Warren in – Summers Out: Change is in the Wind


The surprising departure of Lawrence Summers, once touted as the next FED chairman, along with the installation of Elizabeth Warren, Chair of the Congressional Oversight Committee on TARP is a clear signal that the administration has turned its attention to the fundamentals of the economy and away from the ideology that directly maintained the continuing fraud on the American taxpayer, the hapless borrowers who were defrauded over a 10 year period, and the equally hapless pensioners whose fund managers supplied the capital to create this mess. Continued joblessness along with the projection of increases in joblessness will depress housing and other driving forces of the economy.

The simple logic is irrefutable. If there is no money to buy and we are out of options to even pretend (using credit) that there is a supply of money to buy, then selling is going down the drain. Dollar Stores are seeing increased business while most everyone else is sitting with rising losses and decreasing profits. The next big dipper in what everyone was SAYING would not be a double dip recession is coming and it is right around the corner. China isn’t helping either, as they maintain policies that give their companies an unfair subsidy that their American counterparts are not getting.

So now the Federal reserve is going to be buying debt again by printing more money and by using the proceeds of their investments in mortgage bonds. What? Is the FED getting the money on the mortgage bonds, and is the money coming at least partly from borrowers? Is part of the money coming from co-obligors pursuant to securitization documents that created the securitized infrastructure?

So just who is foreclosing on middle America? The Federal Reserve, that’s who. But are they getting the proceeds from foreclosure or simply accepting money that is a scrap of what once was because of the feeding frenzy of illegal fees, profits and rents taken out by the pretender lenders, servicers, investment banks and their agents and affiliates? Using the same plausible deniability argument that the rest of the banks and pretender lenders are using the Fed will say “Don’t look at us we are just own the receivables from the bond.”

But you see that is exactly the point. Pretender lenders are going to court and giving an accounting from a non-creditor (the servicer) and refusing to disclose whether any other money hit the table. Judges are left with the misimpression that because the borrower missed a payment, a default occurred. Not true. There is no default unless the creditor has lost money. If the Fed is still getting paid, then the Notice of Default is a fraud.

Is that fair? You bet it is. In any commercial loan situation, if the lender had already mitigated its damages, there is no way the court or bankruptcy court would allow the lender to ignore it. Why should it be any different for residential loans? The principle is the same: no creditor should receive more than the amount owed. And yet in every foreclosure involving a securitized loan (96% of all loans) that is exactly what is happening. The creditors and their agents are receiving money from multiple sources AND taking the house without crediting the obligation with the extra money they received.

  • They turn down short-sales when the proposed selling price is LESS THAN THE AMOUNT OWED TO THE CREDITOR. And of course they refuse to identify the actual creditors and refuse to provide a full accounting.

  • They turn down modifications when the proposed correction in the principal due is LESS than the amount owed to the creditor on the obligation. If the creditor were paid any more they would be receiving more than the amount owed on the obligation. And they do. WHEN THE BORROWER COMPLAINS ABOUT THE DOUBLE DIP PAYMENTS THE BORROWER IS ACCUSED OF IMMORALITY AND TRYING TO GET A FREE HOUSE. WHEN THE CREDITOR AND THE CREDITOR’S AGENTS GET PAID SEVERAL TIMES OVER ON THE SAME OBLIGATION, THAT IS BUSINESS, TOUGH LUCK.

  • They initiate foreclosure proceedings and sales based upon accounting information that they KNOW is only a partial accounting and that they KNOW is ignoring other money received, thus depriving the homeowner of a chance to settle or refinance the house.They use fraudulent affidavits signed by people who know nothing (see article on GMAC and similar articles on Deutsch and other pretender lenders)

  • They pretend to have a secured loan when they never perfected the lien. The originating lender was never owed the money. The actual lender was never on the note or security instrument.

