Banks Throw $20 Billion at Securitized Debt Market to Avoid Markdowns

Bloomberg Reports that the big banks are borrowing big time money using money market funds as source money for financing repurchase agreements. This stirs the obvious conclusion that the mortgage bonds — and hence the claim on underlying loans — are in constant movement making the proof problems in foreclosure proceedings difficult at best.

The underlying theme is that there is tremendous pressure to make good on the mortgage bonds that never actually existed issued by REMIC trusts that were never actually funded who made claims on loans that never actually existed. All that is why I say you should argue away from the presumption and keep the burden of persuasion or burden of proof on the party who has exclusive access to the actual proof of payment and proof of loss.

The banks are still claiming assets on their balance sheet that are either without value of any kind or something close to zero. If I was wrong about this, the banks would be flooding all the courts with proof of payment (canceled check, wire transfer receipt etc) and the contest with borrowers would be over.

Instead they argue for the presumption that attaches to the “holder” and mislead the court into thinking that possession is the same as being the holder. It isn’t. The holder is someone who acquired the instrument “for value.” By denying the holder status and contesting whether there was any consideration for the endorsement or assignment of the loan, you are putting them in position to force them to come clean and show that there was NO consideration, NO money paid, and hence they are not holders in any sense of the word.

If you research the law in your state you will find that the prima facie case required from the would-be forecloser depends factually upon whether they are an injured party. If they didn’t pay anything for the origination or transfer of the loan, they can’t be an injured party. They must also show that their injury stems from the breach of the borrower and the breach of some intermediary. That is where the repurchase agreements and financing for all those purchases comes into the picture.

So far the banks have been largely successful in using bootstrap reasoning that a possessor is a holder and a holder is therefore a holder in due course by operation of the presumptions arising from the Uniform Commercial Code. And since normally a presumption shifts the burden to the other side (the borrower in this case) to come up with legally admissible evidence that the facts do not support the presumption, the borrower or borrower’s counsel sits there in the courtroom stumped.

Further research, however, will show that if the facts needed to prove the presumption to be unsupported by facts are in the sole care, custody and control of the claiming party, you are entitled to conduct discovery and that means they must come up with the actual cancelled check, wire transfer receipt, wire transfer instructions etc. The would-be forecloser cannot block discovery by asserting the presumption arising from their own self-serving allegation of holder status.

In this case the presumption arising from the allegation that the would-be forecloser is a “holder” is defeated by mere denial because it is ONLY the would-be forecloser that has access to the the actual proof of payment and proof of loss. I remind you again that the debt is not the note and the note is not the mortgage. They are all separate issues.

This is becoming painfully obvious as reports are coming in from across the country indicating that courts at all levels and legislatures are under intense pressure to find a loophole through which the mega banks can escape the truth, to wit: that they are holding worthless paper and that the only transaction that ever actually occurred was the one between the investors and the borrowers without either  of those parties in interest being aware of the slight of hand pulled by the banks. The banks diverted the money invested by pension funds from the REMIC trusts into their own pockets. The banks diverted the documents that would have solidified the interest of the investors in those loans to themselves.

And let there be no mistake that the banks planned the whole thing out ahead of time. The only reason why MERS and other private label title databases were necessary was to hide the fact that the banks were trading the investments made by pension funds as if they were their own. Otherwise there would have been no reason to have anyone’s name on the note or mortgage other than the asset pool designated as a REMIC trust.

These exotic instruments are being tested by the marketplace and they are failing miserably. So the banks are throwing tens of billions of dollars to refinance the repurchase of the derivatives that were worthless in the first place. It’s worth it to them to retain the trillions of dollars they are claiming as assets that are unsupported by any actual monetary transactions. AND THAT is why in the final analysis, after they have beaten you to a pulp in court, if you are still standing, you get some amazing offers of settlement that actually are still fractions of a cent on the dollar.

Banking giants lead repo funding of securitized debt

73 Responses

  1. The banksters destroyed the notes & mortgages and our Security in many ways Patrick. As a result, they do not exist. It is nothing to jump for joy about. Beware the fix for the biggest fraud ever perpetrated in U.S. history…their World Tax “fix.” It will be like a property tax & you will never own the building. The people need to reject any & all fixes for fraud, demand no less than clear title to us & all payments & interest be returned to us.

  2. Recordation is Perfection of the Lien Patrick. Why would the trustee, the title company agent not want to record that piece of paper that is the Security? Why would the trustee record the mortgage, the evidence of the debt & not the legally enforceable lien? Negligence? Sloppiness? Laziness? No….recording the lien and perfecting it would have been fraud by the title companies because the banks defaulted on their contract.

  3. @Patrick….The Legal Assignment is Legal Proof Consideration was paid to the Treasury by the Issuer of the Original Bill of Credit taken in our names with our signatures ….. it is the Delivery & Acceptance Receipt to the Trustee of the Trust…..the title company…. It is the Trustees receipt that is physical proof that the Issuer Performed on the contract. Collecting Payments, Conversions, Transfers are not Performance and are not legal without it they are Securities Frauds. There is no need to ask for discovery if you can’t put your finger on the note & mortgage at the onset. Copies of unindorsed notes & mortgages can only be considered counterfeits & forgeries without the legal assignment or an affidavit swearing to the validity of their claims. E-documents are meaningless without that piece of paper.

  4. @stripes

    Perfection of paper note ownership is required to have a perfected lien. As a 2013 case in Florida’s 1st dca reaffirmed, the debt does not follow the mortgage lien assignment. So even if somebody recorded an assignment of the mortgage lien in the public records, it doesn’t mean that the would-be-assignee can lawfully accept the assignment.

    I say I’m a mortgagee because its recorded in the land records and I have possession of the paper based note indorsed to blank. Logically, most would presume I’m a valid lien holder. But if I didn’t give consideration or value for the paper based note (because its been abandoned and derecognized in favor of a competing electronic medium) the mortgage lien doesn’t attach and I can’t lawfully accept the lien assignment. The land records are bogus and there is a slander on the title.

