DTC — The Depository Trust & Clearing Corporation

DTC is a member of the U.S. Federal Reserve System, a limited-purpose trust company under New York State banking law and a registered clearing agency with the Securities and Exchange Commission.

You know the song ‘ What’s PSA Got to do – Got to do with it?”

Copied Article:
Mortgage Divorce! 1 Posted by jmacklin on January 27, 2011 at 8:24 pm Irreconcilable Differences… I want a Mortgage Divorce!

By James Macklin
Secure Document Research

Promissory Note Terms Vs. PSA/Prosectus Terms

When we are handed a voluminous stack of documents at the closing table for our mortgage transaction, a Borrower is expected to make a decision based upon the duty and care that the party who drafted these “investment contracts” has placed into them.

However, none of us at the closing table has any idea what most of the words, phrases, and legal terminologies actually means… especially those affecting our rights as a consumer and as a real property owner.

Within the typical language of a Pooling and Servicing Agreement executed by the players of the securitization financing, there are countless references to the “interests” of the asset being conveyed, or, your Note and Deed. Interests are a finicky word of art used.

The word simply means this:

the asset, along with all of its’ benefits and liabilities.

These are the “interests” being conveyed with the sale, set-over, transfer, conveyance, etc.

So, under the terms of the Note we signed, look to the section titled:

“Who is obligated under the Note” (usually sec. nine (9)).

Here you will find that myriad entities may be, and probably are, also obligated under this same Note.

These are the terms you have agreed to and bargained for.

But the banking intermediaries would have us believe otherwise, as exhibited in the PSA under such language as:

“The Depositor, Sponsor/Seller, Swap Counterparty, Master Servicer, Trustee do not intend for any obligation of themselves or their agents or employees to arise as a result of this Agreement”.

This is contradictive to the terms and conditions that we have agreed to.

Because the intervening assignments are a functional necessity to the bankruptcy remoteness of these assets, the specific substance of the PSA must be followed, including the mandate for the indorsement of each intervening assignment, along with the recordation of those assignment in the proper land title records office within the State of jurisdiction.

Let’s go back to the language of the

“Who is Obligated” section of our Note.

Notice that anyone who endorses the instrument is also obligated under the Note.

Does this create an unknown Obligor at closing?

If an un-named Beneficiary is the result of the unilateral agreement known as a Promissory Note”, how do we have the understanding necessary to execute such a critical document?

It is the contention of this author, supported by the very agreements signed under oath and filed for record with the SEC, that “interests” and “obligations” are synonomous within the four corners of the agreement we signed…and the agreements signed by the intermediaries.

A court of competent jurisdiction shall be posed these foundational questions very soon, and often. Are we a party to these agreements known as PSA/Prospectus?

If we do a simple word search on each of these and look for references to:

Borrower, Mortgagor, Obligor, we find these terms are typically used in excess of 60-75 times.

Yet we were never disclosed the terms and conditions of the actual “loan” transaction as it truly was executed, and the rights, duties and responsibilities of the intermediaries.

These are material disclosures relative to fees, expenses and various credit enhancements which are attributed to the Borrowers’ payment stream.

A divorce from this menagerie of deceit is not only appropriate, but a right that is being tried in many courtrooms.

I believe that the judiciary will be tested on many platforms and small but visceral victories shall carry the day.

.end of article

11 Responses

  1. DTC is a limited-purpose trust company organized under New York Banking Law, a ‘banking organization’ within the meaning of New York Banking Law, member of Federal Reserve System, a ‘clearing corporation’ within the meaning of the New York Uniform Commercial Code and a ‘clearing agency’ registered pursuant to provision of Section 17A of SEC Act of 1934.
    DTC created to hold securities of persons who have accounts with DTC (“participants”)
    -to facilitate the clearance and settlement of securities transactions among its participants in such securities through electronic book-entry changes in accounts of the participants, thereby eliminating the need for physical movement of securities certificates.
    DTC’s participants include securities brokers and dealers (including the Underwriter), banks, trust companies, clearing corporations and certain other organizations, some of which (and/or their representatives) own DTC.
    Access to DTI’s book-entry system is also available to others, such as banks, brokers, dealers and trust companies that clear through or maintain a custodial relationship with a participant, either directly or indirectly.