So now Obama has some choices to make and they are narrowing. Does he continue to allow this charade or does he stop it. Because if he stops it, then a lot of powerful people are going to increase their hatred of him. But if he stops it and the tide turns, then middle America is back on the path to being restored, the taxpayers are back on the way to reducing deficits, and the stranglehold that Wall Street has exercised mercilessly will be broken. What’s a President to do?

21 Responses

  1. David, you, or what you’re saying, don’t sound crazy at all. Author Charles Hugh Smith writes in detail of what he calls the “overreach” i.e., that this time TPTB got too greedy and created chaos of which there is no solution, by grabbing everything, instead of leaving just enough for us peasants to keep carrying on. It’s time for all out war.

    Here’s just one instance in today’s news….another seemingly helpful program for the middle class pilaged by the wealthy:

    “Billions of dollars in U.S. tax breaks to encourage home ownership, retirement savings, business start-ups and education mostly benefit top income earners and do little to help low- and middle-income people build wealth, a report released on Wednesday said.

    The U.S. government spent nearly $400 billion, mostly through tax breaks, in 2009 to promote home ownership and other wealth-building strategies, and more than half of that benefited the wealthiest 5 percent of taxpayers, said the study sponsored by the nonprofit Annie E. Casey Foundation and the Corporation for Enterprise Development (CFED).”


  2. Hi Karen,

    Just to clarify – the David responding here is not the Keep the Powder Dry – David…

    As for politicians – I agree BOTH sides need to go and Term Limits must be mandatory. These mini-me-monarchs need to get out and find a damn job. It would be nice if they actually had to WORK for a damn living for a change…

    WE THE PEOPLE should DEMAND DOUBLE PENALTIES on all corrupt politicians – automatic LIFE SENTENCES for bribery and whatnot. No Lobbyist support and ALL campaign funding will come from the tax payers. No more corporate or other support period. We want representation and NOT dog & pony shows with agenda-linkage attached to baggage compartment.

    Fed Taxes should be eliminated – if the Fed wants money they go through the states. A FLAT-TAX across the board to EVERYONE – start at 20% – 5yrs drop it to 15% – regardless of income level – flat tax makes everyone the same.


    As for marching together & picketing etc – I did it back in the early 80s into the 90s. The problem I have with it is – in most cases all it did was feed the pawns with bumper-sticker slogans and kept animosity on edge. We are dealing with professional character assassination experts. They will mutilate anyone that does not align with their agenda. Their objective is NOT only to divide this country – they intend to RIP it open and leave it in such despair – people will beg for gov control… I know that sounds like conspiracy bs – but look around and be honest with what you see.

    This is a war of ghosts – smoke & mirrors – illusion – etc. This mortgage crisis is merely a distraction compared to the demolition going on behind closed doors. The recent Wall Street Reform legislation has now put the SEC behind closed doors. Think about that – the Federal Reserve is no longer within public scrutiny – the public is BARRED from even questioning what they do – and NOW the damn SEC is given the same privilege. IMHO – WE THE PEOPLE should storm BOTH those buildings drag the bastards out – whip their asses – and BURN those buildings to the ground. How is it possible that the Fed Reserve & now the SEC are beyond our sight and can freely manipulate this country behind closed doors without anyone even being held accountable? IF that isn’t anti-American, what-the-hell is…? That should send every American reaching for the damn gun – even the liberals. The liberals whined and screamed about the Patriot Act and Obama has expanded it – PLUS this bs about FR & SEC… I don’t care what political affiliation one subscribes – THAT is ANTI-AMERICAN…

