Who owns the loan? Ohio Supreme Court is taking up the question


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Monday, August 29, 2011
Who owns the loan?
The Ohio Supreme Court is taking up the question of what a bank needs to prove to force someone from his home.
Story by Mhari Saito
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The Ohio Supreme Court is getting ready to take on what some are calling the biggest issue in state foreclosure law in a century. The question before the justices is what paperwork does a lender need to force an owner out of his home? For Ohio Public Radio, WCPN’s Mhari Saito reports that what the state’s justices decide could have huge implications for the financial services industry.

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Antoine Duvall and his wife and young son waited until after Christmas to move into their freshly renovated two-story house in Cleveland’s Collinwood neighborhood. It was 2006 and Duvall, a salesperson for a legal document services company, had just happily signed a mortgage and a promissory note to get his loan from Wells Fargo. But soon, he started to get letters about his loan.

Antoine Duvall: We started to receive a lot of different information in the mail, not coming from Wells Fargo, saying that the process had changed a little bit and had been transferred or sold to a different entity. So it was kind of a little confusing.

Confusing, perhaps, but definitely the norm. Like many mortgages during the real estate boom, Duvall’s loan was bundled into a bond and sold on Wall Street to a new owner. And like so many loans, that transfer was never recorded in the county recorders office. Antoine Duvall’s attorney Gary Cook:

Gary Cook: The issue we’ve encountered is, as in Mr. Duvall’s case, that once the note is transferred there is a major difficulty in identifying who the actual owner of the note is.

And that becomes an issue when the owner of that note and mortgage wants to take back the house. US Bank, as the trustee of the bond that held Duvall’s mortgage, sued to foreclose when he fell behind on his mortgage payments. But at that time, court records showed Wells Fargo – not US Bank – owned his loan. Legal Aid of Cleveland’s Howard Strain says lenders filing for foreclosure need to prove they should be paid on the debt.

Howard Strain: So it’s like if I went into a bank with a check payable to you, Mhari, a photocopy of that check, and I said please cash it for me, I think we all know that the bank wouldn’t cash it. The security guard would escort me out.

Cuyahoga County and the 8th District Appellate courts dismissed the case against Duvall because the US Bank trust didn’t prove it owned his loan before it filed for foreclosure. But other courts around the state have ruled differently on similar cases, so the Ohio Supreme Court has taken Duvall’s case to settle the question. Peter Swire is a former housing official with the Obama administration who now teaches law at Ohio State University. He says the judges will have to deal with tough arguments from both sides.

Peter Swire: The homeowner says show us the note, you don’t have a right to this house, you can’t kick me out of this house. On the other side, the bank’s view is there’s a homeowner who stopped paying their mortgage. They knew they had a mortgage, they knew it when they bought the house and they get to laugh and stay in the house while the bank has to come up with paperwork they don’t have.

US Bank doesn’t comment on pending litigation. But In a friend of the court brief, attorneys for government-owned mortgage giants Fannie Mae and Freddie Mac sided with them, warning a ruling against the banks would create a “jurisprudential quagmire” that would slow Ohio’s mortgage markets.  Foreclosure is the most common type of case in Ohio’s courts. About 80,000 suits are filed a year. Again, law professor Peter Swire.

Peter Swire: If the homeowners win, the banks will have to work harder to prove they have the paperwork. The banks might have to pay some settlement to get the family out of the house. But our system of property will not collapse.

The Duvall case seemed like a good one for the state Supreme Court to rule on to settle the issue but it has taken an unusual twist. You might even call it another bank snafu. The homeowner, Duvall, now owes nothing on his mortgage because – in an action unrelated to the Supreme Court case – the loan servicer cleared his debt completely in June. Duvall doesn’t know why it happened and neither his loan servicer nor US Bank’s attorneys are commenting. It’s not clear what the state Supreme Court will do, but attorneys for both sides say the legal question is not going away. The court could still take up the Duvall case or it could address several other cases on the same issue, waiting in the wings. 

Listener Comments:


Yes, there are several little errors in the story, but none of them are material.

What is truly amusing about the banks’ position is that in every other type of case, they would be arguing the same position the homeowners are arguing against them. The issue is when can a party go to court for relief. When a consumer files a claim, corporate America first asks, “Does this person have the right to sue us now?” If they think not, they ask the Court to dismiss the case for lack of standing (or another, related, concept). Now that they are the plaintiff, banks are claiming that they don’t need to own the note or mortgage before asking a court enforce those contacts.

The issue is far more complicated than either the reporter or the posters here know. Yes, MERS is a major player (BTW – that stands for Mortgage Electronic Registration System), but so are the thousands of investments trusts (they are trusts, not bonds) called Real Estate Mortgage Investment Conduits (“REMICS”). It is interesting that few people mention the other major player who made this all possible. That would be Uncle Sam. Fannie and Freddie, and the federal government’s push for expanded housing lending, created an environment in which the people making the loans stopped being bankers (and I mean that in the good, old, down-on-the-corner banker who based his lending decision on what he knew about the borrower and the collateral) because they knew they would not have to live with the lending decisions they made. Why worry about collateral value if you are going to sell the loan tomorrow to some large, faceless investment creation of Wall Street? The way people were being paid changed from being based on the quality of the loan over its 30-year life, to the quantity of the loans sold in this quarter.

Why was the Duvall mortgage mysteriously paid off? I think it was because something in the facts of Duvall worries the banking industry. That something is, no doubt, the paperwork showing that the REMIC at issue had some interest in the note and mortgage. The devil’s in the details, and in Duvall, those details were spread over hundreds of pages complex investment documents.

Posted by: Ohio Lawyer on August 30, 2011 10:08AM

So the bank/servicer “cleared his debt” without explanation. Remember, it’s all about the money.

It’s simple, the bank/servicer got wind of a homeowner fighting back with no hope of winning (and possible threat of Supreme Court) and decided it was cheaper to give the homeowner his house than face the consequences.

It’s always about the money.

Now they can argue that there are no longer any damages – presto/chango – no basis for the lawsuit.
Posted by: Tomc (United States) on August 30, 2011 1:08AM

The story is excellent as the reporter (Saito) interviews the Homeowner (Duvall) the Attorney (Cook) and legal aid (Strain) on the real question in front of Ohio’s highest court …To have STANDING, as a plaintiff, in a mortgage foreclosure action, must a party show that it owned the NOTE and the MORTGAGE when the complaint was filed? The bank (US Bank) attempted to claim ownership in order to foreclose. But when forced to prove they owned either…they could not. and instead they had the loan servicer and Wells Fargo“pay-off” and “satisfy” the mortgage, to COVER-UP the FRAUDulent transfer of the note and mortgage. Great Work by attorneys Cook and Aten
Posted by: OHIO FRAUDclosure (OHIO) on August 30, 2011 1:08AM
For the whole story and background go to ohiofraudclosure (dot) blogspot (dot) com
Posted by: OHIO FRAUDclosure (OHIO) on August 30, 2011 1:08AM

Open letter to the New Jersey Supreme Court re foreclosure.



