The Cops Come Calling

Yesterday, February 06, 2011, 1:46:47 PM | adminGo to full article

I got a call from the cops today.  There were times in my life when that wasn’t a good thing and ordinarily I wouldn’t be so … elated?  I hung up the phone smiling.

The SEC Enforcement Division called me because I had filled out a form online about 60 days ago telling them I knew something about the securitization of real estate which might be helpful in their investigations.  Apparently I was intriguing enough yet vague enough to warrant a real live person.

There is an image amongst certain circles that government workers are fat,  lazy,  stupid and motivated only by a pension.  One can become that way because our normal daily experience is with low life low levels who are fat,  lazy,  stupid and motivated only by a pension.

I assure you,  though,  that is not the case when you get up to the higher GS levels. Granted,  there will always be a level of incompetence at all levels,  but I can tell you from firsthand experience that there are times when you know you dealing with smart,  competent,  albeit highly controlled agents.  The by the book control mentality  is what gives them the aura of ineptness.  This gal had the feel of someone who knew how the reins of her power rested in her hands and was real comfortable with it.  It was as if The Postman had finally arrived.

“We’d given up on you.”

“Don’t give up on Uncle Sam just yet” was her tired reply.  I could almost hear a wry grin on her face.  Jack Ryan to the rescue.

It took a bit as the realization set in that there was a woman on the other end of the phone with the power of the SEC behind her calling me for follow up information.  Once I got over a short silence,   I asked how I could help.

“You contacted me.”

Where to start?  There is so much.  So, I started at the end,  the place I have been studying for so long but haven’t yet begun to write about and in relaying this conversation with the SEC Enforcement Division,   I relay it to you.

After a certain amount of time studying the other side,  you come to realize that what you are dealing with is a computer database.  The database runs the whole show.  A computer database sets the final assignment and price of a house moments before sale on the courthouse steps,  a computer database sets in motion all of the paperwork which leads to the courthouse steps,  a computer database trades the mortgage backed certificates in the shadow banking system while you were current,  a computer database arranged for all the pieces of your mortgage to come together all at the same time so you could sign off on the security instrument which also had been prepared in advance by a computer database.

It’s time to take another look at what is really going on.  It isn’t people using computers to make their jobs easier,  it is people tending a machine giving it the inputs it needs so the software can complete its job.  The software’s job was to originate a mortgage,  securitize a mortgage,  trade a mortgage based security on the shadow market,  trade derivatives off the mortgage security on the shadow market,  start default and foreclosure proceedings on mortgages,  set the price of the real asset on the courthouse steps at the same time making the final assignment according to the needs of a bond on Wall St. all the while hiding behind the cloak of MERS secrecy.

It’s a machine,  and if you can determine the machine’s control mechanism,  you can divine intent.   The controlling software is often patented as allowed under the State Street decision.  If it is patented,  the logic has to be on file at the USPTO which is an open source.

The people you are talking to were merely tending a machine.  They all have plausible deniability.  No one is culpable.  Look at the machine,  not the people tending it.  The machine will show the intent of the people who designed it.

That’s what I told her.

Then I told her that all of the originating banks and their affiliates all the way down to the storefront in your hometown were running the same software.  Countrywide called it CLUES.  You should call it Mindbox (  Everyone was running the same machine.  Citi,  JP Morgan,  Wells,  Morgan Stanley,  everyone.  They still are.  It is called Mindbox.

I stopped talking.  She was quiet.

“I see what you mean,” she said.  “I’ve never looked at it that way before.”

There was another silence.

We agreed she would write up her report on the call and she asked if I would be willing to add a couple of paragraphs in addendum to her report.  I said yes.  I wrote up essentially what is above and added that there is a whole sub-group of Americans who have been studying this subject for quite a while who would probably be interested in helping and that there isn’t much which happened which we aren’t privy to.  Why reinvent the wheel?

I hope they pick up this angle about examining the software which controlled all the processes.  This is the point of view which came flying over the transom some four – nearly five months ago.  Come to find out that in the 90’s there was a HUGE push to automate all of the mortgage banking processes so they could shed jobs and overhead.  Let the database do the things the database can do.  Put all of this information to work for you.  Be more efficient~!

