Banks Traded on Inside Information on Mortgages

Despite the pronouncements by Eric Holder, the chief law enforcement officer of the United States, and the obvious reticence of the Securities and Exchange Commission, the vast majority of securities attorneys believe that the banks were (a) trading on inside information and (b) committing securities fraud when they funded and then traded on mortgages that were too toxic to ever succeed.

The first, trading on inside information, is regularly prosecuted by the justice department and the SEC. It is why Martha Stewart went to jail in rather flimsy evidence. The catch, justice and the SEC say is that this only applies to securities and the 1998 act signed into law by Clinton makes mortgage bonds and hedges on mortgage bonds NOT securities. It also makes the insurance paid on the mortgage bonds NOT insurance. This is despite the fact that the instruments meet every definition of securities and both the insurance contracts and credit default swaps appear to meet every definition of insurance. But the law passed by Congress in 1998 says otherwise, so how can we prosecute?

The second, securities fraud meets the same obstacle they say because they can’t accuse anyone of committing fraud in the issuance or trading of securities when the law says there were no securities.

So goes the spin coming from Wall Street and as long as law enforcement in each state and the DOJ keeps listening to Wall Street and their lawyers, they will keep arriving at the same mistaken conclusion.

If Wall Street had in fact followed the plan of securitization set forth in their prospectuses and pooling and servicing agreements, assignment and assumption agreements and various other instruments that were created to build the infrastructure of securitization of debt — including but not limited to mortgages, credit cards, auto loans, student loans etc. — then Wall Street would be right and the justice department and the SEC might be stuck in the mud created by the 1998 law. But that isn’t what happened and therefore the premise behind the apparent immunity of Wall Street Banks and bankers is actually an illusion.

Starting with the issuance of the mortgage bonds, most of them were issued before any mortgage was originated or acquired by anyone. In fact, the list attached to the prospectus for the mortgage bonds said so — stating that the spreadsheet or list attached was by example only, that these mortgages do not exist but would be soon be replaced with real mortgages acquired pursuant to the enabling documents for the creation of the REMIC “trust.” But that is not what happened either.

In no way did the Banks follow the terms of the prospectus, PSA, assignment and assumption agreements or anything else. Instead what they really did was create the illusion of a securitization scheme that covered up the reality of a PONZI scheme, the hallmark of which is that it collapses when investors stop buying the bogus securities and more investors want their money out than those wishing to put money into the scheme. There was no reason for the entire system to collapse other than the fact that Wall Street planned and bet on the collapse, thus making money coming and going and draining the lifeblood of capital worldwide out of economies and marketplaces that depended upon the continued flow of capital.

The creation of the REMIC “trust” was a sham. It was never formalized, never funded and never acquired any mortgages. hence any “exempt” securities issued by it were not the kind intended by the Act signed into law in 1998. It was not a mortgage-backed security, or credit backed security, it was an illusion designed to defraud anyone who invested in them. The purpose of issuing the mortgage bonds was not to fund and acquire mortgages but rather to steal as much money out of the flow as possible while covering their tracks with some of the money ending up on the closing table for newly originated or previously originated bundles of mortgages that were to be acquired. That isn’t what happened either.

Wall Street bankers put the money from investors into their own private piggy bank and then funded and acquired mortgages with only part of the money while they made false “proprietary trades” in the “mortgage bonds” that made it look like they were trading geniuses making money hand over fist while the rest of the world saw their wealth decline by as much as 60%-70%. The funding for debt came not from the unfunded REMIC “trusts” but from the investment banker who was merely an intermediary depository institution which unlawfully was playing with investor money. The actual instruments upon which Wall Street relies to justify its actions is the prospectus, the PSA, and the Master Servicing agreement — each of which was used to sell the investors on letting go of their money in exchange for the promises and conditions contained in the exotic agreements containing numerous conflicting clauses.

Thus the conclusion is that since the mortgage bonds were issued by an unfunded and probably nonexistent entity, the investors had “bought” an interest in an incoherent series of agreements that together constituted a security or, in the alternative, that there was no security and the investors were simply duped into parting with their money which is fraud, pure and simple.

I would say that investors acquired certain passive rights to the instruments used, with the exception of the bogus mortgage bonds that were usually worthless pieces of paper or entries on a log. In my opinion the issuance of the prospectus was the issuance of a security. The issuance of the PSA was the issuance of a security, And the issuance of the other agreements in the illusory securitization chain may also have been the issuance of a security. If cows can be securities, then written instruments that were used to secure passive investments are certainly securities. The exemption for mortgage bonds doesn’t apply because neither the mortgage bond nor the REMIC “trust” were ever funded or used — except in furtherance of their fraud when they claimed losses due to mortgage defaults and obtained federal bailouts, insurance and proceeds of credit default swaps.

The loan closings, like the funding of the “investments” was similarly diverted away from the investor and toward the intermediaries so that they could trade on the appearance of ownership of the loans in the form of selling bundles of loans that were not even close to being properly described in the paperwork — although the paperwork often looked as though it was all proper.

