About That Chase-WAMU Deal

Imagine my surprise when I recently went to the FDIC website, clicked on FOIA at the bottom of the page, then went to Reading Room and looked again at the Chase-WAMU-FDIC-US Trustee Purchase and Assumption Agreement. Having previously read and studied it I was attempting to direct someone to the language that showed that no loans were purchased from WAMU basically because there were no loans in WAMU’s inventory. Staring me in the face was an entirely different document bearing the same date as the one that I had previously seen. Anyone who has an explanation of this is invited to write to me at neilfgarfield@hotmail.com.

In the interim between my first reading of the agreement and now, I had several conversations including the FDIC receiver who was appointed to “resolve” the WAMU bankruptcy. The receiver (Schoppe) told me that no loans had been purchased or listed as part of the Purchase and Assumption Agreement. He also told me that an assignment did not exist and that no other document from the Trustee in the WAMU bankruptcy or the FDIC receiver existed showing the purchase of any loan. And he told me that the effective consideration paid by Chase was less than zero because Chase received around $2 billion in tax refunds due WAMU, which more than offset the purchase price. In fact, in the version I previously read, the consideration was stated as “Zero.”

With that in hand I disseminated information and used it in court to show that Chase had not in fact purchased loans but had instead purchased servicing rights. As the plot thickened, it turned out that those servicing rights were granted by Pooling and Servicing Agreements for REMIC Trusts that never acquired any loans. With no loans in the trust, the PSA grant of servicing rights was meaningless.

And if you look at the statements from Chase to their shareholders and press releases there is no evidence they acquired the loans. Nonetheless tens of thousands of people, perhaps hundreds of thousands of people, lost their homes on the presumption that Chase was in fact the creditor. They were threading a nonexistent needle with nonexistent facts. And in litigation it became apparent that this was the case because they tried to introduce “Powers of Attorney” in lieu of the PSA to support their contention that SPS was now the servicer of most of those loans. But they didn’t quite make out their case when it came to determining whether the Plaintiff in the foreclosure action was ever a creditor. So they lost. But for every one they lost, less astute judges were granting them foreclosures by the thousands.

And if you look at articles like the one in the link below you will see that while it looks like they are talking about loans they are actually talking about securities from “securitizations” that do not exist — i.e., the loans were never acquired by the REMIC Trusts.

And THAT leaves us with the question of where did the alleged loans go? The trust doesn’t have it, the certificate holders in the empty trust don’t have it and neither does Chase. Judges have been inclined to simply say that all this complexity is irrelevant, in an attempt to clear their docket. But they have done both the borrowers and the investors a disservice. And they did the government a big disservice. My answer to the question I pose is that the loans didn’t go anywhere because, in the legal sense, they never got started in the first place. (No consummation). If the party who funded the “loan” was not present in the documents or by proxy, then the party who funded the loan is not “in privity” (i.e., part of the loan contract) with the borrower. And since the party whose name appears on the loan documents was neither a lender or a creditor of the borrower, they were merely the “holder” of the document subject to borrower’s defenses to the “transaction” — namely no consideration.

And THAT my friends is the reason for all the fabricated, forged, back-dated and “found” documents and notes. The banks had to invent what the courts wanted to see.

So the overall answer is that Chase is neither a creditor nor the authorized servicer of anyone because nobody actually “owns” the loan. Pension funds and other investors clearly have a right of action against the Investment banks that sold them bogus mortgage backed securities that were neither securities nor mortgage backed. And those investors might have some action in equity against borrowers, but not a right of enforcement of the mortgage which never should have been recorded in the first place. Of course that probably will never happen because the investment bank pocketed the money that was supposed to go into the REMIC Trusts. Huge groups of investors in multiple “REMIC Trusts” had their money commingled by the investment bank who now has no way of figuring out whose money is in what “loan.” Thus there is no loan contract, and there could never be standing by anyone other than either a true creditor, which does not appear to exist, or a holder in due course, which cannot exist.

The reason why the banks are doing everything to resist proof of payment is that there was no payment anywhere in their chain. In a word, there was nobody to pay because nobody in their chain had anything to sell. Hence there were no purchases and there were no sales, making the assignments and endorsements fraudulent documents. If they had evidence of a purchase they would claim to be holder in due course which enables the holder to enforce against the party who signed the note and mortgage regardless of any defenses the borrower might have had against the “lender” or the “successors.”

