WHO IS THE BORROWER?

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EDITOR’S ANALYSIS: The passage below contains very valuable information. I want to focus on one simple fact — the “borrower” is not defined as some homeowner applying for a loan. The “borrower” is some sham entity that has been created by the investment bank, to create the appearance of a warehouse line of credit for funding mortgages. It’s another layer to support plausible deniability. The borrower in the transaction with investor-lender is not identified in the documents as the homeowner. The creditor in the transaction described in the documents given to the homeowner to sign is not the investor-lender, nor even the pool, nor for that matter the “warehouse lender.” This was done intentionally to throw the sheer certainty of loss onto the investors and to grab the revenue, profits and fees for the banks, while at the same time declaring that it was all the fault of homeowners who defaulted on their loans. By avoiding basic rules of evidence, these banks are taking assets that should be used for restitution to the investors and the homeowners and keeping it for themselves.

What I find interesting is how many ‘Borrowers” we have in the illusion of securitization, and how they plays out as evidence in court regarding the so-called default. Starting with the investor who advances the money, the “borrower” or “payor” is an entity (that may or may not have ever come into existence). This is the SPV, trust or pool, depending upon how you look at it. So this borrower is promising to pay a debt to the investor based upon terms and conditions that are highly convoluted. The promise, for example, is based upon the right of the borrower to use the money of the creditor to make the payments to the creditor. So if there is no money in the pool, the SPV can still pay the creditor and there is no default.

Another aspect of this promise is that it is based upon revenue obtained from assets which are roughly defined but not identified. The list attached to the prospectus appears to identify the assets (loans in the pool) but the caveat is that the prospectus eventually gets around to saying that these are not the real loans and that the ones shown on the list are to replaced by real loans.

NOTE THAT THE HOMEOWNER NEITHER KNOWS ABOUT NOR IS REQUESTED TO ACKNOWLEDGE THESE TERMS AND OBVIOUSLY HAS NOT SIGNED ANY AGREEMENT, NOTE OR OTHER INSTRUMENT PROMISING TO PAY THE ACTUAL CREDITOR. The Homeowner has signed documents that give the appearance of a loan from an entirely DIFFERENT entity (the originator).

The point here is that as far as the actual creditor is concerned, the homeowner is NOT identified as the debtor or borrower. The documents are very clear on that point because it was always the intent to raid the revenue flow from the investments in mortgage bonds and the payments by various parties and NOT give the creditor the money, whenever it suited the investment bank to stop paying the investor. Thus the control over a default lies in sham corporations established by the investment banker regardless of whether the homeowner has made payments, and regardless of whether the creditor is receiving payments from sources other than the homeowner.

Then we go down one level and discover that there is yet another “borrower” who is not the homeowner. It is in the warehouse lender-borrower agreement in which the “borrower” is a sham entity created by the investment bank to create the appearance of a bona fide third party transaction for value in which the aggregator of loans can direct the funding of loans to borrowers through yet another layer of entities. Once again the borrower is clearly identified as NOT being the homeowner, although the reference is made to repurchase or replacement of the loan if the loan was defective. This clause is almost never invoked. But in any event, from the document itself, you can see that it is the obligation of this new “borrower” to assure payment from the pool of loans that are non-existent because they were never securitized or transferred, and the creditor is now, not the investor nor the pool, but rather the warehouse lender.

Skipping down a few layers, we get to the transaction with the homeowner where the homeowner is identified as a borrower, the creditor is identified as some party who was neither  a party to the the mortgage bond prospectus nor the warehouse lending agreement. In fact this party is not a creditor in any sense of the word but is nonetheless identified as the “lender” despite the appearance of MERS or some nominee. This party is actually an unregulated, unregistered mortgage broker, even if it has the word “bank” in it, because it is not performing a banking function. ON its balance sheet the loan never shows up. On its income statement, the transaction shows as a fee-based service in which it served as the straw-man for the securitization participants.

Thus the money from the investor is laundered down to giving a part to fund the “loan” to the homeowner who in reality is just a pawn in the scheme to skim or steal money from the investors. The funding of the loan is a cover for the theft of the investor’s money, deftly accomplished by siphoning off a substantial amount of the money advanced by investors into accounts as profits and fees and never reaching any closing table where a loan was funded. The investors were funding outlandish fees without knowing it. At the point where the homeowner is presented with documents, the real transaction has been completely obscured.

The documents refer to a money transaction between parties (the homeowner and the originator) in which no money exchanged hands. Thus factually, these documents refer to a transaction that never existed and was never meant to exist — a problem for both enforcing the documents themselves and for reforming them to conform to the evidence. Any default declared on such documents is meaningless. Any foreclosure initiated based upon such documents is a nullity. Any title issued as a result of such a foreclosure is a wild deed. Any “credit” bid submitted at an auction is void because it comes from a non-creditor regardless of how the transaction is analyzed.

Meanwhile the actual money transaction in which the actual party with money conveys money for the benefit of the actual party who receives the benefit of that money is completely undocumented. The investor-lender and the homeowner-borrower are intentionally left disconnected. And the pretender lenders wish the courts to use the absence of such documentation as proof that no such transaction existed. That is why a general denial of virtually everything the pretender proffers in any form is necessary and why the rules of evidence, if applied, would establish that there is a lack of evidence of any default, and a lack of evidence that the loan is actually still outstanding or delinquent.

