COMBO Title and Securitization Search, Report, Documents, Analysis & Commentary COMBO Title and Securitization Search, Report, Documents, Analysis & Commentary



EDITOR’S COMMENT: Just open your eyes and read. The fact remains that the policy of our government is to protect the monopolistic death grip the mega banks have domestic and world finance. As a result, the rest of the world, mistrustful of Wall Street and the American Government that was complicit in the largest economic fraud history, are rejecting a future that includes U.S. dominance either in the form of the U.S. dollar or in foreign policy. We have already moved to a de facto basket of currencies in lieu of using the dollar as the world reserve currency. In other words we have been demoted from King to Merchant.

I don’t know if we SHOULD be allowed to resume our dominance considering how badly we used that power over the last 100 years. But I DO know that the 70% of all jobs are created by small businesses. And I know that most small businesses get their loans from small banks, whose number is creeping up as new community banks and credit unions are going through the birthing process. Those small banks are small businesses and they employ lots of people. And those small banks provide capital for home construction, purchase and start-up of new businesses, expansion of small business, and they the are the source of creation of forms of financing that can only be accomplished through personal relationships.

I think the ultimate solution to our domestic economic problems is going to come from small banks in spite of active opposition from the megabanks. The fact is that there is a single service that the mega banks provide that couldn’t be provided by a small bank. The “new rules” that mega banks have created in their arrogant desire to control everything and everyone, also cleaer the path for small banks to start taking bites out of market share of the large banks.

The one fact that is controvertible is that you can’t fool all the people all the time. The mega banks are sitting on rotting, toxic, non-existent assets while the smaller banks have real money, real loans and real customers. The smaller banks, old and new, are healthy in large measure and they have nothing to hide. They can give you ATM access without fees in innumerable ways using existing technology and they are doing just that.

And when the securitization S–t hits the fan on credit card debt and people start realizing that they can substantially reduce both their perceived mortgage obligations AND all other forms of consumer debt, the real credit for real world commerce will come from the smaller banks who have no interest in the numbers game of charging 69% interest because they expect a high default rate. That is a going out of business strategy and the President of every community bank has known that all along — which is why they didn’t get involved in the whole “loan origination” business for Wall Street.

The advantage of every community bank is that they are boots on the ground. They literally live in the community they serve, so they know what looks good and what doesn’t, without looking at numbers. They know who looks good for a loan and who doesn’t without looking at the numbers. So here is my prediction — the government won’t help but market forces that are NOT controllable by mega banks will do them in. Deposits will flow to community banks because unlike, say, Bank of America, they are not in danger of collapse because they don’t have any assets that upon close inspection don’t really exist. And for you investors, my suggestion is that you go short on the mega banks and long on the publicly traded small banks — that’s where the money is.

SPECIAL NOTE ON STRATEGY: call their bluff — offer to pay the mortgage

Now for those of you who are NOT broke, and who actually read my articles in full — and who have money or relationships with small banks, there is a strategy emerging in several states that is being considered bullet-proof and which results in quiet title without any encumbrance, note or obligation. NO GUARANTEES BUT I LIKE THIS ONE. Try this idea which a number of people are working on in various forms. This is actually a strategy that could be used on one home or in a business that provides relief for mutiple homeowners. I just fell in love with it. It is based upon the premise they we are either right or wrong and the old saying of putting your money where your mouth is—