    Again – I know it sounds crazy – conspiracy freakish – yada-yada – taking into account only the stuff Neil has brought up on this website – courts deliberately denying Due Process – illegal seizure of our properties – lenders deliberately setting out citizens to borrower knowing they could NOT repay – etc and all of it is so disgustingly immoral, unethical, and illegal – yet, it’s been going on for the past 5-6 yrs in PLAN VIEW and how many arrests have you seen? How many of the real culprits have we seen prosecuted…? The mortgage crisis is a distraction but the question is – a distraction FROM WHAT? If we are watching our Constitutional Rights be ignored & stomped – even chuckled at while they are doing it – what do you think is going on behind those closed doors that we are NO LONGER PERMITTED TO SEE? That is what should be FREAKING PEOPLE OUT and causing RIOTS and personally (IMHO) – we will see it. It is inevitable…

    that’s my 2-pence…

    Keep the Powder Dry 🙂

  3. You misunderstand me. I gave up the partisan game long ago. I’m just saying that with the sweep this November, there is an opportunity for a fresh perspective for some serious action before the corruption cycle takes over again.

  4. @David,
    Sorry, pal. It’s not an “our side isn’t corrupt” argument anymore. They both get money from the financial industry. Why do you think honestly that neither party is speaking up about this issue? Do you honestly think that Republicans will shout out about the atrocities that their buddies are doing to their constituents?

    Please……make me think you are more thoughtful than that.

  5. Don’t plan your trip until after January. There will be no one there who listens until then.

    Karen Pooley House Representative from the State of Washinton!!!!!!

    When you go to Washington, it will NOT be alone. I will be traveling right along side you! All you have to do is ask. I will even call to set up the required meetings. You just let me know who you want to see, and I will power it through.

    I’ve got your back…..and we can select our lunch while we’re there.

  7. Bob G.

    Yes, it can be done.

    Karen Pooley

    Yes. Do not how our society ever got this way. Priority seems to be – “where do we eat next?” But, agree with Neil – country many be headed for third world status – where you eat next may not be an option.

    I have been trying to get to Washington for long time – have a lot to tell. Cannot do it alone.

    By the way – what happened to existing consumer advocacy groups? Never hear from them anymore. Need our own.

  8. Anon –

    I recently won a mortgage priority case against WF as trustee for a SPV. I served two judicial subpoenas on WF, PNC Financial and Litton Loan Servicing. Both PNC and Litton completely ignored the subs. WF’s president refused to accept the second sub. WF claimed that they didn’t have a copy of the trust PSA agreement, sending back only the cover page.

    WF appealed the case. I wrote my own brief and will be arguing before a 5 judge appellate panel in November. And I’m a pro se litigant.

    If I can do this, anyone can.

    I would suggest that anyone interested in defending themselves pro se obtain a copy of both your state’s civil practice guide, and real property law guide. You might go on the Thomson/West website for these.

    Also see if you can get an online legal subscription to West, Loislaw, or Lexis through your local community college or State library. Go to a law school library and talk to one of the librarians. Tell them what you want to accomplish (i.e., be a pro se lawyer) and ask them what reference books are absolutely essential. If you’re lucky, some distinguished professor has written a civil practice text that is used in all the law schools in your state. Get a copy of that to go along with all the other materials. And don’t forget Google Scholar. Has all the cases with their cites and subsequent cases that cited the primary case (Shepardization).

    You can do this.

  9. I agree with Gwen. I’m fighting eviction with GMAC after being foreclosed on in ID (nonjudicial state). And even though they were the originating lender and have since stated they are my subservicer, I don’t believe they own the note. I’ve got MERS on the DOT and GMAC has stated in writing that Wells Fargo is the Master Servicer and Deutsche Bank is the Trustee.

    In 2009, I was told verbally by GMAC that Wells was my Investor. After foreclosure, MERS showed Credit Suisse as my Investor. Twice I received DV’s with MERS named as my Creditor. I swear it’s enough to drive a sane person crazy trying to figure all this nonsense out!!!

    What I want to know is even though it’s obvious to me that my loan was securitized, is it ‘possible’ that GMAC somehow ‘kept’ the note or really has the legal right to foreclose? I’ve been reading this site (and others) for quite some time and I’m praying that I’m right about their lack of standing, but with things I’m reading about changing every day, I’m starting to wonder now if this is going to blow up in my face at court???