SUBMITTED BY KEN DOST:

FIFTH AMENDMENT TO FIRST AMENDED AND RESTATED WAREHOUSING CREDIT AND SECURITYAGREEMENTFIFTH AMENDMENT TO FIRST AMENDED AND RESTATED WAREHOUSING CREDIT AND SECURITYAGREEMENT (this “Amendment”) dated as of January 25, 2006, between MORTGAGEIT,INC., a New York corporation (“Borrower”), and RESIDENTIAL FUNDING CORPORATION,a Delaware corporation (“Lender”).A. Borrower and Lender have entered into a revolving mortgage warehousingfacility with a present Warehousing Commitment Amount of $650,000,000, which isevidenced by a Replacement Promissory Note dated September 20, 2005 (the”Note”), and by a First Amended and Restated Warehousing Credit and SecurityAgreement dated as of April 12, 2005 (as the same may have been and may beamended or supplemented, the “Agreement”).B. Borrower has requested that Lender increase the Warehousing Commitment Amountand amend certain other terms of the Agreement, and Lender has agreed to suchincrease and those certain other amendments, subject to the terms and conditionsof this Amendment.NOW, THEREFORE, the parties to this Amendment agree as follows:1. Subject to Borrower’s satisfaction of the conditions set forth in Section 24,the effective date of this Amendment is December 21, 2005 (“Effective Date”).2. Unless otherwise defined in this Amendment, all capitalized terms have themeanings given to those terms in the Agreement. Defined terms may be used in thesingular or the plural, as the context requires. The words “include,” “includes”and “including” are deemed to be followed by the phrase “without limitation.”Unless the context in which it is used otherwise clearly requires, the word “or”has the inclusive meaning represented by the phrase “and/or.” References toSections and Exhibits are to Sections and Exhibits of this Amendment unlessotherwise expressly provided.3. The Table of Contents and Exhibits Page to the Agreement are amended andrestated in their entirety as set forth in the Table of Contents and ExhibitsPage attached to this Amendment.4. Article 1 of the Agreement is amended and restated in its entirety as setforth in Article 1 attached to this Amendment. All references in the Agreementand other Loan Documents to Article 1 (including each and every Section inArticle 1) are deemed to refer to the new Article 1.5. Article 3 of the Agreement is amended and restated in its entirety as setforth in Article 3 attached to this Amendment. All references in the Agreementand other Loan Documents to Article 3 (including each and every Section inArticle 3) are deemed to refer to the new Article 3.6. Article 4 of the Agreement is amended and restated in its entirety as setforth in Article 4 attached to this Amendment. All references in the Agreementand other Loan Documents to Article 4 (including each and every Section inArticle 4) are deemed to refer to the new Article 4.7. Article 5 of the Agreement is amended and restated in its entirety as setforth in Article 5 attached to this Amendment. All references in the Agreement and other LoanDocuments to Article 5 (including each and every Section in Article 5) aredeemed to refer to the new Article 5.8. Article 6 of the Agreement is amended and restated in its entirety as setforth in Article 6 attached to this Amendment. All references in the Agreementand other Loan Documents to Article 6 (including each and every Section inArticle 6) are deemed to refer to the new Article 6.9. Article 7 of the Agreement is amended and restated in its entirety as setforth in Article 7 attached to this Amendment. All references in the Agreementand other Loan Documents to Article 7 (including each and every Section inArticle 7) are deemed to refer to the new Article 7.10. Article 8 of the Agreement is amended and restated in its entirety as setforth in Article 8 attached to this Amendment. All references in the Agreementand other Loan Documents to Article 8 (including each and every Section inArticle 8) are deemed to refer to the new Article 8.11. Article 10 of the Agreement is amended and restated in its entirety as setforth in Article 10 attached to this Amendment. All references in the Agreementand other Loan Documents to Article 10 (including each and every Section inArticle 10) are deemed to refer to the new Article 10.12. Article 11 of the Agreement is amended and restated in its entirety as setforth in Article 11 attached to this Amendment. All references in the Agreementand other Loan Documents to Article 11 (including each and every Section inArticle 11) are deemed to refer to the new Article 11.13. Article 12 of the Agreement is amended and restated in its entirety as setforth in Article 12 attached to this Amendment. All references in the Agreementand other Loan Documents to Article 12 (including each and every Section inArticle 12) are deemed to refer to the new Article 12.14. Exhibit A to the Agreement is amended and restated in its entirety as setforth in Exhibit A to this Amendment. All references in the Agreement and theother Loan Documents to Exhibit A are deemed to refer to the new Exhibit A.15. Exhibit E-1 to the Agreement is amended and restated in its entirety as setforth in Exhibit E-1 to this Amendment. All references in the Agreement and theother Loan Documents to Exhibit E-1 are deemed to refer to the new Exhibit E-1.16. Exhibit E-2 to the Agreement is amended and restated in its entirety as setforth in Exhibit E-2 to this Amendment. All references in the Agreement and theother Loan Documents to Exhibit E-2 are deemed to refer to the new Exhibit E-2.17. Exhibit H to the Agreement is amended and restated in its entirety as setforth in Exhibit H to this Amendment. All references in the Agreement and theother Loan Documents to Exhibit H are deemed to refer to the new Exhibit H.18. Exhibit I to the Agreement is amended and restated in its entirety as setforth in Exhibit I to this Amendment. All references in the Agreement and theother Loan Documents to Exhibit I are deemed to refer to the new Exhibit I.19. Exhibit B-SML is hereby added to the Agreement in the form attached to thisAmendment. 