  2. Dear secret post

    You need a foreclosue defense attorney litigator

    Any verbal discussions involving property do not count. Anyone can tell you its ok don’t pay but the ‘contract’ stands with all of its warts and foibles.

    Start by securing a copy of all documents filed with County Clerk and Recorder since you ‘purchased’ the property.

    Find the ‘current status’

    Just because they tell you its too late – they lie.

    Did the clock restart during a modification?
    Did they refile new documents?
    Who is the legal-robo mill law firm who filed documents with the court and what are those documents?
    Do not ignore any letters, you need to immediately respond and dispute the falsified information…

  3. can anyone follow this? Citifinancial Mortgage offered 30 day extension after collections for rental car on Amex were demanded while waiting 9 mos for AIG total loss payment. Rental car co. Enterprise.
    If you’re with me, so far I’m dealing with Citi principal in all aforementioned parties.
    Required missed payment then lost docs over and over. Sound familiar? hint HAMP
    Gave up and paid 2 passed payments and next months in advance but was told your house is gone, it’s over and there’s nothing I can do! Never heard from Citi for next 3 months then received letter of non payment, yes, payments were put to suspension account, BUT under duress to get away from threat, approached by Preferred Mortgage table rep who steered from 6% 30 year fixed to ‘bait & switch’ minus all disclosure. Immediate contact to two title co.s?….New Century AND Fidelity led to finger pointing…not me, not me. Refi into 2/28 libor (maybe twice) with rider’s and all aspects of loan product changed. FHA insured loan was never ‘paid off’ to Citi, but letter stamped Ameriquest paid. (hint: first of many insurance payoffs.) At this point there is a Purchase and Trade agreement being entered into between Citi and NCM that same week. No recording or chain of title for me and am told “none of your business’ when I ask what is this Radian & PMI. (disability insurance for 100% permanent disabled…LOL) Since then, shows NCM, Chase, American Home Mortgage, Cede & Co., HSBC, Deutsche, Ocwen, & NCHI asset backed securities. Current fight appears to be against Deutsche claiming to be endentured trustee however not listed anywhere other than court docs the judge seems to LOVE, even tho they were created after dismissal and new law firm appeared. My notice prior to filing lawsuit was returned by Deutsche as ‘unknown’ (as did Chase) saying they had no idea who I was. (or Kevin Jackson, if you are person asking about him, I have some interesting info, as KJ is on substitution putting Deutsche, Ocwen, & Cal Western in the mix and then used to get summary judgement & UD approved!! Once that was in place, the (now suspended Ocwen attorney dismissed successful decision), SO right behind him a NEW Ocwen lawfirm (now in new jurisdiction), comes forward with all the (alleged) required foreclosure documents. (docx / Fidelity Title-no conflict here??? ) However, they are not only poor copies, they are well, COPIES. I have paid tons of attorneys fees while servicer PRETENDED to not evaluate, but APPROVE HAMP, but ONLY IF I requested dismissal of my chapter 13, which I did . Guess what, even tho’ I have been going through the motions of dealing with NCM all the time adding on ten’s of thousands in interest and goof fees, NOW Deutche bank is, I guess claiming to either BE the grantee/grantor OR represent someone else? So while I continue sending money to attorney, I am paying for filing against SOMEONE who I dont even know. If I did I could tell them, WHERE’S ALL MY MONEY THAT HAS DISAPPEARED OVER THE LAST FIVE YEARS? Unfortunately, I’m too busy paying fees to file over and over and losing against a poser who isn’t even trying that hard. Funny part is the multiple insurance payoffs that lead to a trust (now with transfer docs abet several missing intermediaries) that are backdated five years ago. Really? Now check out the proof of claim frauds in the bk docs that show multiple claims by the previous law firms for the same people. Add to the mix a credit bid as shown on OCWEN 1099 (deed on sale AND lien creditor too? is that right?)….who has claimed to be servicer only. translation: clueless, duh what payments…..
    Got it together for the 1099 that got in place for 2010 even tho’ I was at the court house ‘stopping’ the supposed sale months later. How many times would you like to be paid??? Damages so far, (not including rent payments and legal fees for bank) play out like this for the POOR bank who never put in one dime while I struggled for a LIFETIME! Now they have some numbers, nearly as funny as the years of contacting India who nearly convinced me maybe English is my second language too!? 19K+ owed to Ocwen for 168K loan that somehow ended up being 176K+ Payments for four years with extra principal along with 20K in upgrades based on inflated appraisal take me down to163K, (which is in QWR history as an 8, not a 3…what’s 5 grand to a disabled widow huh? Per Ocwen who knows nothing every time I would ask, is a real numbers wiz as the house sold for 129K…… what credit bid? (not really, these mls prices are ‘fake’ book entries. How do I know? The whole neighborhood is REO and after 34 years in this house, I know actual sales prices; around 70K. It just gets better. Ran up costs in excess of 30K on house while MODIFICATION in process (yeah, maybe the calls are recorded just for my amusement), sold behind my back, including breaking in while I was still here and showed up at 6am on every court sale dale tip toeing around outside. Then the supposed buyer at auction paid 129K after they tricked me into dismissing bk13, to complete my HAMP approval Yaaay! and sold it (sure) the same day the judge notified me of approved dismissal. THEN house was sold yet again somewhere in there. If it wasnt so obscene it would be really funny. (almost as funny as four CEO’s of NCM creating special investment trust) showing they are the ‘investors.’ who it seems were paid in first distribution in 05 and never again!!!! That would probably be when they moved their never ending take into this CEDE & Co. craziness. Shhhhh! Now my equity is stripped and after 34 years, no equity in which to claim damaged life!…(this actually hasn’t happened yet, but this is the ride I can’t seem to get off) California justice, woo hoo! comments, questions, support, & certainly if you must, disparaging comments for being an idiot or whatever…..great.