The trading, hedging and insuring of investments that were not only destined by actually planned to fail was trading on inside information. The Banks knew very well that the triple A rating of the mortgage bonds was a sham because the mortgage bonds were worthless. What they were really trading in was the ownership of the loans which they knew were falsely represented on the note and mortgage. They thus converted the issuance of the promissory note signed by the borrower into a security under flase pretenses because the payee on the note and the secured party on the mortgage never completed the transaction, to wit: they never funded the loan and they made sure that the terms of repayment on the promissory note did not match up with the terms of repayment set forth in the prospectus, which was the real security.

Knowing from the start that they had the power (through the powers conferred on the Master Servicer) to pull the rug out from under the “investments” they traded with a vengeance hedging and selling as many times as they could based upon the same alleged loans that were in fact funded directly by and therefor owned by the investors directly (because the REMIC was ignored and so was the source of funding at the alleged loan closing).

Being the sole source of the real information on the legality, quality and quantity of these nonexistent investments in mortgage bonds, the Wall Street banks, their management, and their affiliates were committing both violation of the insider trading rule and the securities fraud rule ( as well as various other common law and statutory prohibitions and crimes relating to deceptive practices in the sale of securities). By definition and applying the facts rather than the spin, the Banks a have committed numerous crimes and the bankers should be held accountable. Let’s not forget that by this time in the S&L scandal more than 800 people were sent to jail despite various attempts to mitigate the severity of their trespass and trampling on the rights of investors and depositors.

Failure to prosecute, while the statute of limitations is running out, is taking the rule of law and turning it on its head. The Obama administration has an obligation to hold these people accountable not only because violations of law should be prosecuted but to provide some deterrence from a recurrence or even escalation of the illegal practices foisted upon institutions, taxpayers and consumers around the world. Ample evidence exists that the Banks, emboldened by the lack of prosecutions, have re-started their engines and are indeed in the process of doing it again.

Think about it, where would a company get the money to have a multimedia advertising campaign blanketing areas of the the Country when the return on investment, according to them is only 2.5%? Between marketing, advertising, processing, and administrative costs, pus a reserve for defaults, they are either running a going out of business strategy or there is something else at work.

And if the transactions were legitimate why do the numbers of foreclosures drop like stones in those states that require proof of payment, proof of loss, and proof of ownership? why have we not seen a single canceled check or wire transfer receipt that corroborates the spin from Wall Street? Where is the real money in this scheme?

James Surowiecki: Why Is Insider Trading on the Rise?


Foreclosure Victims Protesting Wall Street Impunity Outside DOJ Arrested, Tasered

Watch out. The mortgage securities market is at it again.

Wall Street Lobbyists Literally Writing Bills In Congress

Time to Put the Heat on the Fed and FDIC to Fix Lousy Governance at TBTF Banks

West Sacramento homeowner uses new state law to stop foreclosure

The Foreclosure Fraud Prevention Act: A.G. Schneiderman Commends Assembly for Passing Foreclosure Relief Bills

Where did the California foreclosures go? Level of foreclosures sales dramatically down. Foreclosure legislation and bank processing. Subsidizing investor purchases via HAFA.

Wasted wealth – The ongoing foreclosure crisis that never had to happen – The Hill’s Congress Blog–the-ongoing-foreclosure-crisis-that-never-had-to-happen

Oregon Foreclosure Avoidance Program gets tuneup

103 Responses

  1. The connections to the same players in those scandals can be made to all of the same banksters/ politicians Bush…Clinton….Bush. That is why to say it is one party or the other is a waste of time and energy. They are all appointed by communists and are all in the same big communist club. They can’t hide it any longer and that is why nothing they do is legal.

    The Shadow Communist Government are enboldened by our general lack of giving a shit so they are not hiding their evil anymore. Right now they are testing all of us to see if we will go along with their communist program.

    Communism and Satanism are one in the same to me, therefore, I reject them both.

  2. I agree marilyn about those S & L’s. I believe the S & L crisis, the dot com bubble and ENRON were all test runs for the biggest robbery of our wealth in history.

  3. Holder was on the team of lawyers that set MERS up
    He will not jail himself

  4. Yes they did do sonething wrong
    CA statute requires perfected title for the foreclosure to proceed
    Felonies are to be I forced
    If an individual did what they did jail eould be the least punishment & civil penalties, according to the previous RTC chairman they should all serve jail time at the very least
    They are suppose to protect us

  5. Starting back in the nineties after Astoria Federal S & L successor in interest to Fidelity NY FSB hid four of my mortgage payments, in order to fake a default accelerate and foreclose I went to the NY DA who saw the problem but did not have jurisdiction of federal banks who started me out on a never ending journey to Janet Reno ,

    .Over the years I went to Ashcroft, Holder,
    Clinton, Bush ,Spirzer, Cuomo, the NY US Attorney
    Rose Gill Hearn,, , the FBI, the OTS, the OCC
    EVERY sitting US Senator of a session of Congress ,
    THE Wall Street JOURNAL, NY POST, etc. etc
    and all the while the tsunamis got bigger.

    Not till I got to the HON. Cornelius Blackshear did
    I find a Judge acknowledged this is a Federal question
    I filed a Federal Pet. In the Southern District of Fed Ct.
    The HON Louis L Stanton read and accepted my
    Pet for filing and docketing. Issued his first orders
    which included I write a letter of demand to the Bank.