Posted by: HurtingHomeOwner (USA) on August 29, 2011 11:08AM

jurisprudential quagmire what a bunch of B.S. from fannie and freddie what it means is they will actually have to produce paperwork that was never kept,filed or recorded. Fannie and freddie should be closed and people should get their homes free and clear…..
Posted by: gregory (sj) on August 29, 2011 11:08AM
>The question is NOT “who owns the deed”, it’s who owns the note. With ALL due respect, that’s sloppy reporting and/or editing.<

Absolutely correct! Sloppy reporting, though, may be better than no reporting. NOT!

To get to the bottom of this Ponzi scheme and to determine the names of the culprits who designed and managed it, strong, objective, investigative reporting is needed… by every media resource who desires to claim themselves as “journalists.”

Otherwise, the issues will remain as clouded as are the titles of every home purchased and/or refinanced during the last 15 years wherein the ghostly “specter of MERS” (Mortgage Electronic Records Service) appeared in the paper work of real estate closings.

This “legal ghost.” MERS, continues to haunt the land registries and courts of our nation. It creates fear in the hearts of “regulators” and spineless prosecutors who are called upon to shine the light of day into the crypts where the dreaded “notes” are hidden.

No owner of property in the US, and no local, state, or federal court will be relieved of the “moanings and groanings” of MERS until it is completely exorcised from the “chain of title” by a massive quiet titling of all affected properties.

The only way to do so is to “punish the MERS stakeholders” who have been “protected” by evil friends in the environs of the SEC, the Halls of Congress, the towers of academia, and the Statehouses of every state (perhaps with the exception of New York.)

Pray that brave souls…. like the Knights in Shining Armor of old will step forth and challenge the Leviathan that has is the “Banksters” who have “Securitized the World.”

Every evil participant in this pervasive and contagious plague must be “burned at the state” or confined forever in the “towers” of our land. A “new prince” of a “new kingdom” must be installed!
Posted by: DanJS on August 29, 2011 10:08AM

The question is NOT “who owns the deed”, it’s who owns the note. With ALL due respect, that’s sloppy reporting and/or editing.
Posted by: In the industry (cleveland, ohio) on August 29, 2011 3:08AM

29 Responses

  1. […] and let her or him reach financial sovereignty faster. Mouse here forRelated LinksRelated LinksWho owns the loan? Ohio Supreme Court is taking up the questionRelated PostsQualify for an FHA LoanTips for a Mortgage refinance in […]

  2. We can save the Attorney General a lot of time. The zero-downed debt relfects sale of debt period to another Nominee c/o REO Lender and REO Broker affiliates of National Bank exempt from unlawful business acts. Attorney General allowed to enforce Consumer Protection Laws to find out but if they don’t have ‘evidence’ OCC will rubberstamp ‘proprietary’ under visitorial powers affiliate of national bank.

    Mortgage Electronic Registration Systems thru May 1999, being affiliate of Chase Manhattan Corporation HURE affiliate of national bank1

  3. Usedcarguy – the Title Agent issues policy as ordered by ‘national bank’ as affiliate exempted from all unlawful business acts.

    The ‘Title Agency’ issues Lender’s Policy. Refinances call and get copy and you’ll find out title agency won’t give you a copy for they don’t have the Lenders Policy they subrogated the loss at RETAIL the ‘Lenders Policy’ issued by Old Republic Title. The depositor will get insurance on ‘Trust’ c/o Old Republic International.

  4. Christopher King Awesome Update – Do you only document New Hampshire? Same type of case coming up in IL in a couple of weeks in which Aurora did the same. Would love for you to document!

  5. Simon awesome! Awesome!
    Cool software to map the relationships CMAP its free. Call for more info cause the spring map will reveal the picture you see and the Court can’t ignore. 9733473475

  6. […] Who owns the loan? Ohio Supreme Court is taking up the question MOST POPULAR ARTICLES GET COMBO TITLE AND SECURITIZATION ANALYSIS – CLICK HERE WHY DID THE LOAN SERVICER CLEAR THE LOAN OBLIGATION DOWN TO ZERO? Monday, August 29, 2011 Who owns the loan? The Ohio Supreme Court is taking up the question of what a bank needs to prove to force someone from his home. Story […] […]

  7. This is insane.

    In 2003, WFHM was the mortgagee by assignment of a defunct 2001 lender. WFHM sent me a postcard in 2005 offering to refinance – but we “didn’t qualify”, and WFHM referred us to a correspondent lender. I refi’d my 17 year home in 2005, and would you believe – the first bill was from WFHM!

    I sent notice to cancel in 2008 (misrepresentation and failure to disclose) but then Wells Fargo Bank, NA filed foreclosure after screwing up escrow, giving itself a MERS assignment from the “original lender” 30 days after the filing. More fraud…

    So I brought pro se complaint in ILND for TILA and lender fraud and currently still in Fed court.

    In Chancery court, the servicer stated that it is the assignee and holder of the Note. But in Fed court, the servicer denies being the holder, stating motion that it is merely the servicer “for the investor” who it doesn’t name.

    In 2010 I by-passed its attorney and wrote the servicer to ask for the true owner of the debt under TILA – and the servicer writes back stating that Fannie Mae is the “investor”, and WFHM is Fannie’s agent and there will be no assignments as MERS holds legal title as mortgagee. WTF???

    I checked MERS database – my loan is “inactive”, showing Fannie as “investor” and Wells Fargo Home Mortgage as servicer.

    I QWR’d the servicer for a history of account since inception (for the umpteenth time) and as usual it sent only the last year of history – but this time, it shows a huge “foreclosure settlement in full” payoff of over $30K more than the original loan amount, in 2010! Plus, reimbursements for “property inspections”, “miscellaneous”, etc.

    But, the large payment was not deducted from the balance (balance hasn’t changed since 2008). I “think” they sent me the “wrong” accounting (there must be some kind of dual accounting, one for only the servicer to see and the other for the mortgagor to see).

    On top of that, the original-named Lender (who wasn’t the lender, but its’ parent – a non-party to the transaction – was the real lender, and also was affiliated with Wells Fargo Bank, NA) had reported the refi on my credit report as “purchased by another Lender” since 2005.
    Now, I just got a copy of my credit report again – and beginning in the same month that the servicer receive the “settlement” payment, the originally named Lender is reporting delinquent, late, in foreclosure, with the entire amount and then some due!

    On top of that, the servicer, who had been reporting since 2005, ALSO is reporting delinquent, late, and in foreclosure!
    So now I got the “original lender” AND the servicer attempting to collect upon the refi debt, although both have been paid money from GD knows who…while the servicer is attempting foreclosure based on a fraudulent affidavit from MERS (which, in spite of the “assignment”, still holds legal title??)

    I have written Fannie Mae (and FHFA) a number of times and have never received a response. Oh, and both “Lender” and “servicer” are reporting “Fannie Mae” as holding the collateral. Imagine that. 3 different account #’s on my credit report, plus the two in my closing papers (which the lender would not address – hence the misrepresentation/non-disclosure). That’s 5 Effin accounts.

    To top all that off, I just found some town of Leon, Florida mortgage assignments that feature Scott M. Swanson (2 different signatures, he signs one as Asst Vice President of Merrill Lynch Credit Corp FL (assigning to Wells Fargo Home Mortgage in MN), another as AVP of WFHM (assigning to Standard Mortgage Corporation of Georgia), and another as AVP of Amercan Mortgage Capital, Inc. (assigning to WFHM).