    Show me the wire transfer instruction, wire transfer receipts, cancelled checks, ect… that underlie transactions described on the face of the paper based note to support your claim for relief.

    Somebody, somewhere has to own the paper for the mortgage lien to exist. Just because a lien assignment is recorded doesn’t prove its perfection.

  5. The banks violated the copyrights to our signatures as well by electronic fraud…not perfecting the lien on our title destroyed our Security and the banksters were in fact, forging our signatures electronically w/o our permission. That fraud allowed them to overissue investments in their fraud. That is why perfection of the lien is so important. That protects our Security. Without perfection, there is no Trust or Trustee and no entity can bring a legal claim if the Security is “missing.” If the rule law is not enforced, any shmuck could lay claim to our property which is precisely what is happening.

  6. They always give trick answers Patrick… transfers don’t have to be memorialized. I am talking about the perfection of the lien. In my home state of Illinois, Illinois Conveyance Law requires recording of the lien is perfection. This must be done within 30 days of the closing of the trust in the county where the real estate is situated.

  7. @ Stripes

    Transfers from “within the banks” is code for making data field entries on a computer interface. A few mouse clicks and presto, the electronic record is transferred to the control of another purchaser, all while the digital record doesn’t even leave the server farm where it is stored.

    These electronic assignments aren’t required to be recorded or memorialized at the county recorder’s office. A new lienholder isn’t recorded because a mortgage lien on real property only follows the tangible paper, it doesn’t follow an intangible electronic record floating around in cyberspace.

    There is no record of who the obligor is doing business with. The last recorded lien holder has no interest in the periodic loan payments. That interest was sold using electronic means. OR worse, MERS is recorded as the placeholder so all these electronic transactions can occur behind the scenes. Of course MERS is only for optics as the mortgage lien becomes void the moment the paper based note is abandoned and derecognized in favor of using a competing electronic medium to transfer rights and defenses.

  8. That’s all true Patrick. They use the excuse paper is slow & inefficient because they can’t hide their fraud with a paper trail. Me & a friend did some of our own investigating a while back at the recorder of deeds in Will County, not my own county. The clerk asked us, what exactly are you looking for? We said, the lien, she told us, sometimes the banks do transfers from “within the banks.” I told her, that’s not legal if they never recorded the lien. She told us you better have your i’s dotted & your t’s crossed before you go see an attorney.

    I requested any & all docs including e docs and I never received a doc, not one. I was told by their attorney, ask us for the docs, I was told they would do their diligence and then I was told they don’t have anything. There is no discovery, no trusts, no trustees.

    They are using the fake threat of electronic discovery as a way to cover up their fraud because nothing they did was legal. They are scammers who thought we would fall for anything.

  9. @stripes

    Correct. The footnotes to section 16 of the UETA specifically states that converting paper to electronic record was not contemplated by the drafters.

    From comment one to section 16 of the UETA

    “The possibility that a paper note might be converted to an electronic record and then intentionally destroyed, and the effect of such action, was not intended to be covered by Section 16.”

    Again, I go back to the Florida bankers association letter to the supreme court taskforce on residential mortgage foreclosures

    From page 3

    Plaintiff’s Status as Owner and Holder of the Note.

    “In actual practice, confusion over who owns and holds the note stems less from the fact that the note may have been transferred multiple times than it does from the form in which the note is transferred. It is a reality of commerce that virtually all paper documents related to a note and mortgage are converted to electronic files almost immediately after the loan is closed. Individual loans, as electronic data, are compiled into portfolios which are transferred to the secondary market, frequently as mortgage-backed securities. The records of ownership and payment are maintained by a servicing agent in an electronic database.”

    Its a commerical reality that virtually all paper is converted to electronic files. This electronic data, compiled into portfolios, are transferred to the secondary market. – This description is not possible according the comments of the UETA drafters.

    Paper must be derecognized as a competing medium if converted over to an electronic medium. But since that conversion isn’t covered by UETA 16, it is more likely that the paper was NEVER the asset with an offsetting liability. Paper was never intended to be used to transfer loans anyway so why bother funding the loan as depicted, whereby the paper never describes a real transaction and its terms don’t exist.

    The scam is that paper is being used as evidence in court when it has been derecognized as an asset because it was converted to a digital equivalent OR when it was never an asset to start with because the loan wasn’t funded as described. This ain’t your grandpa’s mortgage, son. Paper is too slow and inefficient for the secondary marketplace.

  10. E-commerce is a work of fraud & fiction. If you can’t put your finger on it, it does not exist. Besides, they never told us any such conversion would be transpiring. Those signatures are therefore, unauthorized ….. frauds & nullities. We The People now want our fraudclosed property & our quadrillion dollars back from the banksters ASAP….

  11. “…What many will find is that they were nothing more than account debtors, much like credit card debt, to an undisclosed and unsecured creditor.”

    That is exactly what ANONYMOUS posted here for years. Distressed debt buyers. Period. Those are the gangster entities stealing our homes…and the servicers are their “guns for hire”.
    No regulation=no justice.

  12. Deadlyclear says

    “I just want to know how a negotiable instrument can be securitized and sold to a trust, stripped into pieces and continue to fall under Article 3 during a foreclosure when it is still actively trading in the trust (per Bloomberg); rather than be considered a non-negotiable security under Articles 8 & 9? ”

    Its called e-commerce. Folks are still stuck on tangible paper. A paper based note was never contemplated to be used to transfer rights and defenses to a purchaser in the secondary market.

    You must read the Uniform Electronic Transfer Act, become familiar with section 16 of that act, reference the footnotes to section 16, and then realize that certain parties elected to conduct transactions using electronic means.

    The Florida bankers association has already admitted that it was standard practice to use electronic means to transfer loans into the seondary market. This necessarily eliminates the paper as a competing record to avoid confusion.

