Amongst the cases I review and manage, the question was raised by one of the homeowners as to why I insisted on holding both the originator and subsequent intermediaries in the alleged securitization chain and/or table-funded loan where both the party alleging having (1) the capacity to sue see SEC Corroborates Livinglies Position on Third Party Payment While Texas BKR Judge Disallows Assignments After Cut-Off Date, (2) the standing to sue and/or the authority to initiate foreclosures and (3) financial injury where they allege sale or assignment of the note. The reason is simple from a tactical and legal point of view. I wish to close out their options to keep moving the goal posts.

Here is the answer I wrote to the customer, whose property is located in a judicial state. This particular person is being pro-active — always a wise choice — in that he has been making his payments, was told to to stop making payments if he wanted a modification which he did initially and then changed his mind and reinstated, and remains convinced he was the victim of various forms of fraud and crimes including false Appraisals of the supposedly fair market value of the property at the time of the loan closing or the alleged loan closing. His goal is not a free house. His goal is to pursue any rights you might have for modification or settlement of his claims with respect to the illusion of a loan closing and the office of a closing agent. As any reader of this blog knows, it is my opinion that any such loan closing was in fact an illusion and that all the parties participating in that illusion were paid actors pretending to be something they were not —  less creating plausible deniability for any of the improper actions of the intermediaries at the “loan closing.”

There is a reason why I insist on continuing the joinder of those two defendants. Embrace wants to be dismissed out with prejudice because it says that sold the loan to Wells. I want to say that they didn’t sell the loan to Wells.  If I prevail on that point then Wells Fargo is out as a plaintiff in any foreclosure they might file, and potentially out as a servicer since they might not be able to show any authority.  If that is the case then they owe you an accounting for all of the money they collected from you and a statement of what they did with the money that they collected from you. You might well have a cause of action against Wells Fargo for taking money under false pretenses.

 If I don’t Prevail on that point and somehow they are able to show that Wells Fargo paid for the loan and owns the loan by virtue of that payment, then Embrace is still a proper party in the action because they are the owner of record of a mortgage based on a note that was never funded by Embrace.  The issue here is whether or not the mortgage was transferred with the debt and that issue is tied closely with the issue of securitization, which both of them deny. I believe that I will be able to show that the loan is subject to claims of securitization on behalf of a loan pool that may never have existed or which might not exist now.  and if I am able to show that the loan pool was never funded and therefore could never have paid for the loan then the apparent authority of both defendants is eviscerated.

  Either way, I don’t want to let either of them out of the litigation quite yet.  If we prevail on the question of whether or not there was an actual sale and the sale was authorized (see my blog article from yesterday) then Embrace is the only party left on record in the recording office. At that point I would drill down on them to see whether or not they can show that they fulfill their part of the bargain with you, to wit: that you sign a note and they give you adequate disclosure under the law and they fund a loan to you. It is my position that they did not give adequate disclosure and that they did not fund a loan to you even if the loan was not securitized. The best they can say is that this was a table funded loan which is according to Reg Z of the Federal Reserve a predatory loan  per se if it was part of a pattern of conduct.

 Given the statistics and information we have about both defendants it is my opinion that the chances are 96% that the loan was allegedly sold into the secondary market where it is the subject of a potential claim from an asset pool. The problem I wish to reveal here is that the entire chain of ownership collapses on itself. The other problem that I want to addressed is who actually received the money that you pay every month and what did they do with it (who did they pay).  the strategy here is to show that regardless of whether or not a claim of securitization exists, there were co-obligors (Wells Fargo),  insurance payments and proceeds of credit default swaps and multiple resales all of which should be applied against the amount owed to the real creditor, whoever that might be, thus reducing the loan receivable.

 If I can tie the loan receivable to one which derives its value from the alleged loan made to you, even if the originator paid for it, then there is a strong argument for agency and allocation of receipts under which the payment of monthly payments and the receipt of insurance proceeds and the proceeds from other obligors (including but not limited to counterparties on credit default swaps) were received and kept, like in the Credit Suisse case. 