20. A Sublimit Promissory Note is hereby added to the Agreement inthe form attached to this Amendment.21. The Payment Option Loan Rider attached to this Amendment amends, restatesand replaces your existing Creditable Mortgage Loan Rider in its entirety andsuch amendment, restatement and replacement is effective as of the dateappearing in the preamble of such Payment Option Loan Rider (whether or not suchdate differs from the Effective Date or the date of this Amendment).22. Upon execution of this Amendment, Borrower must pay to Lender the pro rataWarehousing Commitment Fee on the increased portion of the WarehousingCommitment Amount for the time period from December 21, 2005, to December 31,2005.23. Section 7.2(a) of the Agreement requires the delivery of certain financialstatements of Borrower within specified time frames. Borrower failed to deliverthe required monthly interim financial statements for the months of June, July,September and October 2005. Failure to comply with this requirement constitutesan Event of Default pursuant to Section 10.1(b) of the Agreement.Borrower has requested that Lender waive its rights and remedies with respect tothe above-described Event of Default. Lender agrees to waive its rights andremedies with respect to the above-described Event of Default; provided,however, that this waiver is limited to the specific Event of Default describedabove and is not intended and will not be construed to be a waiver of any futureDefault or Event of Default of Section 7.2(a) of the Agreement or any existingor future Default or Event of Default under any other provision of theAgreement.BORROWER IS NOTIFIED THROUGH THIS AMENDMENT THAT LENDER REQUIRES STRICTCOMPLIANCE BY BORROWER OF ALL TERMS, CONDITIONS AND PROVISIONS OF THE AGREEMENTAND LOAN DOCUMENTS.The waiver of Lender under this Amendment may not be construed as establishing acourse of conduct on the part of Lender upon which Borrower may rely at any timein the future, and Borrower expressly waives any right to assert any claim tosuch effect at any time.24. Borrower must deliver to Lender (a) two executed copies of this Amendment,(b) the executed Sublimit Promissory Note, (c) the executed Payment Option LoanRider, (d) the Additional Commitment Fee, and (e) a $1,500 document productionfee.25. Borrower represents, warrants and agrees that (a) except as stated inSection 20 above, there exists no Default or Event of Default under the LoanDocuments, (b) the Loan Documents continue to be the legal, valid and bindingagreements and obligations of Borrower, enforceable in accordance with theirterms, as modified by this Amendment, (c) Lender is not in default under any ofthe Loan Documents and Borrower has no offset or defense to its performance orobligations under any of the Loan Documents, (d) except for changes permitted bythe terms of the Agreement, Borrower’s representations and warranties containedin the Loan Documents are true, accurate and complete in all respects as of theEffective Date and (e) there has been no material adverse change in Borrower’sfinancial condition from the date of the Agreement to the Effective Date.26. Except as expressly modified, the Agreement is unchanged and remains in fullforce and effect, and Borrower ratifies and reaffirms all of its obligationsunder the Agreement and the other Loan Documents. 27. This Amendment may be executed in any number of counterparts, each of whichwill be deemed an original, but all of which shall together constitute but oneand the same instrument.IN WITNESS WHEREOF, Borrower and Lender have caused this Amendment to be dulyexecuted on their behalf by their duly authorized officers as of the day andyear above written.MORTGAGEIT, INC.,a New York corporationBy: /s/ Robert A. GulaIts: Chief Financial OfficerRESIDENTIAL FUNDING CORPORATION,a Delaware corporationBy: /s/ Robin SwansonIts: Director TABLE OF CONTENTS1. THE CREDIT……………………………………………………1-11.1. The Warehousing Commitment……………………………………..1-11.2. Expiration of Warehousing Commitment…………………………….1-11.3. Warehousing Note/Sublimit Note………………………………….1-12. PROCEDURES FOR OBTAINING ADVANCES……………………………….2-12.1. Warehousing Advances…………………………………………..2-13. INTEREST, PRINCIPAL AND FEES……………………………………3-13.1. Interest……………………………………………………..3-13.2. Interest Limitation……………………………………………3-23.3. Principal Payments…………………………………………….3-23.4. Buydowns……………………………………………………..3-43.5. Warehousing Commitment Fees…………………………………….3-53.6. Loan Package Fees, Wire Fees and Warehousing Fees…………………3-53.7. Miscellaneous Fees and Charges………………………………….3-53.8. Overdraft Advances…………………………………………….3-63.9. Method of Making Payments………………………………………3-64. COLLATERAL……………………………………………………4-14.1. Grant of Security Interest …………………………………….4-14.2. Maintenance of Collateral Records……………………………….4-24.3. Release of Security Interest in Pledged Loans and Pledged Securities……………………………………………………4-24.4. Collection and Servicing Rights…………………………………4-34.5. Return of Collateral at End of Warehousing Commitment……………..4-44.6. Delivery of Collateral Documents………………………………..4-45. CONDITIONS PRECEDENT…………………………………………..5-15.1. Initial Advance……………………………………………….5-15.2. Each Advance………………………………………………….5-25.3. Force Majeure…………………………………………………5-36. GENERAL REPRESENTATIONS AND WARRANTIES…………………………..6-16.1. Place of Business……………………………………………..6-16.2. Organization; Good Standing; Subsidiaries………………………..6-16.3. Authorization and Enforceability………………………………..6-16.4. Authorization and Enforceability of Guaranty……………………..6-16.5. Approvals…………………………………………………….6-26.6. Financial Condition……………………………………………6-26.7. Litigation……………………………………………………6-26.8. Compliance with Laws…………………………………………..6-26.9. Regulation U………………………………………………….6-36.10. Investment Company Act…………………………………………6-36.11. Payment of Taxes………………………………………………6-36.12. Agreements……………………………………………………6-36.13. Title to Properties……………………………………………6-36.14. ERISA………………………………………………………..6-46.15. No Retiree Benefits……………………………………………6-46.16. Assumed Names…………………………………………………6-46.17. Servicing…………………………………………………….6-47. AFFIRMATIVE COVENANTS………………………………………….7-17.1. Payment of Obligations…………………………………………7-17.2. Financial Statements…………………………………………..7-1 7.3. Other Borrower Reports…………………………………………7-27.4. Maintenance of Existence; Conduct of Business…………………….7-37.5. Compliance with Applicable Laws…………………………………7-37.6. Inspection of Properties and Books; Operational Reviews……………7-37.7. Notice……………………………………………………….7-37.8. Payment of Debt, Taxes and Other Obligations……………………..7-47.9. Insurance…………………………………………………….7-47.10. Closing Instructions…………………………………………..7-47.11. Subordination of Certain Indebtedness……………………………7-57.12. Other Loan Obligations…………………………………………7-57.13. ERISA………………………………………………………..7-57.14. Use of Proceeds of Warehousing Advances………………………….7-58. NEGATIVE COVENANTS…………………………………………….8-18.1. Contingent Liabilities…………………………………………8-18.2. Pledge of Servicing Contracts…………………………………..8-18.3. Restrictions on Fundamental Changes……………………………..8-18.4. Subsidiaries………………………………………………….8-18.5. Deferral of Subordinated Debt…………………………………..8-28.6. Loss of Eligibility, Licenses or Approvals……………………….8-28.7. Accounting