Sham Economy and Dissappointing Debate

Editor’s Comment: Two candidates faced off on domestic issues last night and neither one of them mentioned the artificiality of our economy based on reported profits and assets that are fictitious and leaving out real liabilities that are in the trillions. They also both left out the taxation of the tens of millions of “securitization” transactions that violated every restriction in the Internal Revenue Code for tax free treatment.

Listening to the debate you wouldn’t know that 6 million families have lost their homes, 10 million more are scheduled to lose their homes, and tens of thousands of homeowners are just sitting tight in limbo waiting for the show to drop, some of them without having paid anything toward rent or mortgage payments for many years.

We have a shadow banking system where over $700 Trillion in nominal value cash equivalent securities are being either booked or traded which largely have no value but which are treated as real because the party line that both candidates subscribe to is that if you pretend long enough it will become real. And hardly any of those transactions were taxed. Instead the Federal reserve has debased the currency and the existing taxpayers are shouldering the burden for generations to come.

Our economy is a sham, caused in large part by the hundreds of trillions of dollars of fake instruments that were issued — far in excess of any real fiat money issued. These candidates were rearranging deck chairs on the Titanic. We already hit the iceberg and they are trying to keep the news from the passengers.

The article below articulates my thoughts better than I have done. It deserves careful reading and and study. It also deserves some attention from all the politicians and agencies that are going along with this sham program of foreclosures, minor modifications and short-sales.

Wall Street botched the loan closings so they could trade on loans that actually belonged to the investor lenders. They diverted the money, they diverted the documentation and the banks were the winners while the rest of us — as taxpayers, homeowners, renters, and consumers are traveling at 90 miles an hour into a brick wall.

guest-post-if-you-prop-artificial-economy-long-enough-does-it-become-real

Submitted by Charles Hugh Smith from Of Two Minds

If You Prop Up An Artificial Economy Long Enough, Does It Become Real?

Does carefully nurturing a facade of health actually lead to health? No; all it does is perpetuate a destructive illusion.

The policy of the Status Quo since 2008 boils down to this assumption: if we prop up an artificial economy long enough, it will magically become real. This is an extraordinary assumption: that the process of artifice will result in artifice becoming real.

This is the equivalent of a dysfunctional family presenting an artificial facade of happiness to the external world and expecting that fraud to conjure up real happiness. We all know it doesn’t work that way; rather, the dysfunctional family that expends its resources supporting a phony facade is living a lie that only increases its instability.

The U.S. economy is artificial in three important ways:

1. The Federal Reserve has distorted the market for borrowing capital by reducing interest rates to zero. Those holding capital (savings) receive essentially zero interest income while favored borrowers (banks and large corporations) can pursue marginal-return speculations for free (when measured in real terms), creating systemic moral hazard of the most pernicious sort.

2. The Federal Reserve’s monetizing of Federal borrowing via the purchase of Treasury bonds has given the government a “free” hand to spend $1.3 trillion more than it collects in tax revenues, feeding inflation (The Source of High Inflation: Government Spending) and the moral hazard created by having essentially free money to dispense to cronies and to buy voter complicity.

In a real market economy, the cost of Federal borrowing would rise as bondholders would demand a premium for taking on the risk that interest rates would eventually rise under the relentless accumulation of stupendous debt. That mechanism has been frozen by the Fed’s monetiziation of Federal borrowing.

3. The housing market has essentially been socialized, with the taxpayers now funding the entire mortgage market (98% of mortgages are backed by Federal agencies) and endless subsidies of marginal buyers (3% down payment loans, etc.) The Federal Reserve has committed itself to taking trillions of dollars of impaired or dodgy mortgages off the balance sheets of banks and burying them in its own opaque balance sheet, while also maintaining near-zero interest rates (when adjusted for inflation) to incentivize refinancing and home buying–both of which generate billions of dollars in fat fees for banks.

All this artifice has created an artificial economy on multiple levels. The entire bond market is artificial, the entire stock market is artificial, and the entire housing market is artificial.

One of the more striking quotes I’ve read recently was buried in a report chronicling the effects of the housing bust on Nevada. The quote was by a woman who had stopped paying her mortgage three years ago and had been living rent/mortgage-free in the house courtesy of the bank, which had declined to even begin the foreclosure process.

Harris, 38, stopped paying her mortgage three years ago after her accounting business lost its biggest client and her home’s value plummeted 52 percent. Some neighbors are also delinquent on their mortgages. “There are so many people like me who aren’t paying their mortgage so they can buy groceries and gas,” said Harris, who was rejected for loan modification programs. “It’s creating this whole false economy.”

This is an astonishing statement on several levels. That people can only afford to keep afloat if their housing is free reflects an extreme of financial fragility. That the banks are willing to pay property taxes and receive zero income for 3+ years reflects the banks’ dedication to restricting the inventory of unsold homes so prices will be forced higher as supply drops below demand.

This strategy, no doubt orchestrated with quasi-official approval, has already paid handsome dividends, as beaten-down markets such as Phoenix have seen sharp increases in home values this year as the number of foreclosed homes entering the market has dwindled. This artificial restriction of inventory by lenders has been well-documented; not only are there millions of homes in the foreclosure pipeline that are not being moved onto the marketplace, there are at least (by some estimates) another 4 million in-default homes that are being held out of the pipeline entirely; this is the “shadow inventory,” the inventory that is not even recognized as being in default despite 3+ years of non-payment.

This is a risky game the banks are playing, as this visibly artificial restriction of inventory undermines the belief that this recent surge in home valuations is legitimate, i.e. a balancing of actual supply and demand. Sqeezing inventory does not magically enlarge the pool of qualified home buyers; it “games the system” so those buyers are paying more for the homes that they would otherwise be worth if the market weren’t being manipulated. This helps banks by raising the prices they’re getting for the few foreclosed properties that reach the market, but it certainly doesn’t help buyers.

This strategy is betting that the gains reaped by selling REOs (“real estate owned,” i.e. houses the banks own) at higher prices more than offset the losses generated by paying the costs of non-performing loans–property taxes, for example–and the decline in income as homeowners stop making mortage payments.

The real estate industry and the banks are hoping that the increase in housing prices caused by the restriction of inventory will spark a new rush into real estate as people start believing “the bottom is in.” But this is based on the expectation that there is pool of potential buyers who are only waiting for the bottom to be identified to jump in and buy a house.

The irony is that restricting inventory keeps prices high, limiting the number of people who qualify for large mortgages. Given that incomes of the lower 95% of households have been declining for four years, the foundation of borrowing is crumbling. The Fed has attempted to increase leverage by lowering mortgage rates to 3.5%, barely above official inflation, while relieving banks of impaired mortgages by buying $1 trillion of mortgage-backed securities in 2009-10 and now another $500 billion over the next year.

The idea here is that maintaining an artificial market and reality will somehow magically transform a broken system into a self-healing one. Stated in this transparent fashion, the absurdity of the Status Quo’s primary policy is clearly revealed.

Dysfunctional families, enterprises, markets and governing Elites all share this same dilemma: you cannot fix an unhealthy, dysfunctional system by hiding reality behind an artificial reality facade. All you’re doing is increasing the instability of the system, which is not allowed to self-correct.

The U.S. economy is riddled with artifice: millions of people who recently generated income from their labor have gamed the system and are now “disabled for life.” Millions more are living in a bank-enabled fantasy of free housing. Millions more are living off borrowed money: student loans, money the government has borrowed and dispensed as transfer payments, etc. Assets are artificially propped up lest a banking sector with insufficient collateral be revealed as structurally insolvent.

One definition of dysfunction is an internal conflict that cannot be resolved. That is our Status Quo: its strategy to fix its dysfunction and instability is to create an artificial economy based on smoke-and-mirrors data, ginned up balance sheets and a facade of “normalcy” that is anything but normal or healthy. How can such an artificial economy become healthy when its self-correcting features and transparency have both been overriden by artifice?

It’s not difficult to predict an eventual spike of instability in such a system; the only difficulty is predicting the date of the instability. Hiding a broken, dysfunctional economy behind a facade of artifice and illusion can’t fix what’s broken, it only adds to the system’s systemic instability as resources that could have gone to actually fix things are squandered on propping up phony facades of “growth” and “health.”

144 Responses

  1. Master Servicers operating in stlouis and Illinios. I’ll give you a clue. Major Companies. Raneiri name I have seen many times over. You may check the employees working for Carlton Wagonit Travel, Shaw Management, Government Contractors in Illinios. This building is full of the Shadow Banking Enterprise. This is where the fraud will began.
    Refinancing you home with your signature taking any equity out of the home prior to foreclosing. See the mortgage or rinancial company in the strip mall behind this company.
    These people are associated with the Officials , auto companies, unemployment office , chase Bank, Metlife , wellsfargo . THF, and all others that are part of this fraud. Yes Koch as well.

  2. Romney says people are looking for work….people are really looking for is a full refund….satisfaction of mortgage plus damages incurred and interest compounded daily for all of the fraud these crooks committed in our names.

  3. This Christmas I am not participating in the circus they created. I will enjoy sharing the company of my family & friends & do some baking. That’s it. To hell with all of their other crap….buy, buy, buy…spend money…. just more of our hard earned money for these greedy jerks to put in their pockets. They ruined it for themselves.

  4. This all reminds me of that rock song….. The Zoo. They want all of us to be kept locked up in their Zoo….In reality, they are filthy animals.

  5. That’s true Shelley. It is a shame they had to use religion as a means to hide their criminality. They have turned all religions into false religions by deceit. These crooks have taken the word of the Creator & turned it’s meaning on its head. We were warned these psychopaths ….via the money changers would do this. They have gone so far as to say Jesus was an alien. The sad thing is people are starting to believe this junk. They will try & destroy anything the Creator created because they want to be the Supreme rulers of earth. That is the total opposite of what the creator intended which was for mankind & all of his creations to be free & independent. Anything that flies in the face of that is pure evil.

  6. If FNMA bought mortgages, that was improper and illegal in many ways. The fact that they are using third parties as substitute trustees to fraudclose is also improper & illegal. With these servicers, it is as if they are just pulling a bum off the street who has no knowledge of anything that occurred in your name and using that bum to steal your property. You can’t buy and own what the seller, outright or by proxy, never owned in the first place. What they really bought was an investment in the revenue flow from these mortgages. That alone was quite lucrative considering what Bloomberg reported a few months ago….The FED collects trillions of dollars per month in mortgage money….Helicopter Bernanke says he uses that money to buy treasuries with….Bottom line….it is illegal for the GSE’s to be a party to the original transaction & an owner of the mortgage & the trustee for the trust. If they are an actual purchaser or merely an investor, which is what I suspect, their issue is with the seller …..which in reality is themselves…..they were a party to the original transaction….and they also have legal issues with the trustees…the title companies..not the title owner of record which is all of us…The truth is, these entities are being run by felons John.

  7. I am absolutely sure you are correct on all your claims. Conterfiet docs are all they have.Why all the chances of affidavit fraud if they could avoid it with the real docs. In the Bains V MERS and Selkowitz case that just turn MERS around in the State of Wa, the MERS lawyer could not present the notes to the justices for either case. A case that important. They most likely were afraid of providing a fraud conterfiet doc either. These cases effect the first state in the U.S. the entire state and they could not produce the notes. That was not laziiness, they dont exhist.