    I’m Pro Se and unable to afford an attorney. But even if I had the money, I’ve yet to see any attorneys here that ‘get it’ 🙁 I’ve been considering starting a nonprofit to help people like myself to at the very least have access to information on how to understand the court system and be able to properly defend yourself. It will take me awhile to get the project off the ground though as I am starting over financially at Ground Zero.

    Best wishes to all!

    I cannot even get a fucking showing on people who are in this mess to come, stand at a movie opening night with a sign.

    I am sick to death of people whining that “we are not being heard.” And yet, when called upon, tell me, “I have other plans.”

    Guess what? When you need something? I won’t be there. Just sayin’. People are pretty damn lame ass lazy ass couch fucking potatoes that couldn’t give a damn about anyone but themselves.

  11. Obama is not one of us..Why should he correct the situation ?

  12. david,

    EXACTLY!!. Thanks for your post.

    Believe we will see more of this.

  13. Interesting post about Freddie. I’m in court with Citi and just discovered that Freddie owns my mortgage. Freddie says they’ve owned it since the day I signed papers 4 years ago.

    Now I think I have a case of fraud upon the court. It’s ok to say you own the loan when you are the servicer, but a different matter when filing a proof of claim and motion to remove a stay when you are not the party with standing.

  14. Happen to be in pensive mood.. And, rereading Neil’s post – one comment disturbs me: “So just who is foreclosing on middle America? The Federal Reserve, that’s who.” I know Neil goes on to question the source of the proceeds – what is left – what is accepted, but……….

    This premise has been a very serious concern of mine. And, as PJ – poster here – once stated – most of the mortgage loans (95%) were backed by Fannie/Freddie. I, and possibly wrongly, argued that the 95% is today. I retract that statement. Continued research is showing, at least to me, that most of the loan securities WERE Fannie/Freddie backed (sorry PJ). Wall Street owned the receivables to the notes that Fannie/Freddie owned.

    Fannie/Freddie would repeatedly refinance (fund) loans without ever divulging this to borrowers. Meaning, your loan was, very possibly, not a new refinance, but a modification of your already existing loan.

    While the receivables – payments- were sold to Wall Street for securitization – Fannie/Freddie retained note ownership. There are many undisclosed Fannie/Freddie REMICs associated with a “wrap” or “deal” with Wall Street securitizations.

    Then the question is – what did Fannie/Freddie do with the defaults? (have heard many still remain with Fannie/Freddie). As long as everything was proceeding as planned – the rejects “receivables” were disposed of by the Wall Street participants. But, all did NOT go as planned.

    In addition, Fannie/Freddie hired the services of the worst possible mortgage servicers to “collect” on their owned notes (concealed ownership). If Fannie//Freddie disposed of the loan – they will answer – on website- that they do not own it. But, they will not tell you – that they DID own it.- until they disposed of it.

    So, now that Fannie/Freddie are owned by the US Government – who is denying your loan modification – and possibly processing your foreclosure?? And, all in violation of HAMP law. Answer that. No wonder they do not want Elizabeth Warren appointed director for 5 years – they give her a temporary position – to appease – because Elizabeth Warren knows.

    And, no wonder we have no help – no wonder no AGs are acting on our behalf. No wonder no courts/congressmen/senators/ administration will give us the time of day.

    And, if this is the case – as I read into Neil’s post, we are up against a steeper battle than we can even imagine.

    My concern is not just with Neil’s current post – I have other indications that leads me to this position.

    Is there much much more to tell? Big question – unanswered – Is the US Government foreclosing America? (at least us) – And, who knows this????????????? and is covering up?

  15. Peter Orszag and Christina Romer – and now Summers – leave Obama’s economic team. There is a reason for this.

    The problem is that no one knows how to fix a US economy that has been faltering for quite some time. Many jobs have gone overseas – contrary to economic analysis that claims trade agreements help US jobs. There is no evidence for that analysis. All that saved the US from economic ruin – quite some time ago – was, ironically, the fraud on Wall Street. Once the fraud was discovered – there is nothing that can get us back on track without strong Administrative and Congressional support for the American people. We do not want to take decades to “recover” – we want help NOW.