    The reason this is of value to me is: This Scott M. Swanson name appears on the back of the copy of Note filed with Wells Fargo Banks, NA’s 4closure complaint, as an undated endorsement made obviously with a rubber stamp that reads Without Recourse Wells Fargo Bank, NA pay to the Order of by Scott M. Swanson .

    Hmmm… I think the NOTE was robosigned, too. I am getting very confused – I can’t wait for trial……

  8. I think that makes the title agent an accessory (named defendant) to the action.

  9. Oh my God, Nancy Drewe, you’ve solved the riddle! This is the screenplay for my transaction (substitute Bear and Citigroup Global).

    This is from a layperson who got p-o’d enough to figure it out and explain it. This is the incestuous relationship that makes it evident that the confict of interest is really anti-trust. I’m gonna send this to my DOJ guy. It is well documented that Wells Fargo was the largest supplier of capital to the subprime markets. With the European counterparts on the U.S. Dollar LIBOR panel running book (along with Goldman and others) there was only one guaranteed outcome. Massive defaults.

    I think that about nails it.

    Maher, I’m disappointed. You should have told that story.

  10. Excellent. Secure copy of ‘cash’ which did change hands during Origination between Non-Deposit Trust Company Non-Member and ‘Originator’ Seller Depositor c/o Tempoary Lender’s Mortgage Servicer’s affiliate.

    Example: Cashier’s Check goes to bank closing agent in which cash payee is bank closing agent, cash is for new loan# referenced on cashiers check. The Account Holder – DBT Co LTD who is Deutsche Bank Trust Co of New Jersey LTD a Non-Deposit Trust Company Non-Member of Federal Reserve System, one whose commercial check accunt ‘cash’ held inside of Deutsche Bank Trust Americas Co, New Jersey, in which closing was in NJ, bank closing agent in NJ, and Depositor in Frederick MD transactions ordered by Premier Asset Services Closing Agent Minneapolis MN c/o Wells Fargo Banki NA Correspondeing Lending Mortgage Servicers’ affilaite (subsidiary)….. That Loan# 0123456789 is the connector between the ‘Seller’ and ‘Purchaser’s Institutional Investors Bank’ and Borrower c/o Loan# the RETAIL TRASACTION with borrowr with Nominee assigns and successors the howner of the debt the Purchaser’ DBT Co LTD who sold back servicing rights to WFHM

    Patriot Act 2001 FinCEN Regulations in place to protect economy were circumvented

    All money ‘cash’ moved attached to ‘Mortgage Servicers’ OCC 2002 Supremacy Clause exempts Mortgage Servicers affiliates of national banks from having to report money transactions to FinCEN.


    NANCY DREWE 973-347-3475

  11. Dahotruth please call been awhile…

  12. They caved because they cannot risk losing ONE case that could set precedent causing them to lose thousands of cases


  13. Big cases today and tomorrow in Maryland and in New Hampshire:



    KingCast to shoot Nationstar Mortgage Attorneys with a Canon, they defied a Court Order to produce original docs yet still foreclosed on Marie Miller.

    A copy of the Court Order to produce originals in at the link. WTF???

    Kelly Ayotte you’re a Senator, why do you allow this sort of thing to happen in your State, Home Girl?, It looks like these guys are ready for the KingCast/Mortgage Movies Canon 60D 1080p treatment on Friday…. I’ll pump them full of digital lead. You remember Marie Miller from one of my first Mortgage Movies relative to the Jeanne Ingress case where Ms. Miller stated at :20 (correctly IMO) “They never should have foreclosed without the wet ink note…. they are committing Fraud against us, Fraud upon the Court and Fraud all around.”

    Also is a link to Anderson v. Burson case in MD Supreme Court today.

  14. Oh My. If you can’t trust the federal government who can you trust?
    Realty Trac: Foreclosure Homes Make Up 31% of all Residential Sales.

    That means ‘REO’ properties acquired during Sheirff Sales facilitied by REO Lenders/Underwriters/Brokers c/o Tempoary Lenders real estate brokers who purchase properties and resell at a profit who have to kick back some of that profit at the end of the year will be the broker/owners under agreemetn with Origiantor Wells Fargo Bank NA, for example.

    In court, the moving party must show that it validly holds both the mortgage and the underlying note in order to prove standing before this Court”. In other words, Mr. Banker, if you want to foreclose, or file a Proof of Claim and set aside the ‘stay’ order that stops you from foreclosing, you must “Prove” that you own “both” the mortgage (deed of trust) and the note (meaning: prove a valid “chain of title”).

    My good friend in California in a mess with Wells Fargo Bank NA. Originator Seller of loan, depositor after 90 days converted Purchaser’s cash into ‘certificates’ and attached loan revenue from performing loan into a Freddie/Fannie deal.

    Who in the State of California ignoring the law allowing the valuable time of the state courts to be wasted? Is the Division of Corporations the beneficiary of all uncontested foreclosures?
    Why does every resident as a consumer have to contest the foreclsoure then the ‘foreclosure-mill’ trustee is not the onwer of the mortgage note and is allowed to file documents that are not certified from the getgo?

    Which body Judicial, Executive Brnach continues ignoring taking possession of property by deceptive acts in crinimal court would be larceny, but for the fact the ‘Mortgage Servicers’ affilaite’ of a national bank … foreclosure-mills such as Aztec Foreclosures’ trustees take real estate owned promissory notes claiming they are with beneficial interest of a trust deed without ownership of the underlying note.

    Did not the Walker Case No 10-21656-E-11 make clear such taking possession of property thorugh deceptive acts larceny? Minimally lacking ownership of a note voids beneficial interest under California law?

    Are the Note and mortgage inseparable, and the assignment of Note alone a promise to pay somebody a nullity.

    Most if not all judicial and non-judicial foreclosing-mills claim ownership of mortgage through the assignment c/o subservicers collection rights who clearly are not the owner of the mortgage-backed Note.

    How do the public offices and courts accept complaints from foreclosure millls trustees who lawfully cannot foreclose?

    The act of acceptance of the complaints for foreclosures places consumers in harms way; forces consumers who contest to fight in bankruptcy court where dollars primary and the equity secondary is that the problem?

    Weingartner — Kansas, Ohio and Michigan and other states making ownership of the Note a requirement in order to commence a foreclosure, whether in a judicial or non-judicial state.
    See, Eastern District Bankruptcy Court for New York, In Re: Ferrell L. Agard, Case No. 810-77338, February 10, 2011

    What will you do if you find out FREDDIE MAC/Fannie Mae own ‘something of yours’ and make the SPV proprietary so you don’t know whihc ‘loan trust’ c/o Chase Home Finance, LLC, Norwest Mortgage, Inc., Wells Fargo Home Mortgage, GMAC Mortgage, Americas Servicing Company, Premier Asset Services, Litton, AHMA, Bank of America, RECONTRUST, Wells FArgo Bank NA is not the owner of the mortgage note ‘deed of trust’ rather its owned by … the ‘Depositor’ Seller of the ‘Origiantion’ to MBS, ABS, CMBS, RMBS, CMO, CDO, …Hide n Seek… How is that possible? FEDERAL RESERVE (proprieatry) c/o OCC visitorial powers all Mortgage Servicers’ affilaites (c/o national banks) can withhold disclosure and taking of property, taking possession of property in larcenous manner and State Attorney General Office of Consumers Affairs unable to help unless evidence reveals the acts taking place are prohibitied, nullity, voide, …where woudl one get the evidence of the cash which was exchanged between Seller of the Loan Originator Depositor c/o Purchaser Institutional Investor.

    The UCC, at 3:309(2), says that the bank must ‘prove’ its right to enforce the Note. You ask the bank, “Where did you get that Note? Show me the endorsements”. The bank must show the ‘chain of title’ from the original Lender bank to itself, and that it cannot do. Almost always, the Lender sold your Note to Fannie Mae the day it was signed which then, within days, sold it to another entity and so on until it ended up in a “mortgage backed security trust”, or MBST. Fannie Mae no longer owns your Note. So what to do since FORECLOSURE-GATE and the OCC’s C&D’s all of the owners are coming back Freddie Mac Institutional Investor/Fannie Mae Institutional Servicer without disclosing proprieatry information the ‘SPV’ they purchased the MBS, etc. through. Wait can they do that? Yes, since the Federal Reserve took control of OCC under US Code in 2006, and US Code closed access to discovery of proprietary information FOIA c/o US Code prohibiting in 2010 all proprietary information related to all transactions relatedt o Freddie/Fannie.

    The ‘loan number’ you make payments to a SERVICER at RETAIL for the retail mortgage loan which exists for 90 days sent to lockbox. Who gets the cash? The servicer c/o lock box processing clearing house.

    The Issuing Entity ‘Loan Trust’ a SPV, the Purchaser, 90 days prior to the Loan Trust PSA closing pays cash to Originator’s Seller c/o its Depositor which is not a national bank just an affilaite of a Mortgage Servicer using its national bank’s name.

    Meanwhile, the ‘Servicer’ handles business transactions related under Uniform Commercial Code (UCC), Section 309 of Article 3 (UCC 3:309) mortgage promissory note.

    The very first transaction of cash, in which the Cashier’s Check c/o Non-Deposit Trust Co Non-Member paid cash c/o Institutional Bank, or Electronic Transfer of Funds in which CASH was exchanged between Seller of Loan and purchaser of rights to what? This third party purchaser is not related to consumer, not related to servicer, but is related to Seller, the Origiantor whose Depositor is responsible for issuign ‘Certificates in Owners Name c/o ‘SPV’ some Issuign Entity, meanwhile, Purchaser ‘sells back rights’ to collect monthly payments retail servicing the loan securing a few days later borrowers signature on a promissory note in which the language of the note claims the Servicers assignee and or successors will have access to ‘property’ in the event of a default.

    The Originator ‘Seller’ accepts cash and responsiblity to track the prefunding given to DEPOSITOR’S SPV.

    Originator-Seller’s Depositors’ Servicer’ tracks assets while the cash is converted by Originator-Sellers’ Depositor into ‘certificates’ representing ABS, MBS, ‘mortgage backed notes’ held by the purchaser in a private purchse.

    Servicer controls collection policy, influences proceeds collected, charge-offs, recoveries on loans and ‘returns’ excess to the ‘SELLER’ who is the “Originator.’

    A Servicer collects payments, monitors assets of structured financial deal.

    The servicer can be the originator & ensures loan repayments are paid to the Special Purpose Vehicle. When SPV a loan trust, the TRUSTEE is a vital part of deal as ‘Gatekeeper’ of assets held in name of issuer. Trustee is part of SPV which is wholly owned by Originator.

    Trustee has a FIDUCiARY duty to protect owners of the assets (certificates).

    Example, controlled interest only payments made, MBS will return principal to investors in a series of defined period payments usually winthin a year, and that is why we see the private owners securities admin will file a 15-D Form indicating the debt being retired early.

    Originators of mortgages don’t care about ‘credit quality’ just appraisal % of loan relative to LTV. Originators recevie GREATER INCENTIVES for VOLUME. Originators do not bear long-term risk of assets. Originators simply profit by fees associated with originaton and securitization.

    Servicer significantly affects cash flows to the investors”
    – controls the collection policy, which influences the proceeds collected,
    -the charge-offs and the recoveries on the loans.
    -Any income remaining after payments and expenses is usually accumulated to some extent in a reserve or spread account, and
    -any further excess is returned to the seller.

    Pooling & Trasfer:
    Originator ‘initially owns assets in deal’
    Loan; bond issue, issuance of stock.
    SPV (Issuer) a tax-exempt company ‘loan trust’ funding assets transferred to issuer, there is no recourse TO ORIGINATOR.
    Governing documents of ‘Issuer’ RESTRICT activities to only those necessary to complete issuance of securities.









    Alt-A mortgages are an ill-defined category, generally prime borrowers but non-conforming in some way, often lower documentation (or in some other way: vacation home, etc.

    “A Journey to the Alt-A Zone: A Brief Primer on Alt-A Mortgage Loans”. Nomura Fixed Income Research. http : // www . securitization . net / pdf / nomura _ journey _ 060303 . pdf .

    Allow mortgage originators to replenish their funds, which can then be used for additional origination activities

    Everyone but the consumer knows who owns the mortgage-backed not sold to a mortgage-backed security placing a clam on the ‘cash flows’ from mortgage loans through process called securitization also known as collateralized mortgage obligations CMO’s owned by institutional investors. Securities backed by mortgage receivables MBS those backed by other types of receivables ABS. Government National Mortgage Assocaition (GNMA or Ginne Mae) sold securities backed by a portfolio of ‘mortgage loans.’

    1985 significant in that ‘securitization techniques developed in mortgage market applied for first time to class of non-mortgage assets — automobile laons – welcomed in GMAC Mortgage Corp Company who acquired Norwest Mortgage, Inc.

    1985 ‘Marine Midland Bank’ CARS 1985-1 first suot receivables trust.

    1986 credit card private placement outsanding bank card loans demonstrated to investors if yields high enough,loan pools coudl support assets sales with higher expected losses and administrative costs than was true within mortgage market. NO CONTRACTURAL OBLIGATION BY THE SELLER TO PROVIDE RECOURSE yet retain origination and servicing fees.

    1990’s securitization technology applied to number of sectors ‘reinsurance’ and insurance markets including life and catastrophe bonds,


    Securitization only reached Europe in the late 80’s, when the first securitizations of mortgages appeared in the UK. This technology only really took off in the late 90’s or early 2000’s, thanks to the innovative structures implemented across the asset classes, such as UK Mortgage Master Trusts (concept imported from the US Credit Cards), Insurance-backed transaction (such as the ones implemented by the insurance securitization guru Emmanuel Issanchou) or even more esoteric asset classes (for example securitization of lottery receivables for the Greek government, executed by Philippe Tapernoux).


    ‘TECHNOLOGY TAKING OFF LATE 1990’S EARLY 2000’S thanks to innovative structures implemented across the asset classes such as UK Mortgage Master Trusts, Insurance-backed trasaction like Emmanuel Issanchou ‘insurance securitization guru’, or more esoteric asset classes, securitization of lottery receivables for Greek governmetn by Philippe Tapernous.

    “Asset Securitization Comptroller’s Handbook”, Comptroller of the Currency Administrator of National Banks, 1997

  15. Servicers play a big role in wrongful and illegal foreclosures.

    When will the FEDERAL RESERVE, C/O OCC be accountable?

    THE OCC has ‘2’ bosses. Have you ever been in that ‘awkard position’? One has power and authority, and you are stuck between both with no authority have responsiblity and accountability and no authority.

    OCC a federal regulatory agency with Extraordinary powers from CONGRESS, under US CODE 2006 placed under FEDERAL RESERVE not part of Federal Government.

    Chairman Bernanke of FEDERALRESERVE oversee’s daily activities of OCC whose extraordinary powers ‘visitorial powers’ Supramacy Clause all Mortgage Servicers’ affiliates have privileges of national banks.

    No enforcment of alleged unalwful business acts RETAIL period.

    No enforcements resultes in ‘mechanized’ processing of harms against consumers who continue suffering nationwide repetitive harms in all 50 states, including misapplication and missing payments, if not attached to a national bank would not be white collar crimes rather criminal enforcement by Executive Brnach in each county, state of the nation.

    Does Aztec Foreclosure Services have their own properieatry software application for non-judicial states in which TRUSTEES who are alike REO brokers c/o robo-firms electronically reduce foreclosure timelines and errors using what software on the CLOUD with LPS, FIS, Fidelity, MERS, TD Services, …

    U.S. Bancorp CDC Selects The Mortgage Office™ as its Loan Servicing Platform News Release at bottom of post


    and REO PROPERTIES, real estate transactions, ‘funds’ deposited by ‘borrowers’ commercial clients this means not ‘consumers’….

    Use our Mortgage Accounting software to manage escrow and impound trust accounts, REO properties, real estate transactions and funds deposited by borrowers. Reconcile your trust accounts to your bank statement easily and automatically.

    With the Trust Accounting Module You Can
    •Handle, control and account for all trust monies received
    •Meets or exceeds currently established legal and accounting standards
    •Maintain any number of trust accounts with unlimited clients (sub-ledgers)
    •Generate reports, reconcile bank accounts, issue checks and disburse funds
    •Complies with Federal and State regulations including CA-DRE and B&P code
    •Processes deposits, adjustment, computer and manually written checks
    •Generates the Trust Status Report (RE 855) and Trust Bank Account Reconciliation (RE 856)
    Compliance with the statutes and regulations that govern the handling of trust accounts is essential to the health of your business. Maintain your records properly by investing in a tool specifically designed for the lending professional.

    View The Mortgage Office™ Hardware and Software Requirements

    State and Federal Regulations Dictate HELOC / Revolving Credit
    servicers provide borrowers with timely notices.
    ABS’S HELOC/Revolving Credit module allows you to generate those notices as well as informative management reports at any time, quickly and with minimal input.

    With the HELOC/Revolving Credit Module SERVICERS CAM
    •Assess finance charges and generate billing statements in a single step
    •Generate detailed account activity, summarized information and finance charge calculations
    •Automate the entire draw process
    For those of you with the added complexity of multiple funding sources, the assistant will accurately distribute mid-month cash advances to more than a single funding source or lender and prorate disbursements accordingly.


    CAN ACH Express FIND LOST Payments inside the Automated Clearing House (ACH) ?

    ACH Express module processes loan payments and interest disbursements electronically and the funds are transferred directly from/to your bank account. So how could money be missing? You know all of the many stories where final mortgage payment misapplied and property placed into forced default, or final loan payments of a refinance misapplied and property placed into false defaults.

    •Electronically collect borrower payments and directly deposit funds to your lenders
    •Eradicate human error and late payments
    •Save money by eliminating mailing labor and hard costs
    •Process thousands of borrower and lender payments effortlessly
    In the past, only the largest and most prestigious companies enjoyed the benefits of electronic billing. By using ACH Express your company will be perceived as innovative, technologically advanced, service oriented, and efficient; a company that your borrowers and lenders can trust.

    Mortgage Pool Servicing
    The Mortgage Pool Servicing Module is designed to automate the managing of pools, partnerships, REITS, Mortgage Funds, LLCs, MICs, and non-performing loan pools. With this module you can determine the value of the pool at any given date while taking into account such things as loan payments, advances, accrued interest, late charges and deferred interest.

    With the Mortgage Pool Servicing Module You Can
    •Service an unlimited number of pools and partners
    •Easily accept partner investments, issue distributions and process withdrawals
    •Produce on demand professional pool statements
    •Run year-end reporting, including Section J of the IRS schedule K-1, 1099-INT, etc.
    Take your loan business to the next level by producing professional looking, accurate and up-to-the-minute partnership statements.

    View The Mortgage Office™ Hardware and Software Requirements


    If you are a Threshold Broker operating under your DRE license, this module produces the mandated RE881 and RE852 reports.

    With the DRE Reporting Module You Can
    •Ensure state compliancy
    •Decrease your CPA auditing and preparation fees
    •Prepare California DRE forms 881 and 852
    Information collected through the Loan Servicing module is used to accurately produce all the statistical information required on DRE Mortgage Loan/Trust Deed Annual Report form 881 and the Trust Accounting Report RE 852 for multi-lender transactions

    U.S. Bancorp affiliates utilizes all modules?
    Applied Business Systems:

    Default Service Tracking
    The Default Services and Tracking (DST) module provides a bi-directional interface between your Loan Servicing module and participating default service providers in a real-time environment. The DST Module is an easy to use, accurate and robust way to manage loan defaults.

    •Electronically transmit defaulted loans to the vendor of your choice
    •Obtain Real-time bi-directional integration
    •Dramatically reduce the error-prone tasks with paperless processing
    •Request to start a foreclosure with one simple click
    Until now, automated, integrated systems such as these have only been available to large banks and national servicers, allowing them to take advantage of the latest technologies and reducing their costs dramatically. With DST you have the same capabilities and functions and it is included free of charge with the Loan Servicing module.


    The Mortgage Office™ Hardware and Software Requirements

    Workstation Configuration •Microsoft Windows Desktop Operating Systems
    ◦Windows 7 (Professional, Ultimate)
    ◦Windows Vista (Business, Enterprise, Ultimate)
    ◦Windows XP Professional
    •Processor Speed: 2 GHz or faster
    •RAM: 1 gigabyte or greater

    Additional Required Software •Microsoft SQL Server 2005 or 2008 (applicable to SQL server version of The Mortgage Office only)
    •Microsoft Office 2003 or newer. Microsoft Office 2010 is ecommended. Home and Student editions are not supported
    •Microsoft Internet Explorer 7 or newer

    MSR’S – Mortgage Servicing Rights

    Misconduct on the part of the mortgage servicer’s affiliates?

    CONSUMER ALERT – What to do? What to do?


    The ‘Mortgage Servicers’ Affiliates c/o Subsidairies of the ‘Wells Fargo Bank NA dba Cornerstone in agreements with third party’s consumers and their attorneyh’s not investigating who the real party’s are standing before the courts.

    Don’t assume the MSR’s have the right to do what they do to you.
    How did they get the right and are they applying the cash you send them to the creditor who owns the mortgage note? How would you know when you don’t know who owns the mortgage-backed note?

    You’ve made payments for 29 years to who? How come so many people are in court trying to get property taken from they by deceptive acts like the last payment not applied and a false default occurs and the servicer quietly takes over possession of property at sheriff sale. How does that happen? Or how have you been paying your mortgage paymetns for 15 years, go to take a refiance and find out you are denied because (4) PAYMENTS WERE MISAPPLIED AND SOMEONE SOLD THE SERVICING RIGHTS TO ANOTHER SERVICER AND YOU HAVE NO NOTICES, NO RESOURCE NO ONE IN THE COURT OR GOVERNMETN WHO WILL HELP YOU!

    Do you make/made payments to Chase Home Lending, Wells Fargo Home Mortgage, Ameirca’s Servicing Company, GMAC,
    Litton Loan, Bank of America, Wachovia, Wells Fargo, etc. (owns the note). Note is owned by another entity not the “servicer” you send your payments too.

    Servicers are debt collector who by agreement with (…’master servicer’ and/or ‘servicer’ and or subservicers ) c/o servicing companies’ back offices do generate bills, answer phones, and collect via lockboxes monthly payments c/o processing centers who redistribute funds. The ‘endorsement’ of mortgage payment on back of a check payable to?

    A servicer can be defined as the company responsible for the following items:

    1. Sending out bills
    2. Accepting payments
    3. Applying payments
    4. Handling the escrow account
    5. Imposing charges and fees
    6. Handling any bankruptcy claims
    7. Carrying out foreclosures.

    The significance of being a servicer is certain laws apply including RESPA – Real Estate Settlement Practices Act. Existing state and federal laws can be very helpful when dealing with a servicer that lies, adds bogus fees, misapplies money, etc.

    Servicers play a big role in wrongful and illegal foreclosures

    A contractual agreement where the right, or rights, to service an existing mortgage are sold by the original lender to another party who specializes in the various functions of servicing mortgages. Common rights included are the right to collect mortgage payments monthly, set aside taxes and insurance premiums in escrow, and forward interest and principle to the mortgage lender.

    Investopedia Says:
    The mortgage servicer must supply an annual statement outlining the duties that were performed. In return for this assistance, the servicer is compensated with a specific fee outlined in the contract established at the beginning of the agreement. Mortgage servicing rights can be bought and sold, resulting in the transfer of any administrative obligations.

    Many vertically integrated lenders today will service their mortgages in-house, which means they will also own both the loan and the servicing rights. These firms will also save money in the process.

    The business of selling servicing rights for mortgages represents a large business niche, and is a multi-billion dollar industry.

    For example:
    The Mortgage Office™ is a powerful suite of lending solutions. With our comprehensive core loan servicing products and robust add-on products, you can custom build the most powerful and personalized mortgage software solution for your business.

    The Mortgage Office Gives You
    •Powerful. No other mortgage management software can match the power and robustness of The Mortgage Office
    •Flexible. From the most simple interest only loans, to the most complex commercial loans, our mortgage software is the most flexible in the industry today.
    •Easy to use. From emailing statements, to built-in document scanning, most functions can be done in one click or two.
    •Increased productivity and accuracy. Our mortgage loan software automates and streamlines the process of loan servicing so your business can run more efficiently
    •Enhanced reporting and forecasting abilities. Management and investors get detailed daily, weekly or monthly reports. Choose from hundreds of built-in reports or create your own
    •Federal and local compliance. Enjoy peace of mind during audits knowing that you are meeting or exceeding local and federal regulations
    •Scalability. Only buy what you need — as your business and services grow, your mortgage software can grow with it, making it an investment that will serve you for the life of your business
    •Live software support. Personalized service & support from industry experts

    U.S. Bancorp CDC Selects The Mortgage Office™ as its Loan Servicing Platform


    Read Press Release

    LOS ANGELES, Calif., August 1, 2011 – Applied Business Software Inc. (ABS), developer of The Mortgage Office™, the leading loan servicing software solution for the lending industry, is excited to announce that U.S. Bancorp Community Development Corporation (USBCDC), St. Louis, MO, a subsidiary of U.S. Bank (NYSE: USB), has selected The Mortgage Office™ as its servicing technology to manage its growing portfolio of New Market Tax Credit related loans.

    Charity Braden, Director of Investment Fund Management and Loan Servicing for USBCDC said, “We needed a more robust and flexible loan servicing platform to manage our growing portfolio of New Market Tax Credit (NMTC) loans and to replace the multitude of individual spreadsheets used to track loan activity and subsequent cash distributions. Another goal was to be able to track upper-tier leverage loans within the NMTC structure and to streamline the internal accounting processes related to all of these loans on one system, thereby eliminating duplicative work.

    USBCDC found this flexibility with The Mortgage Office™ software, along with the added bonus of affordability. ABS agreed to develop modifications to their current system in order to address the specific requirements of the NMTC deal structure. This will allow us to better service our own Community Development Entity (CDE), as well as better service and expand its marketable 3rd party services. We couldn’t be happier – we’ve already received the major part of the scoped customizations!”

    About U.S. Bancorp Community Development Corporation (USBCDC)
    USBCDC finances community development and affordable housing projects through the use of New Markets Tax Credits, Historic Tax Credits, Low-Income Housing Tax Credits, and Investment Tax Credits in Renewable Energy. USBCDC is the most active New Markets Tax Credit investor in the country, investing billions of dollars nationwide in hundreds of transactions. These equity investments have provided much needed revitalization and new resources to communities throughout the country. It is a subsidiary of U.S. Bank, the fifth largest commercial bank in the United States, whose parent company is U.S. Bancorp. Learn more at http://www.usbank.com.

    About Applied Business Software
    Applied Business Software, founded in 1978 and creator of The Mortgage Office™, is a market leader and global provider of software systems and solutions to the lending industry. The Mortgage Office™ is a complete suite of software products designed from the ground up to specifically address the needs of those who originate and service loans. The Mortgage Office™ has consistently rated superior in design, system interface, expandability, and ease of use. This Windows application collaborates fully with the Microsoft Office suite of products and is designed to make loan servicing more profitable and your overall business run more efficiently. ABS is based in Long Beach, California. For additional information about ABS’s products and services, visit http://www.themortgageoffice.com or call (800) 833-3343.

    Applied Business Software, Inc.
    Jerry Delgado
    (562) 426-2188
    jerrydelgado @ absnetwork . com

    U.S. Bancorp CDC
    Clair Higgins Community and Media Relations Manager, USBCDC
    (314) 335-3321

    Loan Origination Software | Loan Servicing Software | Mortgage Pool Servicing | Trust Accounting Software | Escrow Software | ACH Software | ARM Software
    Collateralized Mortgage Obligations | Construction Loan Software | Credit Reporting Software | Default Services and Tracking | DRE Reporting | Financial Calculator
    Graduated Terms Mortgages | Line of Credit Software | Web Publishing Central | Blog

    Example of Modules – Complete set of hard money documents for all 50 states, 2010 RESPA regulations; private lending solutions; speed-up origiantion process, close more loans, with less staff:

    Loan Origination Software
    The Loan Origination module is specifically designed to originate loans funded by private lenders. Our software produces hard money lending documents on a per state basis. For California loans, it produces all necessary disclosures required by the Department of Real Estate and complies with the multi-lender regulations for fractionalized loans.

    With the Loan Origination Module You Can
    •Generate loan documents — from processing to closing
    •Speed up the escrow process and save underwriting time
    •Better manage your loan pipeline and forecasting
    •Create your own documents or modify existing documents
    With The Mortgage Office’s Loan Origination Module you can close more loans in less time and with less staff, which is the ultimate goal of any loan originator.

    The Mortgage Office™ Hardware and Software Requirements

    Workstation Configuration •Microsoft Windows Desktop Operating Systems
    ◦Windows 7 (Professional, Ultimate)
    ◦Windows Vista (Business, Enterprise, Ultimate)
    ◦Windows XP Professional
    •Processor Speed: 2 GHz or faster
    •RAM: 1 gigabyte or greater

    Additional Required Software •Microsoft SQL Server 2005 or 2008 (applicable to SQL server version of The Mortgage Office only)
    •Microsoft Office 2003 or newer. Microsoft Office 2010 is recommended. Home and Student editions are not supported
    •Microsoft Internet Explorer 7 or newer

  16. Thanks Neil, being from Ohio will post this. Meanwhile up close and personal with Nashua PD yesterday as related through this post to Seamans Eckert foreclosure mill:


    WEDNESDAY, AUGUST 31, 2011

    KingCast/Mortgage Movies tell Eckert, Seamans foreclosure mill: “Are you defending against La Mar Gunn? Why do you like my journal so much? Clean up your act or you’re next.”

    I see you watching and I’m watching you watching me. Are you watching me watching you watching me? Well whatever the case, that Canon 60D makes one hell of a video. Stay tuned and one day you may see yourselves in KingCast-Mortgage Movies Vision. I’m starting my background review of you, and Judge Jurden was less than pleased at your baseless allegations against another duly-licensed member of the bar. In other words you got spanked.

    As I show below the fold you’ve got about seventy (70) entries since 26 August, some of which show you looking for yourselves on my journal… well how about that, turns out Margaret England — on the sham foreclosure of financial planner Lamar Gunn — is or was an Eckert, Seamans Attorney…. now I see we’re getting somewhere, ahem. And I will of course advise you not to threaten to have me arrested when I come knocking like those idiots at Phelan, Hallinan & Schmieg. And keep coming back you might learn something…. The Nashua Police Department is learning that the Canon 60D makes a good, crisp 1080p movie as I force them to investigate forgery and wire fraud, that much is certain:


  17. What is the ‘relationship’ of the ‘Account Holder’ of the Cashier’s Check, DBT Co Ltd (Deutsche Bank Trust Co New Jersey Ltd.) classified by Federal Reserve System, Non-Deposit Trust Company – Non-Member, commercial checking account maintained inside Deutsche Bank Trust Americas Co, in New Jersey?

    During Origination, DBT Co Ltd. is the ‘managing director’ paying cash for the mortgage-backed note.

    What you say may be true.

    What I see is true.

    Mortgage-Backed NoteWhat Does Mortgage-Backed Note Mean?
    A type of promissory note that is associated with a particular mortgage loan. Mortgage-backed notes represent the legal promise to repay a mortgage loan. These notes specify the terms of the loan, including the amount of interest and principal that must be repaid. They also obligate the borrower to make the payments.
    Watch: Mortgage-Backed Securities

    Mortgage-Backed Note
    The terms of mortgage-backed notes determine the type of mortgage that they back. If a note has a fixed schedule of principal and interest payments, then the mortgage is a fixed-rate mortgage. If the note has a flexible interest rate, then the mortgage is an adjustable-rate mortgage.

    http : // www . investopedia . com / video/play / what-are-mortgage-backed-securities

    I have no paradigms and let transaction speak. The fact that Freddie/Fannie played ‘Net Borrowers’ off of Standing Mortgages an interesting consideration?

    Could ‘Mortgage Backed Note’ have been an agreement with Tempoary Lender ‘Standing Mortgage’ with a term of 90 days? Pre-funding used to purchase mortgage backed note from DBT Co Ltd purchaser anyone of the Institutional ‘Underwriters’ for the debt sold to consumer may have ‘other terms’ right? Or is that what a ‘credit swap’ is the ballooon payment? Or, I can go on about what the ‘cash’ is for related tothe new loan# that the cash is confirmed with the disbursement request, closing instructions, subsequent consumer payments for a loan in which ‘Non-Deposit Trust Company Non-Member’ took possession of property in deceptive manner.

    In a standing mortgage, the principal of the loan is fully paid at maturity in a balloon payment. Standing mortgage function in contrast to level-payment amortization notes which allocate some of each payment to principal throughout the entire mortgage term.

    Net Borrowers:
    An entity that borrows more than it saves or lends out. A net borrower could be a company, country, government, group or individual. Borrowing can take the form of debt by acquiring goods and/or services under the stipulation of future payments, borrowing funds, or by issuing debt, such as bonds. Net borrowing occurs when the monetary summation of these borrowing activities exceeds the monetary amount of funds and assets lent/saved. Also known as “net debtor”.

    A country is a net borrower when it is running a deficit and is also known as a capital importing country. For example, a country might acquire capital by selling debt instruments such as bonds to international investors or to its own residents.

    This is not considered good or bad for a country. If a country has a capital inflow then the international community feels it’s a safe place to invest. Also capital inflows potentially allows for future levels of productivity that would otherwise be unattainable.

    Net borrowers will be worse off when interest rates go up if their borrowing rates are not fixed

    Read more: http://www.investopedia.com/terms/n/net-borrower.asp#ixzz1WbeAdcBS

  18. How can you ask “who owns the note” when the note has been sliced and diced into multiple pieces of common and/or prefered stock certificates and traded, sold, pledged and exchanged, most likely to many different entities in the name of TAX AVOIDANCE for the issuing entity, then the depositor, then the trust, then the servicer, the warehouse lender, etc, etc. All with the Feds approval and guidance, or shall we say “looking the other way” guidance. There is no note! It was converted into stock certificates. I cry bull twinky they paid off the note. They are saying that to avoid the real issue. There is no note. Go look up GAAP rules. You can’t take orange juice and make it an orange again. You can’t make hamburger a cow. The note is gone.

  19. E. Tolle and Louise

    Yes — but not a mortgage — and “bank” ??? Purpose is to dispose of fraudulent collection rights that they acquired. THAT IS THEIR PURPOSE. And, that has been government’s goal.

    Once homeowners goes to that dooms-land — it is over. Problem is — the “bank” put homeowners there – before they even signed a refinance.

  20. Today I got a random returned “partial payment” from BOA–because the payment was 25 cents short. Problem is BONY claims to be owner and holder of the note.

    The payment was made in May 2010, and more payments were paid AFTER that payment, so what the heck is BOA doing returning a payment after holding it in its account for 16 months!

    The postage cost more than the amount short. Now, that is ignorance gone to seed!

    People keep fighting! The banksters keep trying to fix the crime and chicanery but they often shoot themselves in the foot. No matter how much you might want to ignore the mail, READ every piece of communication you get from the banks. I am stunned with what I found in mine.