    However ,this was 1997 and the Banks were getting
    very powerful and three months into my Federal case
    the Hon. LL Stanton abruptly sent me back to NYSC.
    I wonder if the HON. Louis L Stanton looking at what
    happened to our Country thinks this creating money issue
    is bigger than the Madoff issue.

    Still the question remains by what Authority did the banks
    start this. .this that is prohibited by
    Article I Para I0 Clause I of the United States Constitution.

  6. I agree MasterServicer, .. We should be lobbing to limit Congressional Terms to serve in office. We elected them to uphold the Constitution and not take advantage of it for their own personal wealth. We elected them as our Law Makers to Protect Us the US citizens and they made Laws for themselves that allowed them to cheat us by nondisclosure. The mergers are da bombs. Just when I thought all the dirt was scooped and retired the shovel … they tell me I have to go back and bury the bodies? (Oh… I mean bombs) haha …..

  7. I filed criminal complaints wit local county sheriff & the local DA refused to prosecute, I also filed with FBI 2 times with no replie other than at the 2nd time saying we will take up under advisement, Atty gen of CA WITH NO RESULT, FTC who forwarded all doc to the new CONSUMER Finance Protection Bureau ….




    What they did in my opinion …is take the lowest hanging fruit and path of least resistance .

    But I will tell you they did nothing wrong.
    Foreclosing agents and lawyers – that’s another story

  8. I swear to you , with no apprehension nor theory to offer . . Countrywide was a target .

    The GSE ‘s portfolio was a looming threat in 2000 . But first , how did Fannie and Freddie assemble a market leadership in sub prime loans –

    I never heard of a GSE sub Prime program

    Second , how do you dump a decade of CWHL Inc GSE paper that’s ready to prepay —they CWHL are not a member bank and had no problem churning out 10 years of new refi-business while the government sat on their liabilities —

    Uncle Sam had to show Countrywide how to harness all that marketing power using rates going north instead of south… wiping out over a third of the GSE as was intended

    Then it got to change its name to Bof A NA …your never going to beat the Fed , unless you join in !

    But amen I say to all , if nothing good ever comes from all of this ….
    Enron was the start of something bad or from bad to worse

    Philadelphia Newspaper BK decision was to much to stomach
    Merry l Lynch Execs do the prep and head to Jail …but are let off the hook by the circuit appeals as did the Phil case get turned ….

    CFO of Freddie was not someone prone to hanging himself , Ahhhh unless his genius found him standing alone went things got rough (he was a genius with how he worked this caper out ! ….and Angelo Mozilla- CountywideHomeLoanLarceny that is a tough one , but i say …I mean really tough one … but I will take the position

    **** he never saw it coming!

  9. The Civil War was fought to free all slaves, the Financial wars being
    fought today by the Title Companies, The Banks and the Courts is to again make slaves of most of the People.

    The percentage of harm done by Bernard Madoff is small to the harm done by
    Lorraine Browne of LPS DOCX, William P Foley of Fidelity Title and LPS,
    and the Courts

    . Like Stripes has been shouting from the rafters ,a plan put in place years ago is enslaving the PEOPLE at reckless speed.

    As a start .some of the country has woken up and are putting Lorraine of LPS DOCX away, can William P FOLEY of FIDELITY TTILE and LPS be far behind.? He would if
    Holder woke up but apparently he is no Abe Lincoln.

  10. Stripes …it appears no one is listening to you …because you are the truth . You speak of the truth ..but write so little on each topic .

    Please, use this site to expand . Be more detailed ..expand your arguments. Feel free to use up as much of this site as you can to enlighten us …some of us are-listening and we want more stripes .

  11. I remember when you told me about NY Mayor Bloomberg Strtipes and I was doubtful, well today a postal inspector who follows alot of the fast two steps told me when Bloomberg became Mayor he had 23
    billion , since he has been office his wealth doubled to 46 Billion.
    Guess he has a night job.

    Most everything you say is way ahead of the masses.

  12. I will say that Bill Black does have more guts than most. But the real culprits are never spoken of publicly. That needs to change.

  13. As always the whistleblowers fall just short of telling the real story. The same cabal of nazizionists owns all of the banks and they are one giant corporate megablob of satanist canabals.

  14. UKG.. re: your neighbor who just came out of a chapter 13 (mini11). #11/13 is structured to protect the secured creditors and your assets while using your disposable income to divide up between unsecured creditors over a period of 36-60mo. When BK is discharged the balance of the unsecured credit is dissolved. How did your neighbor plead his BK? I would be interested to know .. because if it were me …. Well~ you already know what I would do. 🙂

  15. William Black Best Way To Rob A Bank Is To Own One

    The senator lied his head off.
    None of the crap he threatened ever happened!

  16. hman re: aurora to Nationstar – can’t find your orig comment. maybe you will find “stuff” in this case’ docket of value.


