Fed Policy Should Deal With Mortgages They Own

SOMEONE must see the absurdity here. Wall Street profits and bonuses are up “defying gravity.” Where is the money? I guess in the hands of Wall Street while the rest of the country languishes in debt and dim prospects of a recovery.  Show us the money. Where is it, Wall Street? what are you doing that is earning so much money? Or, as I suspect, are you simply ‘repatriating” money you stole during the mortgage run up when you stole part of the money you accepted from investors?

The FED bought mortgages. Or at least they bought mortgage securities which supposedly, according to pretender lenders in court, give them the right to foreclose. That sounds like the owner of a mortgage. The FED has already determined that those mortgages are bad in numerous ways, not the least of which is that the liens probably don’t exist. So the FED has demanded a refund from the banks who sold them this garbage on false pretenses. What a surprise, after lying to the investors, lying to the homeowners, they actually lied to the FED as well! Who would have thought?

MEMO TO FEDERAL RESERVE: If you need to supply the US Treasury with $600 billion then do it. But if you expect that to improve liquidity in the marketplace, stop kidding yourselves. You have made a demand for refund and they the banks are not going to do it. So, as owners of the mortgages, why doesn’t the FED settle the mortgages for what they are really worth. Go to the homeowners, using existing and new infrastructures to reach them, and if the mortgage lien is valid, make a deal. If the mortgage lien is not valid, make a deal. The resulting change in the homeowner’s net worth will be the same as a fiscal stimulus without the necessity of printing money.

If the mortgage liens are invalid, as I think they are, it is easy to prove by simply looking at the whatever REAL paperwork exists. Since the FED owns the mortgage bonds, there are no investors to settle with. Arriving at a new mortgage deal which the Fed can sell to Community Banks and Credit Unions, will more than offset the printing of new money. As was said in congressional hearings a couple of days ago we can either settle this mortgage mess rationally, or we can save the capital structure of the megabanks. We can’t do both. The validity of that comment seems to be unquestioned. THAT is an admission that the capital structure of the megabanks is vapor and sooner or later they will fall anyway.

Our society cannot withstand a 15 year recession. It can end now with three simple words: TELL THE TRUTH.

19 Responses

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  2. “The FED bought mortgages. Or at least they bought mortgage securities which supposedly, according to pretender lenders in court, give them the right to foreclose. That sounds like the owner of a mortgage.”

    They are not, these are what derivatives are. They are securities backed by paper, no real assets, and just because the paper backing something is an obligation or a mortgage doen’t mean you’re entitled to enforce it or recover property secured or proceeds obtained from a forced sale of the property. You are only entitled to the revenue from the performing asset while it is performing, but in the event of default only the party listed as the secured party is entitled to exercise the security against the property and recover proceeds. WHY DO YOU THINK THEY MADE THE LOANS DESIGNED TO FAIL SO SOON? SO THEY COULD COLLECT OFF OF INVESTORS & PROPERTY SEIZURES AND CLOSE DOWN SHOP WITH NO OBLIGATIONS.

    If you look at the names many of robo-signers and notories that signed many of the documents throught the Fraudclosure process, you will probably find that many of them had past run ins with the SEC or some other type of investigation involving securities fraud. I strongly believe that much of this mortgage mess comes from the often blurred distinction of “securities” and “security interests”.

  3. pelucheven, i would like to be in that group, i live in northern va, fairfax county.

  4. hemmm…what’s the diffrent guys???

    by the way already bookmarked it
    thanks for share with us touchscreen data base

  5. My note was sold from bank A to bank B.

    It was then sold from bank A to bank C.

    Any ideas what this could mean? Bank C had started foreclosure with power of attorney to foreclosing law firm, and filed notice of pendancy, and then the tech issuues thing came up.

    Any ideas? I can’t imagine bank C could follow through with a foreclosure? Comments anyone?

  6. make surw yogo to the court house and check your land records. Now they will testify that they are taking enough time to review. theh will try to avoid affidavits like the plague. Since MERS records are not public, they can recreate a fictitious chain of title and try to foreclose with that. Make sure you visit your land records office and serve Notice that uptil today there are no assignments. Verify and read in detail your state laws for property coveyance, foreclosures.

    they will continue to lie cheat and steal. I like the idea of organizing groups to talk to the AG, legislators and even the police and sheriff departments, all of them must be put on notice that the American home owner does not want to continue with the financial rape.