  8. I agree, it is man that is evil and definatley not all mankind, only the greedy physcopaths, with no conscions nor empathy for other human beings. Greedy humans are the most dangerous animals on earth. We have used religon and God to intimidate and cause fear and wars since the beginning of man, and used power and greed to control all mankind. I believe if it were not for greed and power mongers there would be no war, no poverty and a better life for everyone.

  9. BTW John, I asked them for a second time for docs such as… all records relevant to any aggregators & all records relevant to any money transactions with respect to the original transaction. They now have 14 days to respond…I will let you know what they send me. They are felons & they know it. That’s why they are trying to cover up the true facts of their cases because they are felons. That is also a felony.

  10. Johngault. I looked up the “loan” right on Fannie Mae’s website. Their website said they are an investor in my “mortgage”…. I read they purchased mortgages for pennies on the dollar….bottom line, whatever they did with these mortgages after the closing was fraud. You can’t buy what you never held legal title to. The whole aggregator thing is another farce to try and make us believe some actual financial transaction occurred. It did not. It was just a giant casino they ran with our money. It was all fraud & abuse with the U.S. taxpayers money.

  11. I remember a time back in the 80’s when XYZ floated their loans on their warehouse line(s), anticipating market improvement which would give them a better price on the loans they were selling the GSE’s.
    The market went the other way and it put them out of business and worse. It was a well-known (in the industry) scandal. Haven’t thought about that for a long time and now that I do, I wouldn’t be surprised if this were one of the events which led players to try to hedge their bets.

  12. @ivent – I know for a fact FNMA, et al purchased loans from aggregators, larger lenders who aggregated their own loans as well as those originated by others mol under the larger lender’s umbrella. FNMA doesn’t “invest” in those loans – it buys them. The GSE’s didn’t purchase “spot” loans, i.e., one here and there. They only purchased them in large blocks. Aggregators, for instance, short a loan or five for their aggregation, which used to be called pools, would offer their brokers a good deal on that loan or five so they could fill the pool to SELL to FNMA, most commonly because the larger lender was committed to a delivery date and it was short a loan or five. Pools used to be typically 5 million. And FNMA could only buy loans from FNMA seller/servicers and those had to be underwritten (well, that went south) to FNMA guidelines.

  13. Just want to add….the GSE’s are investors…they have no legal right to foreclose. The trustee for the trust would have to foreclose ….there are no trusts and there are no trustees….the GSE’s are hiding behind third party proxies and are using their felonious attorney networks to fraudclose. For example….the fraudclosing attorney for my home is FISHER & SHAPIRO….it States on their website they are attorneys for Fannie Mae….it is not only bullshit…these idiots are committing felonies.

  14. BTW….we were never in default because of the ORIGINATION FRAUD….THEY DESTROYED THE MORTGAGES & THE NOTES AT THE ORIGINATION FRAUD….the FED is who is in default…

  15. In refinance no loan was EVER repaid …the original loan that was borrowed by the FED was NEVER repaid. That is the ORIGINATION FRAUD….In a home equity loan you got back some of the skin you had in the game but, they never lent you any money because BANKS DO NOT LEND MONEY…..THEY BORROW MONEY FROM THE TREASURY…THEY LEND YOU CREDIT…

  16. Also, carie, the borrower would not remain in default with the GSE because the scammer used the scammed insurance proceeds to
    buy the loan back from the GSE. Right?

  17. carie said
    “At subprime refinance, loan is paid — but not by the borrower. Loan is paid by servicer/mortgagee, with insurance proceeds, to purchase from the GSEs. Yes, — loan is paid — just not by the borrower. Borrower remains in default — with the GSE —….”
    You say ABC buys the loan it falsely defaulted from the GSE, and it does so with sham insurance proceeds. Since ABC has no present interest in the note, it must collect insurance from whomever under its buy-back provision with the GSE (and a contractual buy-back would create an insurable something, I suppose). GSE now has the sham insurance proceeds, but they prob went thru ABC as the insured party, which it theorectically uses to make good on its own guarantee / buy-back from whomever they dumped either the loan or the payment rights on. So far, acc to this, the GSE and the whomever are made whole. The insurer got the shaft (false default / false claim – wonder what was used as evidence of default, I do). Whether or not the borrower under this scheme still has an obligation depends on the legal application of the insurer’s funds. The insurer had to have insured a buy-back; that’s all it had to insure. Did providing the insurance funds for a buy-back retire the obligation dollar for dollar, or does it mean ABC now owns the loan f & c?? I can’t get my head around it just now (if ever). But I think that’s the question, whereas you posit the loan is (for sure) paid off. I’m not so sure about that fwiw. Under your scenario, if ABC shows a payoff of the old loan on the HUD settlement statement, it is to itself, in anyone. I think. Whether or not showing a payoff to another party amounts to some kind of fraud, I think would depend on the answer to the question and the actual mechanics of the insurance payout and buy-back. If ABC is able to and does take the scammed insurance proceeds to “pay off” the entity shown on the HUD 1 SS at the time of refi, what might actually be going on there is the buy-back of the falsely defaulted loan.
    If you ever mentioned the insurance in this deal, and you must have, I missed it til now. But this isn’t the end of the story. If a loan were put in false default and sham insurance proceeds one way or another were used to fund the new loan, I don’t know what all we’ve got here besides insurance fraud.
    If the insurance proceeds paid off the loan (but I don’t think they did), we’ve got something else, also, as in what you say. DID the insurance payment pay off the loan or just find the bankster with it now f & c pursuant to a false claim on an insured buy-back? I don’t know. Anyone? The distinction is that the insured party was not the owner of the loan. The insurance kicked in to cover a contractual obligation, the buy-back. ????

  18. Shelley…we know the truth is those notes & mortgages were destroyed at the ORIGINATION FRAUD….They would not want a trail to the crime scene. They are presenting copies of notes & mortgages in civil court rooms…..they are counterfeiting securities and presenting fraud upon the court to steal property they have no legal right to take because of the Origination fraud…..The bank attorneys are FELONS and so are the third party proxies and so are the banks & GSE’S..!

  19. The truth about Obama is, he is a very deceptive Corporate megalomaniac. He does not want freedom, independence or prosperity for the American people. He wants obedient slaves. The elections have nothing to do with labels…Republican or Democrat means nothing when the politician(s) are IMPOSTERS…GLOBALISTS with a world view that believes every human being on the planet should make the same amount of money and own nothing of value. They used our hard labor to steal our wealth and destroy us. That is unacceptable. We cannot allow that as a nation. The U.N. declared we are all human capital…Screw those commie rats! This is our country..we worked for it & paid for it you greedy a**holes.

  20. Iwantmynpv…No one knows exactly how much collateral fraud is hidden in their electronic scandal.. However, some financial experts estimate…$700 trillion in mortgage fraud….a quadrillion in total credit derivatives fraud….they were in most cases overleveraged way more than 90:1….they have no collateral to back up that debt…but quintillions hidden overseas….The bookies were the broker/dealers…the hedge fund managers who sold investments in this garbage that never existed..Did you ever see the CNBC documentary HOUSE OF CARDS..? One ex stock broker said they were selling investments in anything with a revenue flow. That resulted in selling investments in nothing…The BIGGEST INVESTORS…..THE AMERICAN PEOPLE….WERE WIPED OUT WHEN THE ILLUMINATI CRASHED THE STOCK MARKET….THEY INSIDER TRADED AND DELIBERATELY CAUSED THAT CRASH TO WIPE US OUT…….That never needed to happen …they were making gazillions …the INVESTORS WERE GREEDY….they wanted to WIPE US OUT BY COLLECTING THE CREDIT DEFAULT SWAP INSURANCE MONEY FROM AIG….AIG HELD 600 TRILLION DOLLARS IN INSURANCE CLAIMS….Make no mistake….this was diabolical.

  21. All true Shelley & the Russians & the Chinese are in on it with that commie pope…..they want to bring down the Catholic Church but if you know the truth, you know what they are doing flies in the face of Catholic Church doctrine. Just like what these politicians are doing flies in the face of the U.S. Constitution…Its not the religion or the country that is bad..it is the people who are running them. This phase of the evil plan to take US down began in 1962 with Vatican Council II. Pope John Paul II feared he would be the one they used to usher in complete communism…All popes are not bad. The pope before John Paul II wanted to throw the freemasons out of the Catholic Church & they poisoned him. The epitome of evil has infiltrated everything by secrets, lies & deception and are trying to usurp everything good in the world. They are IMPOSTERS.

  22. @iwantmynvp

    Here’s another response for you from one of your earlier comments:

    “…He is getting it wrong. Prospectus says nothing of the kind. Prospectus says that loans may or may not be GSE compliant. Almost every Prospectus says this. No one knows. But, they were NOT. He is making a big mistake to call these loans “mortgage” loans. If they were “compliant” — they would have been directly purchased/refinanced by GSE — and not placed in one of these so called subprime (false) trusts.

    But, that is not the focus. The focus is that that no one knows what is reported about them to the GSEs. At subprime refinance, loan is paid — but not by the borrower. Loan is paid by servicer/mortgagee, with insurance proceeds, to purchase from the GSEs. Yes, — loan is paid — just not by the borrower. Borrower remains in default — with the GSE — and with the subprime refinance so-called lender.

    Certificate investors purchased cash pass-through rights derived from these fabricated subprime loans — that is all. No derivative of a “mortgage” loan, because there was NO mortgage loan. Nothing needed to be financed (except any cash-out), thus, security investors did not fund the loans. There were no loans to fund.

    Derivatives on valid mortgages exist, but the derivatives, and securities, and loans, attached to the subprime, were not valid. They were bogus. And, investors are winning monetary settlements.

    But, homeowner victims REMAIN victims.

    Final sentence from @iwantmynvp— quote — “the certificate investors (actual) bought nothing other than a derivative of the cash produced by the mortgage loans” — makes absolutely NO sense. This is NOT how derivatives work.

    While default swaps are derivatives of the cash proceeds — they act as credit enhancement to insure cash pass-through. This is not what security investors invested in. And, further, credit default swaps derivatives are contracts — not securities.

    @iwantmynvp needs to study derivatives.

    And, again, these were NOT mortgage loans.”

  23. @ carie you get it right to the point of ust missing. Nothing is assigned to and of these pools – a great example is found in the Freddie Mac Master Trust. You have to view it from a wider perspective to fully understand. The monies GS, CSFB, Deutsche, Societte Generale etc.. heisted out the taxpayer via the NY FEDS Maiden Lane LLC I is not the credit default swaps we see at the pool level. It is the synthetic swaps that are never a part of the trust.

    There was no actual credit freeze to us schmo’s – the credit freeze occured because the banks were not sure who the counter-parties were to the synthetic swaps,and if they had the capital to raise their maintenance levels or actually pay.

    Think of it as a bookie (I know how sad this analogy seems,but it is playoff season) I am getting to many bets on the Braves and my book of business is lopsided against St Louis, all bets coming from my clients – As a bookie I want to be evenly balance between bets for both teams so I am assured to make money off the VIG (10% charged to losing betters – so I go out to a fellow bookie and I lay the bets off and he is covering my risk because if the Braves win he will have to pay me and I will have his money to pay my clients.

    My friend the bookie decides to lay my bets off plus other bets he is getting on the Braves because he is also getting to many Braves bets and has exposure. Now Iam dependent on a party I don’t even know to pay me. This is known as counter=party exposure.