Changes…………………………………………….8-28.8. Minimum Tangible Net Worth……………………………………..8-28.9 Distributions to Shareholders…………………………………..8-28.10 Transactions with Affiliates……………………………………8-28.11 Leverage Ratio for Guarantor……………………………………8-28.12 Minimum Tangible Net Worth for Guarantor…………………………8-28.13 Minimum Modified Liquid Assets for Guarantor……………………..8-38.14 Operating Losses for Guarantor………………………………….8-38.15 Recourse Servicing Contracts……………………………………8-39. SPECIAL REPRESENTATIONS, WARRANTIES AND COVENANTS CONCERNING COLLATERAL……………………………………………………9-19.1. Special Representations and Warranties Concerning Eligibility as Seller of Mortgage Loans…………………………………….9-19.2. Special Representations and Warranties Concerning Warehousing Collateral……………………………………………………9-19.3. Special Affirmative Covenants Concerning Warehousing Collateral…….9-39.4. Special Negative Covenants Concerning Warehousing Collateral……….9-410. DEFAULTS; REMEDIES……………………………………………10-110.1. Events of Default…………………………………………….10-110.2. Remedies…………………………………………………….10-310.3. Application of Proceeds……………………………………….10-510.4. Lender Appointed Attorney-in-Fact………………………………10-510.5. Right of Set-Off……………………………………………..10-611. MISCELLANEOUS………………………………………………..11-111.1. Notices……………………………………………………..11-111.2. Reimbursement of Expenses; Indemnity……………………………11-111.3. Financial Information…………………………………………11-211.4. Terms Binding Upon Successors; Survival of Representations………..11-211.5. Assignment…………………………………………………..11-211.6. Amendments…………………………………………………..11-211.7. Governing Law………………………………………………..11-311.8. Participations……………………………………………….11-311.9. Relationship of the Parties……………………………………11-311.10. Severability…………………………………………………11-311.11. Consent to Credit References…………………………………..11-3 11.12. Counterparts…………………………………………………11-411.13. Headings/Captions…………………………………………….11-411.14. Entire Agreement……………………………………………..11-411.15. Consent to Jurisdiction……………………………………….11-411.16. Waiver of Jury Trial………………………………………….11-411.17. Waiver of Punitive, Consequential, Special or Indirect Damages…….11-511.18. Merger of Obligations…………………………………………11-511.19. Waiver of Events of Default Under Existing Agreement……………..11-511.20. Confidentiality………………………………………………11-512. DEFINITIONS………………………………………………….12-112.1. Defined Terms………………………………………………..12-112.2. Other Definitional Provisions; Terms of Construction…………….12-12EXHIBITSExhibit A Request for Advance Against Eligible LoansExhibit B Procedures and Documentation for Warehousing Mortgage LoansExhibit B-SML Procedures and Documentation for Warehousing Seasoned Mortgage LoansExhibit C Schedule of Servicing PortfolioExhibit D SubsidiariesExhibit E-1 Compliance Certificate (Borrower)Exhibit E-2 Compliance Certificate (Guarantor)Exhibit F Schedule of Lines of CreditExhibit G Assumed NamesExhibit H Eligible Loans and Other AssetsExhibit I Schedule of Miscellaneous FeesExhibit J Commitment Summary Report FIRST AMENDED AND RESTATED WAREHOUSING CREDIT AND SECURITY AGREEMENTFIRST AMENDED AND RESTATED WAREHOUSING CREDIT AND SECURITY AGREEMENT, dated asof April 12, 2005 between MORTGAGEIT, INC., a New York corporation (“Borrower”),and RESIDENTIAL FUNDING CORPORATION, a Delaware corporation (“Lender”).A. Borrower and Lender desire to amend and restate the Existing Agreement(defined below) and to set forth herein the terms and conditions upon whichLender will continue to provide financing to Borrower.B. Subject to Borrower’s satisfaction of the conditions set forth in Article 5,the “Closing Date” for the transactions contemplated by this Agreement is thedate set forth as the Closing Date on the signature page to this Agreement.NOW, THEREFORE, the parties to this Agreement agree as follows:1. THE CREDIT1.1. THE WAREHOUSING COMMITMENTOn the terms and subject to the conditions and limitations of this Agreement,including Exhibit H, Lender agrees to make Warehousing Advances to Borrower fromthe Closing Date to the Business Day immediately preceding the WarehousingMaturity Date, during which period Borrower may borrow, repay and reborrow inaccordance with the provisions of this Agreement. Lender has no obligation tomake Warehousing Advances in an aggregate amount outstanding at any time inexcess of the lesser of (a) the Warehousing Commitment Amount, or (b) theAggregate Warehousing Collateral Value. While a Default or Event of Defaultexists, Lender may refuse to make any additional Warehousing Advances toBorrower. Effective as of the Closing Date, all outstanding loans made under theExisting Agreement are deemed to be the initial Warehousing Advances made underthis Agreement. All Warehousing Advances under this Agreement constitute asingle indebtedness, and all of the Collateral is security for the Notes and forthe performance of all of the Obligations.1.2. EXPIRATION OF WAREHOUSING COMMITMENTThe Warehousing Commitment expires on the earlier of (“Warehousing MaturityDate”): (a) June 30, 2006, as such date may be extended in writing by Lender, inits sole discretion, on which date the Warehousing Commitment will expire of itsown term and the Warehousing Advances will become due and payable without thenecessity of Notice or action by Lender; and (b) the date the WarehousingCommitment is terminated and the Warehousing Advances become due and payableunder Section 10.2.1.3. WAREHOUSING NOTE/SUBLIMIT NOTEWarehousing Advances, other than Warehousing Advances made against SeasonedMortgage Loans, are evidenced by Borrower’s promissory note, payable to Lenderon the form prescribed by Lender (“Warehousing Note”). Warehousing Advances madeagainst Seasoned Mortgage Loans are evidenced by Borrower’s sublimit promissorynote, payable to Lender on the form prescribed by Lender (“Sublimit Note”).Warehousing Note and Sublimit Note are collectively referred to as, “Notes.” Theterms “Warehousing Note” and “Sublimit Note” as used in this Agreement includesall amendments, restatements, renewals or replacements of the originalWarehousing Note and Sublimit Note and all substitutions for them. All terms andprovisions of the Warehousing Note and the Sublimit Note are incorporated intothis Agreement.END OF ARTICLE 1 3. INTEREST, PRINCIPAL AND FEES3.1. INTEREST3.1 (a) Except as otherwise provided in this Section, Borrower must pay intereston the unpaid amount of each Warehousing Advance from the date the WarehousingAdvance is made until it is paid in full at the Interest Rate specified inExhibit H.3.1 (b) As long as no Default or Event of Default exists, Borrower is entitledto receive a benefit in the form of an “Earnings Credit” on the portion of theEligible