  4. National Settlement Service (NSS)
    NSS is a multilateral settlement service owned and operated by the Federal Reserve Banks.

    It allows participants in private clearing arrangements to settle their net obligations with same-day finality using participant’s reserve or clearing account balances maintained at the Federal Reserve Banks.

    NSS participants include local check clearinghouse associations, automated clearinghouse (ACH) networks, credit card processors, and automated teller machine (ATM) networks.

    To use NSS, a settlement agent transmits a settlement file electronically to a Federal Reserve Bank. The file contains a listing of the participants, the settlers (either the participant itself or the participant’s correspondent), and the dollar amount of the debit or credit to be posted to the settler’s account. If validity checks are satisfied, the Federal Reserve Bank accepts the file for processing and sends an acknowledgment to the agent. The Federal Reserve Bank accepts NSS files for processing and settlement between 8:30 a.m. and 5:30 p.m. Eastern Time. If an institution submits files earlier than 8:30 a.m. Eastern Time, they enter a queue for processing beginning at 8:30 a.m. Eastern Time. The NSS checks each debit balance on the settlement file against the account balance and intraday credit available to the settlers. The system may reject debit balances if a settler does not have a sufficient balance or sufficient intraday credit to cover the debit. Once it has posted all debit entries on the settlement file, NSS posts the credit balances. All transactions are final and irrevocable once the NSS posts them. The settlement for a file is complete when all credits have been posted. The NSS then sends an acknowledgment message to the settlement agent.

    NSS offers payment finality similar to that of the Fedwire Funds Service and provides an automated mechanism for submitting settlement files to the Federal Reserve Banks. NSS improves operational efficiency and reduces settlement risk to participants by providing settlement finality on settlement day. It also enables the Federal Reserve Banks to manage and limit risk by incorporating risk controls similar to those used in the Fedwire Funds Service. NSS can settle transactions across Federal Reserve Districts or within a single Federal Reserve District.