    I live in Virginia, in loudoun county, I can help anyone trying to get organized in VA, DC and MD.

    THEY WILL CONTINUE WITH THEIR FORGERIES AND MADE UP PAPERWORK.

  7. @dny – hmmm never thought of that filing foreclosure on ones self

  8. Printing new money could cause another crisis…

    AP Unrestrained printing of US dollars could spark a new global crisis, an adviser to China’s central bank warned Thursday as Asian governments braced for an unwanted flood of capital into their markets following the Federal Reserve’s move to ……

  9. Brian Longley,

    It is not so a ridiculous theory.

  10. Zoe,

    I have been saying that for a long while. There are numerous organization going to Capital Hill to make sure foreclosures go through. One is the National Association of Realtors – who recently said “Hooray – Home ownership is Down” (local newspaper reports – saying there should be more “renters”..

    Also, just reported that Chase will resume foreclosures. See below – apparently Chase has a new process that has it all figured out!!

    NEW YORK | Thu Nov 4, 2010 11:01am EDT
    NEW YORK (Reuters) – JPMorgan Chase & Co (JPM.N) expects to start re-filing foreclosure documents in a couple of weeks, according to retail financial services Chief Executive Officer Charlie Scharf.
    JPMorgan was among a handful of banks to temporarily suspend home seizures after finding glitches in foreclosure documents. Other banks, including Bank of America Corp (BAC.N) and Ally Financial’s GMAC Mortgage unit, recently resumed some foreclosures.
    The second-largest U.S. bank had halted foreclosure proceedings in 40 states, affecting about 127,000 loans, Scharf told analysts at a conference in Boston on Thursday.
    JPMorgan has new processes in place to check it is meeting all the requirements in foreclosure proceedings, Scharf said.
    Separately, Scharf noted that mortgage losses and delinquencies in October had not increased from levels the bank reported September.
    (Reporting by Elinor Comlay; Editing by Derek Caney)

  11. frankielee – When you talk to your states AG attorneys, do they look down and to the right, or up, and to the left? I’ve heard you can tell if they are lying that way. Or, if they are an elected official and their lips are moving, they are probably lying. 😉

  12. It’s impossible to get anywhere with my state’s AG attorneys, due to a data privacy act that is STRICTLY adhered to. That means that they won’t answer questions…..the won’t give opinions….they won’t suppose this or that….they won’t even shake their head or wink.

    I have no clue what they’re good for with this shackle….they conversation is simply one sided and then you’re shown the door. They won’t tell you if they have anything in the works, if they’re getting ramped up to prosecute….it’s crazy. They could all be in there playing Pac Man for all I know. Ridiculous!

  13. We need to organize. Make an appointment with each attorney general for a sit-down meeting. Get a group of homeowners large enough to pack every AG office in each state, preferably on the same date–same time, if possible. Be organized and concise in the meeting, appoint a spokesperson and take along a list of things we now know. DEMAND that the attorney general protect the interests of the homeowners, not the banks! Protesting in the streets will do little, for more than a few days, but sitting/standing eyeball to eyeball with an elected politician in his or her office, jam-packed with harmed homeowners, could leave an impression. Left to their own devices and no homeowner input only opens to the door to the preposterous notion of catering to the banks’ request to sit down and “talk” to the 50 attorneys general. We have a new batch to deal with now in some states. They need to be enlightened.

  14. tony – Can you foreclose on the property based on your status as note holder?

  15. […] Fed Policy Should Deal With Mortgages They Own « Livinglies's Weblog […]

  16. The answer is simple.
    They keep printing more money for themselves so they can keep making their own investments.
    It has absolutely nothing to do with the American public. We are supposed to shut up and keep paying our taxes or be punished….Oh, and while you’re at it… just keep taking out those loans and go into debt.

    I agree with this statement:
    “The resulting change in the homeowner’s net worth will be the same as a fiscal stimulus without the necessity of printing money.”

    They are STILL using funds for their own unjust enrichment.
    Nothing has changed!! Damn the torpedoes. FULL speed ahead!
    It’s unbelievable.