Balances maintained in time deposit accounts with a Designated Bank,and Borrower is entitled to receive a benefit in the form of an “EarningsAllowance” on the portion of the Eligible Balances maintained in demand depositaccounts with a Designated Bank. Any Earnings Allowance will be used first andany Earnings Credit will be used second as a credit against Miscellaneous Feesand Charges (including Designated Bank Charges), Warehousing Commitment Fees,Loan Package Fees, Wire Fees, Warehousing Fees and any other fees payable underthis Agreement, and may be used, at Lender’s option, to reduce accrued interest.Any Earnings Allowance not used during the month in which the benefit wasreceived will be accumulated and must be used within 6 months of the month inwhich the benefit was received. As long as no Default or Event of Defaultexists, any Earnings Credit not used during the month in which the benefit wasreceived will be used to provide a cash benefit to Borrower. Any Earnings Creditretained by Lender as a result of a Default or Event of Default will be appliedto the payment of Borrower’s Obligations in the order Lender determines in itssole discretion. The Earnings Credit and the Earnings Allowance for any monthwill be determined by Lender in its sole discretion and Lender’s determinationof those amounts is conclusive and binding absent manifest error. In no eventwill the benefit received by Borrower under this Section exceed the DepositoryBenefit.Either party to this Agreement may terminate the benefits provided for in thisSection effective immediately upon Notice to the other party, if the terminatingparty determines (which determination is conclusive and binding on the otherparty, absent manifest error) at any time that any applicable law, rule,regulation, order or decree or any interpretation or administration of such law,rule, regulation, order or decree by any governmental authority charged with itsinterpretation or administration, or compliance by such party with any requestor directive (whether or not having the force of law) of any such authority,makes it unlawful or impossible for the party sending the Notice to continue tooffer or receive the benefits provided for in this Section. No Notice isrequired to terminate the benefit provided for in this Section as a result of aDefault or Event of Default.3.1 (c) Lender computes interest on the basis of the actual number of days ineach month and a year of 360 days. Borrower must pay interest monthly inarrears, not later than 9 days after the date of Lender’s invoice or, ifapplicable, 2 days after the date of Lender’s account analysis statement,commencing with the first month following the Closing Date and on theWarehousing Maturity Date.3.1 (d) If, for any reason Borrower repays a Warehousing Advance on the same daythat it was made by Lender, Borrower must pay Lender an administrative fee equalto 1 day of interest on that Warehousing Advance at the Interest Rate that wouldotherwise have been applicable under Exhibit H. Borrower must pay alladministrative fees within 9 days after the date of Lender’s invoice or, ifapplicable, within 2 days after the date of Lender’s account analysis statement.3.1 (e) After an Event of Default occurs and upon Notice to Borrower by Lender,the unpaid amount of each Warehousing Advance will bear interest at the DefaultRate until paid in full.3.1 (f) Lender will adjust the rates of interest provided for in this Agreementas of the effective date of each change in the applicable index. Lender’sdetermination of such rates of interest as of any date of determination isconclusive and binding, absent manifest error.3.2. INTEREST LIMITATIONLender does not intend, by reason of this Agreement, the Notes or any other LoanDocument, to receive interest in excess of the amount permitted by applicable law. If Lenderreceives any interest in excess of the amount permitted by applicable law,whether by reason of acceleration of the maturity of this Agreement, the Notesor otherwise, Lender will apply the excess to the unpaid principal balance ofthe Warehousing Advances and not to the payment of interest. If all WarehousingAdvances have been paid in full and the Warehousing Commitment has expired orhas been terminated, Lender will remit any excess to Borrower. This Sectioncontrols every other provision of all agreements between Borrower and Lender andis binding upon and available to any subsequent holder of the Notes.3.3. PRINCIPAL PAYMENTS3.3 (a) Borrower must pay Lender the outstanding principal amount of allWarehousing Advances on the Warehousing Maturity Date.3.3 (b) Except as otherwise provided in Section 3.1, Borrower may prepay anyportion of the Warehousing Advances without premium or penalty at any timepursuant to Section 3.4 or Section 4.3(d). If at any time the WarehousingAdvances outstanding under this Agreement exceed the lesser of (i) theWarehousing Commitment Amount or (ii) the Aggregate Warehousing CollateralValue, Borrower must immediately pay to Lender without the necessity of priordemand or Notice from Lender, and Borrower authorizes Lender to cause theFunding Bank to charge Borrower’s Operating Account for, the amount of suchexcess.3.3 (c) Borrower must pay to Lender, without the necessity of prior demand orNotice from Lender, and Borrower authorizes Lender to cause the Funding Bank tocharge Borrower’s Operating Account for, the amount of any outstandingWarehousing Advance against a specific Pledged Asset upon the earliestoccurrence of any of the following events:(1) One (1) Business Day elapses from the date a Warehousing Advance was made ifthe Pledged Loan to be funded by that Warehousing Advance has not closed andfunded.(2) Ten (10) Business Days elapse without the return of a Collateral Documentdelivered by Lender to Borrower under a Trust Receipt for correction orcompletion.(3) On the date on which a Pledged Loan is determined to have been originatedbased on untrue, incomplete or inaccurate information or otherwise to be subjectto fraud, whether or not Borrower had knowledge of the misrepresentation,incomplete or inaccurate information or fraud, or on the date on which Borrowerknows, or has reason to know, or receives Notice from Lender, that (A) one ormore of the representations and warranties set forth in Article 9 wereinaccurate or incomplete in any material respect on any date when made or deemedmade or became inaccurate or incomplete after any such date with respect to suchPledged Loan or (B) Borrower has failed to perform or comply with any covenant,term or condition set forth in Article 9 with respect to such P …