    Previous Section
    Other Clearinghouse, Settlement, and Messaging Systems Next Section
    Society for Worldwide Interbank Financial Telecommunication

  5. DTC FED NSS, THE (3380749)
    12/05/2000 -NEW YORK NY Domestic Entity Other
    Domestic Entity Other
    Domestic institutions that engage in banking activities usually in connection with the business of banking in the United States

    Important Notice
    Fixed Income Clearning Corporation

    NSS=National Settlement Service
    THE DEPOSITORY TRUST COMPANY Assessment of … settlement day, DTC, as “Settlement Agent,” sends an NSS file to the Federal … in the name of Cede & Co., nominee of DTC …

    Cede& co is a part of the Federal Reserve and does not answer to the SEC

    “Shortcut ” Oh boy are we familiar with shortcuts, and this one not approved by the SEC, wow!

    “Shortcut = assignee and/or successor”
    “Cede & Co” = assignee and/or successor OWNER? and you are only a beneficiary.
    Alike – Commercial Mortgage Asset Backed Securities?

    ‘Note’ in name of Cede & Co beneficiary Bank.

    This “Shortcut” was invented so the broker would hold your stocks instead of you. A

    Is this like the Corporate Treasury Securities of a bank nd in order for him to legally be able to trade them for you, the stocks were placed under their “street name”. I.e. they’re in the name of the brokerage, but they’re just holding them in trust and trading them for you. And you’re in reality the beneficiary rather than the owner. Which is all fine and dandy if everything goes right. Now, it appears the rules were then changed so the brokers are not allowed any longer to put the stocks in their own name. Instead, what they typically do is to put the stocks into the name of “Cede and Company” or “Cede & Co” or some such variation. And the broker might tell you that it is just a fictitious name, and will explain why it is really more practical to do that than to put it in your name.
    Cede isn’t just some dummy name, but an actual corporation that DTCC controls
    It is a private company, owned by the same people (major U.S. banks) who own the Federal Reserve Bank
    if somebody at some point should decide otherwise, and there’s a national U.S. emergency and/or the U.S. government becomes unable to pay its debts, well, they might just not give you your stocks back. Because legally they own them. Something to think about.

    Paste the link to read the document.

    #: MBS058.06

    Date: April 4, 2006

    To: Mortgage-Backed Securities Division Participants

    Subject: Funds-Only Settlement Processing

    The Mortgage-Backed Securities Division (“MBSD”) of the Fixed Income Clearing Corporation (“FICC”) is pleased to announce that it will support the processing of all MBSD funds-only settlements in an automated process through the Federal Reserve’s National Settlement System (the “NSS”).

    FICC expects to implement this service in 2006 upon receipt of approval of the requisite rule filing with the Securities and Exchange Commission.[1]

    The service will introduce an automated process for the collection and payment of clearing members’ MBSD cash settlement obligations due to and from the MBSD.

    The NSS process, currently used by FICC’s affiliates,

    The Depository Trust Company (“DTC”), the National Securities Clearing Corporation (“NSCC”), and by the Government Securities Division (“GSD”) of FICC,[2] will be leveraged to automatically debit and credit participants’ cash settlement obligations at the settling bank level.

    That is, the individual debits and credits of all clearing members using the same settling bank will be aggregated, and the net debit or credit established at the settling bank level will be settled using the NSS.

    FICC will further leverage systems and procedures already in place at DTC to perform this function by using DTC as its agent to interface with the Federal Reserve Bank for settlement.

    The implementation of this service will extend the settlement finality benefits currently afforded by DTC’s interface with the NSS to MBSD clearing members.

    Additionally, by automating the cash settlement process, risk will be mitigated (as MBSD would have greater assurance of being paid on a timely basis), the operational burdens associated with collecting and paying out cash settlement amounts will be eliminated, and the need for FICC to fine members for late settlements will be diminished.

    It will also streamline and standardize the collection of funds across clearing corporations.

    The new service will be mandatory and will affect all MBSD clearing members simultaneously upon implementation. FICC will establish a new limited membership category for MBSD “Cash Settling Banks” to support this service. MBSD clearing members will be required to appoint a Cash Settling Bank to process their cash settlements by completing and signing the requisite agreements that will be provided by FICC at a later date.

    The following entities will be eligible to become Cash Settling Banks by executing the requisite membership agreements (and requisite agreement with the Federal Reserve) for this purpose:

    1. Banks or trust companies that are DTC settling banks (as defined in DTC’s rules and procedures)
    2. FICC Government Securities Division Funds-Only Settling Banks[3]
    3. MBSD clearing members with direct access to the Federal Reserve and the NSS.

