago about what it would take to buy those trusts for pennies on a dollar…

    I was trying to figure out how I could buy them then take them to the folks being foreclosed and handing them their DEEDS… I thought “MAN” what a blessing – that would be way-cool and if folks could afford to “donate” by way of making minimum payments for two years – it would keep refunding the account so it could continue purchasing and selling the deeds back to the families…

    That’s the part that pushes my nuke-buttons – they know these families have no place to go – move into gov housing complexes – drug infected areas – but instead of selling that damn deed back to the family for PENNIES on the dollar – they’ll throw the family out… I’m telling ya – that is worth taking a baseball bat to a few folks… that is disgusting…

    I believe in simply principle called the Gleaning Fields… God to owners of the fields to send the harvesters into the field only ONCE – whatever they missed was left for the poor & widows. What these foreclosure mills & lenders are doing is despicable.

    It is absolutely unnecessary to repeatedly gang-rape these families… but what goes around comes around and it’s coming…

    Once folks learn that these lenders never lost a nickel -were paid multiple times via the insurances and premium spreads yields, etc – paid by the mortgage ins, etc – then they took their houses illegally… if that doesn’t open up the biggest can of whoop-ass nothing will – Popeye will be reaching for his spinach in this house…

    It is my hope & prayer to ripe these punks open for a huge chunk – if so, I will be doing something to help folks and more importantly I’ll be looking for a freaking legal team with the disposition of a junkyard dog – when we spot a foreclosure mill on the lose – unleash the bastards and let them sue them until their great-great-great children are paying these families back… I’ll be damned if I won’t take a baseball bat to captain-countrywide gated community or not – bs… this is way-beyond finances or houses – this is about what’s RIGHT and our American Dream… If my neighbor can’t reach for the same dream as me, WE have a problem because that its wrong… We the People –

  19. HI Anthony,

    Your point is well taken – my reaction was the combination of the 9/11 and the other post…

    I believe Presidents are minor players in the affairs of the nation. A president is at best a part-timer. The culprits – true liars & thieves are those that have created their own little kingdoms in congress… If after what we’ve seeing these past 20-30+ yrs isn’t good enough to convince folks to demand TERM LIMITS on the useless bums, well, we deserve what we get…

    Wall Street is a mirror image of Congress – both believe they are above the law -Both are arrogant self-righteous pukes and Both should be treated as terrorist insurgents & prosecuted as such – and that goes for left-right democrat and republican… They should serve TWO Terms then get out and go find a damn job like the rest of “us”… Career politicians are a plague to any nation.

    The Meltdown – IMHO – is deliberate but I’ll leave that for another blog elsewhere…

    I agree that the best positioned folks in foreclosure right now are those in stall-mode.

    As for the nothing we can do about it – I’ve stated my opinion many times – I believe this is quickly moving to violence. I’ll gladly send the names & addresses of every lender & foreclosure mill to al Qaeda websites and make sure they have special insulting comments – as far as I am concerned these foreclosure mills and corrupt lenders are no different than insurgent terrorists. I have no conscience whatsoever for what happens to them or their families – no different then if an insurgent was locked in on my Desert Eagle 44… They deserve exactly what’s coming to them… I have not issue with authentic debt collectors – we all need to pay our bills. But these pukes are not debt collectors.

    You comment on the “crime thing” is a sad and sobering truth. My wife & I used to own several rentals that were used specifically for single moms. We rented for whatever they could afford – took many out of wickedly abusive situations. We owned a business and helped many folks – I’ve threatened a few social works in my day… Nothing ticks me off more than seeing someone take advantage of another family in a difficult situation… that just gets under my skin… it’s wrong…

    This mortgage ordeal is heading for an eruption. The governors – AGs – whatnot are not going to do anything about it. They are funded by the bastards. I’ve talked with our AG office – even after the foreclosure mill forged the documents… I’ve met with the FBI – given my information and I’ve told them the same thing – if that freaking foreclosure mill comes for this house knowing that we did not break the law – that our case is not about non-payment – and the lender has lied & manipulated this thing – I told them sitting here in my house – I’ll park a freaking McVeigh U-Hauler outside their 5-story building and make 9/11 look like a 4th of July party… I despise liars & thieves and the only thing hate worse are those that defend them… The FBI didn’t like the statement – but like I told them – I’ve done everything I know we can do and I’ve done it right and tried to do it respectfully. If the government & law is not going to protect my family – my freaking Colt 357 – Glock 40 – or Desert Eagle 44 will… yep, they said I’m not allowed to say that – I can’t make threats – yada – yada… those are not threats – and I don’t disrespect the law – but wrong is wrong – if they can point to a single place where we lied or exaggerated I’ll sign the damn deed over and keep the freaking payments… I know what we did and didn’t do and I am going to defend it regardless of the consequences.

    So – brave enough – I don’t see it as brave at all – I see as having convictions and willing to stand up for the principles I believe-in. There are some things worse than dying – I would much rather die for something than live for nothing. That isn’t some “he-man” macho statement nor does it mean I look for trouble. I don’t have a record – never been in trouble and don’t plan on joining some militia. I don’t bs – don’t lie and don’t refrain from the truth – as I already told a judge – if I shoot these bastards I let you know – I won’t run – I’ll wear my badge with pride! Yep, I caught hell for the statement – but oh well…
    I hope I’m wrong – but I believe it will take several McVeigh U-Haulers being delivered before our government will pony-up to the truth. I’ve told these same things to our sheriff’s department – Attorney Grievance Commission’s investigators – FBI – & Judges – as I’ve told each & every one – this thing is going to bust wide open and if they don’t get in front of it “beforehand” – they will be forced to prosecute the outraged dads which will ultimately make them to be viewed as “one of them…” That is freaking nightmare and will lead to riots like those back in the 60s.

    Jefferson penned the best – and this I believe is the fundamental core of this nation – this is the good ole American red-neck spirit (IMHO) …

    Thomas Jefferson – Declaration of Independence
    “…We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable rights, that among these are life, liberty and the pursuit of happiness. That to secure these rights, governments are instituted among men, deriving their just powers from the consent of the governed. That whenever any form of government becomes destructive to these ends, it is the right of the people to alter or to abolish it, and to institute new government…”

    “…But when a long train of abuses and usurpations, pursuing invariably the same object evinces a design to reduce them under absolute despotism, it is their right, it is their duty, to throw off such government, and to provide new guards for their future security…”

    IMHO – the train has left the station…

    If you’ve never read Patrick Henry’s entire speech from his famous “Give me Liberty or Give Death…”, I highly encourage all to read it… It isn’t very long but it is very moving… It is said that after Henry was finished his speech that night in St. John’s Church – it was so silent the sniffles of grown men whimper trying to hold back the tears… They knew what sacrifice awaited but were compelled to follow their heart-felt convictions…

    I’ll step off my soap box…

    Keep the powder dry…

  20. Really think Neil is getting closer and closer to exposing the fraud.

    David also says it right – “The servicer is created by the PSA. If the servicer is no longer required to service the Trust because the trust does ceases to exist or whatever, surely it CANNOT LEGALLY appoint itself the recipient of the LOAN BENEFIT…?” But, David – that is what they are doing – and with FDIC and government approval.

    The key to actually determining dissolution of the Trust – and Trustee responsibilities – is to trace the cash payments of those borrowers who are still paying. That is, who is the servicer remitting payments to – for current loans???

    Believe Neil is right – ” most likely in (servicer) buying the certificates that are valued at 5 cents on the dollar from the holders that got screwed.”

    You cannot pay certificate holders for tranches that have been paid in full by swaps – they cannot claim receipt – and any subordinate tranches for current income stream are no longer in place. (they have lost their claim to current income residual).

    Although the “trusts” appear to be dismantled (stripped of pieces) – the “pools” of loans that once were part of the trust – still exist. But, those pools do not exist in the context of the original intended trust. The “servicer” (subsidiary of a parent corporation) controls those pools. They control current payments (for those paying) and they control divestiture of the loans in default.

    Servicers are not disclosing what they do with current payments – and are not disclosing what they do with default loans. And, there is no court enforcing that the servicer divulge this information. Many courts are simply not pushing disclosure. Based on “privacy” claims by adversary lawyers – discovery is often shut down..

    Courts remain, as I stated on previous post, in a time warp – the time of set-up of the original trust. This is occurring in both judicial and non-judicial states. Government promotes it by ignoring all. This is by democrats and republicans alike. – and Pres. Obama.

    Further, courts ignore invalid assignments, assignments not effectuated (can you really effectuate an assignment for a REMIC??), and by failing to enforce complete chain of title as mandated by the Trust SEC documents. What we are left with is a Trust that it technically gone, but clings to life by pieces that remain – those pieces often in the hands of the US Government. But, those pieces are simply the pools that once supported the (dismantled) Trust.

    Lastly, those trust remnant pieces (pools) must be brought back onto the balance sheet of the security underwriter parent corporation – who promoted all – but you will never find a detailed accounting of same. You will find only a “note” to consolidated financial statement that acknowledges compliance with FASB new rules.

    Thus, we continue to be victims. Victims of system that nearly caused a financial meltdown. And, for those that are still paying – who the heck are you paying?? And why? You have no stated creditor and no valid title to your home.

    Keep going Neil – I have faith. Do what the adversaries do – find a court “sympathetic” to your claims. There are some good judges out there. And, if you possibly can, file a class action. This is what attorneys for borrowers do – but, of course, they keep the money – and leave the borrowers hanging. Believe your intentions are not the same.

  21. The devils are all politicians owned by bankers across the entire political spectrum. The bank elite have owned our country since we declared independence and had to borrow money. Unfortunately they also now own most of the judicial system and pay big money to law firms to commit fraud on the court.

    9/11 is absolutely possible because it suddenly became patriotic to consume and buy and buy and buy. Just so happened to coincide with lifting of the Glass Steagle and the opening of the banker casino.

    Nothing is outside reality with this group of crook. THey are evil.

  22. Anthony asked a question and I gave an answer. I agree with him that there is “more to the picture than meets the eye,” to quote Neil Young. That’s all. Bush and Obama are both criminals. This is not about left or right–I am neither. I only want the truth, which is why this site is so important and has helped me immeasurably.

  23. Sorry… PJ’s right…let’s stay on topic…

  24. WOW…talk about pulling people off point…

  25. I don’t know about the left but no matter what side you pick both are tragedy stricken. I don’t see a mentioning of Bush or bashing nor a claim he is to blame (hey that rhymes) but if you believe it begins and ends with the President what can I tell you. Private industry runs mercenaries in military operations not within the scope of presidential authority and outside the scope of U.S. law. Does that begin and end with the President or is that completely financially related? Is that politics?

    The misconception that pretty much EVERYONE on EVERY blog makes is that this meltdown can be pegged in a matter of reading an article or two about securitization and that it’s isolated to real estate transactions. You can’t unravel the complexity of a well thought out executioned plan involving the highest levels of government and financial power bases in a matter of days, months or years. Right now the best positioned homeowner in foreclosure is the one who’s foreclosure is at a stall while the information continues to unfold. The thing about crime is that you don’t care until you or someone you love has become a victim of it.

    This crime that has taken place against the masses is an in your so what nothing you can do about it crime. Maybe some people will get perm mods, maybe some will get their home outright. The reward will never outweight the damage done. That’s not politics…that the most fundamental question our fore-fathers asked about the British…what are we going to do about it? Because as civil as we’d like to be, it wasn’t the homeowners that found a loop in the law and filed all these foreclosure suits.

    In Florida the filing fee for a real property action is $1901.00. Do you think that was to deter the bank from foreclosing or designed to stop the homeowner from filing a counterclaim? If homeowners could file a counterclaim what state would foreclosure be in?

    So I say to everyone conscious enough and brave enough to write something on a blog…what are you really willing to do and going to do about the crime that is in your face? Do you fight fire with fire and make the flames spread or do you boil, change form and rise above it all? Seems we’re all talk. Attorneys try to help but not really because bar rules tie our hands behind our backs. Money cripples us because clients can’t pay. Statutes draw a fine line for scam to prevent real homeowner assistance. We can’t really advertise. Money can only flow in one direction so we can’t fund the cause. I mean how deep do you really think this foxhole is? I’d say very deep. So deep I want to meet Morpheus damn it and take the red pill so I can awaken, have super powers, fly around and kick some ass!!! 🙂

  26. PLEASE – the topic is about what…? Go troll down at the leftist corner – hey here’s a thought – why not troll down to the gulf and help clean up that mess… oh but that was Bush’s fault too… I bet you didn’t know Bush caused the Tsunami too did ya… yep, him & Cheney out goofing around lit off a nuke under water just to see what it would do…or maybe they were fishing I mean they use dynamite to fish in Texas don’t they – I wonder hmm? He also created hurricane Katrina… the military has a secret weather weapon and they were testing it out… damn that Bush…

    …but then you knew that already… So, how’s the unemployment in Illinois these days…? Oh – Illinois has reached an unemployment rate of 12.2 percent… that damn Bush… Last I heard Obama was leasing the US Currency Plates to China so they could just print the money themselves… I think it was something about the union workers refused to print that fast without overtime pay… and talking about that damn Bush… how’s ole Al Gore—geous and now single – sounds like he’s got some global oats to warm up now ah…?

    Progressive Socialist Near Future…will end..shortly and thankfully we will have our country back… I hear Chavez is looking for help…

    Honesty – is it necessary to politicize these tragedies?

  27. Anthony,
    It would be unpatriotic NOT to tie all this in to 9/11. Neil often cites the period from 2001-2008 as the biggest orgy of securitization. Those years are convenient bookends for the rape and pillage of our country: 9/11 in 2001 and the bailout in 2008.

    Note that 9/11 was used as the excuse to make several consumer-unfriendly changes in banking, i.e., Check 21. And of course, the bailout of 2008 was designed to mop as much money as possible up after the securitization/credit orgy.

    Yes, the SEC had offices in WTC 7 in which records of some ongoing investigations were housed. All that work undone when WTC 7, which was not hit by a plane, collapsed neatly into its own footprint at approx. free-fall speed on the evening of 9/11.

    Yes, nothing happens by accident. And for those who will inevitably chime in about how 9/11 was perpetrated by people with boxcutters–that’s the equivalent of saying that the housing/credit crisis was brought on by the greedy borrowers instead of the predatory lenders.

  28. David,

    Good questions. The trust owns only the static pool of loan income. They say they have to acquire the notes but they never do. They only get the rights to the income stream as a pass through trust cannot own mortgages. This is where the bankruptcy remote status intent comes into play.

    The banks bring themselves to the brink of insolvency and limit of the number of loans they can do based upon reserve capital requirements. The pass through bankruptcy status was created to slough off the loans to investors rather than stop investing. This allowed monster leverage and the remote status was so that if the bank failed the assets of the trust were protected from the banks creditors.

    This is why the “true sale” requirement and the conundrum of blank note endorsements is so critical to legal standing. It is also very important how the BK remote status was handled in the takeover of certain banks. If the loans were forced back onto the books yet then written down to zero before the new bank acquired them the obligation is extinguished under legal standing and economic damage.

    The provisions of limited replacement is part of the requirements of REMIC trusts under IRS code. Full principle payoffs for more than a small percentage of the loans strips the tax exempt status and there are provisions that the only authorized party to hold the money in escrow is the servicer.

    When the FDIC is involved they can try and launder anything for the banks in opposition of what they are supposed to do. I see the transfer of the loans to JPM of WAMU for zero consideration as a waiver of the obligation under constitutional Article III standing. I would think that the constitutional provisions of the judicial process would trump UCC or banking law as if they are not damaged they cannot seek redress.

    Anyone want to talk about Constitutional law?

    Neil, You’re and attorney what see ye?

  29. The servicer is created by the PSA. If the servicer is no longer required to service the Trust because the trust does ceases to exist or whatever, surely it CANNOT LEGALLY appoint itself the recipient of the LOAN BENEFIT…? It hasn’t the authority do so…

    Where does it say that in the DOT or Loan Docs? If the Trust no longer exists – the OWNER & HOLDER of the Note cease as well, right? In other words the servicer cannot exist autonomous from the Trust? The created cannot supersede the creator, can it?

    Once the loan is securitized – it is owned by the Trust. The Trust and its entities only exist by the LIFE-GIVING-FORCE obtained from the TRUST, which is strictly limited by the rules/laws written in the PSA. If the Trust is extinguished – so is the power/authority to demand payment.

    Who gets to claim they are the new king – send all payments to me…? The servicer has no RIGHT to even accept payments once the Trust is gone because their legal identity to accept payments as it pertains to that specific Trust ENDS when that Trust ceases. Regardless if that servicer accepts payments for “OTHER” trusts – it no longer has legal authority to accept payments for the deceased…

    How is that any different from someone cashing unemployment or social security checks from a dead person? Unless there is specific verbiage as in a “spouse’s” legal right to continue receiving the benefit but that benefit is specifically tied to an agreement. There is no agreement if the owner of the note is deceased – the authority dies with the owner. The servicer’s rights are derived from the Trust.

    Is that a rabbit trail to nowhere or does it have merit?

  30. 658 lives lost from Cantor…a tragedy no matter how is is viewed. But if you look at some fundamental facts you can only be categorized as a conspiracy theorist. For example do you know that the WOrld Trade Center was designed to withstand a 747 hitting it? Of course how would you really know if it could unless it happened. But if you follow that theory and imagine a plane simply hitting and then falling, how many lives would have been lost? Maybe a few hundred? Is a few hundred lives worth a few hundred billion maybe a few trillion dollars? Run with the theory of not what happened but what was suppose to happen and its not so far fetched anymore.

    Death is always tragic and horrific but when is a President most presidential? In time of war! What we didn’t know then we are very much learning the reasons now…of course you can blow off the theory and simply believe that foreclosure throughout the entire country was not a plan…simply a coincidence…

  31. @ Anthony

    Evidence as in bond broker Cantor Fitzgerald?

  32. Anyone want to start tying 9-11 into all of this yet or is that too unpatriotic? The moment you can leave the idealism that we are the most right-just country just for a split second and entertain the theory that 9-11 was planned so that evidence could be destroyed in the world trade towers and everything else after that was a smoke screen, maybe just maybe you can come to grab a greater hold on the reality that you, me and the rest of this country are the victims of the biggest planned robbery in the world!

    -Anthony
    Combat Veteran

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