From that point forward it is a simple accounting task to allocate third-party receipts of insurance and hedge money to the benefit of the investors whether they received it or not. The auditing standards under the rules of the financial accounting standards Board would require a further analysis and allocation of the money received —  specifically the reduction of the loan receivable or bond receivable held by the investors (directly if the REMIC trust was ignored or indirectly if the agents for the trust purchased insurance and hedge products, the proceeds of which should have been credited to the investors.

 If the investors are the real creditors than the amount that they are entitled to have repaid to them does not exceed the amount they advanced. It practically goes without saying that if the money advanced from investors was based on their reasonable belief that they were acquiring title to the loans funded by the money advanced by the investors, they should recover part or all of their investment to the extent that the other players (see the SEC order against Credit Suisse) paid for insurance and hedge products using the money of the investors and kept the proceeds for themselves —-  thus explaining rising reports of profits in the banks who are supposedly merely intermediaries in the conduct of commerce which was in sharp decline.

 In the end, under a series of unjust enrichment and other common-law actions, as well as the requirements of statute and the terms of the promissory note executed by the borrower, all money received in that manner should reduce the principal balance due from the borrower because the creditor has already been paid either directly or indirectly through its agents who were either authorized or possessed of apparent authority.

In fact , the great likelihood is that the banks received substantial overpayments amounting to multiples of the original principal amount of the loan.  According to both law and the terms of the proposed agreement between the borrower and the apparent lender, subject to the terms of the documents themselves as well as state and federal law, the borrower is entitled to recover all such undisclosed payments and receipts which are defined under the truth in lending act as “compensation.”

 Thus while the creditors not entitled to any more recovery than the amount advanced under an alleged loan, the borrower is entitled to full recovery of all money paid in connection with or related to the loan received by the borrower, regardless of the original source of the loan and any agreements between the intermediaries in the alleged securitization chain that do not have the signature of the borrower on them. The reason is public policy. While securitization was not considered in the original passage of laws  it was the overreaching by banks to the disadvantage of consumers and borrowers that was sought to be discouraged by penalties that would be so great as to prevent the practice altogether.

 Usually it is money that is taken under false pretenses and the illusion of securitization claims is no exception. But in the case of the borrower it is the signature of the borrower that was obtained under the false pretenses that  the party obtaining the borrower’s signature. The consideration was the money advanced by an unrelated party tot he transaction (investor) who thought their money was first going through a REMIC trust that would give them certain tax advantages.



 Garfield, Gwaltney, Kelley & White

4832 Kerry Forest Parkway, Suite B

Tallahassee, Florida 32309

(850) 765-1236

82 Responses

  1. Javagold, on June 11, 2013 at 6:03 pm said:
    MasterServicer. This is no party. But I am afraid of nothing. I suggest they go after all the low lying fruit and come back in 25 years. I say I am still in the house on May 1st 2015. I will cook you dinner. You bring the Apple Pie.

    Please – your not hearing me …..


  2. The criminals will always try to criminalize their victims. That is the hallmark of this scam.

  3. The criminals will always try and criminalize the innocent.


  5. When the title company agent of the U.S. TREASURY DEPARTMENT turns a blind eye to fraud and does not do its fiduciary duty that is a criminal act and I am not paying for it.

  6. Agreed

    The 48 mths may be true I went from mod in 03/08 to false cr sale 10/11 evic 02/12

  7. If KC lost her livelihood as an agent of the hijacked U.S. Treasury Dept she would be living in the gutter where she belongs.





  12. You can lie all you want KC…..you are a terrorist and a crimnsl. We paid for any credit we ever used and were never late on a payment on anything in 25 years….not until the crooks put us out of business. I don’t need your permission to post all of the fraudulent documents you filed onto the public record however. Do you want me to go there? How about all of the REDACTED COPIES OF THE MORTGAGE YOU ENTERED UPON THE COURT & THE PHONY AFFIDAVIT SWEARING TO THE COURT ALL OF THIS FRAUD YOU ENTERED CAN BE VERIFIED? YOU ARE A FELON..!

  13. The Nazis are raising Cook County Property Taxes Again…

  14. If you had invested in your future instead of living the high life on credit….. you would know what I know. You really do not want to get me started today Stripes… I have your permission posted publically to share all your personal information. Are you sure you want me to go there today?

  15. What you really invested in was the intended failure of our Constitutional Republic and the loss of all of our freedoms and thankfully, NO….I cannot say the same. I did not invest in that Khazar Communist Scam.

  16. For your information Sweetie, we invested in our retirement, in ourselves, our family, our country and our future so that we didn’t have to live off the backs of hard working people via taxation. Can you say the same? Go Away!

  17. I do not like liars who invest in everything that effects our Life, Liberty and Property and pretend to be unbiased.

  18. Yikes! I am pretty sure those consent orders say ..NO MORE DUEL TRACKING! The money, the money the money …. blew up and inflated like a balloon as in the example given below by MS. …. It makes success of the existing mortgage impossible! But I like Void and I like Fee Simple. I like joint in its entirety. I do not like stuffing and I do not like paper fluff. I do not like stripes and I do not bluff. I like dismissals and I like res judicata. I like to pay what I owe and I like my chicken fried.

  19. The real problem in America is, we have Nazis, Khazar Communists invested in everything that effects our Life, Liberty and Property.



    Obamas retirement fund is invested in VANGUARD….one of the 4 largest institutional investors in the world.

    That is why we are living in Commieland U.S.A…

    These commie investors are passing these illegal Communist Acts against us.

  20. JohnGault,

    Yes it’s from me. Regarding the Rescap/GMAC bankruptcy.

  21. JohnGault,

    I sent you an email yesterday.

  22. You know, just because the judge is ignorant or plainly corrupted doesn’t make the case invalid or disposable.

    I have only seen 2 cases (been in court a lot) that warrant disposition by the judge. (There is no need to be a lawyer to figure that out after all the information we have)….they are 2 women who borrowed 100% and never made a payment…that is a solid dismissal, no loss for the homeowner.

    But, the rest of it; all bull shit from the judges. They are handing over property to thieves. The judges are complicit in the conversion. They have breached their duties, under the law and should be held accountable.

    My point: 98% of all cases have merit and the fight MUST continue. The citizens must be made whole and this complete disregard for our nations laws and civility, must not go unpunished…what we have here is a lawless society. Where do you go from here? It’s like the Wild West on paper and steroids.

  23. To those who say the U.S. Government failed are really saying to all of us is We The People failed. I for one do not agree. The truth is, communism is extremely deceptive and moves subtly like a thief in the night. The Politicians are who failed to protect our Peace and Security. They all took oaths to uphold the U.S. CONSTITUTION and they failed to do their jobs.

    Nothing they have done with the passage of most of these laws, bills, acts and amendments over the past 100 or so years would pass the legal sniff test if they were given real unbiased legal scrutiny. That is what they never wanted us to know.

    They have written and passed laws too numerous to mention that severely weakened the power of the people, our Constitutional Rights.

    All of this power grabbing was done without our knowledge or consent and that is not legal under the Supreme Law of this land…the U.S. CONSTITUTION/BILL OF RIGHTS.

    The communists have deceived the many and they still are.

  24. hman is that email from you?

  25. No fear, I love that…..! Way to go javagold….!

  26. @JenninGA

    No funding…except a small amount of “cash-out”.
    Transfer of collection rights only.
    Everything is a lie.

  27. @Java
    Good for you. I guarantee it couldn’t happen in CA.

  28. MasterServicer. This is no party. But I am afraid of nothing. I suggest they go after all the low lying fruit and come back in 25 years. I say I am still in the house on May 1st 2015. I will cook you dinner. You bring the Apple Pie.

  29. Pro Se and in judicial NJ.

  30. The entire financial crisis and war on terror was manufactured by the Khazars to fraudulently induce OBAMACARE and microchip everyone to their fictitious debt. Tell everyone you know that is their evil endgame plan for mankind. They want slaves they control through spying and the microchip.

    I don’t know what state Java is in but 40 mos. Is a long time for these crooks to not file a fc. That is probably because the khazar commies are planning to seize it all from us under some fraudulent fix for their felonies. They will have everyone paying a mortgage tax through the microchip in OBAMACARE.

    They are doing away with paper money and soon there will be none in circulation if they have there evil way.

    That’s why they want to destroy all private business. They want everyone shopping in their Commie Corporate store and paying through the microchip in OBAMACARE …

  31. Over time, I’ve railed about MERS (read servicer-employee generally)
    purporting to assign the notes in the assgts of the dots. I’ve said imo a false instrument has been recorded (which is against the law). I’ve also opined this is generally an attempt to foist the note and dot and any losses from foreclosure on the trusts and or to allow the use of an illegitimate credit bid in the trust’s name (and then assign it to the servicer). In a recent case, B of A affirmatively stated that the note was in fact assigned by way of the dot assignment by its inclusion therein. Even though the recordation of scuh an assgt is imo prima facie evidence of a misdeed, I’d be interestd in any other such affirmative statements made by any bankster in any case. If you have any, please send them to me or link. thanks.

  32. RE: wiring instructions – to clear up who funded the loan -tell me how?
    Sender FI *for this they list the “original lender”
    reciever FI -account of closing attorney
    originator id code –
    Originator name = borrower

    originator address =property address
    beneficiary id code
    beneficiary name =name of closing law firm
    beneficiary advice code/info LTR
    beneficiary ref


  34. KC. – Still in house and hit 48 months on July 1st.
    Reader – your world falls apart at month 50 and withing 12 months your out I say April 30th 2014…..with Ch 7 filing, maybe one more year and April 2015 F/C

    Comments – No offense but we dual tracked over 100 accounts and at 48 months your defenses will need a whole lot more to consider…48 months is PARTY OVER Trust me

  35. Leave a Reply

    “……has liability & unjust enrichment,that all proceeded knowingly or unknowingly in a scheme to defraud,
    *** Banks can lever capital at 20;1 so is that the unjust enrichment? BS

    “….unknowingly in a scheme to defraud, ”
    ***Defraud nothing …they did nothing wrong in the entire process – your on a conventional foreclosure and they foreclosing on something else >>>>>>>

    That’s what they did wrong. But banks can take a 20:1 ratio and lever it –

    Cash of 8,000.00 buys a 400,000.00 loan and the loan is immediately sold for $300,000. The other $1,00,000 is sold soon thereafter and hence no skin in the game . its entire value is recouped and the deposits are pledged to create $2,6 Million. That can be levered into
    another $50.0 million

    No unjust enrichment

    register claims@live.com

  36. livinglies said -I want to say that they didn’t sell the loan to Wells. If I prevail on that point then Wells Fargo is out as a plaintiff in any foreclosure they might file, and potentially out as a service r since they might not be able to show any authority.

    Comments – If NG would have a conference call with myself on the line …I would set him straight and ask he give this up. Anyone who wants could join the line . Your doing these readers a disservice and causing attorneys to materially misrepresent these cases

    Your “stuff” is legalese and jargon with offers no penetrable argument with merit sufficient to win these cases – and you don’t

    I testified n two more cases and both sales again have been dropped…..but this is abut the homeowners and not Myself NG or the scum who portray m efforts a fraudulent. They are doing this to ensure no one else wins that may seek my help.

    But the Attorneys are defending homeowners using a conventional style wrongful foreclosure defense that causes the lender arguments to appear impermeable. The use of securitisation audits and hiring green experts with not a day in secondary and capital markets adds to the quandary.

    The prognosis for a homeowner hiring an attorney and prevailing in a modification or other remedy under the existing mortgage terms and conditions is zero.

    So back to Editors comments –
    If that is the case then they owe you an accounting for all of the money they collected from you

    Who – Who collected the money
    What – What can that prove
    Why – Why are you asking for the accounting if you know thisis a shadow banking scheme

    What they did with the money that they collected from you.
    What money ? the loan is recognized and lender must surrender all controlling devises and instrumentality in the anticipation of a futures contract or markets trigger …..

    Editor Comments ” You might well have a cause of action against Wells Fargo for taking money under false pretenses.” (This is insane Niel ; Your taking money from people for cause of action against this site for taking fees under false pretenses.” …


  37. @Javagold
    I forgot—what state are you in? Are you pro se?

  38. Great analysis Neil
    This would surely show that each & every holder has liability & unjust enrichment,
    that all proceeded knowingly or unknowingly in a scheme to defraud, & that since 1867 carpenter vs Logan has teeth even if the 1st note & deed of trust were properly funded the future transfer (s) broke the securitization chain & the debt is unsecured

  39. They already came for me and I am not afraid of these demons. Live free or die remember? What good is living under tyranny? No good.

  40. I like your spirit Java.. No need to fight.. No need to sign… Park your butt and enjoy your homestead after a long days work, have another cup of Java on me. Oh… you are going to lose your Free Pass to Quiet Time if you don’t pay those taxes. 🙂

  41. KC. Still in house and hit 48 months on July 1st.

    Although they were able to take control of paying property taxes. I used to pay town seperate ( no escrow since I put so much down). I started my trip down rabbit hole when i couldn’t pay property tax for just 1 quarter on time. They paid it after 120 days I believe. Added to my bill. Doubled a fixed mortgage by doing this. Needless to say that started the default. But 4 years later i am still in house. Fighting them anytime necessary in court. Will not accept any mod. Short sale. Or any other bullshit they have been trying to sweet talk me into.

    I am awake. I am pissed. I am ready to defend and fight.

  42. Stripes… they had your money. But they are out of money now .. watcha gonna do? when they come for you?

  43. Ha…ha..ha…. A manufactured shitty economy does have its advantages. When life gives you lemons you make lemonade…lemon soup….lemon chicken…leg of lamb lots of uses for lemons.

  44. They have my money and I have the time to hold them to account. Sucks to be them right?

  45. I am looking below the dried up turnip. If you want to rob someone you better be prepared to pay for your crime.

  46. The local media saying Bill Daley may run for Governor of Illinois. More musical chairs. Hope the music stops and no one votes for anyone and they all fall down. Quinn needs to go but this is becoming laughable.

  47. LMBO! Stripes still does not get it! hahahaha She wont stop until she gets blood from a turnip. Bless Her Heart! Poor thing is going to starve to death waiting…

  48. What can we expect when dishonesty is their only policy. Remember the lie is sacred to these crooks.

  49. KC has to tell us not to count on anyone robbed by this crime syndicate getting their money back because she is a disinfo agent. A paid shill for these crooks.

  50. Khazakstan here they come.

  51. No KC…. I don’t have a wild imagination….. It is the harmed party who is in the best position to assess the costs of non-compliance by the wrongdoings of another…..(Rubel v Phizer, 2004). If they don’t have the Trustees receipt, they not only robbed me, they intended to rob me of everything and intended do me permanent harm.

  52. You have a wild imagination stripes … hahaha. Java, if you are still in your home and on the deed… Keep parked and take care of your Homeowner Duties as required by your city and state law. Oh .. I wouldn’t count on getting the money back. 🙂 I am Not a Lawyer and I do not give Legal advise.

  53. Mine was $100 G on both properties plus all payments. 3x the face value of the notes plus clear titles would be the right remedy here. Then maybe we can forgive them a trip to the woodshed and put them all on a slowboat to Khasakstan

  54. Java, are you still in your house?

  55. Give me back the $150,000 hard cash deposit or go away forever. You don’t get both.

  56. Looking forward to the Blackhawks run for the Stanley Cup. First game is Wednesday night against Boston..GO HAWKS!

  57. I pulled all my weeds on Sunday, the fake holy day.

  58. If you get a Free Pass to Quiet Time … you can use it at your own leisure. Just thought you should know that. I love the sound of singing birds with my coffee. Oh Look —-> Weeds in my Garden. Clean Up Time! Have a Great Day Everyone!

  59. @ louise

    Have you read the filings in MA, Oh and CA with the cease and desist orders for non-funding? A lot of information there. I called the MA, AG and spoke with that office directly. Some of what you need is in the filings…

  60. Bonfire …. Marshmallows are Free. BYO Chocolate! LOL!

  61. Works for me KC…HBO could make a bundle…lots of folks would salivate to see it.

  62. RE that suit mentioned below. We put 40% down on our home but after we were taken to the cleaners in the refi we had PMI force placed. I always questioned why we were being forced to pay PMI insurance. They are scumbag crooks who were stealing our equity and were making us insure them on our own robbery.

    Fire up the guillotines.

  63. Or Poppy, we could just jog down to Salem Il. Did you hear what they do to Marshmallows there? They burn them on a Stake.

  64. Treason, by definition is in play here, punishment for that used to be death by hanging. Now, it is encouraged.

  65. Consumer Fraud and Deceptive Practices on steroids. That is how this evil worked. We thought we were building our Security all the while they were working to destroy our Securities and destroy us. They all need to be taken to the woodshed.

  66. I don’t think anyone can argue the “enormity” of this theft. I keep thinking, where did my down payment go, my payments…who stole my money?

  67. ….and steal our payments too…mwahaha.

  68. Mine is just one example of the deceptive practices poppy. There is fraud every which way from Sunday. Everyones fraud is a bit different.

    Bottom Line is the crooks found a way to steal our equity and hand us the bill.

  69. Not in all cases stripes…my loan was seized, ironically by Credit Suisse…they were compensated in full for the lines of credit that were borrowed (New Century) by the bankruptcy court and now passed it on to their servicer, Ocwen and are trying to foreclose, even after getting paid. We also have the court transcripts, ledgers and original closing statements showing payouts to parties. Credit Suisse was never my lender and their was a complaint filed, per the justice department contesting the sales/seizures of these notes…all on paper. The Federal Judge here threw the complaint our by the servicer. NEXT move by them may be interesting?

    These cases have many variations…the end game is the same however.

  70. P.O.C. … Paid Outside Closing. I just thought you should know that Stripes… in case you come across it on your HUD1. *Snorts*

  71. I can document this and prove this.

  72. Table funded means they committed fraud with our Securities they did not hold. They were very deceptive about this part of their scam. They gave you NO HUD 1 and they disguised it as a business loan cross collateralized by your homestead property without your knowledge or consent they stole your homes equity and called that a business purpose loan. They structured it to fail by hiding these were ARM LOANS.

  73. Good Questions Louise. I like Good Questions! But you are asking the Wrong folks… you need to direct those questions to the servicer, the FC/Title Attorney/Mers Agent as cover up for Principal Marshmallow? Creditor? Sometimes .. maybe 20% before and after default. Neil keeps saying this (as many others for years) they are asking for the wrong amount due and oweing. POC! 🙂

  74. The signature “in blank” is where the rubber meets the road..you bet Neil. The theft began using our information and creditworthiness to gather “financial” commitments and funding, under false pretenses. Then the “fleecing” of Americans began!

  75. They absolutely used different entities than those asserted in the mortgage and the note. I know that for a fact. The next question is when the fax was sent, was it later rescinded so that the debt was created but no funds were ever lent? Who was the investor and how much did they lend and to whom? Where is the money invested? Who is the creditor?

  76. Keep in mind that the party who funded the loan DID NOT USE HIS OWN MONEY (no more than a strawman does) . …. he borrowed it to! From Who?

  77. Yes Scott, and it will also disclose the undisclosed business relationship between them. Free Market? Ha!

  78. Wouldn’t the wiring instructions from title clear up who funded the loan?

  79. I was given a pass to quiet time along time ago, but I have not cashed it in yet. Why? Because I still have one unanswered question.

    Q, Why have there not been any meaningful prosecutions?

    A, ????????????

    And because I Love My Country! I do not find it amusing watching it being destroyed.

  80. Call it want you want .. Elephant in the Room, Shark or Dead Horse…. But the truth is there never was a heart(beat) to begin with. hahaha …. Marshmallow! And Marshmallows Melt in Fire! Got Chocolate?

  81. Yeah….. Neil stopped stuttering! Do you understand him now? Gasp…..

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