    A transferable electronic record is governed by UCC 9 and is considered a category of general intangibles according to footnotes to section 16 of the UETA precisely because it can’t be physically transferred via telecommunication. However, the UETA also provides that a transferable electronic record retains characteristics of negotiability because it is the electronic equivalent to a tangible paper based negotiable instrument. Hence, they use the term “transferrable” when describing the electronic record.

    Its like when folks submit their tax return via the internet. Those folks have created an electronic record and transmitted it via telecommunication. It is the equivalent to a tangible paper based tax return but its in an electronic or digital form, hence, its intangible. It exists in cyberspace and is stored in an e-vault or server bank. You can print it out in a recognizable form and sign it but the print out is not the official tax return with legal effect. Hence, the print out isn’t recognized in court as a legal document because it can’t compete with its digital counterpart.

    This is the crux of the issue in court. Paper is being used to advance a narrative when said paper has been derecognized as an asset on the books. Two competing medium (paper vs electronic) cannot both confer rights and defenses to a loan purchaser at the same time. Even if the original paper note was never shredded but rather retained, it doesn’t represent terms under which the obligor is obligated. The terms are FOREVER evidenced by the transferrable electronic record created almost immediately after closing. Those terms were never revealed to the obligor and may be considerably different than what terms were on paper.

    What is being traded is the electronic equivalent of paper based note. This is why loans are registered on an e-registry such as MERS provides. These registries identify who controls the transferrable electronic record among member participants. The notes were never stripped into pieces, rather, an alternative medium was used as an equivalent to paper to transfer rights and privilages.

    A wee problem for the bankers is using an alternative equivalent to paper derecognizes the paper as a competing asset and the mortgage lien is void the moment the paper becomes worthless. Enter MERS as placeholder or nominee.

    But rights and privilages are FOREVER embeded within a tangible paper medium once executed by the obligor. Because we have reason to know this, what makes us think that the loan was even funded by parties described in the paper based note? Why go through the bother if the paper wasn’t going to be used to transfer rights and defenses in the first place? The presumption is that the described lender recorded an offsetting liability to the paper asset on its books that was later moved off balance sheet in a scheme of securitization. What if the paper medium was never recognized as an asset in the first place eliminating the need to “convert” to a digital file? Lost note count – I don’t think so. More like – we chose to conduct commerce electronically under terms which were not revealed at closing.

    Neil’s point is well taken – prove up the transactions described in the paper with cancelled checks, wire transfer receipts, closing and wire instructions ect… to show the existence of the offsetting liability from inception. What many will find is that they were nothing more than account debtors, much like credit card debt, to an undisclosed and unsecured creditor.

  13. Yikes you can’t Securitize, Securities Fraud. It’s all a big fat crap out.

  14. Deregulation does not make Securities Fraud legal.

  15. @DeadlyClear

    It’s all fraud and the courts don’t care because deregulation let all hell break loose and distressed debt buyers can do whatever the hell they want and the government can’t do anything about it as long as deregulation is still in place….which it is.

  16. I just want to know how a negotiable instrument can be securitized and sold to a trust, stripped into pieces and continue to fall under Article 3 during a foreclosure when it is still actively trading in the trust (per Bloomberg); rather than be considered a non-negotiable security under Articles 8 & 9?

    It’s obvious the note can’t be both or quasi negotiable. And if it is a non-negotiable securities instrument it cannot be endorsed in blank – per the gateway to Article 9 which is Article 8:501(d).

  17. Reblogged this on Deadly Clear and commented:
    I’m still questioning whether the investors’ finance directors and fund managers, CEOs knew or were told not worry that these mortgage loans would be liquid and that the foreclosures were insured. Unlike the homeowner, the investors had all sort of warnings…but, had they done their due diligence they would have found that there were no assignments of mortgages and notes to the trust. Knew or should have known? The homeowners were unwittingly induced into providing their collateral. The investors, however, had much more opportunity to smell a rat and apparently chose to overlook it. Why? And why isn’t the spotlight on the investor finance directors?

  18. Carie I agree with you, and this article that Neil put out is at the heart of the crime. Most that have been writing here have totally miss the importance to what being said here.

    As always I am on the Ginnie Mae part of this crime because there are not as many moving pieces, because Ginnie Mae pools are not were the loans are going to have this long trial of purchase because the loan in a pool are of the same rates and terms, and once in, its not as simply as taking the loan out.

    It is difficult explaining this easy crime, but when the system of our government is one of the main characters then it become difficult for most to believe that our government could be involved in this BS.

    But as simply as Ginnie Mae telling the world they don’t buy or sell home mortgage loan at all, is the end of this crime, because the entire MBS is based on a non “holder in due course” claiming that something in their possession as collateral for these securities, but its impossible for Ginnie Mae to convert the blank Notes into a cash form, as there cannot be a valid lien against a single property.

    So changing just a bit, as the IFR settlement is saying that 90% of the 4.2 million will be paid by the end of Apr, so what the other 420,000 people suppose to have to send in additional information for? How do you not need anything from 90% and are not even looking a the IFR request forms that 500,000 sent back in with 100,000 of those reviewed, so 3.7 million people did not even bother to submit the request form, and of the 500,000 who did request a review only 150,000 did so by the first deadline in Apr 2012 and by the third deadlines in Sep 2012 there was only about 235,000 who had submitted a review.

    So after a year of this process you only had 250,000 at the beginning of Nov 2012 but not a single amount was granted. But there are 679 people who were making there payment on time, but only 62 people claim this to be the case an applied so how did it become know that the other 617 people become known to be current only after the shut down of the IFR? The banks where still arguing that the 62 were not current and had foreclosed on 16 and rescinded 8 of those foreclosures. So part of the review process would have to be being used to determine just the folk who were and are current. But it would be the same for if the bank had standing to foreclosed, because as I filed and provided the paperwork that Wells Fargo did not have standing and they confirm that they did not have standing, and there was no other party (lender) claiming to be the holder of the debt but Ginnie Mae who we know for a fact did not purchase the debt.

    I am just saying this entire thing is crazy.

  19. “GSEs purchased the false MBS securities (which were actually only collection rights to default debt) and derived derivatives, thereby — purchasing the false securities/derivatives to their own default debt.”

  20. @ Charles

    You understand the practice of certain parties was to elect to conduct transactions using electronic means before a loan was closed. The old fashioned paper based transfer was too cumbersome and clumsy for the voracious appetite of the secondary market.

    The paper was never contemplated as the medium to be used to transfer the liability to a secondary market purchaser. A transferrable electronic record or digital file as defined by FL stat 668.50 sec 16 was the vehicle of choice because it was more efficient and less expensive. So the bankers thought they could transfer the liability using electronic means while retaining possession and control of the paper medium to use at their convenience..


    Furthurmore, a loan closed using a paper medium cannot be converted so that it becomes evidenced by a substitute electronic or digital file equivalent. It is a fact under the UETA that a transferrable electronic record can only be created if the obligor closed the loan using an electronic platform or otherwise expressly agrees it is issuing a transferrable electronic record.

    The practice of conversion, as described by the Florida mortgage bankers association, begs the question as to just what exactly was sold into the secondary market? Answer- nothing. So exactly what are the big banks buying back under repurchase agreements? Answer – nothing.

    And yes E Tolle, they all know. Which is why the fed is hoovering up all the fake mortgage bonds with printed money to fill in the hole.

  21. Carie / good stuff. Thanks for posting

  22. @Charles & DebbieC (speaking of balance sheets):

    “…The (highly profitable) subprime fraud began when the banks started to “securitize” Fannie/Freddie/GM CHARGE OFFS ,which started to occur about the year 1999/2000, after DEREGULATION (repeal of Glass-Steagall)…and MERS was created by the mortgage/banking industry.
    As this happened, “mortgage” market share shifted from Fannie/Freddie to the banks.
    Anything that has a cash flow can be securitized. Securitization is the pass-through of cash flows.
    But, the key difference as to SUBPRIME fraud is in the ACCOUNTING (just like Enron).
    Valid securitization MUST involve the removal of RECEIVABLES.
    You have to understand an accounting balance sheet for this. Receivables are the current assets that are owed to a corporation (the only one who files accounting financial statements.) Charge-offs are, well, CHARGE OFFS…NOTE IS GONE.
    So when GSE’s charge-off the NOTE—only COLLECTION RIGHTS REMAIN…NO NOTE.
    Collection rights (because there no longer is a NOTE)—can only be reported as “INCOME” by the aquirer.

    Therefore, all these REMIC’s that claimed to be removing RECEIVABLES from on-balance sheet to off-balance sheet—for “security” pass-through—were FRAUDULENT.

    This is what the securities fraud is really about.

    As to the borrower, big difference—because for one thing—THE NOTE IS GONE (and only collection rights survive)—AND the “debt” IS NO LONGER SECURED. It is UNSECURED. Big issue in bankruptcy. And, of course, the subprime refinances were falsely and fraudulently presented as a MORTGAGE REFINANCE—when, in fact, they were nothing but COLLECTION RIGHTS MODIFICATION.
    Also, big IRS tax fraud issues involved.
    THIS is why the financial crises hit so hard when it did.”

  23. “…Repeal of Glass Steagal meant deregulation. Deregulation meant subprime could be hidden — along with everything else—including derivatives. Subprime is nothing more than derivative collection. Deregulation extended beyond subprime. Subprime was simply the start…”

    “…Servicer name is for hire. There are many levels of servicing. Note marked stamped in full is meaningless. Need to check with Freddie/Fannie as to what was reported to THEM. Never, ever, recommend a wire transfer for refinance — need the check. The heck with “going green” — need that cancelled check.

    Money lent to any (F/F, GM) entity is also irrelevant in relation to what exists as reported to by servicers -for hire to those entities. Proprietary information. But, need to open their records — it will shock you. “iwantmynvp” has not researched. He/she too trusting. Or, in the business.

    Financial crisis is not over. Global crisis is ongoing and alive…”

  24. @DebbiC
    The “prospectus” is a load of BS—where have you been? No funding—no “loans”. Just because something has been “written” doesn’t mean it “happened”.

    “…People with much debt were targeted. Easy to put GSE loan in default — no one would appear to question. Subprime are loans in which only servicing rights transferred. They were not actual mortgages, because the debt was already charged off. Collection rights do not have to be funded. All you get is a servicer — there is no lender — there is no creditor. Of course, they needed someone to foreclose, and naming servicer largely does not work in court. So they started naming the trusts that pass through cash payments to security investors in collection rights. Problem is — these trusts were never the lender, never the creditor…”

  25. Patrick: Do you have a link to the Florida letter from the Mortgage Bankers Association? That would be greatly appreciated. Thanks

  26. Here is what is ironic that in Italy the police are arresting or seizing information from American crooks that have stolen trillions, and here in America Eric Holder is arresting the Italian Mobs for trash routes. What wrong with this picture?

  27. Hey, Christine, why is it always happening in other countries? JP Morgan is getting its ass kicked in Italy. How about New York City? I know there are lots of crooks in other places that have to do with banks, but the good ole US of A has more crooks per square inch than any other place on earth or am I just being cynical?

  28. […] Filed under: CDO, CORRUPTION, Eviction, foreclosure, GARFIELD GWALTNEY KELLEY AND WHITE, GTC | Honor, Investor, Mortgage, securities fraud Tagged: Bloomberg, burden of persuasion, BURDEN OF PROOF, holder in due course, holder of note, MERS, modification, Mortgage, possessor of note, presumption, refinancing, repurchase agreements, settlement Livinglies’s Weblog […]

  29. So what Patrick is say is what I talked about for over 2yrs now. You cannot go to the local court with some electronic record proving you the debt holder. In the case of Ginnie Mae the way the Notes are transfer is know that they are relinquished without monies transferred because Ginnie Mae cannot and does not purchase the debt and once the transfer occurs the Note instantly makes the blank Note permanently non-negotiable and worthless.

    This is a $1.1 trillion fraudulent Ginnie Mae Mortgage Backed Securities Ponzi scheme as the blank Notes cannot be underlying collateral for the securities as it has no debt attached to the instruments.

    Another thing in relationship with the IFR, is that the category of people who were foreclosed but were not behind on the mortgage loan payment, make the what the OCC and Federal Reserve’s release information that bank were putting people into the categories. However as there was a total of 53 homeowners that were foreclosed, but only 8 of those applied for the Independent (wink wink) Foreclosure Review.

    A total of 679 homeowners not behind and only 62 people applying that they were never behind as most are currently still working and 38 other foreclosures were rescinded. But my question is how without using the review request do you come to the conclusion that people were never behind if those folks never came forward? You got 62 people that applied and were right that they were not behind and 617 who did not even bother to apply for the review, so how in the heck do you get to the point that the folks were not behind without the homeowners stating the claim.

    The same goes for military foreclosed as in being in combat or having been under enemy fire within 6 months and with the over 300,000 military personnel in Iraq & Afghanistan during 2009-2010 but only 1,082 receiving payout. However you could have as many as 600,000 troops that transferred in and out and without the military record of deployment and to were, how do you get to a figure of 1082 when only 131 applied and checked the block that they were this veteran that was harmed while being protected by SCRA?

    You got a thousand military not even knowing that the world for the last year and President Obama Mar 6, 2012 announcement of making whole the military but only 131 submit for a review, so what tell the leader where these folks were and when, but outside information from the military itself. So if your not using the IFR application how do you know who claiming what. How in this case do you look into the files to see if the military check the SCRA violation, or come to the conclusion that other people were not behind but still were foreclosed or are currently in process of being in foreclosure!

    The process is a joke because it uses the review request for something while telling us that the people who did apply get a little more than those that did not file, but the 100,000 actual reviewed file and the outcome of those are not taken into account, when whistle-blower of the review board personnel are reporting harm.

    I am just saying something does not smell right in ever aspect of this process.

  30. I agree that fear & social conditioning are a big part of the reason why the people keep paying these crooks even though they know they are shady crooks. They are classically conditioned to comply, cooperate & conform and do what they are told.

    Oops….we lost track of the note is unacceptable in regards to real property. This many mistakes being made is impossible. This was an evil plan. Amending complaints and any other fixes are fraud.

  31. “If more understood this accounting concept they would realize the paper which plaintiff is using as evidence is actually worthless. Hence, there can’t be a note owner, the paper is rendered non negotiable because it doesn’t describe a real transaction, and the plaintiff in possession cannot suffer economic injury or loss to offset its claim for relief, ergo, it is not a real party with an interest in the outcome of the litigation.”

    Here’s the problem. You and I….all of us here and at all the other foreclosure relief/defense websites figured this all out long ago. We are all aware of the Florida banker’s statement concerning destruction of the original notes. We’re hip to Kemp, understand derecognition, we’ve been doing our studying, watching the bankers lie in every venue in the nation. We may have been naively unbelieving at first about what we were uncovering, but we’re not stupid, just slow.

    Here’s the point, and it’s a big one….if you and I, nurses, plumbers, cab drivers, us wee folk, can figure all of this out with absolute certainty, what does that say for the system, the program, that this illegality is being run on? Would you expect that Bernanke would know? Holder? Breuer? Obama? Of course they know. And therein lies the problem.

    The entire securitization model isn’t what it’s described to be in the fold out glossy; a program for efficiently funding mortgages, providing more liquidity to borrowers. That’s pure bullshit. The sooner everyone faces the fact that that is the single biggest load of crap ever dropped on civilization the better. What securitization is, is an extremely effective asset stripping apparatus designed from inception to suck the life-blood from the workers of the world, you know, us working stiffs who actually produce things, or at least, used to, by those who do not. It’s very simple….securitization is a theft ring, with built in fencing and money laundering operations, owned by those at the top, the .01%, and managed by the governments of the world under the auspices of the central bankers.

    The administration, the regulators, CONgress, everyone who wears a suit within a hundred miles of Wall Street or D.C. are well aware of the huge sucking sound produced by what we’ve owned and worked hard for being rapidly shifted to them. Everyone would be well suited to start planning on how to take down the very system that has not only affectively robbed us all blind, but that is also hell bent on casually taking down the entire system as they grab for the last remaining crumbs left on the plate.

    It’s time to grow up little Cindy Lou Who, their hearts won’t be growing any larger, this story won’t end that way. REV 2.0

  32. @Deb Wynn

    Amen. Derecognition of the paper based note. If more understood this accounting concept they would realize the paper which plaintiff is using as evidence is actually worthless. Hence, there can’t be a note owner, the paper is rendered non negotiable because it doesn’t describe a real transaction, and the plaintiff in possession cannot suffer economic injury or loss to offset its claim for relief, ergo, it is not a real party with an interest in the outcome of the litigation. The mortgage lien becomes void the very moment paper becomes worthless – i.e. a liability, when moved off balance sheet, cannot continue to offset a listed paper asset.

    Without a liability on the books to offset the paper, plaintiff’s right to the borrower’s performance has expired and nobody is entitled to periodic payments under the terms of the paper. An obligor cannot discharge its debt under the terms of the paper if said paper has been derecognized because its offsetting liabililty has been purposefully moved off balance sheet..

    So why are the sheeple continuing to faithfully pay a debt under terms that don’t exist? Fear and social conditioning are powerful tools.

    Here are relevant excerpts from a comment letter to the Florida Supreme Court task force on residential mortgage foreclosures by the Florida mortgage bankers association dated Oct 2009.

    From pg 4

    “The reason “many firms file lost note counts as a standard alternative pleading in the complaint” is because the physical document was deliberately eliminated to avoid confusion immediately upon its conversion to an electronic file. See State Street Bank and Trust Company v. Lord, 851 So. 2d 790 (Fla.4th DCA 2003).

    Physical document deliberately eliminated = derecognized as an asset. Why? Because two competing medium (tangible paper vs electronic file) cannot both confer rights and defenses to a purchaser in the secondary market.

    from pg 3

    “In actual practice, confusion over who owns and holds the note stems less from the fact that the note may have been transferred multiple times than it does from the form in which the note is transferred. It is a reality of commerce that virtually all paper documents related to a note and mortgage are converted to electronic files almost immediately after the loan is closed. Individual loans, as electronic data, are compiled into portfolios which are transferred to the secondary market”

    paper documents converted = derecognition of the paper Why? Because an electronic file or record has been chosen as the form in which rights and defenses are transferred into the secondary market and so tangible paper can’t be used anymore.

    Florida mortgage bankers association is telling us certain parties have chosen e-commerce over the traditional paper based transfer mechanism. See FL stat 668.50 sec 16 for reference..

  33. Bank NA Trustee as Owner …. Odd statement don’t you think?

  34. HaHaHA! Why am I not surprised? You guy keep fattening up those IRS agents by paying their salaries. If they come after you, tough!


    Posted on April 18, 2013 | 1 Comment

    On February 28, 2013, the Office of the Comptroller of the Currency (OCC) and the Federal Reserve Board released amendments to their enforcement actions against 13 mortgage servicers for deficient practices in mortgage loan servicing and foreclosure processing.1 The amendments require the servicers to provide cash payments to borrowers whose homes were in any stage of the foreclosure process in 2009 or 2010 and whose mortgages were serviced by one of the 13 servicers or their affiliates.2 Regulators have published the payment amounts on their websites.3

    All payments received in connection with the IFR Payment Agreement may be subject to taxation depending on the borrower’s individual circumstances. This webpage provides general information regarding potential U.S. federal income tax consequences of these payments if you are a citizen or resident of the United States.4

    The Independent Foreclosure Review Payment Qualified Settlement Fund (QSF) is required to comply with IRS information reporting requirements with respect to any payments made. The information the Paying Agent must report to the IRS varies depending on such things as the nature of the payment, the residence status of the recipient and whether the Paying Agent is required by law to automatically withhold an amount of the payment. As a result, borrowers may receive a letter from the Paying Agent requesting additional tax-related information to process their payment. Borrowers may also receive one of the tax documents described below.

    This webpage is intended solely for informational purposes. It does not suggest a particular tax treatment or address possible state, local, or foreign tax or any other possible tax considerations based on a borrower’s individual circumstances.

  35. Italy police seize JP Morgan records in Monte Paschi probe

    By Massimo Gaia

    MILAN | Thu Apr 18, 2013 11:18am EDT

    MILAN (Reuters) – Italian tax police descended on the Milan offices of JP Morgan on Thursday in search of documents in their investigation into suspected fraud at Monte dei Paschi bank, as a scandal rocking Italian finance spreads to foreign banks doing business there.

    The arrival of police at the central Milan office of the U.S. bank comes two days after Italian prosecutors moved to seize up to 1.95 billion euros ($2.54 billion) from Nomura, Japan’s largest broker.

    “The tax police are here to acquire documents and we are handing them over to them,” Giorgio Perroni, a lawyer for the U.S. investment bank, told reporters. JP Morgan has repeatedly denied any wrongdoing, and a source close to the investigation said the U.S. bank was not itself under investigation. [Denied any wrongdoing? What else is new? Pure BS. Interpol’s budget hasn’t tripled since 2008 just for the hell of it. It’s coming down. AQnd it’s going to hit hard.]


  37. The securities investors DID fund the loans. Every “trust” has a prospectus – read the “Use of Funds” section (2.1?) – it is there in black and white!

  38. O Jeez… The last guy who pulled something like that ended up being set up by some African woman on trumped up rape charges… until the woman folded like a cheap suit. The guy’s career was gone for good but the questions have remained and now, the Germans are pulling their own Strauss-Kahn.

    Banks bought themselves another 2 years but… it’s still coming back to bite them in the ass.

    Federal Reserve Refuses to Submit to an Audit of Germany’s Gold Held in U.S. Vaults

    The German government has been storing about half of its gold supply with the US FED, apparently in the NYC FED vaults. Germany decided to bring home all its gold, but the FED has said that isn’t possible to do, and it would need until 2020 to be able to accomplish the transfer.

    The German government then asked to visit the FED vaults to inventory the gold and determine its actual existence, but the FED refused to permit Germany to examine its own gold. The reasons given were “security” and “no room for visitors”. And nothing else.

    Germany did finally send some staff to the FED, and they were permitted only into the vault’s anteroom where they were shown 5 or 6 gold bars as representative of their holdings, and were permitted nothing else.

    They apparently came a second time, and the FED did open only one of 9 rooms and let the Germans look at the stack of gold, but were not permitted to either enter or touch. And they returned home.

    There has been speculation for a long time, that the FED doesn’t actually have much gold, that it has either sold it off, lent it out, or used it as collateral for borrowings. Either case, there are many claims that the gold that is being stored on behalf of many nations, doesn’t actually exist.

    And nobody, other than FED staff, have actually been permitted inside the vaults to see or inventory any of the gold. There is no evidence that the gold actually exists, other than the word of the FED.

    Even more, the situation is the same with the supposed gold depository at Fort Knox. Nobody has seen the gold there for a very long time.

    The last audit, and the last public visit, was in 1953, just after U.S. President Dwight Eisenhower took office. No outside experts were allowed during that audit, and the audit team tested only about 5% of gold there. So, there hasn’t been a comprehensive audit of Fort Knox in over 60 years.

    In 1974 six Congressmen, one Senator and the press were allowed to enter Fort Knox to see for themselves if the gold was there or not. The tour showed that there was gold in Fort Knox but, all the same, it sparked even more controversies.