    Other banks or trust companies that desire to become MBSD Cash Settling Banks must apply to FICC.

    In order to qualify, they must have direct access to the Federal Reserve Bank and the NSS, as well as satisfy the financial responsibility standards imposed by FICC from time to time.

    Initially, these applicants must meet and maintain a Tier 1 capital ratio of 6 percent.

    MBSD clearing members are urged to contact their current settling banks and inform them of the need to become an approved MBSD Cash Settling Bank.

    It should be noted that if NSS becomes unavailable for any reason, MBSD participants will be required to settle their obligations with FICC using the existing procedure.

    The obligation of a participant to fulfill its cash settlement amount remains at all times with the participant.

    The NSS is governed by the Federal Reserve’s Operating Circular No. 12 (the “Circular”).

    Under the Circular, DTC, as FICC’s settlement agent for the MBSD process, will have certain responsibilities with respect to an indemnity claim made by a relevant Federal Reserve Bank as a result of the NSS process.

    FICC will apportion the entirety of any such liability to the MBSD clearing members for whom the Cash Settling Bank to which the indemnity claim relates was then acting.

    This allocation will be done in directly proportion to the amount of such participants’ cash settlement amounts on the business day in question. If for any reason such allocation is not sufficient to fully satisfy the Federal Reserve Bank’s indemnity claim, then the remaining loss shall be allocated among all clearing participants in proportion to their relative usage of the facilities of the MBSD (based on fees for services) during the period in which loss was incurred.

    Please direct all questions and comments on the NSS service to George Parasole, Director, Product Management, at 212-855-7670 or

    Susan Tysk
    Managing Director

    [1] FICC expects to submit the requisite rule filing during the 2nd quarter of this year.
    [2] FICC’s GSD anticipates adoption of the NSS process during the 2nd quarter of this year.
    [3] These are banks which have been approved by the GSD to process that Division’s funds settlements via NSS. These banks have access to the Federal Reserve and the NSS.

  6. This quote on Mary’s linked article:

    “Wells Fargo (usually as a Master Servicer or Servicer) is giving investors this disclosure on the first page of the reports:
    NOTE: Wells Fargo Bank, N.A. is processing an extraordinary expense charge related to the analysis, creation, and implementation of new and enhanced systems and processes necessitated by significant and unanticipated changes in industry and market conditions.”

    In other words, we were caught commiting FRAUD, and now we have to charge you extra. We tried to use some loopholes, didn’t work, we are not going to take a loss, so we charge you extra, but we use a play on words so you don’t see it.

  7. The agenda is set. It is larger than you can imagine with enough money on the side lines to start WWIII
    which could capture the lands that China will try to obtain.

  8. If the PSA are the governing body of the mortgages that were placed there without assignment, isn’t that fraud? When the investors file suit and get paid — aren’t they considered “paid in full”?? If I held a bad mortgage and received payment on it–isnt that paid in full? Now what if that loan was paid by insurance thaen a lawsuit? What about the homeowner duped in all of this? If the funds don’t ever flow to homeowners and all of america is homeless then will the abuses stop? When we have no jobs, no home, no food —how is america supposed to thrive? When u abuse our military AND our own people what do we really have left? A bunch of homeless angry miserable unproductive people. Add that up across America and what has our government done? Sheer abuse, fraud, theft, neglect and sickness? Are we going to allow these pompis assholes to ruin all of our lives? Really, when u look at the whole picture- AIG’s repayment would cure all the deficiencies through out the nation. Where is their money? Why aren’t they repaying? Where is all the IRs and Congress tax money? Why is tjis nation turning into china in front our very eyes. This is not the change I was anticipating. Not even close. Poor Obama, the banks must have stolen his balls and held them for blackmail. Either that or his 2nd born. What ever the banks are using to get him to turn a blind eye must have been enormous or life changing. Both can be very bad. Debi

  9. follow the link at the end of the post…

  10. […] Source: Livinglies’s Weblog […]

Contribute to the discussion!

%d bloggers like this: