CASE SHILLER INDEX: HOUSING PRICES LOWEST SINCE THE CRASH

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COMBO Title and Securitization Search, Report, Documents, Analysis & Commentary CLICK HERE TO GET COMBO TITLE AND SECURITIZATION REPORT

EDITOR’S NOTE: Despite realtors and banks putting out disinformation about the housing market improving, the facts show otherwise. Housing prices, housing demand are falling under the sheer weight of supply and joblessness. What will 2012 bring? More of the same unless the courts apply the law, require proof of the claims being made by intermediaries who are stepping in to claim houses instead of the creditors, and get rid of the notion that applying the law will unfairly grant a windfall to homeowners.

We are in a downward spiral caused by a fake glut of homes that were foreclosed — some with the intention of bull-dozing them (see Cleveland and other cities) — by pretender lenders. The real creditors have abandoned the claims for repayment from the borrowers, so the Banks are using their formidable power and wealth to make it appear that these foreclosures are real. They are not. Most foreclosures are conducted by and for the benefit of intermediaries who were simply service providers or conduits in the mortgage process — and contrary to the needs of the real creditors and the homeowners who are both left holding the short end of the stick.

The supply of homes choking off our economy, our housing market and our prospects is an illusion that is being treated as real. These homes were forced into foreclosure despite desperate attempts by homeowners to modify their loans. The offers to modify are most often offers to accept mortgages above the fair market value of the home — something the foreclosers could never obtain through an auction sale. The obvious conclusion is that they have their own agenda and that this is yet another example of how Wall Street turned the real estate market on its head.

Prices will continue downward. The economy will be dragged downward. And the mood of the country will darken as the government does nothing to stop this continuing fraud — illegally rejecting modification offers for no good business reason. There is every indication that the investors are not even consulted in considering modifications and settlements despite representations to the contrary. That is illegal under HAMP. The Banks have already been sanctioned by regulators for this violation but they do nothing more.

The intermediaries must be removed from the process and a new way of communication between investors and homeowners must be established for this to stop. Livinglies is exploring some options in this regard. More to come.

SEE ARTICLE AND CHART ON CALCULATEDRISKBLOG.COM

S&P/Case-Shiller released the monthly Home Price Indices for October (a 3 month average of August, September and October). This release includes prices for 20 individual cities and and two composite indices (for 10 cities and 20 cities).

83 Responses

  1. About the only thing that makes sense to a regular lawyer is that the sec finlings did not include the loan schedule–
    then they roll their eyes and ask did you make pmts or not
    they do not want to unravel this complex securitization stuff –nor any of the equitable theories of double recovery etc

    ——many judges simply consider the indorsement rules to be mere details —-and they fall back on the “mortgage follows the note”–where the assignments are faked

    the main problem is that in conservative states the judge cant award free houses————and lets face it the defensive strategies just put people through expensive meat grinders to maybe get the plaintiff case or sale reversed once—only to have to run the the whole thing over again in near future

    its no way to live

    question is what is your discovery aimed at finding in this background? what can you discover that will afeect my conservative judges in rural ohio—that focus on moral dilemma

  2. it certainly does, you should talk to gary about his actual Supplemental prospectus for the pool in which his loan (cash flow) was sold.

    Can I ask a simple question. if the guy the hosts the site provides these services for a reasonable charge. Why doesn’t everyone have them break down the Pool, pull the “good stuff” for your defenses direct and than find a great litigator to prepare your Action or defense depending on your State.

    It has less to do with where your loan is, rather than how it was alleged to have gotten there. Everyone needs to stop looking for the knock-out punch with one shot ideas to have their obligation simply discharged by a sitting Justice. Don’t seek to quiet Title, seek to get your case to discovery. Give the Judge something to work with, he/she is not going to build your case for you, unless you are in NY.

    Second, the long story action does not help your case. The Judge does not care if it was a rainy night when you signed the closing documents. Prepare your defense, be concise and most important, get the research, paid or through sweat hours.

    I am in banking, and it took me 10 hours to figure out the Silo Structure between the FDIC and IMB Holdco. This fraud is by far the most vast and when we shut the FRC we should also consider shuttering the banks insurance company. The FDIC merely keeps the illusion-debt in the system.

    Do your homework and give the Judge something to work with. I do not restructure pool chains for a living, but it seems like some folks here do. Reach out and have them put together your facts. it is money well spent and you have basis to make your case.

    Good Luck everyone, and may God hold you close.

  3. Iv walked through the several thousands of pages of a few of these securitizations —–so i understand very well the majority of your commentary—–

    the points that im probing involve the targeted purchasers of specific senior classes of mbs nominally backed by the most predatory loans but that benefitted from waterfalls from junior tranches secured by higher quality conventional mortgages–clearly investor fraud

    but as you noted most of these originators that contributed the bad loans up the pipe are now bankrupt–after selling the servicing rights

    these to me seem like the right to collect whatever can be squeezed out of default assets–deficiencies and proceeds of foreclosure sales etc———-these seem to be the beneficiaries today of the old frauds–or a continuing fraud

    the same persons that obtained servicing also bought up the senior classes when nobody else would touch them–based on inside knowledge—-that is my finding–does this strike a chord??

  4. DCB, this is how it works in a pretty easy to read format.It is the from the structure of a trust gary had asked about earlier. I do not provide these services, each Trust has slight variations and different laws may apply. I am just getting involved with the web site and noticed yesterday that the author offers these type services, it is the best money ever spent. I may donate some time to help folks and possibly they can get a discount if i do most of the work. Maybe one a month, some of them are a ton of work, and any of the trust that have already been rendered insolvent or recapitalized with new investors, FRC, FNM, FRE are almost a nightmare to get info on since they shuttered the OTS.

    As discussed on the e-mail, the process of issuing an RMBS securitization involves several entities, but their efforts are joint. The Goldman sponsor, depositor, and underwriter Defendants all worked together to create, market, and issue the Certificates.

    Goldman, Sachs & Company is a New York limited partnership with its principal place of business in New York, New York. Goldman, Sachs & Company was the sole underwriter for the Certificates.

    Goldman Sachs Group, Inc. is a Delaware corporation with its principal executive office in New York, New York. Goldman Sachs Group, Inc., itself and through its subsidiaries, engaged in mortgage lending and other real estate finance-related businesses, including mortgage lending, securities dealing, and insurance underwriting. It is the corporate parent of all of the Companies. Goldman Sachs Group, Inc., is a limited partner in Goldman Sachs Mortgage Company, and controls the general partner of Goldman Sachs Mortgage Company.

    Goldman Sachs Mortgage Company is a New York limited partnership with its principal place of business in New York, New York. Goldman Sachs Mortgage Company is an affiliate of Goldman, Sachs & Company, and was the sponsor for the Certificates.

    GS Mortgage Securities Corporation is a Delaware corporation with its principal place of business in New York, New York. GS Mortgage Securities Corporation, which is an affiliate of Goldman, Sachs & Company, served as the depositor for the Securitizations.

    The Conduit and Moving Parts of Mortgage Securitization

    Mortgage pass-through securities, or certificates, represent interests in a pool of mortgage loans; the securities are “shares” of the pool that are sold to investors. The pass through securities entitle the holder to principal and interest payments from the pool of
    mortgages. Although the structure and underlying collateral may vary by offering, the basic principle of pass-through securities remains the same: The cash flow from the pool of mortgages is “passed through” to the securities holders as payments are made by the underlying mortgage borrowers.

    The initial step in creating a mortgage pass-through security is the generation of the loans by the initial originators. Loans are then pooled into groups by a “sponsor” or “seller.”

    The “sponsor” of a mortgage-backed security (“MBS”) is often a Wall Street investment bank. Here, the “sponsor” was Goldman Sachs Mortgage Company. In order to ensure that it had access to sufficient numbers of loans to feed its securitization machine, in many cases

    Goldman would provide a warehouse line of credit to the loan originator, with the warehouse line providing the funds that were loaned to the ultimate borrower.

    After pooling the loans, the sponsor transfers them to the “depositor.” The “depositor” is typically a special-purpose affiliate of the “sponsor,” and exists solely to receive and then pass on the rights to the pools of loans. It is also often controlled directly by the same officers and directors who run the “sponsor.” The depositor GS Mortgage Securities Corporation is a wholly-owned subsidiary of the sponsor, Goldman Sachs Mortgage Company, and has no business operations other than securitizing mortgage assets and related activities.

    Upon acquisition, the depositor transfers, or deposits, the acquired pool of loans to an “issuing trust.” The depositor then securitizes the pool of loans in the issuing trust so that the rights to the cash-flows from the pool can be sold to investors. The securitization transactions are structured such that the risk of loss is divided among different levels of investment, or “tranches.”

    Tranches consist of multiple series of related securities offered as part of the same offering, each with a different level of risk and reward. Any losses on the underlying loans—whether due to default, delinquency, or otherwise—are generally applied in reverse order of seniority. As such, the most senior tranches of pass-through securities receive the highest credit ratings because they are the least risky. Junior tranches, being less insulated from risk, typically obtain lower credit ratings, but offer greater potential returns.

    Once the tranches are established, the issuing trust passes the securities or certificates back to the depositor, who becomes the issuer of the securities. The depositor then passes the securities to one or more underwriters, who offer and sell the securities to investors in exchange for cash that is passed back to the depositor, minus any fees owed to the underwriters.

    the underwriter (in this case, Goldman) plays a critical role in the securitization process by purchasing the securities from the issuing trust through the depositor and then selling them to investors. The underwriter provides information about the loans and the securities that potential investors use to decide whether to purchase the securities.

  5. DCB, I try to keep it to human being terms as best possible. i do not want to be remembered as the smartest guy in the world. i will settle for righteous, and that I took a stand. God gives us all provisions and for many years I used them in the wrong manner.

    Having said that, I am truly humbled and deeply blessed.

    Here’s the outline,of which I sent to Gary earlier today, so it is not extra work.

    Mortgage pass-through securities, or certificates, represent interests in a pool of mortgage loans; the securities are “shares” of the pool that are sold to investors. The pass through securities entitle the holder to principal and interest payments from the pool of
    mortgages. Although the structure and underlying collateral may vary by offering, the basic principle of pass-through securities remains the same: The cash flow from the pool of mortgages is “passed through” to the securities holders as payments are made by the underlying mortgage borrowers.

    The initial step in creating a mortgage pass-through security is the generation of the loans by the initial originators. Loans are then pooled into groups by a “sponsor” or “seller.” The “sponsor” of a mortgage-backed security (“MBS”) is often a Wall Street investment bank. Here, we use the “sponsor”, Goldman Sachs Mortgage Company.

    FRAUD – In order to ensure that it had access to sufficient numbers of loans to feed its securitization machine, in many cases Goldman would provide a warehouse line of credit to the loan originator, with the warehouse line providing the funds that were loaned to the ultimate borrower. If GS, the LLC Money used to fund at the closing, than GS Mortgage would certainly buy all loans from the originator because they had to take the parent company back out of the deal. It’s kinda like a stock brokerage firm that has a venture capital division. The VC side will provide your company the start-up capital as long as they know someone like GS the investment banker is taking the company public, providing the VC side liquidity and gains.

    After pooling the loans, the sponsor transfers them to the “depositor.” The “depositor” is typically a special-purpose affiliate (SPV, SPE) of the “sponsor,” and exists solely to receive and then pass on the rights to the pools of loans. It is also often controlled directly by the same officers and directors who run the “sponsor.” The depositor GS Mortgage Securities Corporation is a wholly-owned subsidiary of the sponsor, Goldman Sachs Mortgage Company, and has no business operations other than securitizing mortgage assets and related activities. (see, e.g.,

    Upon acquisition, the depositor transfers, or deposits, the acquired pool of loans to an “issuing trust.” The depositor then securitizes the pool of loans in the issuing trust so that the rights to the cash-flows from the pool can be sold to investors. The securitization transactions are structured such that the risk of loss is divided among different levels of investment, or “tranches.” Tranches consist of multiple series of related securities offered as part of the same offering, each with a different level of risk and reward. Any losses on the underlying loans—whether due to default, delinquency, or otherwise—are generally applied in reverse order of seniority. As such, the most senior tranches of pass-through securities receive the highest credit ratings because they are the least risky. Junior tranches, being less insulated from risk, typically obtain lower credit ratings, but offer greater potential returns.

    Once the tranches are established, the issuing trust passes the securities or certificates back to the depositor, who becomes the issuer of the securities. The depositor then passes the securities to one or more underwriters, who offer and sell the securities to investors in exchange for cash that is passed back to the depositor, minus any fees owed to the underwriters.

    The underwriter (in this case, Goldman) plays a critical role in the securitization process by purchasing the securities from the issuing trust through the depositor and then selling them to investors. The underwriter provides information about the loans and the securities that potential investors use to decide whether to purchase the securities.

    Because the cash flow from the loans in the collateral pool of a securitization is the source of payments to holders of the securities issued by the trust, the credit quality of the loans remains paramount.

    Fraud No 1. The closing bank charged ridiculous fees to provide a room and have the borrower sign the docx. they had no second market risk because they were using the warehouse line and they already secured the conduit leading back to the Seller bank. In fact, they did not operate as a “dealer bank”. They operated as an agent of the seller, or seller’s affiliates. Undisclosed fees earned as true agent capacity. A secondary market transaction would typically require the closing bank to fund in their name, service the loan and sell with recourse for 6 months. Distribution banking means no risk, quick sale to pre-established 3rd party, and so on…

    Fraud, loans intentionally left with closing bank, naming MERS as nominee. MERS is nothing more than a registration system with no right to title or foreclosure, and they do not even have the right to assign, long story for another day. Now,this is were it gets cute. HYPOTHETICALLY, MERS gets the mortgage, where is the NOTE. the NOTE was endorsed in blank and sold to a party that had been prior directed by the parent company providing the warehouse line. in some cases, this Note can hit 4-5 different lenders and / or entities that form the security prior to Trust conveyance.

    FRAUD – The pools and tranches are shaped and enhanced prior to the loans being conveyed to the trustee. That is how they know how much insurance to buy fro each tranche to get the Triple A rating. the mortgages never get shipped to the trustee and remain with the original lender, or when they are dissolved, transferred to the Donor. The Notes and Mortgages are not in possession of the Trustee. Most times the originator or sub-servicer holds the physical documents.

    FRAUD – must convey the assets to the Trust for the benefit of the certificate holders within 90 days – never happened, The trust only mentions that a transfer via MERS for the mortgage will suffice,but it still is governed that is must occur within 90 days.

    Gotta run, more tomorrow!

  6. look at some of these tranche series and see who benefits from the collection account

    would you please amplify on this particular line of thought–i do appreciate your insights and respect your views more than any other writer iv seen write on this site in 3 yrs

    differece between knowing and suspecting—but the proof of intent falls a bit short–even though i can put em all in a room together discussing the matter

  7. To prove fraud you need look no further then the fact that; the changed the bankruptcy laws in advance of this, removed M3 as a supply factor to mask the extent of derivatives circulating the globe and most important, they shorted the pools out to investors. look at some of these tranche series and see who benefits from the collection account. Look at the over-collateral series to see the real beneficiary.

    Look at the fraud Goldman assisted both GSE’s to commit to balance cash flow, quarter over quarter.

    Remember, Fannie and Freddie are close to a cash slush fund for politicians. Why isn’t anyone investigating all of the politicians,were they got their loans and were the parameters similar to market conditions for other loans issued at the same period.

    Why are all the worthless assets being sold to the FRC and bled out through Fannie & Freddie after eviction / sale. Why is the FDIC not going directly to homeowners and telling them to refinance their loan that was held by a defunct trust or thrift.

    The reason; when the assets are held through frictional leverage you cannot introduce real capital into the scenario, or it all unwinds on its own and you have to deleverage from the expansion.

    There is no way back from what these guys have done until after elections,and than, look out! The States will be circumvented in the name of some new stability model which requires the Note to be foreclosed regardless of actual ownership.

    These are not good people and we will not get fair results unless the people start to organize now!

  8. Thats interesting you can put your finger on the boilerplate legal documents—they should have been developed to reflect the copycat spreadsheets that predicted cash flows—–these had to be in use through the whole savaging perioed ended 2008—possibly still out there

    the location of the spreadsheets will prove the advance expectations–ie intent or fraud

  9. Your explanation is very thorough and easy to follow.
    You note, ” REMIC’s and billions owed in taxes at the Trust level, they say it is already within public knowledge, has been disseminated ”

    The failure of large numbers of trusts through non-delivery as evidenced by vacant filing spots in SEC and Delaware UCC etc as representred, albeit falsely, in the SEC filings has been long known–at least back to Fall 2009—-thus in mu humble opinion, the failed trusts constitute tax partnerships and the modifoication of a note triggers phantom income to the vulture investor partners with very low basis—they would rather have 30cents on the dollar today through foreclosure than 60 cents on a refi——–if the trust gets anything at all——–my understanding from discussions with bankers and observations is the bank trustees basically ignore the recovery expecting the serviver to seize everything in liquidation of a property as fees—the servicer and the residiual investors do not want modifications because for servicer no cash–and for investor not only no cash but phantom income on the closed transaction————-should be change to tax law

  10. proper procedure might well be depending on many things that you state whatever facts make you conclude that your persecutor collection agency-servicer –whatever word you chose———is not the owner of the note—the note’s owner lost the note and the title should either got to you or it should escheat to the state and name the ag as a defendant——if you ever expect to prevail at a quiet title on that basis–ie persecutor doesnt own note or represent note owner then the intangible is supposed to go to state—-they donr want it but theuy have to look at it and maybe ask to be dismissed—they really should look at it–it probably was owned by their pension fund before it was skimmed siphoned –however lost

  11. send me an e-mail to tenbips@yahoo.com

  12. @iwantmynpv,

    “Gary, i have some time this afternoon and if you send me the specific case – i will break it down on a nice diagram. I will also put the case you mentioned together.”

    I’m unsure How to Send you any information, please fill me in.

  13. Awesome post. Let’s see a show of hands of those who know how to get the DOJ to investigate…no one?

    The channels are unclear in the process of getting the plodding DOJ to act on this. Individual complaints are dismissed or ignored. My AG never even responded to my letter, to tell me that criminal charges and prosecution can’t be instigated by anything less than a major government agency. So where’s that leave us? Yeah, that’s right–nowhere. These prerequisites to getting indictments are precisely why after four years of bullshit, we are no closer to putting the likes of Jamie Dimon in jail, despite his being deserving of a 300 year sentence for what he has done to decent American families while he sits in his penthouse and looks down his nose at us.

  14. Originating Banks are always named in the Prospectus. Any bank below them in the Trust Silo is a fetch bank, i.e. they fetch the loans for the originating bank. This is the biggest problem the N.A. are having.

    Commonfetch Bank strikes a deal to sell loans to New Century at 106, New, Century already has a deal to sell those loans to Countrywide at 110, who already has a deal to sell the loans to BAC at 112, who is the Originating Bank pursuant to the MBS Pool Prospectus. Anyone under BAC is a fetch bank because they are not an originator, and therefore not mentioned in the Prospectus or PSA Mortgage. they exist merely to collect volume so they can ignite the shelf registration through the underwriter, assign all the loans to the sponsor, who sell all the loans to the Donor Bank, who was supposed to have had possession of all Notes, allonge, Lost note endorsement, and yes the mortgage. The underwriter has already been busy peddling cash flow to pension funds and many others around the globe, they used this Preliminary Prospectus to induce unwary investors about safety, insurance and indemnification. since these pools were huge money makers they needed the volume to remain steady, who cared, no recourse to anyone.

    The fact remains that the neither the mortgages or Notes were assigned to the Trust, they were stripped on MERS to slice the cash flow into tranches, to balance risk and return rate, the lower the tranche the higher the return, more exposure.

    They also need to purchase CDS (credit enhancement) for each tranche because the assets are not in the trust and they would need higher reserves. That is why the last entity that conveys to the Pool is always a SPV that is established strictly to convey the assets / or cash flow from the securities.

    So, in the end the mortgages stayed on MERS with the first fetch bank because they always assumed MERS would be able to foreclose in their name as the real party in interest. the Courts ruled MERS was merely a registration system that held the mortgage for the benefit of the original fetch bank. That is why they started robo-signing, you couldn’t have an officer of defunct fetch bank that already pled to the bankruptcy judge that the OTS stripped all assets from the bank holding company and placed them into conservatorship with the FDIC start assigning loans to a Trust 5 years after the closing and cut-off date. Had they not been so greedy and hired more robo’s they may have pulled it off. In any event, the majority of the fetch banks are now defunct and that is why they want to establish MERS II.

    Two big issues, NY Trust & Delaware Trust Law is explicit about transfer of the assets to the Trust and so is the IRS about REMIC’s. You have 90 days to have all of the assets conveyed by the donor bank. Moreover, their veiled attempt to establish conveyance to the Trust is the reason they bypass many of the fetch banks in filings and you see that when they file to foreclose, if they bother to even submit a mortgage assignment, it goes from the original fetch bank directly to the Trustee, which is another big No-NO. These fetch banks are not mentioned anywhere in the Prospectus and thus have no right to convey directly to the pool, not on the closing date, not on the cut-off date and certainly not 5 years later. In fact, the Trustee had no authority to accept the assignment or Note from any other entity aside from the Seller / Donor Bank.

    Now, although some folks have approached the IRS about whistle blower concerning the REMIC’s and billions owed in taxes at the Trust level, they say it is already within public knowledge, has been disseminated and nobody can cash out on ratting. they still do not pursue the revenue owed to the people of these united states.

    Now, they can vary a bit and the names may change slightly on what they call themselves, but there is one constant. The Trustee is not responsible for any underwrtiing or collection of cash flow. The Master Servicer directs cash flow and reports to the Trustee. The Trustee can remove the Master Servicer and the Trustee is also responsible for the safeguarding of the assets. if you actually read the entire 500 pages of the PSA you will see that in some cases the Trustee is not ever really granted inherent rights to institute a foreclosure Action. It was never supposed to reach this far up the chain, the sub-servicer would file the action, or MERS an nominee for the original fetch bank.

    The only way out is for divine intervention or for the devil himself to set our Congress upon us sometime after the election cycle is completed. We have 11 months to get the Dept of Justice to investigate and begin indictments, or Congress will sweep this under the rug while we attack Iran, or some other schmo’s which will set the media topic to mask the largest theft since the creation of the federal reserve corp itself.

    Happy New year (kinda)

  15. @ Gary H

    Same questions I had. Fetch Bank? I would assume that was the originator, who passed to issuer of MBS through REMIC.

    I’d give about a week’s pay to get a peek at that workout on paper, fellas! Any chance you’d post for the rest of us? Shine the light!

  16. Gary send me the series number or name. For example, BAC used to securitize most of the CWBC crap,and although CWBC’s name shows up it leads me to believe they were an originating bank for the conduit and they became the master servicer and probably the sub-servicer of the trust. it is easier understood when in front of you on paper.

  17. Gary, i have some time this afternoon and if you send me the specific case – i will break it down on a nice diagram. I will also put the case you mentioned together.

  18. @ iwantmynpv,

    Allow me to back-up and regrove, as I need to have this securitization scam explained in an in-depth manner from the beginning rather than pick-up on the bits and pieces put forth on this site…..

    From your post…..

    “The mortgage is still held in the name of the fetch banks, the first bank that conducted the closing, when the Notes were sold to the originators in the conduit, the mortgages remained in the name of MERS as nominee for the fetch bank, the originators were reciprocated when selling to the sponsor, after the pool closed. The Note was securitized prior to being introduced to the Pool, so the Note sits in a cave somewhere with all the Mortgage Notes on the planet, endorsed in blank.”

    1. You are trying to explain my question in a sort of “banking lingo” as I cannot make assumptions as to what a “fetch bank” is, and who or what it is representing!

    2. Assume MERs is Not in the picture…..

    3. As to the Note which “sits in a cave” endorsed in “blank”, this would make sence when one considers the testomony of Linda DeMartini in re: Kemp v. Countrywide…..yet, section 2.01 of the majority of PSA agreements is in “Conflict” with such testomony! My point goes to the testomony of DeMartini, and the “Transfer and Deliverery” to the “trust” of the collateral obligation under section 2.01, and goes further to the “trustee of the trust” in receipt of such.

    4. Said “trustee for the trust” thereafter manages the “cash flow” conduit and payments to the investors, and little more, …..AM I WRONG? If so please clue me in!

    So, beyond the “cave”, WHO IS HOLDING AND / OR THE HOLDER IN DUE COURSE of the Note, the obligation to pay, and HOW DOES SUCH MORTGAGE NOTE EXIST AFTER BEING SECURITIZED??? …..once an orange has been “juiced” it Cannot be made whole again.

  19. Oh my gosh…didn’t mean ‘did you have factual evidence that you are not from hell.’ My apologies. An ex-banker is an excellent ally, especially if he sees a need to atone.
    The way comments stack here often results in embarassment!

  20. I guess you have some factual evidence to back this accounting up? I still think there is more to learn, here. If the banks are not producing the Notes to foreclose because they were destroyed to hide fraud as has been suggested here in recent posts, is this (your post) the fraud they are trying to hide? Something doesn’t quite wash with the Notes still. I do think you’ve got it right as far as the profit stream being the only thing of value to the banks.
    I doubt a lot of people will stop paying if they’re able to pay, even tho I think they should. They are afraid of being put out on the street, the way so many already have, and it’s going to take a whole lot of convincing. After enough time has passed and enough court cases have piled up that favor the homeowner, or enough states get it that they pass legislation like Oregon did, we will eventually kill the banks. I applaud your efforts to DO SOMETHING to help, friend. Information needs to spread to the masses of “still paying” homeowners.

  21. Hey Nora, stop that, lol, I was a banker and did not originate (pun intended) out of hell. Some will be redeemed and others won’t. Just like any industry, good / bad on all sides.

  22. Legally, the Courts have not really rendered a unanimous decision about who owns what. My humble opinion granted by the ability to read. The mortgage is still held in the name of the fetch banks, the first bank that conducted the closing, when the Notes were sold to the originators in the conduit, the mortgages remained in the name of MERS as nominee for the fetch bank, the originators were reciprocated when selling to the sponsor, after the pool closed. The Note was securitized prior to being introduced to the Pool, so the Note sits in a cave somewhere with all the Mortgage Notes on the planet, endorsed in blank. The only party that created something of value, albeit a CDS premium, was the Seller Bank, and thus they hold the physical Note, they do not own the cash-flow generated yet still account for the Note as an asset on their balance sheet outside the pool, leveraged through insurance that is not likely to pay more than 40 cents on the dollar ( look at the MS / MIP Settlement) to settle away from any further exposure. So the Note is with the N.A, the mortgage is with a defunct regional bank in many cases, or a subsidiary pf the larger banks, and the cash flow is supposed to be going to the Master Servicer for the benefit of the pass- through certificate holders.

    Problem they are facing, they always figured MERS would be able to foreclose as Nominee. Turned out bad for them, so now they try to push through forged and doctored assignments 5 years after the pool cut-off date.

    Everybody in this Country should just stop paying their mortgage and credit cards the way the banks have done to investors and the IRS and they will be gone in 30 days. It is simple, why so much fighting.

    The IRS won’t accept whistle-blower cases concerning the REMIC violations and the amount of tax owed at the Trust Level. Some folks in NY are trying to have the AG launch a state driven case for violations of NY Trust Law. We shall see? For the immediate I have just signed on with 15 churches to start giving free workshops to folks in local communities to explain the entire set of events that have occurred, explain the foreclosure process in NY and documents they will be receiving (no legal advice)and areas where they can go to investigate the prospectus and PSA for every Trust.

    Ultimately, i am sinner and have begun to repent to my God!

  23. @ M. Soliman…..and…..iwantmynpv,

    I have a Question???

    If the “trust” etc. is only subject to collection “receivables” via a pass-through conduit, REMIC, and the accounting is “off balance sheet” for, tax purposes etc…..WHO HOLDS THE ASSET as in “the Collateral” or Mortgage???

    Where, and in who’s hands is the “collateral” parked to avoid taxation???

  24. @cubed2k

    Cubed buddy, I’m willing to risk something going wrong, I have to in order to not let the thieves get another free house. I didn’t make the rules, I do have to live by them. I believe in honesty, lawfulness, fair dealing and being accountable, and you probably do to, but the banks don’t. So here I go struggling in an armwrestling match with criminals all the while believing I’ll slam them to the table. If I don’t, at least I didn’t go down without a fight and I might get Title reconveyed or even money damages, since I believe they’re due. It’s up to the courts to decide, so I’m in it it to win via due diligence. The rule stuff is boring, and I find it affrontary that I have to do this rote regurgitation of case law and statutes. Come up with a better system, will ya?

    I’m soooo in agreement with you cubed. Mattress money, no debt and they can all kiss my patootie. (I don’t have a weanie, and that was a little crude, pal) I very much like your rogue approach, and your ability to think critically about the crap we are told by the brainwashers. Who says debt should be a part of life? Not me and you, buddy. Yawn.

  25. so Nora—

    under all these rules, as you state-

    “Under O.C.G.A. s23-2-114 the party foreclosing must provide a valid chain of title to foreclose, and under O.C.G.A. s44-14-162 (b) they must file the security instrument and Note in advance of filing a foreclosure action for it to proceed throught the court.”

    why all these rules, and court cases, and past rulings by Judges……….

    All for what? And if something goes wrong?

    ——————-

    No thanks, KISS approach. You folks can play your silly game of make believe money created from promise to pay and notes turned into negotiable (we got you ) instruments so those can be traded on Wall St while we invest in Wall Street to get a return of money invested. It ain’t invested, it’s traded. Hey, make your money work for you is the motto…………but who really does the work?

    No thank you, I think I’ll stay away from the banks.

    I’m capable of turning 1000 bucks of shit I buy and turning it into 60,000 and I don’t need to borrow or play the wall street game. I make my money work for me, and I work doing it, and I enjoy it so it ain’t work. I am earning a much much better of ROI than any bank can offer me, or Wall St so they can suck my weenie. So can anybody do this. I keep litttle money in my credit union to pay bills, otherwise I keep it hidden under the mattress. Thank you very much.

    Sexy, glamorous, no, it’s KISS and I love it. No time payments to worry about..

  26. I Herein this published document is enough to incriminate oneself in a foreclosure claim and decide the matter with damages awarded and an “apology” on the way out of court.

    was following well until I hit the foregoing rough spot would you pls explain what document ?:

  27. SEC rules required that securitizers file loan schedules also–but they did not do that either—laws dont apply to the collection industry

  28. One thing stands out among the brilliant discertations!

    How DO we inform the masses? Six million plus have visited this site (Thank you Neil!) and yet we haven’t bent congressional ears.

    How Do we reach all sixty million people with mortgages? We’re all in this together, hopefully we will solve it as a unified front through the sharing of information and the aligning of minds once the rest of the self-righteous people who are still pounding their chests and paying are alerted to the gospel. Get ye to one side of the fence and help each other! Fill hell back up with the bankers.

  29. “They are protecting the structure itself at this point.”

    ________________

    totally agree. They want it to stick. Hence no going back to what worked, Glass-stegal worked,,,,,,,,,,but no mention of ever putting it back,,,,,,,,,,

  30. Bifurcation not being illegal wasn’t the point, dear. Under O.C.G.A. s23-2-114 the party foreclosing must provide a valid chain of title to foreclose, and under O.C.G.A. s44-14-162 (b) they must file the security instrument and Note in advance of filing a foreclosure action for it to proceed throught the court.
    These are simple things they aren’t doing, and the foreclosures are still getting legs!
    While I have the utmost respect for your obvious expertise at whatever it is you do, what you’ve dug up is WAY too complicated for the dummy in the black robe to get it.
    I am looking for simple, because everybody “gets” simple. Intelligence like yours may be sadly wasted because the judge gets paid by the case, not the hour. The judge in my jurisdiction has the patience of a teetsy fly, a sour dispostion, and screams at people who don’t get it on the first take, ordering them out of “his” courtroom. I just can’t see myself trying to educate him on things he has no interest in hearing, with any good result.
    Wouldn’t mind paying you to write a synopsis of your research, in simple terms of course, if I could afford it. Freinds of mine who can’t even balance their checkbook would be much easier to help!

  31. Nora, I am wrong. I was under the impression it was allowed by a staff member of Morgan,and merely attributed to him. Please understand I am on the right side of the fence in life, and understand the monopoly and why it was created.

    For everyone else, I did not post a long article to rehash what has occurred. That was the context of a plain and simple letter to Congressional Members during 2008. Plain English, so everyone could understand what was about to occur. The point that should be taken is; If some regular schmuck on Long Island could see the private capital feeding the securitization monster beginning to dry up, so could they. The main emphasis; Make them stop saying they didn’t know how bad things were. When you go to Court, have your lawyer start at the beginning to show this was all intentional,and thus it was a fraud that began at the closing table, or more specifically,when you created the cash flow by signing on the dotted line.

    I will write a bit more when I get some time, I am trying to break it down into regular everyday language so others will visit this site and stay. The way to inform the masses is; by not showing them how smart you are, (and this site has many smart folks that get it), they will learn when the story is presented in a language they understand.

    Let’s face it, the ten of us discussing the extent of fraud means one of two things. We never get the message to mass, or it only takes ten bullets to stop the message from becoming a movement.

    These guys do not care about individual mortgages. They are much smarter than that. The mortgages no longer exist from their perspective. They are all considered cash flow just like a non-secured obligation. They are protecting the structure itself at this point.

  32. Nora C, on December 28, 2011 at 8:45 pm said:

    @foreclosureinfosearch;
    Still, it seems like a simple matter that the contract is null and void because it failed (deliberately) to name the true party in interest.

    They did not – your guessing my love.

    They never sold the note.
    They never transferred the note.
    They never bifurcated (what the hell is that anyway)

    Notes failed to move with the security interest…bifurcation.
    Okay Why – Why …it’s not illegal.

    None of this is illegal for Gods sake

    Foreclosure- ahhh not that is illegal .

    The matter is complicated by the FDIC oversight in managing the liquidation of homes

    1) While they admit that the deposits were uninsured,
    2) The member banks carried no recourse,
    3) Libilities and not assets were moved off books
    4) Under derecignition you CANNOT SERVICE A LOAN.
    5) Foreclosure is replaced by recapitalisation

    Where doe that credit bid come from counsel . . .ask yourself that question …..it will serve you well in arguments

    ———————————————————
    Comments — Slander of Title, is an aside to how banks actually create money out of thin air, and hope you won’t find this out.

    Two restaurants are opening on separate corners from one another . Each has a cost of $100,000 to build – brick and mortar.

    The cost basis of “A” is $100,000 and cost basis of “B” is $1.0 Million
    Both owners build out to the exact specs and each own all the common shares.

    Why the difference

    “B” raised $900,000 from thin air and preferred share sales .
    Why ….”B” included in the plans a set of Golden Arches.

    The Mc Arches are called Goodwill.

    M.Soliman

  33. Gary said

    M. Soliman, if you wish to garner more “clients” from the standpoint of being an “expert witness”, the egotistical bait and offering that
    LET THE RUBBER HIT THE ROAD…..IN PLAIN AND CONCISE LANGUAGE…..!!!
    —————————————————————————————–
    …..”We’re all stupid and don’t have time to look at FASB 140 and etc. etc.” NOT!!!

    Gary ;

    Thanks, but I do this to help others – not to garner clients. I am looking to prevail in a select few landmark cases going to trial next year.

    Its work in a few high profile cases (back east) for counsel that I share – that’s all. I am not looking for leads. This is NG’s site and I respect that ….differences set aside .

    I respect his work and effort and etc …

    If you ratchet down the understanding for that technical jargon the opposition has published , you give the opposition the chance to interpret their own convoluted economic decadence for highly convoluted errors, omissions and corrupt instances of economic malfeasances.

    The court can demand clarification and the plaintiff can saddle that burden on the defense for that their clients published by election in sophisticate vernacular.

    The average foreclosure mill attorney cannot comprehend the deeds committed against a homeowner that breach basic checking and savings general ledger accounting used to report your own taxes.

    Case in point (again). Where am I getting this from ?

    First-loss
    Credit-enhancement securities
    Concentrated credit risks.
    High degree of structural credit risk,
    Financial leverage to acquire
    High credit losses
    Liquidity concerns.,
    Economic risk is limited
    Liquid reserves are secure
    Securitized assets,
    Issued by independent securitization entities,
    Liabilities are not Redwood’s obligations.
    Securities acquired from securitizations
    Capital securitization
    Re-securitization.
    Risk is segregated.

    A registration for a CWHL Inc private placement.

    TALK ABOUT CULPABILTIY FOR ARGUMENTS to a LOST RIGHT TO FORECLOSE .

    Herein this published document is enough to incriminate oneself in a foreclosure claim and decide the matter with damages awarded and an “apology” on the way out of court.

    Yet folks are still going to bed restless and ready to surrender.

    I don’t get it. But don’t call me, call a competent securities and tax attorney and have a specialty GAAAP auditor join your team ($15,0000 retainers) .

    I will translate this in a bit to demonstrate what I mean .

    M.Soliman

  34. comments—investment bankers copycat mentality for financial modes…

    The PPM (“PSA”) is written from a 1996 boiler plate . It is so bad at times – Plaintiffs fail to isolate E&O liability in the registrants “attorneys opine” supporting these documents;

    it blows me away.

    M.Soliman
    expert.witness@live.com

  35. This is getting to the point of History lessons being re-hashed and pissing and moaning contests about “what happened” to which is solving NOTHING Re: MBS.

    If a Court was to look upon all of this conjecture in a pleading…..HOW WOULD YOU MAKE IT STICK???

    Lets get past “THE FRAUD” aspect…..we know its FRAUD…..THROW A BONE TO THE AUDIENCE IN CURRENT TIMES to show HOW this SECURITIZATION SCAM CANNOT BE ENFORCED IN A STATE COURT using STATE STATUTES, be judicial or non-judicial.

    If you have an offering, put it in play…..without asking for a “buck”, email address ect, etc.

    @ iwantmynvp, having 15 years with MBS…..please provide some “research” parameters re: this venue.

    @ M. Soliman, if you wish to garner more “clients” from the standpoint of being an “expert witness”, the egotistical bait and offering that …..”we’re all stupid and don’t have time to look at FASB 140 and etc. etc.” NOT!!!

    LET THE RUBBER HIT THE ROAD…..IN PLAIN AND CONCISE LANGUAGE…..!!!

    How can 65M+ people become informed when only a very few have knowledge as to where to look. The PSA is also a big player, have mine, and there is more from Title Issues…..Would anyone here buy a “foreclosed home” …..all things considered respective to “securitization”?

  36. Cube2K – M.Soliman thank you very much———-

    1. Comingled of registered private placement assets
    2. Assets booked at basis, and liquidated at carry cost
    3. Transferring liabilities amongst non arms participants
    4. Conversion of long term receivables
    5. Fractional interest sold as goodwill
    6. Conversion of pass through for short term offerings
    7. SEC /GAAP violations in a structured finance scheme
    8. Manipulative GAAP accounting treatment
    9. Consolidation for purposes of engorgement
    10. Overstating equity ratios, ham & eggs
    11. Transferring liabilities off balance sheet
    12. Convergence of liabilities and assets into off balance sheet 13. Novation of equitable interests
    14. Misstated liabilities and accounting for debt
    15. Controlling assets in violation of de-recognition
    16. Non transparent counting treatment
    17. Shareholder value exchanges under a concealed defacto
    18. Ttransfers and non transparent conveyances
    19. Formation for targeted M&A .
    20. Capitation of assets in REPO

    Cubed – Chill brohter , its all good. What do you wish to challenge prhaps that that none has yet to succeed at. (Idon’t have a life).

  37. The Sherman Antitrust Investigation broke up the resulting monopoly when JPMorgan effectively eliminated competition among the railroads by buying several up and thereby controlling and fixing prices. He also assembled U.S. Steel, one of the largest steel companies of the early 20th century through similar methods.
    JPMorgan was credited with stabilizing banks in the 1907-8 panic, which was intended to garner favor for the establishment of a central banking system based on the English model run by his father Junius Morgan. How you perceive his methods or his results depends on whether or not you lend an ear to propaganda which is what largely populates our American History studies since the government got involved in education. Woodrow Wilson suffered a great personal depression when he discovered that he had ruined the country’s financial future by signing the Federal Reserve Act into law, and he greatly regretted it.
    When the oligarchs want the people to get behind one of their more detestible plans, they create a problem and provide the solution to get it down our throats without a struggle. What we are doing now is just refusing to be terrified by their false flags and propaganda and think for ourselves, which is why they’re losing their grip. They’ve used this model effectively for several hundred years, while we sat in a stupor, and now that it’s no longer working, they’re having to resort to more drastic and openly brazen methods to exact control over us.

  38. @iwantmynpv;9:05

    Here is a link to that quote:
    http://privateaudio.homestead.com/Mike-Rothermel-on-Mortgage-Fraud.html#anchor_296

    While according to The Creature from Jekyll Island, (Griffin) Aldrich was the master behind the plan to get a federal reserve system of 12 banks in place, JPMorgan is creditied with providing his estate as the place the money masters hammered out their plan in secret to control the world through “an imperialism of capitalism”.

  39. I did fraud pattern identification statistical analysis fairly recently in DC for an agency. The shere complexity of the contrivances and my experience with investment bankers copycat mentality for financial modes–tells me that certainly it was planned—plan still operating—–people getting killed—what i want to know is whether there is evidence out there of the existence of the financial models——the NPVs —-the gross and net cash flows –the spreadsheets–are they the same? whoever made them predicted default therein and that evidence is the game changer.

  40. The gang that the trust busters supposedly broke up is now known as the Business Round Table—historically chaired by the former big dog–USS

  41. you pay a famous director to make a movie which paints you in a better light

    are you referring to the recent one about the meltdown detailing the selfless pain suffered by Paulson, Geithner and Bernanke———–trying to reach levels of historic treatment accorded Richelieu mazzarin etc

  42. Congress will clean the entire mess up for these guys in one sweeping bill.
    yep———–an election ride—-“silly season” in dc terms

    and the lotto is easier to win and less painful than a free house—or at least one you can sleep in at night–leave in the day–and not tremble every time you open the mail or hear a knock on the door

  43. Ok –interesting—you were involved with securitization or trading or what?

    I spent 26 years as a bigco finance guy— gen tax counsel and leg counsel—sat across the table from investment bankers for years——-securitization for us meant tranches of maturity rather than the tiers on trustee represented debentures.

    The strange prioritization and tiers within the MBS trust structures seem to me to have been “designed to fail” —–with waterfalls shifting cash flows from one tranch to another–like a capital structure of an entity–rsther than a true trust –in fact I would argue that the trusts were presumptively not created for the benefit of the investors but of the servicers–the collection rights on the defaulted loans that were designed to fail—and the widening economic downdraft is providing a bonanza. In my view, the question is whether the investment bankers that set up the templates expected to trip the entire system—since many came from Japan where similar conduct had that result.

    Any thoughts about expectations in 2004—-cetainly by 2008 you had the picture–right.

    Im really interested in the 2003-4 expectations. so you were on the money so to speak.

  44. @Nora, again JP Morgan said no such thing. On of his handlers slipped up when confronted by a staff member of Sen Lindbergh, complaining of the monopoly they were looking to form under the central bank of england. It actually occurred soon after they created the panic of 1908 in anticipation of getting a puppet in the money seat. “Wilson” who signed off on their charter.

    Country ran just fine in between central banks and would do fine again without Ben and Jamie Dimon.

  45. @foreclosureinfosearch;

    Still, it seems like a simple matter that the contract is null and void because it failed (deliberately) to name the true party in interest.

    Notes failed to move with the security interest…bifurcation.

    Banks changed the nature of the transaction after the fact without authority of the “borrower.” Fraud, unjust enrichment, then outright theft of the property from someone who had money invested in the deal, by someone who had nothing invested in the deal.

    Slander of Title, is an aside to how banks actually create money out of thin air, and hope you won’t find this out.

  46. @cubed2k

    Wow, man…how’d you do that? BTW, I agree totally. We don’t need no stinkin’ credit!

    We have all the resources we need when we are employed. We can pool resources and fund publicly owned companies; who needs banks?
    We are under attack by financial terrorists who are trying to control every variable in our lives for one reason: to make us slaves.

    Can you do a horse’s head like that fist? I think we should put a mustang on the new currency we demand that congress issue!

  47. look, if you can use your credit card to buy a bunch of stuff, for lets say 100 bucks, and if in 1 months time, you can resell the stuff for 300 bucks, why you have used their credit for no cost to make a profit.

    All is good, the system works for you. The moment you don’t pay back the 100 bucks, why you are eating into profits. Let it go over time, why you lose. that is the game. It is a trap.

    Too simple. Promise to pay. Those that understand the system.

  48. @Iwantmynpv:1209

    You are a couple of decades late on that…JPMorgan was quoted in 1913 when the plan was hatched, as stating that the common people should be made homeless in order to make them more tractable.

    It isn’t just about money, it’s about control. The “imperialists of capital” have been working with dedication on making themselves rulers of the world through debt for 90+ years.

  49. @NoraC—-

    you said

    “they broke just about every law on the books.”

    —————-

    they are changing the laws as we speak———thanks to money in politics———–don’t you think?

    Thru new regulations to protect us from them, who them is those that make the laws,,,,,,,,,,,,all double speak,,,,,,,,,,new regulations………..

    I am laughing my ass off,,,,,,,,,,,,all new regulations on BORROWING, on CREDIT, on DEBT>……….

    don’t do debt, unless you wish to make money on it,,,,,,,,,,use debt or credit to make money, not consume———

    be one of them, don’t you think?

  50. take your loans and credit and mortgages and notes from banks————-

    and do this————

    …………………./´¯/)
    ………………..,/¯../
    ………………./…./
    …………./´¯/’…’/´¯¯`•¸
    ………./’/…/…./……./¨¯\
    ……..(’(…´…´…. ¯~/’…’)
    ………\……………..’…../
    ……….”…\………. _.•´
    …………\…………..(
    …………..\………….\…

  51. @cubed2k

    …but they didn’t use the leveraged debt to make money honestly. In their rush to rake profits they broke just about every law on the books.

  52. Being taxed to death, having to get loans out for everything because everything is priced so high. Several of the loans I had are rediculous. After paying loads out per month for my mortgage I found out recently that I had only actually paid off several thousands! When I enquired about clearing a debt I was shocked to find out that, what with ‘penalties’ for early payment!?! I had actually only paid off a few hundred quid. The banks and the governments certainly do seem to be milking us all. Modern society isn’t interested in producing free, independent, fulfilled human beings.. its interested only in making us a slave to the system to feed off us.

  53. do not borrow, or use credit———to consume something………..pay all cash,,,,,,,,,,,,,,,,,,,and if you wish to use their credit———-then do so to make money,,,,,,,,,,,,,,

    Those that understand the system————–

    http://www.trade2win.com/boards/money-property/12584-do-you-really-understand-money-banking-system.html

  54. Soliman————

    thank you very much———-but learn about money and credit,,,,,,,,,,,,and get back to basics,,,,,,,,,,,,,,,,,,,,god damn.

  55. @iwantmynpv——–

    so what is a “promise to pay”

    Promise is ———–

    Noun:
    A declaration or assurance that one will do a particular thing or that guarantees that a particular thing will happen.
    Verb:
    Assure someone that one will definitely do, give, or arrange something; undertake or declare that something will happen.

    —————

    So I promise to pay you,

    and most people, that would be probably 99.99999999% think banks lend money or other peoples money, when in fact they do not lent any money………they give credit, it’s a system. All on the books, credits and debits, difference is the interest you owe me, the bank, is gotten from nothing, all book keeping entry. All based over time. The more time involved, the more interest made, and enter in compound interest, even more money made. It is leverage, so add in securization, doesn’t matter.

    When you really realize that, why you ask yourself why should banks get the interest,,,,,,,,,cannot it go to the government, as a bank, as the issuer of money or credit……….per the Constitution…….and if the interest goes back to the Government,,,,,,,,,,why ——why do we need taxes, or the IRS…………..The Government should be the bank!!!!!!!!!!!

    All those millions made by big banks, and central banks,,,,,,,,,,,all should go back to the people, to fund the Government………..just like Jefferson said.

  56. Comment – why does everyone keep saying that the banks should have given modifications when THEY DON’T OWN THE LOANS!

    Wow. Bravo . Finally. Excellent take on substatitve fact to support belief for claims necessary to survive and prevail.

    Now consider the following in making yur allegations:

    Party “A” WAMU (TPO) originates the mortgage. The wire is provided into settlement by . . .

    Party “B” the FHLBB wires for benefit of Washington Mutual DbA WaMu Securities Corp.

    Party “C” is DLJ Mortgage Capital, Inc. acting as a Seller, meaning they are the successors in assets to the WaMu obligation into settlement.

    Party “D” is Credit Suisse First Boston Mortgage Securities Corp., who is a Depositor, meaning the formation of the CDO formed in a REMIC , the underwriting requirement and for issuing securities through a broker dealer network.

    Wells Fargo Bank N.A., a Master Servicer (of no consequence) and Securities Trust Administrator for issuer five year bond financing. Inconsequential to claims is Wells affiliate Select Portfolio Servicing, Inc., as a “Special Servicer”

    Greenpoint Mortgage funding, Inc. is Seller (for second mortgages ) and listed as a reimbursement Servicer,

    ** U.S. Bank National Association, Trustee ** is a Counterparty to third party obligation held in receivership under FDIC HoldCo.

    expert.witness@live.com
    M.Soliman December 27, 2011

    Notice — An expert who testifies is not an attorney and only an attorney can advise you of your rights. The expert is to an opinion and cannot consult with out an engagement; therefore any information distributed or conveyed is for informational purposes only. This information may be deemed inconclusive data and insufficient evidence or subject matter to be deciphered or used by an attorney. Not responsible for any and all claims that arise from the informational analysis. Facts to support your case are subject to a licensed practitioners verification of the legal basis’ upon which allegations and facts in each matter must be verified. All information herein is for informational purposes and not intended as a legal opinion. Always consult an attorney as to your legal rights and for protecting your personal assets and estate.

  57. @iwantmynpv——-

    thank you for posting your long post and explaining it all. And I agree totally.

    It is totally LEVERAGE. And Wall St & big banks and central banks put us in debt. The difference being we stupid Americans and other global citizens have used the leveraged debt (citizen – I promise to pay you) to consume while those that issue the debt (banker – you promise to pay me) use the leverage debt to make money, to make interest, to make compound interest…………..

    You either issue credit and make money, or
    You take credit to consume and you pay more for the item, or
    You take credit to make money, you make more than you pay in credit interest

    or,,,,,,,,,,

    you take credit and use credit to buy consumables worth less the minute you buy them on credit and why you pay, and pay,,,,,,free choice so they say, you signed………….

    And I have been there.

    So , don’t use credit………….for consuming………….

    Credit & Leverage is the same as a fulrum————

    http://www.google.com/imgres?imgurl=https://makeitgo.wikispaces.com/file/view/at.jpg/81719687/at.jpg&imgrefurl=https://makeitgo.wikispaces.com/fulcrum&h=305&w=501&sz=4&tbnid=ZbCF_ei1JE8ttM:&tbnh=69&tbnw=113&prev=/search%3Fq%3Dpicture%2Bof%2Ba%2Bfulcrum%26tbm%3Disch%26tbo%3Du&zoom=1&q=picture+of+a+fulcrum&docid=-0v3igrk087U6M&hl=en&sa=X&ei=gtH7TtehE-PYiAK5noCHDQ&ved=0CCoQ9QEwAw&dur=139

    They provide easy credit, they can move mountains.
    They stop easy credit, you are trapped.

  58. Please register me to receive your daily postings. Thank you.

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  61. Carie don’t be deceived, politicians do not deregulate anything, just like they do not regulate anything.

    Illusion of Choice! They all dine at the same trough.

  62. Too Big To fail is propaganda released to keep us focused elsewhere. When you steal millions you go to jail, when you steal billions your employees go to jail. When you steal trillions – you pay a famous director to make a movie which paints you in a better light. “We were all caught off guard by the magnitude and severity of the liquidity crunch” or “We had no idea”

    The fact remains, you removed M3 as a supply factor to cover the extent of expansion through derivatives. You changed the bankruptcy laws and hid some cute stuff in their that benefited nobody but banks. You also changed functionality at the FDIC (long story loaded with fraud) you allowed both GSE’s to continue massive accounting fraud beginning in 1997 and continuing until you dumped the trillion dollars in losses in our laps. You then had the gall to short every friggin pool that you underwrote and told your clients it was a great investment. I meant to address your quote direct bu put it to someone else. i hope I answered some of the many questions you will have now. God Bless.

  63. @Nora C – From your mouth to God’s ears. Unfortunately, what is more likely to happen is; we will get passed the election and regardless of the winner, Congress will clean the entire mess up for these guys in one sweeping bill.

    I already see them preparing for it. It starts subtle with talk like; it is only paperwork errors… the lawyers acted on their own accord and should not have filed it that way… we have the Note and that is sufficient… what doesn’t work in state court simply means I have to Judge shop in federal court… homeowners are taking advantage of banks by not paying and staying for as many as 3 years.

    All those little tidbits are meant to turn citizens against one another. My favorite is homeowners are staying for 3 years without paying. They leave out the part that the mortgage has been accelerated and unless the homeowner pays the entire arrears in one payment they will not accept anything. On a bright note, someone around the corner form my office won the jackpot for the lotto yesterday.

  64. @DCB I wrote the Peoples Plan in January of 2008. Treasury Secretary Paulson had not requested immunity from prosecution at that point.

    The Plan is outdated because it required the United States Government to strip the lenders of the Notes & MBS. They chose the route of deleveraging on the American Workers back. Remember when the bailout first went to Congress and it was turned away. Guess which insanely rich thief got attempt number two passed. You’re gonna be shocked!

    In any event, I sent the evidence and a nice letter to my lovely representatives back in 2008. Tim Bishop people laughed in my face when I told them Bear Stearns was leveraged 90-1 on assets and that they were illiquid and the bank would not be able to 105 the necessary pledge to get that liquidity to pay immediate maturities. What people will learn in the future is that this was all intentional and planned! The currency pinnacled back in 01 and Greentwit allowed the private guys to expand liquidity through default swaps. he knew and was a part of it. Paulson knew and was a part of it. Jamie Dimon sits on the NY FED Board, and walks around saying they were all caught off-guard.

    Do I believe they should be indicted? I wrote a piece asking for just that. I went a step further and also suggested that the counter party on the swaps (mortgages & sovereign debt) either pay up or lock em all up, strip the business and personal assets of all the officers and put their families on the street.

    2012 will be the introduction of the International Currency and the SDR’s are already calculated. It will be handed to us initially as a currency for central banks and sovereign wealth funds to conduct major complex transactions (too complex for us stupid folk to understand) and mark these words here today – By 2015 the US Federal Reserve Note (debt) will be removed as the global reserve currency. America will no longer be able to print away our annual deficits and thus we will be pegged to the international exchange currency. The banks have been quietly moving out of dollar investments aside from the free Treasuries they have parked at the Fed for their tier one reserves.

    The ugly part will start in February, that’s right, as of today we have yet to see the worst.

    Why don’t you tell me how you feel I can be helful during my period of atonement?

  65. Lots of good points here, but…why does everyone keep saying that the banks should have given modifications when

    THEY DON’T OWN THE LOANS!

    The can’t modify them, legally. It doesn’t matter that they promised the government that they’d participate in this program or that program because they can’t modify what they don’t own, and they know it.

    E.Tolle said it…they sold the Notes over and over again, and used our credit file and signature to make even more money than the massive amount they extracted from us through fraudulent inducement. Clearly, they set this whole scheme up to their own advantage at every juncture, and used their financial sophistication to engineer a brilliantly criminal, monumental theft. But like most criminals, they are to blame for getting themselves caught, because by fouling up the chain of title, the back door was open to massive litigation and Quiet Title suits. When it all shakes out, the banks will be required to make restitution, and the money river will reverse direction and become a flood zone. Not only will they have to make those they defrauded whole, they will be liable for treble damages for their wrongdoing.

    We are and always have been a Nation of laws, not a Nation of men. It will go back to that standard or there will be another bloody revolution, because the people of this country are where the power lies, not the puny, cowardly, shadow government, or the criminal banksters.

    Some standing up will be necessary, and boycotting of corporations, but as far as I can see, the empty houses are without valid liens and the owners need only to claim them. Imagine how rapidly the economy will recover when the people can believe in the protection of law and justice over false claims made by liars and thieves. We’ll begin to do what we do best; manufacture, design, build, formulate and network. We don’t need ANY stinkin’ banks!

  66. @iwantmynpy,

    I like your plan up to a point… It says nothing about confiscating what was stolen from us through fraud and unjust enrichement. Where, in your plan, do we get our 3.8 billion back from Paulson and all the rest? What do we do with those Moynihans and Dimons? What happens to TBTF?

    My feeling is that, until they see justice rendered, the American people will NOT agree to participating into anything presented as a solution.

  67. @DCB – I hung it up back in 2004. I am already giving back to my local community and just recently released free software for homeowners to run a free NPV test. Homeowners have had tremendous success in NY because the lender will not produce the results of their test, so the Court sides with the homeowner. The bank disappears for 4 months and the entire ugly process starts again 30% of the time. 70% of the time the homeowner receives a modification. Not enough results to make an accurate statement since it is new. But we have 200 folks in the beta program and the results to date have been extremely favorable.

    I will see if Neil wants to put a free link up on this site. The post I put up earlier was sent to Congressman Tim Bishop, Senator Hillary Clinton, and Senator Chuck Schumer during January 2008. My next post is where we are going as a Country over the next 24 months. I worked in this arena for quite some time and have extensive knowledge about MBS. So here is a quick one! If people really knew why MERS was set up, everyone would stop paying their mortgage.

  68. @iwantmynpv

    When did you leave? maybe there are ways to atone that you have not thought of yet

  69. When did you leave?

  70. disagree with the notion that the fundamental reason for being of FANNIE-FREDDIE is wrong———-they were supposed to use quaisi govt status to get cheap long term fixed conventional mortgages to americans—-

    without that we ALL would face the awful uncertainty of ARMs forever —–weve seen how that works—that is the business model that prevails if you care to borrow from a LONDON bank——thus across Ireland the backbreaking housing debts are founded on the volatility of ARMs–causing national catastrophe

    What was NOT supposed to happen was FREDDIE FANNIE securitizing the awful crap not contemplated by congress–one thing to lighten up on standards for income —another to use that as the green ligfht to inflate the market prices thru in house fake appraisals , negative amortization cliffs etc

    We cannot tolerate the banks forcing aericans to all live ion a knife blade wondering about the adjustment rate on ARMs that we know are going to double within three years–if so then less than half of americans will own their own homes–maybe substantially less than half within 20 years–no family farms an family homes to hand down thru generations here—we have had our family roots ripped out –no longer connected with extended families nor able to rely on them–scattered across the country like flotsam and jetsom

  71. I disagree with the notion that the fundamental reason for being of FANNIE-FREDDIE is wrong———-they were supposed to use quaisi govt status to get cheap long term fixed conventional mortgages to americans—-

    without that we ALL would face the awful uncertainty of ARMs forever —–weve seen how that works—that is the business model that prevails if you care to borrow from a LONDON bank——thus across Ireland the backbreaking housing debts are founded on the volatility of ARMs–causing national catastrophe

    What was NOT supposed to happen was FREDDIE FANNIE securitizing the awful crap not contemplated by congress–one thing to lighten up on standards for income —another to use that as the green ligfht to inflate the market prices thru in house fake appraisals , negative amortization cliffs etc

  72. We’ve all been lied to for so many years that we’ve forgotten what the truth looks like. Hitler said, “If you tell a big enough lie and tell it frequently enough, it will be believed”. Or was that Obama?

    We were all told by the men in expensive suits that we borrowed something valuable, something that appraised for $$$, therefore we owe them dearly. But we’re assuming a voluntary servitude scheme here, one that’s not required of us by law and one in which we weren’t informed of the inner workings thereof, by these so-called responsible parties in thousand dollar wingtip shoes.

    There’s a huge lack of disclosure of material facts by the banksters and their enablers….they have nothing to give us in exchange. They’ve convinced us to give them the title to our properties in exchange for our very own credit, for our signatures, for our future labors. It’s not the bank’s money that bought the houses, it’s ours, it always was ours. Always has been.

    This simple light bulb moment doesn’t need to conjure up further talk of individual sovereignty and ditching your drivers license. They’ll just arrest you for that. This is just a pure and simple issue, don’t confuse it. They love it when we stray from the core issues, when we settle back and eat our bread and watch the circus. The truth is they’re stealing from us, and our government is complicit.

    We didn’t receive anything of value from the assholes on Wall Street. Our own promissory notes supplied the credit. In return for that, they rent us our houses for thirty years and hold the titles for having supplied absolutely nothing to the transaction. They’re cheats.

    Furthermore, the promissory notes were sold countless times without our permissions or knowledge even though they belong to us. In monetizing our mortgages, the banks increased their wealth by nine times the original amount and then they have the nerve to demand that we pay back the principal plus interest….on our own credit. Who the Fuck do they think they are? This is securities fraud. We don’t even have to mention the multiple pledging of notes into trusts, but we should, to every single person on the Hill.

    And then when we run into trouble due to the collapsing economy caused by their greed, not ours, they take our homes and equity through fraudulent means. Remember, the houses were had upon our credit, not theirs, and they were paid back by their leverage schemes based upon our merits. Who the fuck are the financiers fooling, besides us?

    Certainly not Obama, CONgress, the regulatory agencies, and the judicial branches, as they’re all paid exceedingly well by these same Owners of Capital, these Titans of Wall Street, and by their individual investments in the same schemes. Why, if it weren’t for us, they’d actually have to work for a living. For the sake of civility, let’s just continue to give all of what we have left to the assholes in the suits. Maybe through their trickle down theories, things will get better. Best get back to work now.

  73. Just think of the wealth created when everyone defrauded of their home is allowed to get it and the players of the money get stuck with their bad paper. The players new the game and were rolling the dice (mostly no risk to them since insurance covers the loss in most cases). I should not have to loose my house and let them play with the spoils. The BK 7 frees up the unsecured debt value left in the home and it should be the home owners if there is any.

  74. I do not agree. In my humble opinion the investment bankers have wreaked havok on the economic and political institutions in both Europe and the US. The full impact in the EU will not be realized until later 2012 or early 2013 –probably in connection with the collapse of the EURO.

    The US will suffer its own slowdown –albeit the stats wont show it till after election. Then it will get hit by a pne-two punch—the EURO collapse followed by the abrupt shutdown of China growth. There will be a combination of high unemployment coupled with inflation from printing $$$ for US expenditure and as the WSJ states today nearly a trillion needed to bail out Europe for a year till elections here are over.

    What happens after elections and all the corks pop—and the chips fall is anybody’s guess. Perhaps a New World Oder where the jet-setting multi-national billionaires call shots everywhere–or Europe will open investigations and prosecute them as international financial terrorists–possibly for crimes against humanity. This is the most extreme. The US is basically the pirates’ safe haven now.

  75. OK I’m not a regular American, I did work on Wall Street for 15 years, but I am doing my best to repent.

  76. The People’s Plan

    I am a regular American, Just like you. I recently took the opportunity to look back on my life and reflect on the many mistakes I’ve made. At times, I have made the same mistake more than once, so; I readily admit I am not perfect. Having taken the first step toward recognition, I would humbly suggest that we all can search back through our lives and undoubtedly seek and choose the moments that we would have done things differently. Unfortunately, in most instances we do not have the capability to foresee the results of our decisions prior to the moment. The time for a solution is upon us all, as a people and a nation that will struggle through the greatest fraud ever committed.

    The People Deserve An Explanation!

    Now that we are all directly living the results of past decisions, it is important to understand how we arrived here. The current financial fiasco did not begin last year. The financial weapons that will continue to dissolve our economic structure were created almost twenty years ago to engage private capital seeking higher returns. The creation of these complex accounting products allowed major institutions to over-leverage deposits, and through a form of monocline insurance, still meet regulatory requirements. These products became known as structured investment vehicles (SIV) and other cute acronyms that all amounted to one thing, unadulterated leverage.

    Mortgage securitization had worked for many years due to constraints, regulation and guidelines. Unfortunately, the financial industry realized 10 years ago the extent they could insure default risk on mortgages and they set the private money expansion in motion. They quickly established pipelines of off-balance-sheet fictions with the sole purpose of generating current non-recourse cash flow. The power to create (dollars) through debt could now be attained without the nuisance of government or central banks preaching about pesky reserve requirements. Financial Institutions had figured out how to leverage balance sheet assets 50 -1, and quickly set out to feed the debt fuel to the profit fire.

    It was easy from this point. Offer Americans the chance to realize a piece of the Dream – owning their own home. Once they had set the debt trap, the rest was simply organization amongst the most powerful Wall Street firms. These firms would create a structure of multiple companies. They would all have a part in the scheme, and the finest part about the entire process; none of the participants could be held accountable for anything they structured.

    For many years, two companies had a virtual monopoly on the mortgage market. The first was the Federal National Mortgage Association, more commonly known as Fannie Mae, and the Federal Home Mortgage Corporation, also known as Freddie Mac. Fannie Mae was conceived in 1938 as part of the President Roosevelt’s “New Deal”. “Yes, that is the same new deal that gave us the social security [ponzi] scheme”.

    Fannie Mae operated without any competition until 1968, when Freddie Mac was created to compete with Fannie Mae. They were both aptly named Government Sponsored Entities (GSE), which in a nutshell is equivalent to the term; Quasi-Governmental Agency, which in its most granular definition means; the corporations, keep all the profit / gains, make huge political contributions to politicians, pay incredible dividends and salaries to officers and shareholders and nationalize all the losses through the government side when they fail, “and trust me, they have already failed – the rest is but mere housekeeping to appease large bond firms that also control the Congress.