    Now that bookie laid off all his Braves bets to another bookie, who laid off all his Braves bets to another bookie. This final bookie was rolling the dice and he was taking on all the Braves bets from all the bettors and all the bookies in town.

    Unfortunately, for the final bookie (which we call AIG Bookie) the Braves won, and he suddenly announced he was holding 85% of all the braves bets in the Country,and he could not pay.

    If am bookie number one – I want my money from Bookie number two , not the AIG bookie. Bookie number one goes to bookie number two to get the money to pay bookie number one, so he can pay his client, and bookie number two is dependent on bookie number 3, who is dependent on the AIG Bookie.

    This is what created the credit crunch. No capital reserves / or banks leveraged 90-1 on deposits with synthetic swaps and counter-party exposure that was not regulated on any exchange- so nobody knew who owned what or owed what and nobody was sure who could pay – so they locked their money up and investment banks would not honor the credit of other investment banks because they were not sure what banks were solvent or what their additional counter-party exposure was to the derivatives.

    Why do you think the taxpayers are still the guarantor on over 1.5 trillion of citi assets that were swappedoff their balance sheet to the fed. Citi is insolvent and with those destroyed assets on their balance sheet they would have had to raise 50 billion in capital to satisfy tier one ratios under the old FASB marking requirements.

    Fortunately, this was only fake money. Had this actaully been the bookie scenario – bullet riddled bodies would have been turning up all over the Country,and many would have gone to jail for murder and assault. Luckily we had Jamie Dimon available (Director of the most powerful Fed Bank) and he was able to give Tim Geithner a great strategy that allowed him to practically pick and seize the assets of other equally insolvent banks, have taxpayers absorb the losses, while simultaneously masking the insolvency of Chase Bank, N.A. Repeat the above actions taken by the other Reserve System Banks,and you have a huge consolidation of assets that they are getting paid on mulitple times over, simply by having the inside track with the Fed, thus allowing them to get over the hump and receive taxpayer money. When I die – I want to come back as James Dimon’s ego.

  24. @iwantmynvp

    Also a response to your 5:02pm comment here from yesterday:

    “…Well — agree about the N.A.s — but disagree as to valid notes. “Paid in Full” is meaningless — if borrower’s refinance funds were not used to pay in full. Question is — whose funds where used??? Can you prove borrower funds were used because the note is stamped “PAID IN FULL”????? NO.

    Forget the swap provider now. The issue is before swap provider kicks in. Swaps kick in when the entire trust is in default —- this is what happened and caused the bail-out.

    We are talking about individual loans placed in default — just PRIOR to refinance. That is, reported to the GSE’s as in default. Liens are invalid, discharges are invalid, cancellations are invalid, refinances are, of course, then also invalid. There are some loans that were not even discharged with an invalid discharge — they were not discharged at all. And, trace the payoff check — you think that the funds from that check went to the GSE??? NO. Servicer advanced instead. Where did those “payoff” funds really go?? To the prior securitized trust??? NO — SEC can tell you that.

    But, yes, agree that N.A.s own all the notes and possess each one. Disagree that they are VALID NOTES. And, the reason they claim to own anything is because the N.A.s purchased COLLECTION RIGHTS — and falsely called the “notes” refinances.

    You are on right track — but need to go further. If you do, you will understand that the “loans” were simply modifications of (false) default debt. But, yes, you will find out — that the N.A.s are at the head of the class.”

  25. @iwantmynpv

    here is a response to your comment here on 10/04 at 7:55pm:

    “…Yes — a heist.

    But—this is more that GSE rejection. This is FABRICATED DEFAULT presented by the servicer to the GSE — just prior to the refinance in question. Oh, yes, that IS the refinance foreclosure people are battling in court.

    And, no one is bringing up that the prior loan was not paid off — as it should have been — as reported to the GSE — BY THE BORROWER (not by servicer advance or mortgagee).”

    There is irrefutable proof of this.

  26. The vatican is the root of all the evil.

  27. Israel & America are being run by the Vatican by proxy of the Zionists…Zionists are not just Jewish….there are Christian Zionists too.

  28. It’s the SMOM/VATICAN/JESUITS who have hijacked us via the FED & WALL STREET & THE GSE”s…..who is the biggest bondsholder/shareholders in the Fannie Mae…? Bloomberg reported it is the IMF/WORLD BANK……MOM LOAN MEANS MILITARY OF MALTA…..MONEY USED BY THE INVESTOR….FANNIE MAE TO BUY BACK MORTGAGES FOR PENNIES ON THE DOLLAR…THAT WE PAID FOR…FOR THE BENEFIT OF THEIR INVESTORS….THE IMF/WORLD BANK WHICH IS THE VATICAN BY PROXY….WHO OWNS GOLDMAN SACHS…? GOLDMAN SACHS IS THE LARGEST SMOM/VATICAN/JESUIT BANKING PROXY IN THE WORLD….SO IS THE FED….SO IS THE ILLUMINATI…Remember….J.FK. was the only U.S.PRESIDENT up to that time to NOT KISS THE POPES RING……WHO IS POPE BENEDICT…? HE WAS A MEMBER OF HITLERS YOUTH ARMY….BRITAIN….THE CROWN ARE ALSO PERPS OF THE VATICAN..

  29. Don’t be fooled….the evidence is clear…. the politicians brainwashed the country & they are working for their BONDHOLDER/SHAREHOLDER INVESTOR FRIENDS ….AT THE WORLD BANK & THE GLOBALISTS….THE FED BANKS & WALL STREET…THE BROKER/DEALERS ARE THEIR PERPS….THE BANKS HAVE BEEN THE ROBBERBARONS FOR THE RICH ALL THROUGH HISTORY….STUDY THE KNIGHTS TEMPLARS…THE ROTHSCHILDS…THE ROCKEFELLERS…FOLLOW THE INVESTMENTS & THE INVESTORS & YOU WILL FIND THEY ARE NOT THE TOP TIER…THE VATICAN IS..

  30. I love judge Schack! http://stopforeclosurefraud.com/2012/10/05/indymac-fed-bank-fsb-v-meisels-judge-schack-slams-mers-fein-such-crane-llp-living-dead-indymac/ Arent they all zombie originators. The terminator banksters used them as pasties to suck our blood in and then came in for the kill as the saviors of the fiancial industry setting up WAMU Countrywide and many little originators as the bad guy patsies to steal the homes. Jamie Damon could not wait to get his greedy little hands on WAMU.He knew he would in the end. By the way the article of Jamie Damon being arrested has been proven to not be proven and a probable fairy tale. Darn!

  31. Some like Elvis Presley believers state the notes exhist. If they do are the culprits hiding them to evade tax evasion in the PSA’s? Why were the notes shredded or hidden? Can not be lawfully sold more than once? Does the note mean anything if the chain of title does not exhist? Not according to the Bevilacqua Case. So what if they come up with a conterfiet note..

  32. This is Lawrence Nardi deposition bullet points that state WAMU never transferred the loans to Chase.

    http://foreclosuredefensenationwide.com/?p=469 , pull up the John Kemp deposition statign Countrywide never transfered the loans.

    Then look up the Chase assumption agreement with FDIC and WAMU. Chase only purchased servicing rights for debt collector rights. Never purchased the loans.

    Then look up Deutsche Bank Nat’l trust V FDIC, WAMU & Chase and won a case stating all them failed to transfer the notes timely therefore they are all faultie and therefore VOID.

  33. @carie – is one of the things you’ve been saying all this time that the banksters only sell the rights to payments to collections agencies, just as that’s all which was sold to secn investors? I’m not at all trying to
    minimize the rest of your arguments – I just want to look at this one just now. Will someone please re-direct me to wherever it was determined the secn investor is not the creditor? thanks

  34. @carie – re what was securitized. I don’t know. I have taken a couple stabs, including that all the secn investors bought was a right to payments, receivables as you call them(?). But I’m not sure it matters for my offer in compromise proposition. Well, it might lead to one conclusion or another.
    What matters is the position taken by the banksters and that position is currently (post MERS’ consent-order) that the rpii is the trust. The rpii, the noteowner, is the party who has control of the contract. In any contract, a compromise or amendment to its terms must be possible, I believe. No one must compromise or amend, but the ability to do so must exist, i.e., control over terms of an agreement. One (say an alleged assignee or even note holder) without that control / ability is not a party to the contract. There must be an avenue to avoid litigation. Both parties must be able to negotiate, even if one or both have designated agents for that negotiation.
    If the secn investors cannot negotiate and have no agent for that
    expressed purpose, they don’t own and control the agreement – the note- with the borrower. What we’re after with an offer in compromise is to find out how the bankster will go on record:
    1) IT is the party with that control or 2) the offer was conveyed and rejected by its alleged principal, basically the secn trustee. Either requires evidence in these deals. Either the secn trustee must demonstrate his expressed authority to negotiate (exercise CONTROL) on behalf of the secn investors or someone else (servicer?) must demonstrate that authority. Altering, amending the rights of another which were contractually created in a written agreement is not a piece of cake, and any authority to do so presumed by the court is presumed in error. If the bankster says the trust is the bomb, who is the party with authority to make a decision on an offer in compromise or to otherwise amend the rights of one party to the agreement by negotiation / settlement / compromise? Who has control, biggest issue? Once that’s known, if it’s beneficial, one could attack if desireable on the conflict of interest. What we want to establish is whom, if anyone, has control of negotiation for any purpose, and here specifically, an offer in compromise.

    The banksters will say “look here we are the bomb for modification, so we must be the bomb for any other negotiation. After all the govt forked over HAMP funds to us”. The gov forking over HAMP funds is not evidence of anything, other than ignorance if not stupidity if not other words I’ll skip, abbreviated to its intent: getting HAMP funds is not evidence of anything in regard to anything and certainly not
    evidence of a bankster’s / sec’n trustee’s authority to negotiate one thing. I hope I was able to say what I mean.

  35. JG,

    “Obama said in 2008 we would have serious job creation.” Obama said many things. He said that no lobbyist in the previous two years would participate in his administration. That didn’t last 30 days… Her said that he would remove money from politics. We know what happened with that one. He said… plenty!

    Food me once: shame on you. Fool me twice: shame on me.

  36. @JOHNGAULT

    You said:
    “What’s to say that proposition has ever been conveyed to the trustee? What’s to say the whims of the servicer or master servicer or some other people reflect the position of those with any real interest in the matter?”

    There’s the rub—“those with any real interest in the matter”…who is that? And since only payments/receivables were the thing actually “securitized”—not a funded “loan”—and no actual “note owner”what then? This is the question. I mean—when you ask the servicer for the name of the owner of your loan and they give you the name of the securitization trust and the name of the trustee every time—but no proof of conveyance and no name of an actual company or person that you can negotiate with in any way—well…is a fake securitization a person? No…

  37. The banks have brainwashed the country the dead beat homeowners held guns at their heads and lied in liars loans. You and I know that is BS. Even though liars loans was a very small percentage of this mortgages. Bankster pointing fingers they did it. Goes a long ways with the judges. Judges are our obsticles. Ya owe it ya signed a contract, no matter how deceptive the contract was, no mater who pushed the deception we signed the contract and owe the debt, on fruadulantly appraised houses, on manufactured defaults.Bidding against before we even signed.

  38. NG – are you not in a better position than most to get injured parties together?

  39. When banksters inspired us to use our homes as atm’s (not piggy banks) and especially when they willfully inflated values, we helped create a false demand and a false economy, like it or not. Before anyone starts yelling, I’ve said I don’t care for whatever my own opinion is worth. It never would have happened if those rat b’s had adhered to prudent underwriting standards, etc. That’s why the hell
    prudent underwriting standards are there. It was the banksters missive to keep us at what we could live with. I mean, you don’t get to qualify yourself, do you? Well, you’re not supposed to, anyway. And the other stinky as high hell parts couldn’t have happend but for MERS’ cover.

    The fact remains that when we spent, buying cars, electronics, whatever, we created a false demand. A false demand for housing was created by inflated values and a wrongfully induced perception of ever increasing values. What we’re seeing now is not only the end of that false demand but less demand than before because no one has any money.
    The most damaging acts were done by the banksters. Making loans
    no one qualified for is just the tip of the ugly iceberg. This country’s resources all headed in one nasty direction: the pockets of a few.

    Disregarding for the moment, if one can, other things we’re irked about (no criminal prosecutions come to mind, no seizure of MERSCorp’s computer program, no seizure of this country’s wealth) the loss of the false demand and what would create demand is an economic reality neither candidate cares to discuss and it isn’t resolved overnight. Not every merchant will or has survived. Businesses have been closing like flies for lack of demand. Many of them were created as a result of false demand. That of course leads to unemployment. Obama said in 2008 we would have serious job creation. Well, that hasn’t happened. That takes demand. If the words come out of Romney’s or anyone else’s mouth, it won’t be any less untrue. Job creation is not possible until the money which fuels demand is put back where it belongs. I know it sounds overly simplistic if not impossible, but the best route imo to create demand is a compromise between the homeowners and the other injured parties, and lawsuits agains the banksters by the other injured parties because they’ve collectively got the dough for real talent. If there is ANY merit, we have to find ways to get homeowners together with the other injured parties. I amost appreciate the government’s attempt to mollify the homeowner with HAMP, etc., but it’s a false economic solution even if it were otherwise not false: the HAMP dollar is coming from the wrong place and is not getting the real dollars back into
    circulation.
    And on that note, the banksters need to be as locked in that trusts
    own these loans as quickly as possible. Everyone and his brother for
    starters should find and print out his alleged noteowner at MERS’ website and continue to do so. Or pay for secn search.

  40. We all have pretty much guessed this. Where is the article. Did you pull a Shelley and forget the article?

  41. CNBC guest just said…the bondholders/shareholders & investors on Wall Street via the….hedgefund managers…..broker/dealers DO NOT OWN ANYTHING…!

  42. Remember the Trojan horse!

  43. Why do the U.S. TAXPAYERS FUND PBS & NPR…but Obama killed NASA & wants to weaken the U.S.A..militarily…? We are now conjoined with Russia by Obama eliminating NASA…We have weakened our own military because we have joined forces with THE UN/NATO…We are weakened financially by TBTF….THAT IS FRAUD & THAT IS UNKNOWN TO MOST AMERICANS..

  44. JG,

    Have you checked this site? I sent it to DCB. It holds a lot of cases as well.

    http://www.chasechase.org/cases.html

  45. If you have ever taken time to watch the Wizzard of OZ video, you must realize our wealth was stolen over and over again throughout history. Many of us had legacies of wealth taken from our parents their parents, their grand parents and their parents. This has to be stopped. There is absolutely no good reasonable reason for homeless and poor, except the vulnerable have been swindled throughout history.

  46. The “new normal” that Obama is promoting is CORPORATE GREED…he is just very deceptive about it.

  47. A good example of the GREED we have all come to accept as normal……..I received 80¢ per gallon off my gasoline purchase yesterday with a discount card..I filled the tank of my small SUV for &43.00. Now that is still almost twice as high as the price of a gallon of gas under Bush…So I could have filled my tank 4 years ago for around $25 bucks..that is the Obama deception AKA ….THE NEW NORMAL…ITS NOT NORMAL…IT IS GREED…

  48. The so called TBTF owe the American people Gazillions in Origination fraud & usury fraud and other frauds abd these politicians have THE NERVE to say WE THE PEOPLE OWE 16 TRILLION IN DEBT….& THERE IS A FREAKING FISCAL CLIFF…..after WE THE PEOPLE ALREADY PAID FOR EVERYTHING….? Vote these crooks out America….! LISTEN FOR THE KEY WORDS…..OUR DEBT NATIONAL DEBT & FISCAL CLIFF…THEN YOU WILL KNOW WHO THE CROOKS ARE….! RESOCIALISM OF INSOLVENT DEBT IS COMPLETE COMMUNISM..! VOTE OBAMA & HIS CRONIES OUT AMERICA…!

  49. The so called wealth creators on Wall Street create nothing but unsustainable debt for the American people….They “borrow” our wealth via the FED…NEVER PAY US BACK..and sell sell sham investments in nothing…they are all insured on their fraud by WE THE PEOPLE….Wall Street created a quadrillion dollars in fraud that does not exist….can never be repaid & is meant to enslave us. That is criminal.

  50. Because I follow McCandless, I got a new post today which, as some others, wouldn’t open. Aggrevating. But it lead me to a case, Carney
    v Bank of America, et al.(11-56977) which I haven’t read much of.
    But in what I did read, an emergency motion,
    Carney wonders in his 9th C appeal if the alleged noteowner, US Bank – as Trustee, I believe – wants anyone to foreclose on his home. And that’s a good question. Let’s say Carney wants to reach a settlement with the Tustee for the sec trust. What’s to say that proposition has ever been conveyed to the trustee? What’s to say the whims of the servicer or master servicer or some other people reflect the position of those with any real interest in the matter?
    There are such patent conflicts of interest here, it’s hard to believe they are not often outed. They are more likely to be recognized, of course, when the allegation is made that these conflicts exist.
    There are some rules about whether or not an offer in compromise is admissable and I can’t rattle them off. But I’m wondering about the value of our allegation(s) that we have tried to mitigate by an offer
    in compromise and then whether or not that offer has been conveyed as it must be under laws of agency (assuming such agency exists).
    So I’m thinking if the offer in compromise which we might make is not itself admissable (or all the better if it is and even if we cite it and it gets tossed), how about pursuing an inquiry in our litigation as to whether or not the offer were conveyed to the rpii? I’m not talking about failure to mitigate per se (which I believe is an aff defense) – I’m saying once we make an offer in compromise, and there is nothing in the world to preclude such an offer, I believe we have a right to see (by evidence) that the offer has been conveyed (and apparently rejected) by the real party in interest.
    There is nothing to stop one from writing up and tendering an offer in compromise directed, “without admission”, (vip imo) to “any party who may show itself to be the lawful owner of any obligation evidenced by a note and collateral instrument regarding my home at 2408 Brown Street”.
    Now, if you write up a doc called offer in compromise and send it where ever you can certified mail return receipt requested (fed x?)* (you don’t know your rpii if any), if you hear anything back at all, you’ll likely be directed to apply for a modification. There is no law which says a modification process is the only way to resolve a dispute or amend a contract. HAMP et al funds were given for those who wish to go that route, but it is not a legal bar to other avenues.
    Where and to whose attention it’s sent is very important – ask a lawyer, who might suggest “loss mitigation department”.

    When that’s the best you get out of the servicer – “apply for HAMP”, imo you now have a right to know if your offer in compromise has been tendered to the proper party and that’s what you’re after: who is that, how was the offer communicated, and evidence it was rejected.
    And btw, the availability of HAMP funds doesn’t bind the rpii to modification any more than an offer in compromise. And it doesn’t matter: an “agent” imo is compelled to convey an offer in compromise. The servicer may say it’s the party contractually authorized to address an offer in compromise, which I don’t believe because it’s probably not addressed anywhere for one thing, which itself is problematic. (and remember agency laws regarding real property: expressed in writing and auth for an act may not be implied) But at any rate, if that’s the case, to avoid its legal obligation to present the offer in compromise, the service would have to demonstrate its authority to make the decision on the offer. But that’s only going to be found by the court – that the servicer 1) conveyed the offer or 2) is the party with authority regarding the offer IF the homeowner makes the argument, having made an offer.
    lay opinions – ask a lawyer

  51. I agree with Rick Santelli of CNBC..forget follow the money…follow the investments…

  52. Oh, forgot: your video ended in Truthtv login: http://www.youtube.com/watch_popup?v=_UbAgq3u6lQ&vq=medium#t=679

  53. Engrage: great video link from thes SHAMSTERS. As their saying goes: “play the sham again sham”.

  54. The bondholders/shareholders & investors have been allowed to hold us hostage and fraudulently control us by investing in things that do not exist to hold hostage all of our unalienable rights…..our natural resources….our housing…our food…. that we own & pay for. That is not only disgusting…..that is unconstitutional, illegal & criminal.

  55. I agree. A lot of people are awake and are aware of all of this crime and who did it. The American people in mass have lost all trust in the financial system, is why they have not filled out the Independant reivews and ignored the mod plans. We have lost all trust in our government officails. Americans are feeling betrayed.

  56. I have seen this abuse and been appauled with it as well. But I dont think it is the average person that does this. This being allowed is part of our systems break down. Including the people who live of well fare for a life time. Both are needed badly for honest people caught up in a situation they did not make. But not to be usued foolishly or over and over for their life times. There has to be lines and boundaries drawn. However due to the debt corruption of the banks right now most Americans are victims of the banks and deserve to claim BK to stop this crime against them. When you are a victim use the tools to stop the crime. How can millions be in foreclosure?Some still wtih good jobs barely making it due to the pressure of the banks to suck them into debt. Orchestrated and manufactured to draw their bllood and the blood of their children. Many hard working Americans are in this pot called the “twilight zone”. In utter shock! My children were mailed 500.00 credit cards by massive mailers trying to such young ones into debt at 18. I was so angry to get those letters trying to suck my children into debt. I tried to get them to cut them up. My youngest son did and has never had a credit card. Only a debit card. My ypungest daughter is just paying off her last credit card to cut it up. My olderst daughter cut up all her cards several years ago. I have not had a credit card since I can even remember. My business was cut to a third of it income by the economic corruptio of the banks.

  57. For sure! Surprizes are coming their way. People are working behind the scene to stop this roll of greed permanently. We can not leave this to future generations to fend for themselves. We are in the middle of the worst of it and it can not go on nor can it happen again.

  58. http://www.housingwire.com/news/calif-foreclosure-bill-could-spur-more-judicial-foreclosure-filings This is help for homeowners. Non judicial forecloser made it a piece of cake for the banksters to bully the homeowners out of their house wtihout any kind of legal process.

  59. Thanks carie….! LOL….! didn’t get spell checker on that one..

  60. Obama is invested in the foreign multinational corps…he is invested in Vanguard and others who offer tax exempt money market funds ……google it. Go to OpenSecrets.org. He is a phony.

  61. Shadowcat: Corps., etc. do it to….

  62. Believe it or not, it’s spelled “idly”…sorry, once an english teacher, always an english teacher. Love ya.

  63. Oops..I meant to say..we can’t sit IDELY BY and wait for the greedy ones to correct this…..they never will. Obama is a deceptive liar, and he & his GLOBALIST minions & cohorts need to go.

  64. Shelley….Its the greedy ones who need to go right now. We can’t change things overnight but we can’t sit widely by and wait for the greedy ones to fix this.

  65. It is all in the bloodlines carie…some are much greedier than others….all these jerks are related to each other. Obama is a self centered greedy jerk…..Kennedy was in the bloodline but they were being too greedy and Kennedy did not like that….they tried to set him up to fail & they pissed him off. Obama however loves our failure. I don’t believe in our political system but, I cannot sit idely by and allow this imposter to destroy us. Are we better off than we were 4 years ago….? Only if we have lowered our standards miserably…I for one have not. The condition of this country is UNNACCEPTABLE & OBAMA IS ON THE GREEDY SIDE OF THIS.

  66. Its like running into the same Brick Wall…. @DCB, I know your out there doing your homework. You should know that injecting yourself into the diease,( looking for a cure) is Risky. But alot safer than battling them head on and getting drug thru the mud. I Hope & Pray your wounds will Heal and that you will get the Justice you seek in Ohio.

  67. Both parties are a part of this. Bothe parties have added to the undermining of America and betrayed Americans. They are two evils going after the same job.

  68. The President has no real power…so it doesn’t matter much who is in the White House…whomever it is ends up being is just a puppet for the Big Boys…and if he really tries to use his power…well, look what happened to Kennedy.

  69. Oops..please allow me to repost that link entitled……$15 BILLION OF YOUR TAX MONEY TO GM. 13 CLOSED GM FACTORIES IN AMERICA BUT 15 NEW FACTORIES OPEN IN CHINA!!!
    http://www.fourwinds10.net/siterun_data/business/corporate_growth/news.php?q=1335284723

  70. I actually agree with enraged. This regime needs to go. Obama needs to go. He has lied and deceived the American people continuously. Romney is not perfect but 4 more years of Obama fraud and we will be a welfare nation….Has anyone heard that GM took $15 billion in U.S. TAXPAYER MONEY…closed 13 U.S. FACTORIES in America and opened 15 new factories in China….? That is this regimes way of STEALING OUR WEALTH & spreading OUR WEALTH AROUND TO COMMUNIST COUNTRIES…..AKA GLOBALIZATION……..I agree with a guest on CNBC ‘s Kudlow report a couple of weeks ago…Obama is colluding with our Communist enemies against the American people and he needs to go….ASAP…
    http://www.fourwind10.net/siterun_data/business/corporate_growth/news.php?q=1335284723

  71. I know most of you find me “snooty”. But here is another example of my sacrasm. i.e. …… Young couple buys half million doller home. Wife does not work, she gets the kids off and spends her day shopping and at spas getting massages, her hair and nails done charging up 100,000 in credit card debt. All while driving a Mercadees and BMWs. When they can no longer rob from Peter to pay Paul, they file CH13. Discharge all unsecured debt. YEP! And to someone who worked hard and paid for what they have and holds no debt …THAT SUCKS! That is not what BK courts were set up for! And I dont care much for lawyers that use this tactic …….. Imagine being the BK Trustee or Judge?

  72. War has always been manipulated—WW11 they already knew Pearl Harbor was going to be attacked and they let it happen—Vietnam War was started by a false accusation that our ships had been attacked—Iraq was the fake weapons of mass destruction stroy—9/11 they knew about a planned airplane hyjack and actually did things behind the scenes (you have no idea) to make it a worse disaster than anyone could imagine…you’d have to be pretty dense not see Tower 7 go down in an obvious controlled demolition and not realize that smoking gun. All for the joy, power, and money of the War Machine…they will literally murder us to get what they want.
    The bigger the lie, the more people are apt to believe it.
    Every damn thing is manipulated…the sheeple need to wake up.

  73. We’re running out of time to remove those dangerous people from government. I have mentioned this intent of the US to go to war at any cost for a long time. How more clearly should it spelled out?

    Governments used to be very circumspect: they wouldn’t consider war as an alternative unless and until it was the last recourse. Apparently, it no longer is true… In fact, there is something very, very wrong when a Secretary of State declares: “The best thing that could happen to us is to be attacked. Then we would get in and get it over with.” Such callousness is astounding!

    The line from making such a statement to actually staging a war is becoming increasingly finer. And if anyone has any doubt, as long as banks have the money and governments are intent on waging war, nothing will be done to straighten out the economy and help any of us. Government needs the money to be available and at its disposal without having to consult anyone or ask for it. What better way than simply manufacture an economic scandal, the result of which was guaranteed to channel it and store it where it will be the most readily available when needed? Wall Street was it. Perfect storage place.

    The choice is becoming increasingly more simple: either stop funneling any of your money toward government and take to the street to prevent what’s being planned or… do nothing and be assured that the greater part of the world population will disappear?

  74. BUSINESS
    Updated October 5, 2012, 1:03 a.m. ET

    New Shuffle at J.P. Morgan
    Top Aide to CEO Dimon Expected to Move by Year-End; Other Shifts Possible

    “…A number of regulators and investigators, including the U.S. Senate Permanent Subcommittee on Investigations, still are probing the events surrounding the loss. The panel, led by Sen. Carl Levin (D., Mich.), has questioned Mr. Dimon, Ms. Drew and several others involved in the episode, said people with knowledge of the conversations. The panel hasn’t decided if it will hold hearings about the bad trades. J.P. Morgan has said additional losses could range between $800 million and $1.6 billion.
    [image] Bloomberg News (Zubrow); J.P. Morgan Chase (Miller and Scharf); J.P. Morgan/Reuters (Drew)

    In July, J.P. Morgan elevated the two executives who mopped up the trading mess—Mike Cavanagh and Matt Zames—and both are now considered front runners for the top job, people with knowledge of the matter have said…”

    http://online.wsj.com/article/SB10000872396390443635404578036790021023834.html?mod=WSJ_qtoverview_wsjlatest

  75. Interesting TX case, enraged, and interesting distinctions. An assgt of
    a dot (or anything) by a party with no interest to assign is void, not voidable. (et, think of the assgts at issue) The maxims expressed by this court do or should apply to any venue. It’s always seemed an absurd proposition to me that a successful thief may not be challenged. And here I have to admonish myself because I should have been able to state my 2nd sentence a long time ago. These days, it’s just one more. I’d appreciate the name of that case and thanks for the info. I think it’s very important.

  76. ‘s economy is sham only to the tune of a few hundred trillion bucks, beyond that its all real!!! http://www.youtube.com/watch?v=AiYI8Lh3EJk

  77. Lies…they are not paying your mortgage…there are no notes or mortgages. They destroyed them. All the payments anyone is paying are being pocketed as usury because the FED is insolvent. Believe me…we are paying the property taxes and the insurance by proxy of the ongoing bailouts..the banks never pay for anything..

  78. Poppy…they intend to bankrupt us to fraudulently induce a World Tax Credit system….like the property taxes….as a fraudulent fix for a quadrillion dollars in credit/investment fraud. They don’t want us to own anything. That’s why they want to render our homes worthless..than everyone has nothing of value. That will create a nation of RENTERS. No one should comply with that. They want to microchip us to their debt with obamacare and make us all slaves to the debt they created. Then we will be permanently oppressed and forced to fund their tyranny. All they care about is their bondholders/shareholders and investors in their fraud. Our foreign enemies who want to own us.

  79. In Illinois we are going to be voting on Nov. 6th to Amend to add a section 5.1 to Article XIII of the Illinois Constitution that would require a three-fifths majority vote to approve any pension or retirement benefit increase for public employees and officials. The reason…currently, the public retirement system is not financially stable and is significantly underfunded. This the politicians way of telling us that we will all be paying for this missing money, (fraud) but we will try & reign in any new fraud by the politicians but mainly, we will stop pay raises for teachers, cops, firemen, etc….the folks who really do need the money most. What a bunch of b.s.ers

  80. @lies is all they tell … Give It to your attorney. They sent those to everyone who has an attorney .. in fc or not. Applied for a mod or not. It doesent matter. Your attorney should respond asap. If you didnt see it their way … they just lie to make it look like you failed to comply. Dirty Birdies ….

  81. Iwantmynpv…the notes were paid for the FED at the Origination by the U.S. Treasury…That destroyed the notes & mortgages for the FED because they never paid back the Treasury…that is the ORIGINATION FRAUD. The FED BANKS pocketed all payments & downpayments as usury.. Now I am talking about when you first bought your property. That is why there are no notes…all of this other stuff, these stamped paid notes & mortgages are a cover up for the Origination Fraud. They are trying to make this all look legitamite but their perps were all getting rich by gambling while the FED pillaged the Treasury..the American peoples money. They are still doing it. The FED is a vampire being fed by us via the big banks… CHASE, BOFA, CITI, WELLS FARGO and the GSE’s then they have their leaches ….Goldman, Bear Stearns, etc..all of their fraud is insured by us via the FDIC and the insolvent AIG…the so called TBTF..are robbing us into complete communism.

  82. @ All

    They have systematically destroyed the real estate market, with our governments blessing. Now, I think they are protecting the federal pension system by buying worthless MBS’ . That is, in my humble opinion, why they are bailing them out again, to the tune of 40 Billion per month. Self interest…but the citizens are ready to explode. If they let them fail, we would be moving in a good direction. We do not need BOA, Citi, Wells Fargo, etc…they do not produce or provide anything tangible.

  83. does anyone know why wells fargo bank na is foreclosing on my house but wells fargo home mortgageis the servicer still paying the taxes , in surance and i am sure the mortgage because, although i am in foreclosure and have a lawyer i still received a mod denial letter from wells fargo home mortgage although i never applied this year for a mod. my property is in litigation right now why would i send WFHM my financials? what a scam, so am i going to have 2nd foreclsoure filed?

  84. Iwantmynpv…I know its another Hitler plan. The first one was the trial run…this is their evil endgame plan. They are trying to force us to conform & comply with this fraud and try and convince us complete communism is a fix for massive fraud. They have committed a coup de tat of everything with their socialist policies, progressive taxation, credit lending/investment scam. It was an inside job by our foreign enemies. They have turned America into a giant investment bank…and we paid for all of it…They are evil control freaks. This was never about the money for those at the top of the pyramid. It was about fraudulent control of everything & everyone. Making us believe they own everything & everyone. The truth is, they don’t because of the ORIGINATION FRAUD.

  85. @ iwantmynpv

    I have found thousands of satisfactions of deeds around the country. Why is that, do you think?

  86. Shadowcat are you talking about a close relative of the infernal Speaker of the House?

  87. YES Ivent! The Broker/Origionator Buttwipes came back to life as Debt collecters under a new name and in a new life reaping the rewards from the flip side of the deal! Just when you thought they were long gone ….

  88. Ivent, it is not all lies,just the important stuff is lies. I worked in this industry and many of the notes are sent back stamped – not ever by the alleged lender,but many are sent sent back by the servicer. Carie is a cool person that understands it more than most. i just want to have her reinvestigate her entire premise because some of it is inaccurate.

    If she drops the GSE reject crap and that no notes are ever returned as paid, she will be far more believable and that helps us all.

    As far as gambling, you guys are going to shit when you see how bad things really are. This wasn’t gambling -it was a controlled heist and after they positioned themselves to reap trillions on the inflated loans deaulting they ahd the FED move agrressive and dry up liquidity, destroying the mortgage market overnight, allowing them to cover their equity short positions and go long before starting to reiflate the assetsand tell us everythign is great buy… buy… buy..

    There is no coming back and the eventual devaluation of the dollar is down to when, not if.

    if we share the knowledge and the resources we can still win.

    luv ya carie

  89. Iwantmympv…do you really believe any of that stuff actually happened….? Its all a fairytale. They never followed the rule of law regarding how these trusts were to be set up. They set up sham trusts to hide their fraud….It was all a facade to make us believe lies. Those sham trusts are long gone and our stolen money is well hidden..They used our wealth to fund their scam…pocketed our downpayments & payments, sold investors gambles…they were all gambling under the guise of conducting legitamite business.

  90. <—- has a Cure for LUPUS… A Nasty Diease. pffftt!! To this day still trying to manipulate and use notaries as escape goats, violating state laws, bulling, forgeing, decieving….. pfffft! Meet my Friend Lisa.

  91. That’s right carie…..the home equity scam was only given to those of us who had skin in the game. They pocketed our original downpayments..in my case $100,000.00, and mortgage payments as usury and never paid back the treasury for their Original Loan. The table funded part was just a way for investors to buy into a quintillions dollar money making scam. They gave us nothing of value. It was a bait & switch way for the tyrants to ring us up by equity stripping our property values by fraudulently inflating them. Then when they decided they had enough of us in the trick bag they pulled the plug on the economy. They set us up to fail by lending us back nothing of value disguised as our own equity. The bondholders, shareholders and investors were sold gambles, not ownership. That’s what they are hiding.

  92. carie, i can show thousands of notes being sent back stamped “Paid in Full”. First of all, I’m on the right side of the fence and you have some of it right. When a loan providing cash flow to the pool through an originator defaults or pays off or refinances the swap provier kicks in. under the implicit recourse agreement in 97% of the pools the originator would buy the loan back from the depositor.

    They could always swap a performing loan after the default or payoff was put back to them. The swap provider would in turn guarantee that interest and the master servicer would continue to forward the funds to the tranche if they felt the defaulted loan proceeds at sale would cover their expense.

    I agree that nothing was conveyed to the pool and I also agree that the only way to keep this type ponzi going is to inflate asset prices and /or lower guidlines to include more credit suckers (us).

    If you want to see why I have been telling folks for 6 years that the N.A.s own all the notes and possess each one – just ask the custodian for any trust to show you the original collateral package. Remember, these type instruments are equivalent to bearer bonds with the great adobe stamp and Jamie Dimon ain’t a trustin folks he does busy with to hold his paper.

    We need to organize and pool our assets and resources the way banks do. they are not competing with one another – they simply split the pie and hire LPS to go do the dirty work.

    Do we at least agree that subprime loans started out subprime and made thier way through the corridor as subprime without and of the fannie reject crap?

  93. Yes shadowcat, I did some research on the loan servicers. I know Bayview is a registered debt collector at the IDFPR website. They were licensed broker/dealers at one point. They are all front operations for the banks to hide their malfeasance. Broker/Dealers/Servicers are all front men for the banks to coin a mafia term.

  94. THey stole from people who had money by giving homes cars and debt to the little people so they could con the rich out of their money, by selling our debt over and over and over. You cant make money from people who dont have money without using them as dupes to screw the rich or pension funds. We were used! and fell for it.

  95. Was it possilby the default insurance, or the servicers paying the loans to hide the fraud while they collected every dime they could on selling the photo copies of each mortgage ten to twenty plus times in empty investor pools concealing the con while no one caught on for years. if you are getting ten to thirty plus the money up front for each mortgage, you can afford to make sure the mortgage is paid to one party. Not sure they even did that due to it is appears the PSAS/REMICS and every type of source they could steal was all an empty box. Wtih confetti in it. The banks( or should I call it pretend banks, they are not banks ) obviously have a business model based on producing money out of thin air. Poof ! And Poof goes our economy! Poof goe our homes and jobs. Poof goes family life and anything called life at all. Survial of the greediest!

  96. how do you steal money from people who do not have money ???

    Give it to them !

  97. @iwantmynpv

    “…People were allowed to use their homes as “piggy banks” ONLY because the bank appraised the home to allow the piggy bank — by fraudulent loans. And, why did they appraise as such?? Not because the loan qualified as mortgage, because it did not and could not, but to increase the debt owed to debt collector debt buyer “investors.” This is fraud to the hilt.

    I do not care what argument is given. Priors were paid off?? Prior loan “trusts” were paid off?? Show me proof. Not even SEC can give that proof — because they were NOT.

    I am not asking whether or not prior loans were paid off — I already KNOW they were not. So, explain to me why not. Yes, LIBOR fraud included, funding fraud included, appraisal fraud included, swap fraud included, insurance fraud included, NPV modification fraud included, TILA fraud included, RESPA fraud included, FDCPA fraud included, etc. etc. etc. This does not matter. I want to know why prior loans were not paid off — as I know they were not.

    PRIORS WERE NOT PAID OFF.

    Borrowers do have records, and GSEs have records. Explain WHY prior loans not paid off and prior trusts not paid by so-called subprime refinance. SEC is not in business for borrowers — only for security investors. They are protecting them, but who is protecting the borrowers??? AG settlement —- what settlement???

    GIVE ME AN EXPLANATION FOR THIS. And, if you want proof — proof is evident by cancelled checks, title company unrecorded assignments, fraudulent discharges, and invalid lien cancellation. You need to find out what trust the prior loan was in, contact the SEC, and find out if that trust was paid off by the refinance. Security investors are onto the fraud, have been for a long time. They were NOT paid off by the refinance. You need to really do your research. You will shock yourself.

    Or, you already know, and are covering.”

  98. Not if you are a bankster! Obviously nothing is illegal if you are a bankster. Fraud, murder, money out of thin air, bribery, forgery, false affidavits, fraud appraisals whatever it takes to fill the greed is not unlawful if you are a bankster. The rule of law goes away and is forgivein if you are a bankster.

  99. Shadowcat….the commercial mortgage was never claimed to held by Citi…that is my house. The reason I make the the First Midwest/Chase connection is when Chase “aquired ” Margaretten mortgage in 1994 who was my home mortgage originator…I have an affadvit that claims both First Midwest & Chase own my home mortgage. @Shelley…aren’t monopolies illegal in the USA…?

  100. @ Ivent

    Have you checked out who owns Midland and Bayview servicers? What’s behind them…really!

  101. What? First Mid funds with Citi Money and servicing goes to Citi. They do however hold a few in house. Chase is a diversion! First Mid didnt or forgot to file their liens, then sold the loans off to the funder Citi. But Citi had a problem… their liens either didnt exist or were not perfected. So Citi had brokers solicite refis with these homeowners. PHH was used to do this and cover their tail. In your case it appears they used a broker to. After awhile Citi defaulted these loans (didnt want them on their books) used Bayview loan servicing to clean them up and set up a Fake US Bank Trust to hide them along with all the buy backs. Citi uses Bayview to keep their own hands clean. If Bayview has dumped it to a 3rd party … well then its HOT TOXIC WASTE. Strike 3

  102. Carie, read supplemental prospectusand you will see. At least you agree that the sub-prime loans were not GSE rejects,and i am sure when you read you will see who gets to buy the defaulted mortgage loans. Trust me, Depositor, NIM Insurer and Master Servicer. I never said these loans were conveyed to the trust, and I am just telling you what is disclosed in the prospectus, which also never states these parties were buying the loans out of the trust.

    The certificate investors (actual) bought nothing other than a derivative of the cash produced by the mortgage loans.

  103. @iwantmynvp

    Re. your comment at 2:25 pm:

    “Master Servicer gets the foreclosures??? NO — servicer only acts on behalf of the INVESTOR CREDITOR — and that is not the security investors. And, Depositors do not own a balance sheet — all is on corporate balance sheet. Depositor is only a subsidiary. NIM Insurer — not a part of the trust — THIS IS NOT A SECURITY — it is a contract. Not divulged in court.
    Yes — highest tranches went to the GSEs. Lower mezzanine tranches were just credit enhancement to those upper tranches — that is, debt buyers in waiting in case loans actually defaulted. Low investment in lower tranches — did not cost much. This is consistent with debt buying — pennies on the dollar. Problem is that defaults came so fast — -not even the lower tranche debt buyers could absorb the losses. Not enough capital. Government had to come in to (Pay-out) (enforce) the additional credit swap default derivatives on the upper tranches as the upper swap providers could not perform either (AIG etc).
    …if he is ignoring priors — he does not know what he is talking about.”

  104. I notice this also. Just one big bank. Like a deck of cards. You take this mortgage and I will take this mortgage. They pass the mortgages around like a deck of cards. Transferring so many times the homeowner is confused on what to do next. Just like bad debt loans are passed from one debt collector to another.

  105. Bayview is my commercial property…First Midwest Bank who is ta-da ..CHASE incognito…they are all really one giant bank.

  106. I noticed that also Almost every show makes it part of their dialog.

  107. a chicago fireman loses his home to foreclsoure its getting out there

  108. watch the 1st episode of chicago fire, have a foreclosure in it. so its effecting everyone even hollywood is putting it in alot of their shows. sad

  109. We all want that and deserve by the rule of law. What a emotional hellish rollercoaster we have all gone through due to the outragious greed.

  110. Carie, subprime refinancing was sold to borrowers because the mortgage broker – agent / lender made more money, especially if the loan would have qualified for DO / DU and it went subprime.

    More important,while the undisclosed agent made a few sheckels masquerading as a lender – we sold the pools to the sponsor at 118, this after creating contracts (alleged hedging) that created the synthetic agreements. In any event, I have told many,including politicians as early as 2007 that the private well had run dry, and that the counterparty to at least 70% of the swaps was AIG, or an AIG affiliate.

    In fact, we had the money so cheap on a discounted libor that Fannie and Freddie could not compete,and would have been closed as early as 2004 because the ponzi scheme,much liek the american monetary system requires constant new interest to pay on the old interest.

    That is why folks were allowed to use their money as piggy banks,there was never a loss, no risk and constant positioning to make money on early payoff or default.

    Carie, your friend has given you most of the story accurately and did work somewhere in the second market simply by your use of the term corridor funding / back-end funding. Moreover, the agreements you speak to are called loan purchase agreements and as a condition of funding you must sign on the dotted line to get the line.

    Wait til folks see how the NA’s set the pools to pay down or payoff and guess who was going to collect the money for the next 24 years until the trust matured or terminated? Hint: it wasn’t the certificate holders who really owned nothing but several tranches of derivatives (not every pool)n and come bets.

    I love you carie, you are an investigator and a tiger, but i worked there and I am not getting this second-hand.

    I have some good shit in beta right now that is going to set the record straight.

    “Somewhere near the middle of the economic scale – between consumer needs and coporate wants lies capitalism -if either side becomes too big to fail, capitalism fails.

    France will announce its insolvency during the first quarter of 2013. They are already dipping into the infinite E.U. purse and their percentage of GDP is unsustainable unless they replace the dollar with the franc as the reserve currency and they can print like we get too.

    America makes the rules becaue we make the money, and if you don’t convert you will be converted. BRIC can sit and lick until we force their currency into inflational shit. Why do you think we have the most powerful military in the world? fallin line like we sahy,or else!!!!

    Oh yeah, both candidates suck.