  21. RIGHT ON—Enraged, ANONYMOUS, and E.Tolle!!!

    And Chris—pay attention:


    “…Security investors fund the BANK — not the borrowers — there is no direct relationship between security investors and borrowers. If banks are able to sell their income stream, that is an accounting transaction — it is not a “loan” to borrowers. This is why security investors are NEVER the creditor.
    Collection rights transfers are not funded by borrower transactions (ie fabricated refinance). Collection rights are transferred by assignment — not NOTES (which is why NOTES are fake).”

    ANONYMOUS, on August 30, 2011 at 2:41 pm said:
    No — “loan” collection rights — NOT sold into a “BOND” or security. Only receivables are “securitized” ie — passed through. The “collection rights” remain with the entity that purchased them.
    Do not know how many times I have to shout it —- security “bond” investors — are NOT the creditor — never were — and never will be.
    Of all people — Bernanke told us this — at the onset of the crisis. But, too many here want to make security investors — the creditor. The Fed Res — has stated — in now law — that this is not the case.
    Any continued promotion of this false notion — is extremely detrimental to homeowners. Get over it.

  22. Unfortunately, the bank can still come back and sue you again. That is why a Quiet Title lawsuit is required–to make sure that nobody else can come back at you.

  23. I hear you ANONYMOUS, but the G men (and women) don’t. But what’s really telling in the above piece is Peter Swire’s attitude. Not only is it way off the mark rationally as well as legally, but it shows the attitude prevalent in this bankster dominated administration. “They frankly own the place,” to quote Senator Durbin.

    This guy teaches law. Wouldn’t you think he’d have a slightly more professional or at least educated demeanor on the issues here? “They (borrowers) get to laugh and stay in the house?” Anyone thinking for a moment that these life altering circumstances have even a modicum of whimsicality should read beyond the front pages and get to the multiple stories of murder/suicides going on around the nation due to the comic relief afforded the White House, at the expense of millions of dispossessed Americans who have lost everything.

    This is a fucking disgrace! There are no other words to describe his and others in the administration’s attitudes towards this crisis. To think that a professor, not to mention one that was a housing official, would say that “the banks might have to pay some settlement to get the family out of the house,” when it’s widely known that these same banks have so screwed the pooch as to make this problem unsolvable, like a single colored Rubik’s cube or a maze that we may never find our way out of. His attitude is beyond belief.

    “They knew they had a mortgage, they knew it when they bought the house.” You may be right about that part professor, but please tie this back to the analogy concerning the bank not cashing the photocopy of the check. Please explain for your students and the rest of the world why the banks think they can cash photocopied promissory notes. And please elaborate on exactly how these same borrowers will be protected when other banks continue to sue on the same properties, seeing as how it doesn’t take anything solid to stake a claim on these hapless, laughing borrowers. And please explain the punch line, I for one am not even slightly amused, you prick.

  24. No — “loan” collection rights — NOT sold into a “BOND” or security. Only receivables are “securitized” ie — passed through. The “collection rights” remain with the entity that purchased them.

    Do not know how many times I have to shout it —- security “bond” investors — are NOT the creditor — never were — and never will be.

    Of all people — Bernanke told us this — at the onset of the crisis. But, too many here want to make security investors — the creditor. The Fed Res — has stated — in now law — that this is not the case.

    Any continued promotion of this false notion — is extremely detrimental to homeowners. Get over it.

  25. I saw someone on this site mention a few times that we would all live to see the Big American Clean Up. It would look like we are getting there… Banks are afraid of being found out anymore than they already have have been. Banks are going to write off under duress what they tried so darn hard not to write off al all… all because greed was still prevalent under Hamp and all those programs.

    There is a divine justice and it works something like this: you screw people. You sham and scam and utilize some pretty devious tools to feed your greed. Those same tools you invented, someone learns them, uses them against you and your biggest fear will come to pass: you’ll lose and lose and lose. So, duress goes two ways: you can cause it for a very long time but it will come to bite you in the butt. Banks are now under duress to write off. I love it! What kind of other duress could we cause banks to feel, after causing so many suicides, after throwing millions in the streets, after preying on the elderly and the ignorant? How can we actually make CEOs really feel the pain all those people felt for so many years? I got it: throw them all in jail!!! Serious criminal charges, such as manslaughter for every father or mother who killed himself because banks were cold hearted and literally intent on destroying them.

    And please, stop the B.S. about creating an economic havok if banks do, indeed, write off loans. The economic havok was created 5 years ago. It exploded in 2007 and we’ve gone as low as we could. Anything allowing homeowners to keep their house and start focusing on creating a business (instead of worrying for 2, 3 or 4 years non stop) is the best thing that could ever happen to America. And for the investors who lost money: I am deeply sorry about your loss. You had a pretty good return on your investments at 3, 4, 5% but it wasn’t enough. You speculated that you could make more and you lost it all. Divine justice. More, more, more, that’s what you said. More stops somewhere. Here, maybe…

  26. Neil,

    Is it possible that the bank wants to “test” whether or not the Supreme Court of Ohio will create a precedent that mortgages (or deeds of trust) can be foreclosed upon if there is a “reasonable assumption” that there was once a note that the mortgage/DoT once “secured”?

    If so, and the OSC so rules, a whole new layer of fraud in this Ponzi scheme will be established…. When one can not legally foreclose on a (missing) note, the “cyber-note copy” will suffice if a mortgage/Dot has been recorded in the local land registry.

    If this kind of film-flam is “codified” as precedent, Ohio is the state most likely to do so… After all, the current administration in Washington (schooled in the political alleys of Chicago) is pressuring the New York AG Schneiderman to “stand off”!

    Methinks the whole purpose/effort of the banksters is to”legallize” this massive Ponzi scheme and somehow emasculate the RICO statutes.


    “…Security investors fund the BANK — not the borrowers — there is no direct relationship between security investors and borrowers. If banks are able to sell their income stream, that is an accounting transaction — it is not a “loan” to borrowers. This is why security investors are NEVER the creditor.
    Collection rights transfers are not funded by borrower transactions (ie fabricated refinance). Collection rights are transferred by assignment — not NOTES (which is why NOTES are fake).”

  28. These banksters have put America at risk! Our forefathers must be rolling in their graves and screaming out loud. Every military family and personnel and military that died for our country should be screaming over this. A country they have fought for, and died for being terrorized on their own soil. Some of them risking their lives while fighting to save their homes at home. What a horrific crime against American families and a slap in the face to all who have fought for our country. And all the hard working tax paying Americans. I go down the road shaking my head in disgust at what these criminals have done to everyone I know. Absolutely everyone has been effected in some way. I talked to a lady the other day that does not know what she and her adult children and grandchildren will do if she looses her home and she is not alone. She is terrified of what will come next and where they will go. Families, their pets and all their belongings. Our government representatives have to help It is urgent and way pass due. So many have suffered at the hands of these evil sinister criminals.

  29. They should all be blacklisted and never allowed to work in any finance or banking industry again. Even jail time for the fraud. There are a variety of reasons people are not or have not made mortgage payments, lest not lose sight of that. Many times it has been advised by the banks themselves and they offered homeowners modifications over months, even years, which never materialize!

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