    Only a small fraction of the gold reserves were made available for viewing, and one Congressman published a report saying that the gold bars held in the fort may have been less heavy than would have been expected.

    During the past two years, several US politicians have claimed that there is a high chance that neither Fort Knox nor the FED have any gold, or perhaps only a very small amount, and have demanded a full and public inventory and testing, but the FED have resolutely refused.

    Read the rest by clicking on the link. Or don’t. It’s crumbling regardless.

  39. Everyone – go to and listen to the youtube video of Jeffrey Sachs. He is an economist and professor and speaks honestly about what the banks did/does to us as well as European banks. He even takes the Whitehouse/Congress/etc. to the shed. Only 15 minutes long – spread the word because you won’t see this video on the lame stream media/tv!

  40. Oh what a Goodie … as usual leave out the blank space behind the word stop and go to the link below..


  41. GUEST ,

    I would suggest Matt Weidner if you haven’t already … e:mail me at , I have a great team but I don’t know if they’re taking new clients in Orlando , they’re mostly South Florida..

  42. guest you just my have to try this one on your own, as what do you have to lose. The internet is the new underground railroad. I understand Federal is harder but if you can get away from state judges and get a Federal Judge to hear your case i would think it would work better for you.

  43. Wondering if anyone here might know of an attorney in central Florida who “gets it” … looked through the recommended list on this website with no luck. The ones I’ve called have not returned my second phone call…not a good sign.
    Would really appreciate any input…thank YOU!!!

  44. May I add not a word about what may have caused that fertilizer explosion….That is despicable IMHO…

  45. No arrests or named suspects in Boston is complete bullshit. They are all evil liars. They named bin laden almost immediately on 9/11..yet these terrorists are unknown & cant be found…?

    Boston victim says we will all learn from this tragedy…? Learn what may I ask…? Are people this shell shocked….? As long as they never punish the real criminals, the greedy investors who keep robbing us, things are only going to get worse.

  46. The first sign an empire is failing is the people lose their humanity. Listening to the media & the politicians say all the wrong things today about the tragedy in Boston is proof enough for me this is an evil plan. None of this should have ever happened.

    They are all a failure because they failed to do their job and protect our Security by holding the banksters accountable for their crimes. That is unacceptable and egregious.

    If I failed to tell the truth and/or do my job as many times as these bank regulators, law enforcement agents and agencies, media and politicians have, I would have been fired long ago.

  47. It’s all related—we all need to raise awareness and encourage independent investigation of truth:

  48. No way anyone cannot see the horror these crooks have caused by now.

  49. Well, looks like I will have to sue the bastards again! They will not honor my settlement agreement with previous servicer. I may go to federal court this time.

  50. That’s how I see it Deb. I am trying to be civil about it. Only God knows how I really feel about these crooks and liars.

  51. stripes- ck your verbage love- “the bowels of hell” LMAO


    includes an award of attorney fees

  53. The foreclosure crisis’ other toll: Emotional stress

    Uncertainty about the fate of their home translates to continuing mental anguish for many owners.

  54. Very mixed news last week for the financially struggling American homeowner. RealtyTrac, an online marketplace for foreclosure properties and real estate data, said overall U.S. foreclosure filings dropped 1% last month compared to February, but that was down 23% from March of 2012.

    According to the report, 34 states showed annual decreases in U.S. bank repossessions in March. At the same time, however, some states saw foreclosure rates swing up sharply last month, including Arkansas (up 121% annually), Maryland (up 114%), Washington (up 88%), Pennsylvania (up 41%) and Ohio (up 39%).

    “Although the overall national foreclosure trend continues to head lower, late-blooming foreclosures are bolting higher in some local markets where aggressive foreclosure prevention efforts in previous years are wearing off,” Daren Blomquist, vice president at RealtyTrac, said in a press statement.

    Blomquist also warned that, while such efforts in many states have increased the average time needed to foreclose, those delays could also lead to another “outbreak” of foreclosures in the near future.

    While analysts puzzle over whether the nation’s real estate sector is on the rebound, many homeowners are still dealing with the emotional toll brought on by a foreclosure crisis. The New York Times reports that between 2007 and early 2012, about 4 million Americans were in foreclosure. And an AARP study released last year found the foreclosure rate for people over age 75 jumped eightfold between 2007 and 2011.

    “It is well established that adverse economics has a profound impact on mental health,” said Dr. Ken Duckworth, medical director for the National Alliance on Mental Illness (NAMI) in an email to MSN Money. “There has been a dramatic rise in suicides in Greece during their economic crisis, and so this not only a U.S. phenomenon of increased mental health vulnerability during economic distress.”

    Homeownership is a big part of the American dream, says Duckworth, and distress over foreclosure can be particularly hard-hitting for Americans, promoting what he calls “a sense of feeling trapped for some people who are underwater on their homes.” He added that the “loss of one’s dream home has great potential to generate shame and humiliation, which raises risks of depression, substance abuse and bad outcomes.”

    One such apparent “bad outcome” was last week’s deadly incident in suburban Atlanta, when a man whose home was in foreclosure took several firemen hostage and demanded his utilities be turned back on. That suspect was eventually killed by police.

    Which leads to another fact: While economic hard times may prompt many people to defer costly medical procedures and other services, Duckworth says the demand for mental health and substance abuse services increases during a recession. But budgets for mental health services also take a hit during financial downturns.

    As a 2011 NAMI report noted: “With demand for public mental health services extremely high, especially at a time of severe economic distress, the crisis in mental health care continues. The impacts are felt throughout society as people go without the treatment they need.”

  55. David Axelrod has the gall to tweet …..any politician who voted against the gun bill has no right to mourn over the next victims of gun violence. What a deceptive, lying rotten piece of rotten cheese. Thankfully, the majority of Americans aren’t falling for their evil agenda.

  56. Giant sinkhole on 96th and Houston in Chicago early this morning swallowed 3 cars one occupied by a driver. It literally looks like the bowels of hell are opening up. Sewers are backing up, roads are impassable. The local media reported there was smoke coming from a subway station the otherday. It’s like the movie Little Nicky is playing out in real life.