It ran the wheels off the wagon if you want to know the truth.  But another piece of the truth is you need to quit looking for a person to blame,  someone who can be frog marched.  The system was built so there is no one person.  Everyone did their part attending the machine,  the database,  so the software could accomplish what the designers wanted it to do – from origination through securitization to foreclosure sale.

It’s a huge story.  It really does cover the whole thing.  I hope to be the one who gets to tell it.  There is even a villain,  couple of them really.  Is there enough to make them do the perp walk?  I don’t know.  That is for others to determine.  Perhaps the SEC Enforcement Division will come to see the things I see and will go look at the software …see if they can divine intent.

I wager they can … and,  if they are allowed,  they will.

If they aren’t allowed,  it doesn’t matter.  I’ll finish what I started.

14 Responses

  1. Apparently, the one significant omission was looking at historical price / median income ratios by zip or census tract. They slice and dice the data for loan to value, FICO and state but assume current market is real, even though they created a bubble through low introductory payment programs. But it’s really hard to make commissions originating and flipping loans when everybody knows it’s time to sell. So the power is even more concentrated now than before.

  2. My email is

  3. Does anyone have thourough knowledge of forensic auditing and securitization and any software relating to these two?
    I am looking for partners to start a company.

    Please email me.

    Thank you.

  4. I can tell you from my experience not only in design. but architecture, there is a ton of areas in that software to neb all kinds of people. In a function it’s called parameters, in a procedure it’s called variables.

    What I will tell you, is at one time if I imagined it (1997), some people had not. By 2003, if I imagined it, somebody already was working on it. and many times it was MINDblowingly complex.

    Within that prgram, as I imagine it, is a racial parameter, a hitlist parameter, an odds parameter, and all kinds of stuff, that if you can imagine, it’s there. Google is an engine like that, very hard to trace because it’s so complex.

    I can see tham right now, tracing functions thrgouh the core modules, that call across whole chains of other functions and procedures, to try to hide footprints, then they will deliver a source code which is a prepared version.

    If you don’t get on these guys the same day, I imagine they are now at build 3467.

    Better get on it.

  5. The Rise And Fall Of Foreclosure King “DJSP Was A Scam” Says PI Bill Wanrer
    You Gotta See This One…

  6. Maybe, just maybe, he needs to hire himself a competant attorney?

  7. There are many of us out here that know this. MERS is she-devil who heads the snake.
    We are not anti-government nutjobs.
    We are not fighting our country.
    We are fighting FOR our country!

  8. […] Software Program Ran Securitization For All The Mega Banks […]

  9. My loan was supposedly originated in SC, but the documents (Note and Mortgage) were actually created in NC (big banking state). How do I know this: the documents already had a MIN number, so that means the transaction was already sold as an asset BEFORE I signed anything.

    Next, I do not have a signed copy of my mortgage and note. The attorney who was hired to do the closing did 3 years in the federal pen for wire fraud related to flipping houses with dual transactions–Fraud?? I do not know who funded the loan–no disclosure. Also, about $8,000 went missing in the transaction and wound up in the seller’s and attorney’s pockets. I was also charged an illegal fee at the closing–RESPA??

    The servicers are also using computerized systems, and one hand does not know what the other is doing. My present servicer, AHMSI, has one office in Texas which is computer system No. 1, and another office in Florida which is the loan mod/foreclosure system No. 2. In my QT lawsuit, I will be serving both addresses as well as the address for service of process.

  10. The software shows that the securitization scheme was indeed premeditated (“pre-programmed”) complete with built-in foreclosure. It’s deliberately devised to stay on track…that way employees cannot stop its momentum and have no choice but to blame it on the “machine.”

    Ruthless abuse of human lives…sociopathic.

  11. Welcome to the machine…

  12. I thank you for coming forward. Hopefully the story will be told in truth and not in cover my ass terms by the SEC. You need to publish your whole story now if not sooner. Be careful because their are people that do not want you to tell their secret. These people are powerful and will not hesistate to take you down.

  13. In October I asked the question… ” Is this the matrix becoming reality” or something like that. Well looks like we”ll soon find out. Folks we are not crazy. Thanks for the post.

  14. […] This post was mentioned on Twitter by Teri Sherwood, Financial Wellness. Financial Wellness said: CHINK IN THE ARMOR…THE COPS COME CALLING…SEC HEARS ABOUT MORTGAGE SECURITIZATION SOFTWARE Posted on February 7, … […]

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