33 Responses

  1. To Marie,

    Which State are you in?
    Do you mean fraudulent assignment (hearsay affidavit, notary fraud etc) or a forged assignment as in a forged document created by calligraphers?

  2. To cea

    Just realized you responded. Thank you. I’m post foreclosure. I need an expert to give opinion that my assignment was likely forgery and to explain why banks would resort to this strategy. Otherwise judge might not entertain my theory(s) to set foreclosure aside. I guess…

  3. Yes, I, too, would like to have this as a PDF, formatted properly and in its complete form. Any links yet? Also, how was it obtained?

    Next, where can we get one of these that pertains to OUR loan? How do we find it and get a copy? I know we can request it to be produced in discovery, but most cases never get to discovery because they are dismissed first. Then we have to appeal, and we still don’t have this document, etc.

  4. carie

    As one person — it is extremely difficult.

    Intent here is to help those that are trying to help others. And, to provide as much information to government agencies as possible.

    Settlement with 50 AGs is stalled. This is because new information is coming to them every day.

  5. ANONYMOUS—

    Obviously, I personally get what you are saying—but is there anything that I can do—as one person—to get, as you say—people to “start realizing what really happened”…???

  6. usedkarguy,

    It is more than that —-

    Subprime loans intercepted by banks/investors from GSEs. Many times — put in default — even though not in default. All that remains is collection rights. But the subprime investors/banks securitized these collection rights (all you need is a cash flow for securitization – but it is NOT MBS securitization). Collection rights could be transferred anywhere — the loan was already written off by the GSE – with insurance collected..

    Nevertheless, the subprime origination claimed to do a “new refinance” — for the already classified default debt. Thus, a modification of a default debt — but presented as a refinance to the “subprime” borrower. And, subprime spread quickly to ALT- A loans. But, borrower is ALWAYS in default — no matter how many times a subprime loan is supposedly paid off by a subprime refinance.