  • Send an estoppel letter for payoff of your mortgage regardless of current status (foreclosure, delinquency etc.) which will provide you with a figure that if you pay by that date will result in the complete satisfaction of the obligation that is claimed.
  • Deposit money or other collateral that is REAL to cover the entire proposed payment with a real, honest-to goodness escrow or closing agent. It CAN be and usually is accompanied by the information that this is a refinancing from a private source or from a small bank.
  • In your estoppel letter request you ask for the identity of the party to whom the check or wire transfer should be paid, the reason why that party is supposed to get that money, the name of the actual person who will sign the satisfaction of mortgage or reconveyance of the deed, and of course affidavits and documentation that can be recorded which will provide a clear chain of title so that the satisfaction is not subject to later challenge by some securitization party.
  • You require authentication of each document, the original of each document, including the note, which will be marked canceled, but you want to know the identity of the person and company that is claiming to cancel the note. And of course you require an affidavit from an authorized person from an authorized entity that states that regardless of any defects in the note or mortgage, the obligation is extinguished by payment to the party designated to receive payment.
  • When they fail to provide you with the required documentation you file a quiet title suit, offer to put the money into the court registry and state that they are holding up your refinancing and based upon your own research it appears that none of them have a claim as a creditor, none of them have the original documentation in recordable form, and none of them have the authority to execute the satisfaction. Your pleading s say that if this is not the case, then the court can release the escrow to the appropriate party and you get the documents you require.
  • For a business person with a taste for “risk”, the mere deposit of the money is probably the only thing that will ever happen. The deal made with the homeowner is a mortgage at a reasonable level including some equity  for the homeowner. The business ends up advancing no money and the clear titles come rolling in. The risk is that (1) we’re wrong and the whole “scam”is really just a paper mix-up (unlikely) or (2) a Judge fails to apply the law and gives the money to someone who is not a creditor and forces the deal even though nobody has come up with the required documents.
  • The worst case scenario loss is the difference between the new mortgage you have with the homeowner and the amount demanded by the pretender lender — which by the way can be challenged in an accounting. My guess is that a number of people with a little bit of money or credit with the small banks are going to end up with a LOT of mortgages that cost them nothing at all.


The Federal Deposit Insurance Corp on Feb. 23 reported that the 107 U.S. banks with more than $10 billion held onto their whopping 78 percent share of the industry’s assets and earned seven times more on them than smaller banks.

And these massive firms, including the dozens that availed themselves of tens of billions of dollars of low-cost funds from the Treasury’s Troubled Asset Relief Program during the financial crisis, paid just 77 basis points in annual interest to depositors in the fourth quarter. That’s the lowest rate in the statistics published by the FDIC, which stretch back to the first quarter of 1984. Smaller banks, on average, had to pay customers around 1.18 percent.

The FDIC, which guarantees the deposits of U.S. bank customers, said its list of problem banks rose to 884 institutions with $390 billion of assets, up from 860 in the previous quarter with $379 billion of assets.

6 Responses

  1. so why do the elite buy debt? They buy bonds, MBS, ABS, etc. How come they don’t promote saving? Why does gov want you to turn in your car and buy a new one, cash for clunkers. Why does gov give you tax credit of 8k for buying a new home? All to get you in debt. Stay away from the banks.

  2. I’m almost 100% sure now what ever these yahoos say, it’s the opposite. If gov says it’s good, run. If they say it’s bad, get it.

  3. Here’s another thing, I haven’t bought that damn virus software in two years. A holes, another scam.

  4. John, I moved to local credit union from BofA almost two years ago. It’s great. My wife moved from BofA when they took money out of her savings account to pay her credit card bill which was overdue. Only problem with their move was the fact that the money they took actually belonged to a client of my wife’s business, she was holding it on the ok from them when to purchase furnishings, wife is a interior designer. After BofA did that she moved to credit union.
    I also realized this business of the bank providing all your services saves you money and it is convenient so they say. Well, what I realized is that you are trapped if something goes wrong. They have access to all your accounts and personal data. I think its best to have checking at one place and savings at another that way they are not linked. Might be inconvenient but better safe than sorry.

  5. If you have not moved out of: BofA, Wells Fargo, CitiBank (and any intereation thereof), JPMorgan Chase, BoNY Mellon (also any intereation thereof), Goldman Sachs, Morgan Stanley, etc., you should move now. Try a nice little community bank with REAL assets and free checking, ATM, etc. You will be very pleased with the service you receive including real people to talk to, so you can get out of voicemail hell in the mega banks.

  6. Well I guess if we the people don’t like this, we could make a mass exodus with our funds from these banks. The other day when I went to the bank I realized it is one of or connected to one of the players
    in this f/c mess, and I thought ‘I’m getting out of here’.
    They’re not having my few scheckels. We have a lot of ‘few scheckels’. We’re not powerless. We can do something, move our funds, anyway.

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