  111. Shadowcat …I just read your comment.. Amcore said Citi owned my mortgage before the refi with Amcore…and Amcore paid back Citi…then MERS released the mortgage to me. Then an assignment magically appeared and was recorded 9 mos after the foreclosure was filed….MERS to AMCORE to PHH…alot of really shady stuff occurred around that closing. I think you are saying that Citi took the money from PHH and ran…but I don’t believe any financial transaction occurred between Amcore & Citi. I believe that MERS just passed the ball to Amcore and they did whatever they did. PHH was maybe an investor but none of them had legal title because of the Origination Fraud in 1992.

  112. Very Nice Poppy! @Ivent…Bayview loan servicing aka Citi’s place to clean up dirty birdies. Yep!

  113. It’s all fraud & fiction. Long after the bank filed their foreclosure complaint on my commercial property… my commercial mortgage got transferred to a debt collection agency called Bayview loan servicing & magically ended up in a REMIC 2010-2012..series and U.S. BANK claims to be the trustee..we closed on the mortgage in 2006..now they just notified me the mortgage was transferred yet again to Midland Loan Services….We tried to work out a fair deal for all in the beginning. They would not negotiate. Now, thanks to their not wanting to work things out, I know the truth, and I want it all back plus monetary restitution..

  114. Bottom line…….. Do NOT ever leave your houses. Fight the fraud every way possible

  115. @iwantmynpv

    Here you go:

    1) the subprime loans were sold to one of the major banks (this is NOT reflected in any assignments, and only some REMICs disclose this). (will explain why not reflected in assignments in a later here).

    2) the bank’s subsidiary Depositor deposits the loans in an off-balance sheet trust (some Depositors were not subsidiaries of big banks — but they had corridor agreements to sell to the banks — which we also do not see by REMIC disclosoure — (Corridor agreements to sell to the banks, but the Depositor name would remain on the trust )

    3) the REMICs are structured into certificates, which are all sold to the security underwriter (except the bottom tranche which the servicer would usually own).

    4) the security underwriters were subsidiaries of the big banks.

    5) the top tranches of the REMICs were rated the highest because the lower tranches provided support to the upper tranches — that is, given a default, losses would accrue to the lower tranches first.

    6) the big banks sold the top tranches to Fannie/Freddie and kept them for themselves (Louis Ranieri — grandfather of the subprime trust has explained this).

    7) Ranieri has stated that the lower tranches (credit enhancement) were sold first — to hedge funds, and other distressed debt investors, while the banks retained the upper tranches

    8) some of the tranches were sold to other big banks.

    9) Then the banks would take different tranches from different REMICs trusts, and package them into CDOs — to be sold to security investors. And, yes, the guy who sold the software for these CDOS said one had to be an idiot to invest in these CDOs, because the ratings on the REMIC trusts from which the CDOs were derived, were manipulated. Anyone who read the prospectus for the REMICs would know that the CDOs were derived from risky “loans”, and that they were not legitimate. From CDOs, CDS (credit default swaps) were derived — which are contracts not even “synthetic securities.” Sometime CDOs were repackaged into Structured Investment Vehicles (SIVs).

    10) The CDO “security” investors are, the pension funds, insurance co., etc, that Neil refers to when he talks about “those who put up the money.” These security investors, however, did not put up one dime to the borrowers, they were just the “synthetic” SECURITY INVESTORS that bought the idea that the derived CDOs, derived from the REMIC certificates, derived from the bogus “loans”, were actually triple A rated (this deriving is what is called “leverage”). These security investors do NOT fund mortgages, they do NOT give borrowers money, and they are NEVER the creditor. The creditor “investor” is the bank that originally purchased the subprime mortgage — that was never a “mortgage” to begin with.

    11) the CDS (default swaps) remove collection rights from the cash pass-through structure. Once removed from the above — who knows what the original bank does with your loan. Very often, collection rights are sold to the hedge funds who provided credit enhancement by purchasing the lower tranches of the REMIC trust. The “servicer” who owed the bottom tranche, continue to “service” for unidentified CDS holders — who have nothing to do with the REMIC trustee (as CDS are contracts not securities). So creditor is never identified.

    12) Back to #1 — why the assignment to the purchasing bank is never apparent — because in real securitization, the asset/liability balance sheet receivables are removed from the balance sheet to an off-balance sheet conduit (such as a REMIC). BUT, THE SUBPRIME WAS NOT REAL MORTGAGES, THEY WERE GSE CHARGE OFFS, WITH ONLY COLLECTION RIGHTS SURVIVING. Collection rights are not reported as “receivables” on an asset balance sheet. Any pass-through of cash is considered income, not collection of receivables (you can not have receivables when the loan was previously charged-off). Thus, the subprime REMICs were never “true sales” of anything. They were not legitimate balance sheet transfers.

    13) Many of the original tranches to the bogus REMICs have been paid off. At the very least, by the TILA amendment, the remaining certificate holders to the REMICs could be considered your creditor (remember there are only about 15 tranches to begin with). Creditor is NOT the derivative security investors. According to the Fed Res Opinion to the TILA Amendment, when there are multiple creditors, the creditor who holds the largest percentage interest in the loan, must identify itself to the borrower. Thus, the tranche holder with the largest position in your loan — should be identified. This is not happening — foreclosures continue under the bogus name of the trustee to the trust. Again, and again, security investors, trusts, trustees, and servicers are not the creditor.

    And, Neil is on bad track when he starts saying that “security investors” funded the loan. This is in gross error, and has caused more harm than good.

    Security investors were chasing high yields — they expected the subprime borrowers to fund their pensions. I find outrage in this. Interest rates on these loans could go as high as what one might consider “usury.” And, the further outrage is that the properties that funded the bogus subprime were inflated to make these bogus loans higher and higher — which would generate more and higher cash flows. The fact the government still has done nothing to help these victims is the final OUTRAGE…”

  116. Wednesday, October 03, 2012

    Homeowners Have Standing To Challenge Faulty Mortgage Assignments From One Bankster To Another, But Only Where Defects Render Conveyance Absolutely Void, Not Merely Voidable

    A common gimmick banksters often get away with in attempting to thwart homeowners that challenge foreclosures because of defective assignments of mortgage is to assert that the homeowners have no standing to challenge transactions (the assignment of a mortgage from one bankster to another) to which the homeowner wasn’t a party.

    A recent ruling by a Texas Federal court addressed such a gimmick and, in applying Texas law, said that homeowners do, in fact, have standing to challenge defective assignments to which they were not a party, but only when the defects render the assignments absolutely void, and not merely voidable.

    From the ruling:

    Defendants argue alternatively that plaintiffs have no standing to challenge an assignment of the security interest because they were not parties to the assignment. In support of their argument defendants cite nine recent decisions from federal district courts in this state (six of which were issued by the same magistrate judge), which do indeed affirm that proposition.[9]

    However, none of these decisions cite any Texas case law or statute, and all but one explicitly rely upon a single federal case, Eskridge v. Fed. Home Loan Mortgage Corp, 2011 WL 2163989, at *5 (W.D. Tex. Feb. 24, 2011), which cites no authority at all, state or federal.

    In fact, Texas has long followed the common law rule which permits a debtor to assert against an assignee any ground that renders the assignment void or invalid. See Tri-Cities Const., Inc. v. American Nat. Ins. Co., 523 S.W. 2d 426, 430 (Tex. Civ. App.-Houston [1st Dist. 1975, no writ); Glass v. Carpenter, 330 S.W. 2d 530, 537 (Tex. Civ. App.-San Antonio 1959, writ ref’d n.r.e.). The Glass court endorsed as authoritative the following summary of the rule, which still appears in the current version of Corpus Juris Secundum:

    “A debtor may, generally, assert against an assignee all equities or defenses existing against the assignor prior to notice of the assignment, any matters rendering the assignment absolutely invalid or ineffective, and the lack of plaintiffs title or right to sue; but if the assignment is effective to pass legal title, the debtor cannot interpose defects or objections which merely render the assignment voidable at the election of the assignor or those standing in his or her shoes.”

    6A C.J.S. Assignments § 132 (database updated May 2012) (emphasis added). The current edition of American Jurisprudence states the same rule more succinctly, while adding the rationale:

    “The obligor of an assigned claim may defend a suit brought by the assignee on any ground that renders the assignment void or invalid, but may not defend on any ground that renders the assignment voidable only, because the only interest or right that an obligor of a claim has in the assignment is to ensure that he or she will not have to pay the same claim twice.”

    6 Am.Jur. 2d Assignments § 119 (database updated May 2012). Examples of “voidable” defenses include the statute of frauds, Harding Co. v. Sendero Res., Inc., 2012 Tex.App. LEXIS 1754, *33 n.28 (Tex. App.-Texarkana 2012); fraud in the inducement, Kansas Life Ins. Co. v. First Bank of Truscott, 78 S.W. 2d 584, 587 (Tex. 1935); lack of capacity as a minor, Dairyland County Mut. Ins. Co. v. Roman, 498 S.W. 2d 154, 158 (Tex. 1973); and mutual mistake, Chase, Inc., v. Bostick, 551 S.W. 2d 116, 119 (Tex. Civ. App.-Texarkana 1977, writ ref’d n.r.e.).

    Plaintiffs here do not assert these or any other “voidable” defenses to Mellon’s assignment. Instead, plaintiffs assert that, standing alone, this single assignment from a third party is ineffective to establish a right to foreclose, because it does not show a proper assignment of the original security instrument to the third party.

    Texas courts routinely allow a homeowner to challenge the chain of assignments by which a party claims the right to foreclose. See Martin v. New Century Mortgage Co., 2012 Tex. App. LEXIS 4705 (Tex. App Houston [1st Dist.] 2012); Austin v. Countrywide Home Loans, 261 S.W. 3d 68 (Tex. App.-Houston [1st Dist.] 2008); Leavings v. Mills, 175 S.W. 3d 301 (Tex. App.-Houston [1st Dist.] 2004, no pet.); Shepard v. Boone, 99 S.W.3d 263 (Tex. App.-Eastland 2003); Priesmeyer v. Pacific Southwest Bank, F.S.B., 917 S.W. 2d 937 (Tex. App.-Austin 1996).

    Federal district courts in this state have also entertained chain of title claims by mortgage debtors challenging foreclosure proceedings. See Millet v. JP Morgan Chase, N.A., 2012 WL 1029497, *4 (W.D. Tex. 2012); Norwood v. Chase Home Finance LLC, 2011 WL 197874 (W.D. Tex. 2011). Nor is Texas alone among non-judicial foreclosure states in permitting such suits. U.S. Bank Nat’I Ass’n v. Ibanez, 941 N.E.2d 40, 53 (Mass. 2011).

    Defendants’ final (and weakest) argument is that homeowners like plaintiffs “will not be prejudiced” if the chain of assignments from original lender to foreclosing entity were immune to debtor challenge. After all, the argument apparently goes, the Millers owe the money to somebody. In truth, the potential prejudice is both plain and severe — foreclosure by the wrong entity does not discharge the homeowner’s debt, and leaves them vulnerable to another action on the same note by the true creditor.

    Banks are neither private attorneys general nor bounty hunters, armed with a roving commission to seek out defaulting homeowners and take away their homes in satisfaction of some other bank’s deed of trust. MasterCard has no right to sue for debts rung up on a Visa card, and that remains true even if MasterCard has been assigned the rights of another third party like American Express. Unless and until a complete chain of transactions back to the original lender is shown, MasterCard remains a stranger to the original transaction with no claim against the debtor. And that is a fair description of this case in its present posture.