    All along the borrower thought he got a new loan refinance — and pays the fees and costs for it.

    Remember — subprime “loans” were 100% refinances —- but, of course — they were NOT valid refinances.

    As to Quiet Title — some object here — but records are FALSE – .so they do not matter.

    This is a far bigger mess.

    And, know I will get angry replies to this. But, if people do not start realizing what really happened — will remain where we currently are.

  7. carie

    Wish that were true — but it is for security investors.

    I will shout over and over — security investors are NOT the creditor — and are different from the INVESTOR.

    Need to investigate the INVESTORS. Enough is enough.

  8. @ Marie, pls e-mail at regie2004@gmail.com have few questions.thxs

  9. tn, I think the cause of action lies with the undisclosed funding and anticipatory “true sale” that never occured. Borrower is a third-party beneficiary to the PSA. The Trustee has fiduciary obligation to protect the title to the asset. As soon as they failed to record in the name of the Trustee for the security, and file the sham foreclosure suit, they have slandered title by creating the “wild deed”. Origination claims for fraud are dismissed as the trustee did not originate. Proof of funding from unregistered entity (Deutsche) should give rise to Foreign Corrupt Practices Act/RICO/RESPA/REG Z/TILA. where fraud is proven.

    And this is where Soliman’s argument as to extinguishment/forfieture/quiet title intersect with the ANONYMOUS debt collection argument. Receivership=Extinguishment once the Credit Default Swaps pay off. Nothing left but an unsecured carcass of extinguished debts.

    Not an attorney, just some blowhard shooting off his mouth.

  10. carie,

    Believe they on working on it now — but have known about for years.

  11. In addition to my comment….the investor has the note and mortgage signed by the homeowner but the pretender lender put the banks name on them as the payee/lender. That is why the investor cannot file the foreclosure…..the bank shafted the investor… and has used fraud throughout the closing. (The homeowner actually owes the investor.) but the homeowner did not borrow from the investor… privacy act prevents knowing who the investor is and the bank screwed them on the investment. This may make the note and mortgage null and void.

  12. I believe there are 2 sets of documents, unbeknown to the homeowner..One set for homeowner and pretender lender and the other set for the investor. The pretender lender puts the banks name on the note/mortgage and records in county records. Homeowner signs all the documents. Unbeknown to homeowner the funding and fees was wired to the closing by the investor. No where is the investor mentioned because of the Privacy Act. The pretender lender sends the other set of documents to the investor..(.this set is not signed by the homeowner)..and the note is stamped by pretender lender WITHOUT RECOURSE… In default the investor cannot foreclose with no documents signed from homeowner…now remember the investor has already wired the money and paid for all fees and the loan funding at closing….the loan and fees were paid off to the pretender lender at this point. .In default the investor cannot foreclose on loan and cannot go back to the bank (without recourse)…..and the pretender lender posing as the bank files the foreclosure…cause they have the set of documents signed by the homeowner with the banks name on them. The investor is out and the bank wants to grab the house to gain more money….when they never invested any money in the funding of the loan. This is the fraud at the origination…. The original Note and mortgage was sent to the investor…but it is worthless in default. That is why the banks cannot prove they have the original note..and most use a copy of the note or claim they lost it. Fraud on top of fraud.

  13. Whats your name? Borrower or snoop doggy dogg

    Bow wow wow wow yippy yo yippy yeah.

    The Banksters are no better than street doggs. We are gonna send them to the dogg pound

    http://www.youtube.com/watch?v=tUwnOsTm96A

    A little humor. otherwise the Banksters win.

  14. We are all screwed.

  15. first rule of survival is pay yourself first.

  16. and why do the higher ups want you to pay or do a loan mod, so they can get paid. BIG TIME.

  17. say tnharry, if you lent me money at 10 to 1 of which you actually have only 10%, why should I pay 100%? Why not just the 10%? That 10% is only what you are out.

    Oh, per Ben Benacke, that is the system, Congress approved it, we are just following the laws.

  18. and in fact it’s just about kepping their god damn books straight, which is all a pretense anyways. so screw you.

  19. oh yes tnharry,

    ” No matter how that loan is packaged, transferred, or securitized, the homeowner owes someone money.”

    BUT what if the loaned money was leveraged, ie created out of thin air, so

    what money is owed?

    It’s not a one for one exchange.

  20. Marie,

    It’s Thomas Jefferson. He charges $2000/h
    Just kidding 🙂

    Even if you find such a rare person, chances are that an individual does not have the resources to do the sales pitch to a judge practicing complex finance without a license. That’s the way the system is set up: asymmetry of resources.

    We have to wait for Neil to incorporate such service into his ‘packages’ relying on economies of scale to bring the price down.

    Why do you want to prove the negative? Have the impostors satisfied your defendants’ rights and proved that you caused them an injury?

    Have you asked in your interrogatories how much the insurance has paid them after you stopped paying?

    🙂

  21. California creating mortgage fraud task force

    http://www.latimes.com/business/la-fi-mortgage-fraud-20110523,0,1196882.story

    in the meantime the banks continue to foreclose in California

  22. ANONYMOUS:

    If there is irrefutable proof of insurance fraud, why aren’t these people in jail??