    This means a tough stand – against Wall Street fraud – and reversal and restitution of the mortgage fraud. Politicians know their source of campaign donations – they will not bite the hand that feeds them. This is not a Republican or Democrat issue – all politicians are guilty – and none will stand up to the fraud. They are afraid.. As a result, decisions are not always made in the best interest of the American public. And, in our case, we were the sacrificial lambs – we were the disposable. I resent this.

    The Federal Reserve is worried – despite any temporary market gains – the US economy is not in good shape. And, contrary to what many financial analysts believe – and wish for – securitization will NOT come back anytime soon – and never it the way they once knew it.

    We are dealing with tremendous power that has affected every avenue for relief – as to the mortgage fraud. I know of NO politician that is standing up to the fraud. Rep. Grayson – right or wrong in his motives – is at least making an effort. My congressmen/senators ignored all – when informed years ago – they still are ignoring. All I hear from analysts (financial/economic/media) is an attempt to divert attention from the real problem. This is what Pres. Obama did from the onset with health care – not that this is not important – it was not the issue at the time – mortgage fraud was the issue.

    But, the job for investigating fraud lies with Attorney Generals – this is the real source that has failed. With the exception of Florida, no other Attorney General has done their job. It should not be up to borrowers to prove wide-scale fraud in court. Borrowers will never be granted the necessary discovery to expose what occurred on Wall Street. during the mortgage profit frenzy. We can only use what we do have – to contradict any claims.

    I do not know Neil Garfield and he does not know me. I am not associated with any of his services, I do not post to advertise any service for any party. However, without complete understanding of the documents and process that allowed for so-called securitization of the mortgage loans in question, there can be no proper challenge in court as to the fraud than was perpetrated upon so many of us. The path of fraud is complex. It is critical to understand the process and trail of your mortgage loan – which is now, very likely, nothing more than a default debt.

    In addition, the people cannot complain – if we do nothing as a group. Sign petitions – hold a rally – do something. Let the media know you are tired of being a victim. Where are the Bob Woodwards and Carl Bernsteins???

    Having lived a long enough time to know that eventually most fraud is flushed out – I am just amazed that much of the mortgage fraud – remains covered-up..







  17. Bob
    G., truer words were never spoken. I don’t believe Obama nor Ms. Warren will do anything to stop this train wreck. And Neil, I commend you on your unwaivering faith in the President, but it is sorely misplaced. The BIG LIE continues. The United States of Goldman Sachs: money and power trump justice every time.

  18. Bob probably has it right. Obama is owned by Wall Street. His cabinet and advisors are marxists and Goldman Sachs CEOs.
    All he knows is how to campaign. But democratics are pretending not to know him and running like hell. “Barack who?”

    He doesn’t have a plan and never did except to inject trillions into banks and bailouts. The most unqualified and destructive president in history.

    So no, don’t expect any reform. He doesn’t know the meaning of the word.

  19. Warren is an anti-constitutional marxist. she may give the banks a hard time, but she will do nothing for the little folks. Remember what the present administration’s goal is: to collapse the present system into their “transformed” system. You are not going to like their transformed system. trust me on this one.

  20. I agree with gwen caranchini !!!!!!!!!!!!!

    Does the forensic audit do all this?????????????

  21. Ok, I got that message some months ago, but I need to prove to the court that my note is worth nothing, that they don’t have the note, that it was worth nothing two years ago–THAT’s WHERE I AM and a lot of people are. We are still not getting to those answers–when did it get paid off, how did it get paid off, who owns it ALLEGEDLY now and did whoever claims to own it now get it in the property chain of title or not. THESE ARE DIRECT questions and I want direct answers and not more BS

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