    WILLIAM M. ACKER, Jr., District Judge.
    Pursuant to this court’s October 30, 2012 and November 16, 2012 orders, defendant Nationstar Mortgage, LLC (“Nationstar”) on December 27, 2012, provided the court with voluminous documents for an in camera examination and a determination of their discoverability by plaintiffs. (Docs. 39 and 44). Specifically, Nationstar provided the court with (1) 622 pages of documents relating to the “policies and procedures of Nationstar” that had not been previously produced; (2) a statement that 76,558 mortgagors received a communication from Nationstar to the effect that the mortgagor’s home would not be referred to foreclosure or sold at a foreclosure sale while Nationstar was reviewing the loan for modification; and (3) a list of names, locations, case numbers, and statuses of cases filed against Nationstar in state and federal court alleging some sort of misrepresentation. After studying these materials, the court finds them sufficiently relevant to the claims and defenses and sufficiently non-protectable to be subject to discovery by plaintiffs, and Nationstar will be ordered to produce them to plaintiffs.”



    KENT DUKE and JACQUELINE C. DUKE, Plaintiffs,

    Civil Action No. 2:12-cv-00157-WMA.

    United States District Court, N.D. Alabama, Southern Division.

  17. They may have just took it too far this time carie.

  18. Bijaya

    Yes, a giant casino run by mobsters…who play by the rules they make up—where they always win no matter what.

  19. KC

    Filed against servicer criminally with FBI & FED DIST CT

    NO RESONSE & thrown out of court with out action other than dismissed

  20. Just because they wont prosecute them criminally, does not mean that the harm caused to you by their actions can not be handled thru your private right of action to collect economic damages. Those of you who have loans “not in service”…. should file a report with your city police or county sheriff every time a trespasser enters onto your property claiming to be a property inspector for your servicer. That should keep the inspector away …. Criminal Trespass.

  21. Carie:

    No they are destroying us all
    That is why Lloyd’s of London pull out evey $ from the banks in Europe 10-1-11

    The whole world is on fiat currency 70 trillion in real $ chasing 700 trillion in derivatives it is a casino

  22. @Bijaya

    Amazing—yet not surprising.

    They keep having “settlements” to cover all this up.

    They won’t admit to all the fraud, and the fact that the trusts were always empty, because the whole financial system is based on the lies of “mortgage” securitization…and it would all fall apart if the whole truth came out.

    That’s why we are being ignored…these people are deathly afraid to rock the boat and lose their jobs and pensions, etc. They want us all to just: “Let it go.”

    Wall Street Banks really knew what they were doing…completely devoid of any kind of ethics, morals, values, or a sense of caring what’s right or wrong.

    Aggressive, sociopathic greed at all costs is their MO.
    They will end up destroying themselves, sooner or later.

  23. KC
    Agreed but good luck with that one

    I filed criminal complaints wit local county sheriff & the local DA refused to prosecute, I also filed with FBI 2 times with no replie other than at the 2nd time saying we will take up under advisement, Atty gen of CA WITH NO RESULT, FTC who forwarded all doc to the new CONSUMER Finance Protection Bureau contacted 6/12 said they have it & talked to them Friday & they have nothing on file & hung up on me while taking the new complaint & still waiting for response from IRS Who were given all the paper trail showing the 8 banks involved

  24. So where are the prosecutions? Right .. first things first …. refi and mod squads need to finish cleaning up the mess. I am ashamed of my country right now …… there can be no solution without first knowing all the factors (facts). There can be no trust without prosecutions.

  25. Grover

    I don’t think they was to trade them in to be sactioned or for loss of a license

    You have to start looking yourself

    RE: Fraud against the Court
    Bullock V. UNITED sTATES

  26. No lawyers out there with any balls

    In my case there are many fed&state statue vilolations

    No officers of the law either FBI SEC ATTY GEN’s etcetera

  27. To late for appeal

  28. It’s more like too much cheese and not enough wine.

  29. Unless of course the Issuer never did any conversions or transfers of the Originals and held the Originals as a receipt but, they got greedy.

  30. You can only cash a check once. Now the FED needs a receipt …..the legal assignment….. that proves they paid off the Original Loan they took out in our names. Otherwise they are cashing the same check twice. That is bank fraud.

  31. This is real property marc…Note….Assignment…..Mortgage…..the Assignment secures the debt. Without the assignment, the former and the latter are a nullity. Remember the FED already cashed the notes at the Origination Fraud so they need to pay the notes back BEFORE they can do anything else. A cashed check/note is not a security.

  32. it’s the wine, I’m sure…

  33. Grover, take it to the next level, it costs you $295 for the appeal. I would never recommend a pro-se going to the Fed Circuit. I, too, thought about running around the capital to try and find a judge. Maybe set up a a booth with a sign that says: “Will pay for justice”

  34. Correction:
    Securities Act of 1933
    Paraphrased: Money invested thru another, for the expectation of a profit, is an “investment contract” and investment contracts are regulated by this Act…
    Now you can do your job…

  35. Securities Act of 1933
    A Note is a Security

  36. MERS is an unlicensed Bourse!
    The attempt at a book entry spreadsheet securities exchange is not a new concept

  37. Securities Act of 1933
    Paraphrased: Money invested thru another is an “investment contract” and investment contracts are regulated by this Act…
    Now you can do your job…

  38. The banksters perps got rich overissuing & gambling with our securities but it was never about the money for the investors at the top of the pyramid scheme. It was about stealing America right from under us without ever firing a shot. Same goes for OBAMACARE….OBAMACARE IS THE ICING ON THEIR MULTI TIERED COMMUNIST LAYER CAKE.