    Yes. “TELL THE TRUTH.”
    And….have the courage to FIX THE PROBLEM…

    DO THE RIGHT THING

  17. I have the original NOTE endorsed in Blank,” Pay To The Order of __________.”with out recourse, signed by the Senior VP of RBMG. I have a sworn affidavit that states a written assignment of the note was never prepared and the SELLER into the securities stated that they WARRANT AND REPRESENT IT HAS NEVER BEEN SOLD TO ANY OTHER ENTITY.EMC(seller) had to sell the note to Bear Stearns which was the depositor into the Bear Stearns Asset Backed Securities,inc. Asset Backed certificate series 2003-2. Bear Stearns was to sell/ assign the Note to JP MORGAN CHASE as trustee of the Trust. There has been a foreclosure started on the mortgage on March, 3 2009 by The Bank OF New York Mellon as successor trustee for JP MORGAN CHASE who claims to be the owner and holder of the note. By way Of an assignment which was recorded at the ROD on March 19, 2009, 16 days after the LIS-PENDENS , and the summons and complaint . I have a letter dated July 13 2002 from Mers that states the loan has been removed from the MERS system and the MIN# deactivated. Mers had no authority to do an assignment and the assignment was done by a known “robo-signor” and in the Corporate name of RBMG that not only deactivated the MIN # but also removed the loan from MERS. RBMG was also defunct and has been since 2005 when it was aquired by NETBANK and subsequently shut down by the FDIC in 2007. The BANK OF NEW YORK MELLON produced in discovery two allonges the first was from RBMG to EMC and the second was an allonge directly to JP MORGAN CHASE from EMC. First thing is the PSA ( pooling and service agreement) the governing document of the securities describes in detail the percise chain of title it also describes who is the seller ,the depositor ,the master servicer and the trust. Even though the sworn affidavit produced by the successor trustee stated no written assignment was ever prepared, so the allonges was a direct attempt to decieve the investors and knowingly a misrepresentation which is fraud. BEAR STEARNS was the depositor into the securities. First let start with the allonges both are undated and one is not even signed: according to the UCC an allonge is only used when there is NO ROOM ON THE ORIGINAL NOTE FOR ENDORSEMENT and must be firmly attached as to become a part of the note. AN ALLONGE cannot be used to transfer interest and is invalid if there is room on the note for endorsements and is invalid it not attached. A lost note was produced from EMC but not anywhere in the document is there a conveyance, it is not a valid assignment. Here is an excerpt from the Prospectus:

    Bear Stearns Asset Backed Securities Inc · 424B5 · Bear Stearns Asset Backed Certificates Series 2003-2 · On 6/30/03
    Document 1 of 1 · 424B5 · Prospectus:.