    In sum, a standing issue is lurking here, but only as to the defendants, not the plaintiffs. The court concludes that under Texas law homeowners have legal standing to challenge the validity or effectiveness of any assignment or chain of assignments under which a party claims the right to foreclose on their property.

    Accordingly, plaintiffs have properly stated claims for declaratory and injunctive relief based on wrongful foreclosure, trespass to try title and quiet title.

    For the court ruling, see Miller v. Homecomings Financial, LLC, Civil Action No. 4:11-cv-04416 (S.D. Tx. August 8, 2012).

  117. @ Shadowcat

    In Federal BK Court, DE with a priority claim and Adversary Proceeding and Federal Court – NC with trial scheduled in November 2012.

    Retained attorney for trial as litigation is not an expertise of mine. We are after quiet title… also a QWR revealed a zero balance from servicer, while the substitute trustee has asked for the servicer to be removed from the case? Now, why would that be, unless he bought the note? We are gearing up for quite a battle…and have filed complaints with the Justice Department and the ABA, as the attorney/Substitute trustee has placed the note/obligation in his own company with 1 owner; HIM! There’s more, but to long to explain.

  118. Oops…I meant to say $700 trillion in mortgage fraud…it is a total quadrillion in credit/investment fraud. Anyway……these amounts of money are ridiculous and can never be repaid by all of us…

  119. @iwantmynpv

    “Subprime refinances were created by reporting default to the GSEs, prior to refinance, to make sure the GSE could not “invest” in the refinance.
    Think of this way —- even though many people showed to have qualified for Freddie/Fannie refinances, because they were already a F/F loan and were well within the loan limits, these loans were not refinanced (or repurchased) by F/F. And, the question is WHY?

    Because the banks were earning higher interest rates by reporting the loans as in default to F/F prior to refinance, and purchasing collection rights with insurance proceeds from F/F.

    Then the banks securitized the cash flows to these fraudulent loans — and sold the upper tranches to these trusts F/F. Thus, F/F could share in the higher interest rates with the banks by purchasing the fraudulent securities derived from the fraudulent loans derived from inflated appraisals to the houses. There is a a lawsuit by the Federal Housing Finance Agency (FHFA), now conservator to Freddie/Fannie, for these fraudulent securities.

    Was F/F aware that servicers were falsely placing loans in default prior to refinance, in order to remove them from F/F refinance and/or repurchase? Do not know. But, F/F DID purchase the securities derived from the false refinances — so they had to have read prospectus on these loans (and properties) — they had to have known that the securities were derived from prior F/F loans.”

  120. Let me explain what I meant by tangible things I meant legal title. WE THE PEOPLE always pay for everything up front at the ORIGINATION..including all wars…. Rick Santelli of CNBC confirmed this two weeks ago. The FED loans no money …they just print the paper & hand all of us the bag of debt they create from the credit they call “loans.” Many believe OBAMACARE is how the plan on funding WW III.. shadowcat…I did look into the trust…there never was one because Chicago T&T never carried out their fiduciary duty….I did make sort of a connection to a Chicago Community Trust or a ChicagoCommercial Trust when my mortgage went public…It is connected to some Global Corporate Trust…It is no doubt some black pool. Many may know their evil end game fix for their fraud is a World Tax …it will be like a property tax and the dirty crooks will try and usher that in WORLD TAX as a “fix” for a quadrillion dollars in mortgage fraud. It is going to be connected to the microchip in OBAMACARE…I say they can all go burn in hell..these crooks never paid for anything…

  121. Poppy… What are you going to do about it?

  122. It’s coming… Next, our own bankers, made in America.

    http://www.businessweek.com/news/2012-10-01/four-charged-for-in-u-dot-k-dot-fsa-insider-trading-probe

    Four Charged for in U.K. FSA Insider-Trading Probe
    By Ben Moshinsky on October 01, 2012

  123. @iwantmynpv, … Only Two? God Bless You for Helping People who have been Victimized multiple times. You are a True Meaning of a Public Servent.

  124. @iwantmynpv

    Sorry—my friend has the physical proof of this—regarding the GSE’s.

  125. @ Shadowcat

    On my HUD statement I have notes in blue from December 26, 2006, 2 months before I closed on February 27, 2007. No one can explain the notations. I can; the loan was defaulted and in the pipeline long before I closed on it. My loan was conforming, conventional with 25% down and income…it then ended up on March 12th seized by a non-lender entity and servicing was with SPS a sub-prime servicer, then Ocwen the last stop for defaulted loans. And, I can prove all of it.

  126. Carie, you are wrong about how it works! I have helped 5 people on this site, which my soon to be released site should swap links with, and I just penned a deal with a publisher to spell it all out on paper, with illustrations for the folks that insist it happened a certain way.

    The GSE tranche was the highest rated in all the pools, very similar to ones owned by the Depositor and the other loans were not GSE rejects, they were underwritten specifically for the lower tranches to bring the revenue to the underwriter and sponsor. It;s all about the yield and the overleverage used as credit enhancement.

    Since shadowcat has asked the most important question ever asked on this site he should get two stars**

    Only the NIM insurer, Depositor and in a few cases, the master servicer gets the foreclosed loans….

    Guys, i want you to come check out my new site coming out in January. Yes, I will be trying to sell some of my overpriced crap, but I have several law firms that I have helped in the last two months win or turn the table on 15 cases.

    Turns out, there is a market to teach lawyers out to defend their clients. Huh, who knew…and it pays good.

  127. Well… I better behave now. I wouldnt want to give away the ending before the last chapter is read. That wouldnt be any fun.

  128. See Ivent? How they screwed the Invester/lender and the taxpayer. Double Dipping right off the Top with the refis! And they hadnt even started the swaps yet. Greedy Greedy Greedy

  129. YEAH!

  130. As a True American, I must apoligize for my mistake. Anybody broker/origionater/lender already sold the new loan before you signed. The Buyer was also the perpatrater/tablefunder/depositer and the Payee to be paid off… they were all in the same (Citi). They knew your servicing would go to PHH. Nice Windfall!

  131. <—- Wonders if Ivent took a peek at when the trust was opened and who the investers in that Fake Tax Shelter are? Could they be those Free Bees mixed with the Buy Backs? HMMM Who bought the Buy Backs?

  132. Re: Refi’s… Bag of Air (Credit guareented by taxpayer) Origional Invester/Lender/Creditor not paid off. YEP! YEP!. Because when Chicago Title recieved release of mortgage from boo who… they didnt know who to release it to …. anyone andybody public..Yeah.. A Free for All””” …. but you can only play if you pay. If you pay they give you the “Cheat Sheet”. Yep …. just pay me…And I will point you to all the Free Bees….

  133. The definitive book has already been written: Alice in Wonderland

  134. “Wall Street botched the loan closings so they could trade on loans that actually belonged to the investor lenders.”

    Wrong, Neil.

    “…Subprime refinance was GSEs rejects. And, subprime was in great demand because of the higher interest rate it paid to security investors. Security investors, however, are not the creditor — they are not the creditor for prime debt, not the creditor for subprime, not the creditor for GSE loans. They are, in fact, never the creditor. And, they do not fund any loans. They fund the BANKs — who are the “investors” in the debt. If you were ever to name security investors for TILA violations, or request rescission, you would be immediately tossed out of court. This is NOT the way the market works — no matter how Neil tries to slice and dice it to “make-it” work. It does not work, will not work in court, and counterproductive to foreclosure defense. Neil has never quite understood the distinction between security investors and investors. Ask him to define this in terms of Freddie/Fannie. Freddie/Fannie is the INVESTOR, security investors invest in Freddie/Fannie pass-throughs. They are NOT the same. And, niether Freddie/Fannie, as investor, or security investors in Fannie/Freddie pass-throughs — are the lender/creditor under federal law….”

  135. Origionalor/lender (any who Amcore la da da) PHH table funder… Citi was the depositor. Citi did not have perfeted lien after aquiring purchase loan from what not and woo who. You were directed toward the Cash to Borrower and told How is would benifit you (not them)… Remember when I said the Banks never Refi their own loans before recently. Yep… there is a reason for that.

  136. Yeah … thats it. Its Chicken Limbo …. fun game. Million Doller Prize for my State.

  137. Limbo … a Game where the participents see who can sink lowest without falling. Oh… I’m sorry. I’m thinking of “Chicken Limbo” …

  138. agreed
    Mararet Thatcher- who i hated when she was in power only now do i see her wisdom, well Thatcher said the thing is when you borrow AKA rob peter to pay paul you run out of people to borrow from, so our government and wall street decided to invent somethings CDO synthetic CDO,s and hedging bets, and instead of pretending there were more borrowers fake debt was established for people not born yet, all the while taking any asset tangible and intangible that they could think of and morphing it in accounting form and substance to suit their palate- thats a beast with a killer appetite and a stomach thats never full. just another analogy, its something we must all go through and get through but we are not like them, people are waking up, its gotta hurt to get attention.

  139. ……. expecting that fraud to conjure up real happiness”…. Its not going to happen. … agreed

  140. I couldn’t agree more that this coup de tat against the freedom and independence of the American people is being covered up. I no longer want to participate in this sham. However, in order to completely remove ourselves from this corrupt system we will need to restore the U.S. CONSTITUTION, ISSUE OUR OWN CURRENCY, ABOLISH THE ELECTORAL COLLEGE, & SUE THEM INTO OBLIVION.. Lets face it folks..the foreign enemy has hijacked all of our wealth, livelihoods and natural resources by loaning us credit in order to steal our wealth and fraudulent investing is how they hijacked us…WE THE PEOPLE are who hold legal title to all of the tangible things. They fully understood the things we hold dear are our FREEDOM & INDEPENDENCE….self employment and creating personal wealth to have the modern conveniences, that are our inalienable rights… such as a roof over our heads, heat, air conditioning, healthcare, food and indoor plumbing. That is why they have hijacked these things with their GLOBAL credit/investment scam.. Now I don’t agree with everything Romney says……However…if we don’t vote, or we vote for a third party candidate Obama will win…and then we are accepting all of Obamas fixes for fraud like Obamacare and a welfare nation. That is far more dangerous to me than a vote for Romney. If Romney fails…we will dump him and try again…It is going to take alot of activism in order to get rid of this lawlessness and not voting is not the answer.

  141. “The War Within” … The homeowner, the invester/saver and the taxpayer. When you realize no matter what facade you put on … Your screwed and you are only further injuring yourself … Its definatly not healthy! They set it up this way … your beating your ownself to death! You DO have a Choice …. play their game and kill your self or you can let go of it all, take the power back from them. Your happiness is NOT found in material items or cash flows. Your Happiness is Found in Your Blessings. Your God, your Family, your Friends, your Faith. That will put you back in the drivers seat and that is where you will find your Happy Facade. I find the comparision here seriously Flawed. C-

  142. “That the banks are willing to pay property taxes and receive zero income for 3+ years reflects the banks’ dedication to restricting the inventory of unsold homes so prices will be forced higher as supply drops below demand.”

    That’s why I appealed mine and got reimbursed for some of it. In this economy, every little bit helps!

  143. What more can i say…?

  144. Listening to the debate you wouldn’t know that 6 million families have lost their homes, 10 million more are scheduled to lose their homes, and tens of thousands of homeowners are just sitting tight in limbo waiting for the show to drop, some of them without having paid anything toward rent or mortgage payments for many years.

    No listening to both of the puppets you wouldnt know, but all you need to see is Obamas body language , to know he knows the truth !

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