  39. That’s right…THE ASSIGNMENT OF BENEFICIAL INTEREST IS THE SECURITY….without that, the banksters are nothing more than another organized crime syndicate. They overissued investments in our Securities to God knows who for nothing but nefarious reasons. Not only was that criminal….that was evil.

  40. Usedkarguy
    They are suppose to follow the rules they did not we did not get as far as evidence
    Sorry the judges here are corrupt

    Thought about filing a writ of mandamus on the Robo’ s
    Still may

  41. KC: there is no more playing nice.
    misinformation hurts everyone. There are multiple parties enjoying the profitable payment stream on your note, whether or not you pay. the ABS IS the MONEY. the MBS are not backed by the collateral. that’s a mirage. certificate holders only bought the payment streams (subordinated 13 times). the res is encumbered by…….NOTHING!
    it’s funny how the argument has taken five years to converge on this one point: the house is irrelevant to the transaction. the notes are gone: scanned and traded. the mortgages reside
    I do disagree, Maher, that appraisal fraud, the subsequent securitization mischief is relevant to the cause for inducement. I know you argue that different claims are appropriate. Maybe in CA it works, this Circuit won’t buy it.
    Grover: procedural missteps equal violation of constitutional rights. Claim filed, objection filed, evidentiary hearing….. that’s how it’s supposed to go.

    I think Bob is enjoying a glass of wine. I have my coffee.

  42. Sorry about that
    I thought you were a Carrie I talked to a few myths ago
    Yes we are in El dorado cty

  43. looks like Bob G is pleading the fifth.

  44. William P Foley of Fidelity Title did the logistics and facilitated
    the fraudulent transfers of titles in all the County registers
    all over this Land..

  45. Holder should be leading the way marilyn. He got caught lying under oath. If lying to the authorities put Martha Stewart in prison he should be going. These people are all imposters at our Treasury Department working for the bankster crooks. They have our wealth hijacked and on communist lockdown. They are robbing us all into poverty.

  46. A while back I went to withdraw money from my business account to see what they would tell me. The teller said…I may not have that much on hand. It was less than 10 grand. She came back and said..oh, I have just enough. I said sorry, if I cleaned you out… She said…. problem, we can always order more. Godamned crooks I muttered.

    Another day I was in a downtown Chicago branch of that bank and there was a broohaha with a woman who ordered ahead money & it wasn’t there yet. She yelled at the teller “you call yourselves a bank?” I could have got the money faster if I ordered it from the title company down the street! SAY WHAT? You can order money from a title company? This was just getting interesting when the bank security guard told her mam…you are upsetting the customers… What a joke…I wanted to hear more from her about this racket. You never know where you will be when someone will spill the beans all over the crooks.


    Fidelity National Financial, Inc. to Acquire Lender Processing …
    Sacramento Bee
    By Fidelity National Financial, Inc. JACKSONVILLE, Fla., May 28, … technology and services to the FNF family,” said FNF Chairman William P. Foley, II.

    Heres the man who ought to lead the way to Federal prison

  48. The FED/central banks need to be kicked out of our Treasury. The FED needs to be held to account for what they have stolen from us. The World Banksters are still robbing us into oblivion under the guise of we owe them money when quite the opposite is true. CNBC reported the FED owes us GAZILLIONS.

  49. @Bijaya

    No, I lost my home. Non-judicial CA is the worst state of all for this stuff. Are you in CA?

    I had applied for HAMP, believing the lies they (the servicer) told us that they would help.
    Then I found out they help no one—they just take your money pretending like they are going to consider you for a “loan mod”…and then they tell you:
    “Sorry, no permanent loan mod for you—our mysterious ‘investor’ doesn’t approve!”
    And then they take your home…they tricked millions of people with HAMP…the lies on top of lies worked.

  50. ULTRA VIRES one of my fav words and I can spell it

  51. Who are you KC and who do you work for? doing what?

  52. Yes carie you got that right but you are still in your home
    Robo’s although shown to the judge as law breaker still won UD & we are out of our house which should not have happened since they were declared unsecured in our Bk7

  53. Subject: File No. S7-35-11
    From: marilyn h Lane
    Affiliation: concerned individualSeptember 5, 2011
    The abominable banking system that is in place today, gives a bank great incentive to foreclose on an Ultra Vires contract, as the bank demands lawful money returned for the unlawful money lent.
    By what Authority are the Banks doing this? There is no authority for doing this. This is in complete prohibition to Art 1 Para 10 Cl1 of our US Constitution.
    All of our cases with slightly different facts all stem from the same Fraud.
    The Bank did not lend you LAWFUL MONEY but the Bank intentionally wrote
    a bad check and gave it to you –to circulate as money
    I certainly did not know this kind of fraud was going on when I signed my mortgage and note. Did you?
    The Mortgagor puts up a down payment, the Mortgagor pays a lot of fees and probably paid an attorney to represent them, all in order to get this bad check
    Would a Mortgagor have put in all that money, if one knew the truth of how the Banks ran their illegal business. I bet not.
    Did anyone notify you after that big day – the Banks check bounced – of course not. When the check that the Bank wrote came back to the Bank that wrote it, the bank didnt say we only have 5% , if that much and it was not stamped insufficient funds the bank stamped it paid
    So since the Bank did not have the money sitting in the banks account when they wrote the check, what the bank gave you is their credit.
    That is exactly what is prohibited by Art. 1 Para 10 Cl 1 of the US Constitution.
    What authority gives the Bank the right to make contracts with bad checks
    Nothing- Nada.
    Lawful money is needed to make a contract valid.
    Over and Over Mortgagors gave a Bank a mortgage on their castle , in return for a Bank giving you a credit entry on their books and charging you Interest on this credit. Also illegal.
    Did the Bank give you lawful money or is that what you got, credit?
    Banks are not allowed to lend their credit- Banks are in the business to lend
    lawful money There is not a Bank charter that allows a Bank to lend their credit.
    And as we continued to make monthly payments the Bank collected more money on their fraud.
    You try writing a check when you dont have funds sitting in your account to cover it.
    You can be sure that check is coming back markedinsufficient funds You are not allowed to do it and either is a Bank.
    This scam of Ultra Vire contracts caused injury to us, the true homeowners.
    In addition the banks are laundering bad checks.
    The Banks violate Truth in Lending Laws.
    The Banks are collecting Interest on money that doesnt exist. (Lending you 5% and collecting Interest on 95% of thin air)
    And once the Bank gets their Ultra Vire contract going, they start flipping them to MERS, Securitizations , Wall Street, Title Companies etc. there is no shortage of people all wanting to get their piece of the illegal profits.

  54. Carie,
    you said
    except that they weren’t real “mortgages” to begin with:

    “…the debt was already paid out by insurance BEFORE the collection rights (only) ever made it to the trust.


  55. what I meant by that is if only we could discover who had accounts receivable, who booked them. – and do you really think they will tell us-
    assets or liabilities ?

  56. That’s about the size of it….the Corp of crooks receive our money and we pay their bills. What a racket.

  57. RECEIVEABLES- there said it- TA DAA

  58. The war is not going to end as long as the FED has our Treasury hijacked. They are cleaning out the place while we are all fighting with each other. The Trojan horse is out of the barn but no one seems to get it. Another record breaking day on Wall Street for the investors in all of the scams we fund.

  59. I have no interest in covering up any of the fraud for these crooks. That is the difference between me & most of the others. I don’t work for them and I am not invested in them.

  60. It is apparent when push comes to shove, alot of trogon horses
    come galloping in

  61. I don’t have a vested interest in any of this fraud. My investment is in my property. My legal rights to defend my property are protected by the U.S. Constitution. That is why these crooks turned everything on its head. Bailouts for crooks by the politicians was illegal. They all made out like bandits and still are. CNBC reported $60.4 trillion of our wealth and 20 million of our properties have been stolen since 2008…!

  62. @MS
    @iwantmynvp asked me once: “who do you work for? You know more than most…”

    Ha ha—I guess I work for ANON! The stuff she found out just makes sense.

  63. An attorney told me that MS…He told me I know more than him or the judges. Too funny.

  64. @MS
    You are speaking of ANON, yes?

  65. Carie

    I’m reading her stuff and got to tell you – she is more on than off . She has details that are not known to most in media or the street .

  66. Let’s try that link to that list again ….RICO CAUSES OF ACTION…

  67. Fraudclosure is also prosecutable under RICO ….. all of the elements can be easily proven ….you need 5 elements for civil RICO..& 7 for Federal RICO….RACKETEERING IS A PREDICATE ACT. The cause of action list is here….

  68. Cloud & fraudulent conveyance-reconveyance….That is Fraud, Forgery, No cause of action…lack of standing.

  69. …alleged loans that were in fact funded directly by and therefor owned by the investors directly (because the REMIC was ignored and so was the source of funding at the alleged loan closing).”

    Response – The lender is the Investor …the wire is immaterial as the consideration is depositors. account. The consideration is from a sale to investors – they pledged reciprocal value into deposits to Bond Holders….sold as a zero coupons that mature every 5 ans. & rolling out to 50/10 using a par based price scheme of 100, 150, 200 etc

  70. “…alleged loans that were in fact funded directly by and therefor owned by the investors directly (because the REMIC was ignored and so was the source of funding at the alleged loan closing).”

    Sorry, Neil—you’re smokin’ that stuff again…SECURITIES INVESTORS DIDN’T FUND ANYTHING.

    Not a creditor nor lender they be…and you know it.

  71. Sorry Wrong Link

  72. For Heavens sake Marilyn, is it your eyesight or your reading comprehension skills you have issues with? Or maybe its drugs and alcohol like Stripes? Please Neil …. Are you running a halfway house here now? Sorry! Please ignore them Bob, no need to defend yourself. Thank You for sharing MasterServicer!

  73. Lets getting into only legal questions like UKG and Christina want. So maybe a dozen or two of you can type in some legal questions for his friend Bob G and since he is an attorney will be happy to answer them.

    There is nothing stopping them from coming on to Neil’s Web page. UKG and Christina start typing. I think Bob G is impatiently waiting to start answering

  74. In a CH 7 you are insolvent ( you hold more in debt than in assets) , you are giving your assets to the bk trustee to sell and distribute to your unsecured creditors/debt collectors and the balance goes Poof! Secured creditors repo their property in a ch 7 unless you reinstate the debt. In a CH 11/13 …. you keep all your assets, pay your secured creditors (if there are any) and pay your disposable income to your unsecured creditors til bk is released ( 36-60mo.), then the balance of the unsecured debt collecters go Poof!

  75. @Bijaya

    Seems no matter what you do, there will be a brick wall at some point.

  76. Masterservicer:

    We did in Bk7 by declaring them unsecured with no protest from servicer since they were losing on trying to validate standing
    We filed advisarial & the bk judge said take it up with congress since the trustee would not file & new our position & agreed but would not step up
    We then filed in Fed ct for violation of Bk collections & were not allowed to proceed

  77. “By securitization of the debt, packaging it into a bundle of debt and then selling partial pieces of the package, the bank takes all those mortgages and creates a lot of partial owners of the debt…”


    except that they weren’t real “mortgages” to begin with:

    “…the debt was already paid out by insurance BEFORE the collection rights (only) ever made it to the trust.
    People with much debt were targeted. Easy to put GSE (Freddie/Fannie) loan in default — no one would appear to question. Subprime (re-fi’s and new) are loans in which only servicing/collection rights were 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.”

  78. Holder has no rights to the so called secured instrument deed of trust,
    – Then why are you not arguing a cloud and reconveyance

    They are neither the nomoniee nor beneficiary only the receiver of $ by contract,
    – Where then is the economic good will attributed – perhaps in UCC filing.

    The money is owed but unsecured
    –Check – that see depositor account holdings etc.

  79. The money is owed to us by the FED….they defaulted on the contracts and they used Wall Street to overissue investments totalling a quadrillion dollars in fraud. Their debt is being used as a weapon to destroy us. They need to pay for their own fraud. The banksters have stolen $60.4 trillion dollars from our Treasury since 2008 reported CNBC. The total value of all U.S. PROPERTY that we funded? $12 trillion dollars. The banksters are all out robbing us.

  80. Liability for Any Good Faith Error Resulting
    From Reliance on information provided by the Beneficiary.

    MersCorp and fraud are least valid companions for claims if neglecting to raise arguments for HUD closing statement, disclosures or pinpointing the Liability for Any Good Faith Error.

    HUD 1 disbursements are the litigant’s reliance on information provided by the Beneficiary acting under an appointed nominee. Seldom do I see claims for disbursement schedule as a meritable argument, or why argue why RESPA operates as a least valid claim in contesting your title.

    Claims must identify the manifest into settlement, delivery and disbursements thereof. These things are the product of deceptive practices that allows a settlement agent to disburse proceeds. In this argument astute lawyers shift arguments to formation of the asset backs and not a mortgage backed security.

    Herein the case opens up to a rebuttable presumption that a trust formed at time of settlement fails whereupon disclosure and subject execution is made in reliance of the FALSE and materially inaccurate disclosures.

    Here you raise questions as to sufficiency for claims . Pleaded claims must complicate a four conrners defense related to executing standing versus attacking a nomnees standing to bring claims .
    (comments – not for solicitation / Not an attorney and not for legal purposes)

  81. Scott:
    Holder has no rights to the so called secured instrument deed of trust, they are niether the nomoniee or beneficiary only the receiver of $ by contract, the note.

    The money is owed but unsecured

    Carpenter vs Logan 1867 once a mgt is satisfied it no longer exists. 1st sale of the note makes the security a nullity with out proper endorsement or indorsement.

    This of course totally depends on a valid creditor. Most were loan originators.

    In my case the Bk trustee refused to step up even after getting 2 of 3 default judgements where we had rejudicat from the 7th ct of appeals for our Fed case where the magistrate refused to take up

  82. Modt should not be in my previous post

  83. Agreed

    Any lawyer out there willing to step up?

    I have all the proof you need.

    I had only 4 known so called banks in my chain (ameripath, new century, Duestch bank (Homeq, & ocwen servicers for))but during 4 yrs of fighting to talk to the true creditor found 2more ( Barclays, & sutton funding) .

    All dates & times of transfers do not coinside with modt notice to me & I was never informed of Sutton or Barclays.

    All was turned over to the IRS with no response

  84. Don’t forget the minor little detail that Holder is MERS and the GSE’s morphed into the Trojan Horse of our time that badly needed to be set on fire years ago .. that doesn’t matter. Nah.

  85. OBAMACARE is terrorism of the highest order.

  86. The result of OBAMACARE will be the same as the social safety nets, taxes and the mortgage fraud. The banksters will rob it into the poorhouse.

  87. These aren’t the people you want for your doctor. The investors will rob our healthcare into poverty and they will send hospice in to kill everyone.

  88. No other group in history has ever been engineered to infuriate with the extreme proficiency of mortgage servicers.

    Alleged mortgage servicers. The most massive group of absolute mouth-breather-violently-despised-morons on … the … planet.

    They don’t know anything because they are just the servicers!

    Oh don’t worry, it’s just your house. No cause for alarm. Just be nice and tolerate every completely vile-incompetent-hateful-spiteful-thieving-lying thing they do. You don’t mind, right?

    It’s because they are retarded! So just give them your house!

    It’s all so complicated!

    Until they get to court … then woooooo, vewy vewy prowfessional. Soooooo knowledgeable. That’s why they don’t have the note! But they DID write “certified” on their copy … See? See? IT’S ALL OFFICIAL AND EVERYTHING BECAUSE THEY SAY SO!

    Because they bought it in on a “credit bid!” Except, no they didn’t … but that doesn’t matter. Because they are the trustee for the trust! Well, except no they aren’t. But THAT doesn’t matter.

    And when were they retained? By whom? When were they compensated and by whom, exactly?

    Oh that doesn’t matter, just give the vile morons your house. You don’t mind, right?

    People don’t need counsel, they need ordnance. And lots of it.

    Make it a Great Day.

  89. Obamacare is not just another bankster scam. It will be complete control of our lives by these sadistic murderer’s.

  90. If you are an insider, all you do is collect money from everyone you scam.

  91. Of course they insider traded on the fraud they created. They were gambling with our Securities. Their hedge funds did alot of pump & dumping for the banksters. Investing is gambling unless you are an insider. It’s all a giant ponzi scheme for the benefit of the investors at the top of the pyramid scam. Even buying insurance is investing in a ponzi scheme for the benefit of these scam artists.

  92. Etienne Syldor, Orlando Man, Faces Foreclosure Despite Claims He Paid His Loan In Excess, And Early

    from comment section there:

    In other words, he had no option for prepayment in his contract. Some contracts have a prepayment penalty to recoup some of the interest that the buyer would save with early payments. But this gentleman did not even have that option. The debt could not be paid off early, by contract.

    Such contracts should be illegal.

    These contracts came into being to counteract the actions of consumers who wanted to reduce their debt by paying it off early. Debt keeps bankers happy.

    But the banks do not hold the mortgage any longer. They sell it. They used to sell entire mortgages. The investor bought the mortgage paper for the income stream over a particular length of time. Of course, the risk was that the debt might be paid off early, and the investment would yield a lower rate of return.

    By securitization of the debt, packaging it into a bundle of debt and then selling partial pieces of the package, the bank takes all those mortgages and creates a lot of partial owners of the debt. Any attempt to deviate from the prescribed payments is forbidden unless the debtor can get all the owners to agree to a different schedule.

    This is one reason the banks will not work with homeowners to renegotiate mortgages. Renegotiation creates a liability for them with the people who bought their securities. And debt securitization was one of the major reasons for the banking meltdown and our great recession.

    Save the nation! Jail the bankers!

  93. Thanks KC Point taken

  94. To the Wonderful caregiver and
    Professional from the State of OZ.

    “..Some one said” traded mortgage “loans” like passing the whiskey bottle at a frat party. Trading receivables, trading receivables.

    This one sentence, when corrected, places you on the path to prevailing and that is worth a million dollars …if you just replace the word loans with receivables . . . Mischief makers …be cognizant of what you’re saying in a pleading before a magistrate or tribunal or referencing fraud claims

    The claims are against Asset Backed Securities.

    2) MULTIPLICTY – They SOLD your note three, thirty, three hundred million times …Wrong, under claims brought for breach under FAS 140 ASC 310 320 FAP FIN 1122AB General ledger book entries, etc ….you contradict yourselves.

    3) APPRAISAL FRAUD – Wrong, not if they TRADED in to asset backed securities – they can trade your note $500 million times

    4) ROBO Kelley and the Hobo Signers – Not a fraud if done under a POA for a “fictious deed” and its Assignment.

    5) Mortgage v. Trust Deed State – Wrong , incorrect and sanctionable conclusion wasting court and defendants time EVERY STATE IS UNIFORM

    (NG doesn’t rush to the presses – you’re yet to have made this discovery…ching ching …)

  95. MasterServicer… Behave my Friend. Play Nice with Neil. I know .. I know … but you still have to play nice. Best Wishes!

  96. 9/11/2011 Editor’s Analysis:

    As we predicted along time ago, the day would /come when the best cases for litigators would be malpractice claims against lawyers who are dealing with real estate transactions. We have said before it includes bankruptcy lawyers, family law and a host of other cases where issues of title and validity of the loans might come into play.

    Do you understand the legal issues you and your attorneys face when you attack my work and your search engines take my content and use it to draw attention to your site

    See “Search problematic issues +FSP FAS 140 and FIN (r) for public entitles.

    NG you just don’t get it and won’t stop will you? Copyrighted Bubba …Copyrighted!

    Now one of your attorneys and clients blast the internet with my notes and has attacked my effort while they documented what you’re publishing as your own.


    2013 Case – Compensation and title returned to homeowner – Foreclosure was concluded with eviction in 2011

    2013 Case – Settlement Paid $165,000 as cash for Key s

    2013 Case –Sale Halted and six months later Trustees office refuses to post sale date (Web Site )

  97. the law passed in 1998 was to screw us, if it doesn’t “gel” with our rights to own land and converts the contract into something we never signed up for then what do you call that.

  98. some one said ” traded mortgage “loans” like passing the whiskey bottle at a frat party.

  99. isn’t this why they created MERS- only the insiders could keep track.

  100. I got my mortgage from BOA. It was all done online and they never ever even asked to go to a branch office. They paid for everything including all closing costs. My attorney couldn’t believe it at the time. I guess we know why now.

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