    These two companies laid the groundwork for private mortgage securitization trusts. Because these new structures would compete would the two GSE’s, they all got together to figure how they would split the pie. Welcome to a new acronym “MERS”. This new company called “Mortgage Electronic Registration System” allowed all the confederates to operate as single entity while dissecting mortgage loans to sell unattached Notes / cash flow without recording the trail. This all worked well, as long as the lenders and the competing parties followed the same underwriting guidelines set by Fannie Mae and Freddie Mac.
    Since Pension funds had always purchased mortgage backed securities as a “safe investment” these new special purpose vehicles were seen as a wider pool that still carried the now irrelevant ‘Triple A Rating” for the loans included within the pass through structure. As the credit deleverage continues to unfold throughout America, investors will begin to understand that non-recourse loan originators and seller-banks never bothered to underwrite the loans and that the insurance against default is also non-existent. The taxpayer will be left on the hook for over a trillion dollars in losses directly and indirectly related to mortgage pools that were never intended to be safe.
    The structure was in place, and pure greed caused Wall Street to turn up the volume. As the economy continued in a sluggish pace, fewer potential home-buyers met the underwriting guidelines. Many of these folks would venture to a handful of banks that would approve mortgage loans through a manual underwriting, and find investors who would buy these loans with a higher risk, for a slightly higher rate of return. These original investors understood the risk and the typical loan would carry a rating other than “Triple A”. Global banks began to acquire these smaller banks and with the repeal of “Glass Steagal” it all broke loose. Wall Street understood these type loans to be the next major profit center since the only increase in mortgage volume would come from one of two avenues. Interest rates would have to come lower to fuel mortgage demand; or, the underwriting guidelines for mortgage loans would have to come lower to fuel demand.

    The overnight creation of the sub-prime mortgage industry began with a fury. The volume was tremendous for these new sub-prime loans. These banks sprang to life faster then the dot-com companies of the late nineties. The larger commercial banks issued huge lines of credit to these sub-prime lenders as the rate of return was staggering. The industry was so lucrative that many commercial lenders began setting up their own sub-prime divisions so they could capture larger portions of the spread. This in turn caused many smaller sub-prime lenders to turn to Wall Street to cut out the larger banks in the securitization chain.

    The sub-prime fire howled for more financial fuel. The financial firms and many Americans fed it the debt-fuel each time it requested. The banks had now devised a plan to keep the growth and profits moving higher. Just lower the lending standards to include more of the population. Regulators (alleged) never looked because things were great. Millions of first-time homebuyers were finding the credit available to buy homes and the folks in the starter homes were able to take a profit and move up to a larger home. “What great times we are living in” could be heard everywhere.
    To keep the wheel turning the banks kept lowering the criteria to approve mortgage loans. The criterion that a potential borrower needed to prove the ability to repay the loan through the production of verifiable income and assets gave way to stated income programs. The requirement that a homeowner needed to invest at least 20% of the purchase price (down-payment) to create a vested interest was replaced by financing that exceeded 100% of the purchase price. In effect, the banks began originating and underwriting loans that had sub-loan features attached. Potential mortgage customers could choose mortgage payments that had features which mirrored a credit card. Such features included: making a principal and interest payment, making an interest only payment, or my favorite, the deferred minimum payment. The latter payment was the key to inducing borrowers to buy more home than they could afford. The Alt-A loans and Option Arm loans are the next round of defaults, and they will not be affecting just the middle-class borrower.

    The Federal Reserve Corporation made tremendous mistakes on the overnight rates by artificially lowering to quickly and not responding to the excess that was building in the housing sector until it was too late. At one point these securitization structures allowed sub-prime banks to offer interest rates to borrowers lower than traditional lender companies, which were also constrained by set underwriting guidelines. What happened next was nothing short of unimaginable. Not to be out-dealt, Fannie Mae and Freddie Mac re-shuffled the underwriting guidelines on its own standards and the credit it would buy and securitize. Imagine, two quasi-governmental agencies lowering credit requirements so they too could participate in the feeding frenzy. Much of this was accomplished through friends in Washington who were receiving significant political and consulting dollars to keep these two in the game.

    Although the central bank policy opened the door, Fannie Mae and Freddie Mac took the door off completely off the hinges by agreeing to purchase these risk-laden assets. This allowed more liquidity and created an atmosphere of the money chasing the investment. Like any great banker with new found money, they simply did the obvious; they lowered the underwriting guidelines for mortgage loans yet again. The pension money and foreign investments to purchase pass-through certificates created such frenzy that; the lenders couldn’t track the loans they had sold possibly a dozen times before it found its way to a pool series. This all worked well as long as interest rates remained low and the real estate market moved higher or stayed steady.

    “These were the best of times”. The President (alleged) of the United States of America boasted of record levels of new home ownership. Some property owners saw their house double and at times, triple in value. Many folks began using their homes as savings accounts by; simply buying anything they desired with credit cards, and using the new-found home equity (Pyramiding) to pay them off through cash-out refinancing.

    The economy grew at a blistering pace and every person wanted to secure the American dream of owning a home. The “me now” economy had formed and it kept this new financial wheel well-oiled and spinning. Nobody cared! Just write the loan, bury it in a portfolio of other loans and have it insured against default. The bond rating companies made their contribution to the mess by rating mortgage portfolios as investment grade when they clearly had exposure to risk. They continued to do so because they were being paid by the lenders who underwrote the loans. If the rating agencies disagreed with the criteria they risked not receiving future business. “It is not hard to imagine how quick they reached a decision with billions in business on the line”. Actually, nobody ultimately cared because all these had been insured, just in case a default occurred.

    Nobody noticed that commodity prices had continued to climb as the push higher was slow at first. The weak dollar policy tied to low interest rates was beginning to produce early inflation. What if the inflation numbers had been clouded all along? We were all consumed by the great times and figured it would never end. If we got into some credit trouble we could always take a couple more bucks out of the house. If we needed to show better quarterly numbers we could always lower the lending guidelines to find new borrowers. What if all this was planned and we had pinnacled during 2006. What if all the major financial institutions knew all along that the bubble was ready to pop and they began shorting the pools of loans they had told their customers to buy?

    We unofficially entered a period of recession beginning in the final quarter of 2006. Many global banks began to shy away from dollar investments and more important, they learned that the underwriters for these loans were shorting the pools en masse. The dollar plummeted and the Federal Reserve Corp. made the ultimate blunder, interference with free capitalist markets. By the time we realized that core inflation was emerging in energy markets it was too late.

    The central bank followed their standard protocol and began raising rates in an attempt to head off long-term exposure, and subsequently crippled the credit markets in the process. These policy moves had nothing to do with money supply. As will proven many years down the road, it was an intentional unwind of fiat credit founded on leveraged assets. The entire unwinding and dismal economy we will experience in America over the next 15 years is part of the deleveraging process which began during 2007. Although the actual new supply of credit-dollars was created and garnered through default swaps-we will leave this entire segment to another day and a discussion on sovereign debt exposure, including treasury notes.

    The higher fed fund rates caused central banks around the globe to tighten and the banks had to slow the lending process. Many counter-party providers began to question if the swap providers had adequate reserves required to fund any credit event. The brakes on the financial wheel clamped down hard around the rubber. Banks rightfully became wary of other banks, and the early credit squeeze we are experiencing will roll across global markets as the loss to investors becomes fully apparent.

    This has already affected the new folks that wanted to purchase a house, and were met by higher interest rates due to the cost to insure against default. The homeowners that had been fueling the economy through home-equity-extraction quickly realized that the banks had changed the locks on the piggy bank. The home-ownership-ladder had the bottom rung taken out. The coming days will mirror the events leading to, and causing the Great Depression. The only real difference between the current unwind we will experience and the leverage unwind our grandparents went through? “They used a different asset class to start the process this time”.

    The new prospective homeowner has been shut out by stricter lending guidelines and no mortgage credit available unless you can prove you do not need the money. The folks that owned starter-homes and want to finance up the real-property ladder can no longer find new borrowers to buy their house. They are stuck, and in turn these lower-rung purchasers will continue to be the proverbial “wrench in the spokes” for the entire real property chain, all the way up to the luxury market. Inventory will continue to build until 2013 and property value will decline until markets bottom at levels of affordability which can be validated through income. The worst is still to come!

    As the values of the mortgage assets plummet folks will unfortunately realize that the default swap provider(s) do not have the money to pay, and the mortgage securitization trusts will default. Many insurers have already ceased writing (CDS) knowing that the financial wheel has taken on an irreparable flat. It may not sound important but; no insurance means no leverage, which ultimately for us little guys means no loans.

    The artificial demand for mortgage loans is over. There has been no wage growth for the last six years and unless everyone receives a 200% raise to wages, the housing market will continue to dissolve until establishing a bottom during 2012. Let’s face it the artificial demand created through a low interest climate and a significant absence of prudent underwriting guidelines has pushed property values far beyond the PTI Multiple. Realtors and appraisers were both compromised by the lenders, and instructed to get to the suggested value to keep the asset price inflated across the board. Appraisers would routinely [push] values to make the deal work, always in fear of not being provided additional business and realtors were instructed to get top dollar for listings, regardless of current market conditions.

    Chaos ensued; lenders began continually lowered lending standards to meet shareholder demands. The bond rating agencies would stamp the loan pool as investment grade, so they could be insured against default and finally make their way into pension plans and other areas that could only purchase low risk investments. The need to securitize mortgage loans for profit quickly gave way to; securitize loans to get them off the lender balance sheet, and just dump the future loan loss on unwary investors so we are not holding the bag.

    AMERICA’S CURRENT SITUATION

    We are clearly entering a depression-like period. Regardless of any ideas that are put forth we will stay in an unofficial recession. The central bank will have to expand the money supply to bring about an appearance that our banks are solvent. This policy will weaken the dollar and force other central banks around the globe to follow measure to protect their internal GDP target and real inflation rates. Commodity prices will rise dramatically to offset carry trade and currency exchange imbalance as a result of the new unaccounted supply expansion. How long this period lasts is up to the American people, and the courage we will need, to reign in our uninformed representatives in Washington and the free spending folks at the central bank.

    The taxpayer exposure to all toxic loans (residential mortgages only) is not 700 Billion dollars. The direct losses will exceed 1.5 Trillion dollars when we look ahead to see the actual number of new defaults coming. Almost 10 million loans are at risk just in this class and this sets the stage for community unwind. As true losses are exposed, and the first wave of loans wind through the foreclosure process, it will drag down property values for performing loans. In addition, another huge tranche of adjustable rate mortgage loans will begin to sour when the fixed period ends and they reset to floor rates or higher rates. For convenience purposes; we are only in third inning of this game, and if we want to avoid extra innings we must all accept some of the responsibility for causing this mess.