  23. Try it again–

    INSURANCE INSURANCE INSURANCE

  24. Does anyone know of experts available to present coherent testimony concerning this scheme. I’ve not been able to find anyone and I know there’s no way to unravel this mess in court without one

  25. tnharry:

    Just a newbie here – just trying to wrap my head around – “the homeowner owes someone money”

    If the original Deed of Trust was actually a valid mortgage transaction between the borrower on the Deed of Trust and the lender and beneficary on the Deed of Trust who drew up the “mortgage” documents saying they are funding the loan making it a secured obligation and the home is put up as secured collateral on the Deed of Trust against the debt on the Deed of Trust (and the note) and the borrower is signing that they agree to put up their home against the debt owed on a “mortgage”…

    Every standard Deed of Trust shows what happens when the debt secured by the home is paid off – here is one sample:

    “23. Reconveyance. Upon payment of all sums secured by this Security Instrument­, Lender shall request Trustee to reconvey the Property and shall surrender the Security Instrument and all notes evidencing debt secured by this Security Intstrument to Trustee. Trustee shall reconvey the Property without warranty to the person or persons leagally entitled to it………”

    Seems like the time has come for the powers that be to prove secured or unsecured and the onis should not be on homeowners who probably have no way of doing it and most of whom don’t even get it they are paying a debt that may not exist anymore and allowing their homes to be taken for a debt that either may not exist anymore or a debt which is unsecured (not secured by their home).

  26. Well — now we are getting somewhere —

    Quote — “the “borrower” is not defined as some homeowner applying for a loan.”

    Only problem with this post is — investors — as opposed to “security investors” (pass-through) — were/are the perpetrators. That investor could still be the bank — or some unidentified party.

  27. Unrelated to Who’s the Borrower— simply forwarding another resource that was sent my way today.

    Foreclosure Self-Help Book Receives Five Star Rating from Clarion Review
    2011-05-23 13:35:05.277 GMT

    Foreclosure Self-Help Book Receives Five Star Rating from Clarion Review

    PR Newswire

    FT. LAUDERDALE, Fla., May 23, 2011

    FT. LAUDERDALE, Fla., May 23, 2011 /PRNewswire/ — Americans facing
    foreclosure can get some much needed help now by reading foreclosure attorney
    Teisha Powell’s informative self-help book, “The Homeowner’s Guide to
    Surviving Foreclosure.” It is candid in assessing the real estate crash, and
    offers smart advice, telling homeowners how they can stall their foreclosures,
    walk away with little liability, plan their foreclosure defense, and save
    their homes. Clarion Review’s Marilyn Berry, noted that “The Homeowner’s Guide
    to Surviving Foreclosure” is “a very useful book” that “simultaneously
    reassures and informs”, and gave it a five star rating – the highest possible.

    As a huge number of Americans battle with unemployment, the obligations of
    mortgage payments are weighing heavily on them, with many people unable to
    avoid foreclosures and losing their basic means of shelter. What they need
    during these hard times is not just moral support but also action plans to
    resolve their foreclosure cases in the best way possible. “The Homeowner’s
    Guide to Surviving Foreclosure” does exactly that. Whether it is foreclosure
    defense in Florida or any other state, Powell’s practical advice will be
    useful for readers across America.

    Powell, an experienced attorney whose fields of practice include foreclosure
    defense, bankruptcy and real estate, is based out of South Florida, one of the
    country’s hardest hit states in the recent financial crisis. Powell tells
    readers how they can file for chapter 7 or chapter 13 bankruptcies to save
    their homes, how to refinance with no credit and no home equity, and defend
    their homes in a foreclosure when they cannot afford to hire an attorney.

    From sample documents and information on state-specific foreclosure laws to
    prescribing simple ways of finding helpful government programs, “The
    Homeowner’s Guide to Surviving Foreclosure” covers a very important subject
    matter without exhausting readers.

    To read the complete Clarion review of “The Homeowner’s Guide to Surviving
    Foreclosure,” visit http://www.tiptopwebsite.com/custommusic2/tlaw.pdf . “The
    Homeowner’s Guide to Surviving Foreclosure” can be purchased on Amazon.com.

    About the Author

    Teisha Powell, a licensed attorney, real estate investor, and former realtor
    in Florida, has been featured on many radio and television shows to discuss
    real estate and foreclosure issues. Her law firm handles foreclosure defenses,
    litigation, real estate and bankruptcy. For more information on Powell, visit
    http://www.stopforeclosurenowinflorida.com .

    MEDIA CONTACT: Teisha PowellEmail: tlaw45@hotmail.com Phone: (561)
    929-7229REVIEW COPIES AND INTERVIEWS AVAILABLE

    SOURCE Teisha Powell, Law Offices, P.A.

    Website: http://www.stopforeclosurenowinflorida.com
    -0- May/23/2011 13:35 GMT

  28. There are two different transactions with different parties which where never disclosed.
    Someone used the borrower’s signature to commit fraud. The note is null and void.

  29. “the homeowner owes someone money”…

    IT’S UNSECURED DEBT—BK—POOF!!!

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

  31. Two different transactions. This is making something that is admittedly complex to start with even more confusing. Homeowner is borrower in the note signed at closing, period. No matter how that loan is packaged, transferred, or securitized, the homeowner owes someone money. Neil, you have a very valid argument about standing and real party in interest, but you are creating some sense of false hope by continuing the idea that the initial obligation to pay money is somehow satisfied to a paid-in-full status during the transfers. Stick to the parts that make sense and work and let the false hope fantasy theories go by the wayside.

  32. Can Ken post this as a PDF we can dowload with the proper text formatting in it. It’s hard to read and makes sense out of one big huge file with no line breaks or paragraphs or formatting of any kind.

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