    Assignment of the Mortgage Loans; Repurchase At the time of issuance of the certificates, the depositor will cause the mortgage loans, together with all principal and interest due with respect to such mortgage loans after the cut-off date to be sold to the trust. The mortgage loans in each of the mortgage loan groups will be identified in a schedule appearing as an exhibit to the pooling and servicing agreement with each mortgage loan group separately identified. Such schedule will include information as to the principal balance of each mortgage loan as of the cut-offdate, as well as information including, among other things, the mortgage rate,the borrower’s monthly payment and the maturity date of each mortgage note. In addition, the depositor will deposit with Wells Fargo Bank Minnesota, National Association, as custodian and agent for the trustee, the following documents with respect to each mortgage loan: (a) except with respect to a MOM loan, the original mortgage note, endorsed without recourse in the following form: “Pay to the order of JPMorgan Chase Bank, as S-40——————————————————————————–
    trustee for certificateholders of Bear Stearns Asset Backed Securities, Inc., Asset-Backed Certificates, Series 2003-2 without recourse,” with all intervening endorsements, to the extent available, showing a complete chain of endorsement from the originator to the seller or, if the original mortgage note is unavailable to the depositor, a photocopy thereof, if available, together with a lost note affidavit; (b) the original recorded mortgage or a photocopy thereof, and if the related mortgage loan is a MOM loan, noting the applicable mortgage identification number for that mortgage loan; (c) except with respect to a mortgage loan that is registered on the MERS(R) System, a duly executed assignment of the mortgage to “JPMorgan Chase Bank, as trustee for certificateholders of Bear Stearns Asset Backed Securities, Inc., Asset-Backed Certificates, Series 2003-2, without recourse;” in recordable form, as described in the pooling and servicing agreement; (d) originals or duplicates of all interim recorded assignments of such mortgage, if any and if available to the depositor; (e) the original or duplicate original lender’s title policy or, in the event such original title policy has not been received from the insurer, such original or duplicate original lender’s title policy shall be delivered within one year of the closing date or, in the event such original lender’s title policy is unavailable, a photocopy of such title policy or, in lieu thereof, a current lien search on the related property; and (f) the original or a copy of all available assumption, modification or substitution agreements, if any. In general, assignments of the mortgage loans provided to the custodian on behalf of the trustee will not be recorded in the appropriate public office for real property records, based upon an opinion of counsel to the effect that such recording is not required to protect the trustee’s interests in the mortgage loan against the claim of any subsequent transferee or any successor to or creditor of the depositor or the seller, or as to which the rating agencies advise that the omission to record therein will not affect their ratings of the offered certificates. In connection with the assignment of any mortgage loan that is registered on the MERS(R) System, the depositor will cause the MERS(R) System to indicate that those mortgage loans have been assigned by EMC to the depositor and by the depositor to the trustee by including (or deleting, in the case of repurchased mortgage loans) in the computer files (a) the code in the field which identifies the trustee and (b) the code in the field “Pool Field” which identifies the series of certificates issued. Neither the depositor nor the master servicer will alter these codes (except in the case of a repurchased mortgage loan). A “MOM loan” is any mortgage loan as to which, at origination, Mortgage Electronic Registration Systems, Inc. acts as mortgagee, solely as nominee for the originator of that mortgage loan and its successors and assigns. S-41——————————————————————————–
    The custodian on behalf of the trustee will perform a limited review of the mortgage loan documents on or prior to the closing date or in the case of any document permitted to be delivered after the closing date, promptly after the custodian’s receipt of such documents and will hold such documents in trust for the benefit of the holders of the certificates. In addition, the seller will make representations and warranties in the pooling and servicing agreement as of the cut-off date in respect of the mortgage loans. The depositor will file the pooling and servicing agreement containing such representations and warranties with the Securities and Exchange Commission in a report on Form 8-K following the closing date. After the closing date, if any document is found to be missing or defective in any material respect, or if a representation or warranty with respect to any mortgage loan is breached and such breach materially and adversely affects the interests of the holders of the certificates in such mortgage loan, the custodian, on behalf of the trustee, is required to notify the seller in writing. If the seller cannot or does not cure such omission,defect or breach within 90 days of its receipt of notice from the custodian, theseller is required to repurchase the related mortgage loan from the trust fund at a price equal to 100% of the stated principal balance thereof as of the date of repurchase plus accrued and unpaid interest thereon at the mortgage rate to the first day of the month following the month of repurchase. In addition, if the obligation to repurchase the related mortgage loan results from a breach of the seller’s representations regarding predatory lending, the seller will be obligated to pay any resulting costs and damages incurred by the trust. Rather than repurchase the mortgage loan as provided above, the seller may remove such mortgage loan from the trust fund and substitute in its place another mortgage loan of like characteristics; however, such substitution is only permitted within two years after the closing date. With respect to any repurchase or substitution of a mortgage loan that is not in default or as to which a default is not imminent, the trustee must have received a satisfactory opinion of counsel that such repurchase or substitution will not cause the trust fund to lose the status of its REMIC.

    I’m not a MOM loan the loan transferred off of MERS, Mers no longer tracked the assignments and let’s not forget I HAVE IN MY POSSESSION THE ORIGINAL NOTE ENDORSED IN BLANK NEGOTIATED TO ME FROM RBMG.

    You lied you don’t own nothing ….

  18. I want to put out a ridiculous theory. Is it not possible that the GSE’s act the way they do because they truly own only the mortgage, and not the notes? I have seen several instances where they make claim, but can’t provide any proof.
    Are the GSE’s the graveyard of destroyed liens?

  19. what is the update regarding BOA foreclosures?
    When will they seize all of Moynihans assets? and have him share a cell with Maddoff?

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