  57. The politicians are telling the people of Boston do not cower….while they cower? They are openly lying to everyone. Word ruminating through the Internet is the culprits of the bombing were flown out of the country like the bin laden family was on 9/11. Erin Burnett of CNBC sounds evil & sickening by saying she found the church memorial today in Boston moving & poignant? They all need to sit down and shut up until the truth is told.

    Unprecedented flooding in Illinois today. Gods tears are overflowing everything is how I see it.

  58. hman….The banks are literally walking away without completing the fc in many cases or abandoning the properties and handing them over to the States. They all got illegally bailed out for their crimes…$60.4 trillion dollars in U.S. TAXPAYER MONEY & 20 + MILLION properties backed by our $12 trillion dollar initial taxpayer investment. The Banks & the Politicians are simply criminals covering up for crimes. This is an evil agenda…… period.

  59. Well Just Slap Me Silly! Now comes Chase….. telling the owner they DO qualify for a loan mod they were denied years ago and give them an offer of $40,000 in principal and fee reduction and a reduced note rate. Thereby dropping the mortgage pays in half ($500.00). To Little to Late…… Guess they over qualified the first time, sure they did …. they were offered a FB agreement offering them to pay triple payments, they declined, the principal owed was $90,000 and the Buttwipes had over $30,000 in Suspense Account.

  60. Well hypothetically what do you think would happen in this situation. The “bank” foreclosed. After foreclosure sale title transfers to name of servicer. This is what has happened when to of my rentals were foreclosed. At this point title to the property is no longer in your name.

    So what do you suppose would happen if someone was injured or killed on that property after the fact? Would the “banks” story change? O we are just “agents” of the bank. Or we are the trustee for the Investors. Maybe, we don’t really have an interest in this property.

    Not saying I want anyone to be injured in anyway just speculating on how the “banks/servicers” position might change if this was the case.

    This was a concern of mine when my rentals were going through foreclosure. They sat vacant for months. 1 had a pool. I kept paying homeowners insurance until the title was out of my name just to make sure I couldn’t be sued.

  61. I am sorry Java, it has been over a decade now of secrets, lies, deceit and coverups for these same heinous criminals. That has caused immense suffering and this has become intolerable. They are secretly and openly destroying the souls of humanity. People are becoming callous to these horrors because they are simply being lied to their faces. They are accepting evil as happenstance. It is not. I see Obama speaking in church to the victims of this evil when he knows full well this should have never happened as disrespectful to God and the victims and their family. They are openly desecrating the churches and are dishonoring God with their fake sympathy. Obama and these politicians are failures and it is all intended to do permanent harm to everyone. They are being both openly & secretly deceptive. That is evil and there is no excuse for it.

  62. Patience……They are not going to be able to keep it together much longer.

  63. Nothing like covering up for the criminals & their crimes with fake sympathy from the lying news networks throwing wall to wall religious services at us because they ran out of lies and excuses and no one believes them anymore. Like this is what everyone needs to see, real human suffering in real time. These people are not just felons, they are sadistic felons. They are openly displaying the sacrificing and suffering of human souls. This is an outrage. The media needs to be shut down indefinitely for lying, covering up for serial killers and such an open and evil display of pure callousness is pure evil.

  64. FOX news anchor with the gleam in her eye says the best way to prevent terrorism is to not let them terrorize you…WHAT…? Why TELL THE TRUTH……Tell the reason WHY we are being terrorized is THE BANKSTERS & WALL STREET DESTROYED OUR SECURITY….& GIVE THEIR NAMES.

    CNN phonying it up with their televised religious service for the Boston bombing victims and their families. They seem to get off on watching people suffer. Despicable bastards all of them. Leave those people alone you are a bunch of phony, rotting, lying deceiving failures, everyone of you are pathetic excuses for human beings. Obama should be ashamed to show his face in public IMHO.

  65. deregulation ,derecognition, and MERS. the 3 sins of all time.

  66. This nations leadership is a failure and a disgrace. Showing up to grieve with victims families after you fail them is unacceptable. These horrors should not have happened and would not be happening if the real criminals were held to account for their crimes.

    Therefore, all of these horrors can only be seen as an evil agenda.

    I have no respect for any Politician or media person who has failed to be any less than 100% honest with the people.

    These people have no humanity for whatever reason, their hearts are hardened and they have lost their souls.

    This leadership is a complete failure to its people and that is unforgivable. Millions of souls have suffered horribly and are suffering because of a massive coverup of an intent to harm everyone by the wealthiest people on the planet.

    The politicians and the media are hideously deceptive in their portrayal of who put us here and why is this evil idea & agenda by what amounts to a few control freaks who feel the need to own and control everyone & everything.

    They all deserve the full fury of the Creator’s wrath for their evil greed.

    The leadership of this country is a disgrace by always intending to cover up the crime that put all of us here which is, the Banksters and Wall Street destroyed our Security and the politicians allowed it to happen. There can be no Peace or Security until these crooks are held to account and the proper corrections are made.

    The Securities and stolen wealth must be returned to the people or there will be no Peace and no Security because Foreign Nationals, dangerous criminals, are secretly and openly controlling this nation. This has to stop.

  67. “…The underlying theme is that there is tremendous pressure to make good on the mortgage bonds that never actually existed issued by REMIC trusts that were never actually funded who made claims on loans that never actually existed.”

    Yes, Neil—so why do you keep saying in other postings that securities investors somehow funded loans?

  68. Exactly. Anybody that tried to read me explaining these fact that Neil has just written, is what this crime is about. In Aug 2011 I first reported exactly this to the SEC’s Whistle-blower program which somehow they say they did not receive electronically. This should have been address when the Robo signing was address, but I think these clowns felt that they could still get away with it.

    Bottom-line is that you cannot call something due when you don’t hold a debt! Calling a Note due that got a zero balance is still zero.

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