    The principal asset that most families possess is their home. Many folks around the country that pay their mortgage on time and are not in immediate financial trouble have noticed that the values of homes in their area continue to decline. Some regions have been shielded from this price depreciation, but will soon experience dramatic changes in their neighborhood as well. This is not a case of some folks who bit off more than they could chew. The next round of expected defaults will cripple middle class and wealthier homeowners as well. The real estate markets will go lower regardless of what we do. How far the home values drop is up to us, the American people.

    Unemployment will continue to rise before peaking around 10%. We have already seen new job creation almost diminish, and continued failures in the financial, automotive, commercial development, airlines, lodging and many other industries will produce unemployment across the nation. The coming job losses will expand far past the banking industry. All the individuals that are employed as a result of the banking sector will feel the pain. Small business owners that are tied to this mess will terminate employees due to lack of revolving credit. These newly unemployed will cut back on their spending and may list their property for sale due to their job situation. This cycle will feed the cutbacks down each level of the job-chain.
    How many jobs are lost is up to us, the American people.

    AMERICA’S SOLUTION

    Knowing now that actual losses will most likely exceed 1.5 Trillion dollars (Residential Mortgage Default Only), and now understanding that we the taxpayer will have to absorb these losses it is time to make the move. In advance of large financial firms and banks becoming insolvent we need to have our Congress authorize United States of America Notes to purchase the mortgage assets at or near net present value. We the taxpayers are on the hook for the 5.5 Trillion in mortgage loans we already guarantee at Fannie Mae and Freddie Mac. We should go all the way!

    The American people have a much greater opportunity of not losing money if we purchase all the outstanding Notes and Mortgages (net present value) on residential properties within the United States. We will eventually lose almost a trillion dollars on the Freddie and Fannie guarantees – we may as well take the performing loans to offset the non-performing loans. The alternative is far worse – an entire collapse of the modern banking system and taxpayers footing the banks losses through the FDIC and the FRC. We are entitled to take the good with the bad to protect ourselves!

    How it works

    We create a tier one segregated debt offering by issuing a one time 50 Year (Interest Free) US Treasurer Note (Not Treasury) Note. Any bank that chooses to participate must sell all of its mortgage holdings (good and bad) at no more than the current net present value for static and REMIC held mortgage loans. All arrears owed on the defaulted Notes are forgiven, providing debt ridden homeowners with some foundation

    The Plan removes the uncertainty of the value of the assets which are masked behind credit default swaps. The banks can work with the mortgage pool investors and issue preferred securities to investors to cover a portion of the loss they will absorb. This allows the investors to participate in future prosperity or failures of the banks instead of taxpayers.

    By issuing this new segregated Note we will free the banks to lend again with tighter regulation. The Treasury begins the process of revaluing every home to obtain accurate valuations which can be used for restructuring programs. Every American homeowner that has given a lending institution a mortgage will receive a modified interest rate of 3.75% (discretionary) interest. The Treasury issues the new 50 year bond at 2.75% interest, or a full one percent over the new segregated treasurer note rate. We the American People can decide the repayment of the full-principal balance by choosing if we want a “15”, “30”, “40” or “50” (discretionary) year amortization schedule. The 1% spread between 2.75% (discretionary) and 3.75% (discretionary) and all other interest payments will remain within the segregated fund to offset inevitable defaults. This 1% figure will amount to an estimated $125 billion per year in free interest, of which can be used to purchase Sate and local government issues who will begin to see their local economies collapse due to reduced property tax receipts and the natural evolution of the current debt cycle. By providing homeowners with this restructuring opportunity we accomplish five goals:

    1. We slow the descent of real estate values to manageable levels by removing the impending defaults for employed homeowners. We the American people can actually reduce the level of inventory by helping our neighbors stay in their homes. The Plan also allows 12 million responsible homeowners to stay in their homes through simple rate reduction and term extension.

    2. We put liquidity back in the economy by reducing debt obligations for distressed homeowners. This plan will not just help defaulting homeowners, it will help every homeowner. By reducing the average interest rate from 7.125 (includes second mortgages & HELOC as average) to 3.75 we inject an additional 229 Billion annually back into the economy through consumer consumption and debt elimination. Homeowners will have the capacity to pay down other debt such as automobile loans and credit cards. This will help the banks to recover losses in these sectors that will also reach an estimated trillion dollars by 2013.

    3. We allow the markets and homeowners time to restructure their finances and it cost the taxpayers nothing. This also provides immediate fair relief for lending institutions and provides an opportunity to fix the problem the first time. The root cause of our market decline is the continued inability to value the asset class that has been used as the foundation for tranche leveraging. This plan puts a face value on the assets and spreads the loss amongst all participants.

    4. We protect ourselves and our tax dollars by providing payment plans that can be substantiated. When we provide the homeowner direct assistance we reinvigorate them on home ownership, and that level of pride that disappeared will begin to return. Most folks want to stay, but cannot find affordable resolve.

    5. We give homeowners the opportunity to pay off the entire principal balance! As part of the plan the homeowner will not get a free ride. We have all made mistakes, and buying a property higher than we should have does not disqualify a responsibility. Not paying for the house only compounds the lender errors.

    6. As consideration to these [united states], and for the assistance being provided, we remove the mortgage interest deduction for all properties and homeowners that participate within the program. This will put trillions of dollars back on the taxable playing field while allowing real property values to regain a foothold based on value other than tax purpose.

    The performing assets in the segregated account will provide the ability to pay the interest on the issued treasurer note and still provide a 1% gain to offset any defaults. The rate spread could result in retained interest of over 100 Billion annually. The plan also provides the needed time to work through the mess and clean things up through modification and mitigation. The single most effective highlight of this plan is that it cost the American taxpayer nothing.

    We the American people can slow the number of foreclosures and bankruptcies that are occurring every day at unbelievable rates. Each year a significant portion of the interest can be used to retire a portion of the 50 year Treasurer notes at par / slight premium, thus providing liquidity to investors that require the capital back. As folks begin to sell their homes again the monies will be used exclusively to pay down the 50 year Treasurer note.

    We the American people must understand that the real estate markets will not see another up-trend until 2018, and that it will move up much more slowly reflecting only increases in wages and nothing else.

    The fund will be segregated from the general budget and the income generated from the loans will not be commingled with stimulus funds or interest payments on current or newly issued debt. We will select 4 separate independent auditing firms who will rotate quarterly and provide updates to the American people direct.

    What the media wants you to believe

    We need to help the banks or the entire economy will collapse. This is not true and the benefactors of a taxpayer bailout will make it appear as if this was the only option. The American taxpayer will be asked to help the banks to restructure, and at some point that option will be converted into a non-disclosed agreement between the government, central bank and its reserve system members. Why will our government insist we invest in Companies that have been mismanaged, and thus, should be allowed to fail in the very name of Capitalism?

    Once committed, our tax dollars are tied to the performance of these companies. We only have to look at what they have accomplished in the past several years to know that we should not make this mistake. American Taxpayers will not receive a Board seat to direct these companies and will have no control over how they are operated.

    Throughout the history of this great Country we have had many threats of impending financial disaster. These thinly veiled threats are but the very means which allow larger banks to consolidate smaller banks under their corporate robe. None of the events that have occurred to date will compare to the open theft that will take place through central bank policy over the next several years.

    Remember, this is our Country and we select these folks in Washington to carry out our will and unified message. The message should be loud and clear; we know the extent of the damage, we have a plan and we choose to help one another.

    January – 2008

  77. After, the Federal Judge ruling do we need to respond to the defendants second motion to dismiss.

    Initially our case was in State Court and the defendants removed it to Federal Court after violating the state court Temporary Restraining Order. The Court has reviewed the plaintiff’s response and amended pleading and is of the opinion that
    the defendant’s motion should be denied. The Court’s review of the documents on file, including the plaintiff’s amended petition,
    and concludes that the pleadings establish a justiciable cause of action against the defendants

  78. 24 EMPTY HOUSES AVAILABLE FOR EVERY HOMELESS PERSON.

    OBAMA==CRIMES AGAINST HUMANITY…STARTED WITH CLINTON’S DEREGULATION…

  79. MD Highest Court: Deutsche can enforce a securitized mortgage, but only because homeowners conceded so:
    http://bryllaw.blogspot.com/2011/12/md-highest-court-deutsche-can-enforce.html
    Enforcement of defectively securitized mortgages is still to be considered by Maryland, Virginia, and other states’ highest courts.

  80. @DCB,

    And you know what? In a few years from now, there will be so much empty land and so many homeless people, promoters will have a field day, construction will get a real boost, lending will get really strong and… it will be deja vu all over again!

  81. This article is so negative. It fails to take into account the tremendous benefit that servicers and “preservers” [aka “intermediaries”] provide to communities by planned seize and freeze transactions. The benefits to all should be obvious. The servicer recovers his [carefully documented?] fees by making claims against the former homeowner’s casualty insurance policy–thae premiums on which skyrocketed when she signed the subprime loan docx. Never mind the “preservers simply left the doors open to the winter winds—necessary to convert vandalism into a covered loss.

    The servicer thus collects a pile of money –the homeowner’s insurance record tanks—the preserver then REALLY gets into the job creation aspect by hiring people to rip the pipes and wires out of the walls and carry them off along with everthing else removable –including the kitchen sink and cabinets. The prehung doors, the windows—–its much more work to strip a relatively new house–more labor—so that benefits the economy. Then the stripped items are recycled–good for the environment. The split piping and yanked wiring get melted down to be sent to build infrastructure in China. Helping the Global economic recovery!

    The preservers have more money to spend–and without the burden of paying income taxes on the preserved and recycled materials—thats a good deal more than most have to spend–so it means purchase of more panel trucks and wrecking bars–etc. Boost to US manufacturesrs?

    Then we get a real boost when the now destroyed former home is no longer occupiable nor economicall repairable such that the former homeowner now must seek multi-family housing where the lanlord will not allow people to enter to “preserve” his appartments. But the real bright spot here is that the number of multi-family units available are in short supply and the rental price is at astronomical levels—so there is a big pre-election upswing in multi-family housing financing and construction. So that is another huge economic boost for us all.

    Then in a few years as the vacant gutted former home deteriorates–the roof leaks and rots everything away—the bulldozer sales can pick up and the refuse collectors get to haul away the trash—and the price tag in this progressive society will fall to the local govt and be borne by all citizens there—rather than improperly burdening the poor bank trustee that really had no control over the servicing and preservation. He got his fees early on and distributed them as bonuses which spurred yacht and Vinyard sales worldwide.

    I dont get it—–why would anybody complain about this XMAS present for us all from the servicers and preservers. Merry XMAS and an equally HAPPY NEW YEAR all.

  82. The deeper in this economic doodoo we fall and the more regulated this country will be when we get to the other side… The pendulum swung so much toward one side that it will have to swing at least as much toward the other side before any kind of stability can be reached.

    Sheesh… People just don’t learn.

  83. I agree Neil,

    I see this linke of BS spewed out all the time by those that will say anything to earn a commission and/or cover their respective tails.

    They are delusional or simply don’t care about anything but making money which is what got us into this mess in the first place.

    Anyone that buys now is crazy unless they can rent for positive cash-flow and assuming it continues as more lose their jobs and costs to live continue to rise. Wait until more inflation kicks in.

    Most aren’t seeing how costs of goods have increased throughout all this too!

    We have a long and difficult road ahead!

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