And THAT, my friends, is why nobody from Wall Street is filing a lawsuit to vacate rescissions that might be years past the three year limitations. They have no standing — i.e., they don’t have a credible party who can claim to be a creditor and they can’t use the note and mortgage because they are void by operation of law. It is the absence of such lawsuits that corroborates what I am saying. In a flash they could easily vacate the rescission if they could only show that they had any right to be in court by reference to real transactions instead of the fake ones they are using in foreclosures.

The correction for this is simple to say: create new servicers that have full authority to interact with the defrauded investors and the hapless borrowers who were pawns in the securitization scam that was eventually dubbed “Securitization Fail” by Adam Levitin.

Just look at the following article and see how Chase twisted itself and the government into a mental pretzel:

see http://www.ritholtz.com/blog/2013/03/jpm-wamu/

34 Responses

  1. Where oh where could those loans have gone? It’s as if WMI transferred something 3 days before the shutdown…right?.


    Almost like they knew, or saw it coming!

  2. My LEGAL STANDING is not the issue because they brought the FRAUD SUIT Greg.

    Why should i remove the LEGAL DISPUTE for them, when they LACK STANDING by their failure to set forth their claim from the onset of their FAULTY, FRAUDULENT FC SUIT.

    They think we’re their prey & that’s CRIMINAL ENTRAPMENT to FALSIFY EVIDENCE by WALL STREET.

  3. ivent

    why not just remove your own standing and ability to be sued in court?
    no target – no case…
    leave them to find another patsy
    think about it…

  4. REMIC might really mean REMOTE VIEWING because REAL ESTATE MORTGAGE INVESTMENT CONDUITS can only be considered to be FRAUD & FICTION because there is nothing to connect.

  5. If the STATE wants to one up us with no PROPER LEGAL DOCUMENTATION, then where’s the SECRET SERVICE on these SECURITIES FRAUD ISSUES we’re being STATUTORILY BLACKBALLED with unlawfully?

    BLOOMBERG NEWS said it’s their job to reign in the WALL STREET CRIME SYNDICATE.


  6. Being from Chicago, & living in the LAND OF LINCOLN, I’m no fan of the word “fix.”

    What that implies is FRAUDULENT CONCEALMENT & there’s been more than enough of that in THE STATE OF ILLINOIS.

    Take TONY REZCO & BLAGO going to jail to cover up for mobster wrongdoings in this state.

    That’s not to say they did nothing wrong. However who do they work for is the real question?

    The ILLINOIS STATES ATTORNEY has lots of nerve pointing the finger of blame when that office refuses to do their job & investigate the real criminals.

    That can only imply major complicity with the criminal wrongdoers on WALL STREET by that offices LEAD ATTORNEY.

  7. For example, PLAINTIFF’S joining the DEFENDANT’S to sue MERS while trying to steal my property in FC.

    PLAINTIFF’s cannot legally be party to the same transaction they can’t prove ever happened because they engaged in wrongful & unlawful PIRATING of my PROPERTY RIGHTS.

    Moreover, they’re unlicensed & unregistered to GAMBLE FOR PROFIT in ASSUMED NAMES.


  8. By PLAINTIFFS claims they’re party to the SUBSTANCE of some TRANSACTION they have no legal proof ever happened they’re SUBJOGATING MY LEGAL RIGHTS to DISCOVERY.

  9. One judge said he didn’t think my CROSSBILL was proper. To that I say the PLAINTIFF is VIOLATING MY LEGAL RIGHTS by OBSTRUCTION OF JUSTICE & there’s LEGAL SUBSTANCE to my ASSERTION.

  10. The fastest way to get the HIAWATHA CHOP to your PROPERTY RIGHTS & lose legal possession of your TITLES is to try & QUIET TITLE out of court.

    That’s DESTRUCTION OF EVIDENCE to do that.

    It has to be done the legal way.

    Why not fille lawsuits pertaining to the missing SECURITY.



  11. Moreover Greg, I could not be speaking my mind more peacefully, or succinctly, considering there’s DRUG DEALERS running the U.S.A. UNLAWFULLY.

  12. That’s not ranting Greg, that’s being honest.

    You can’t sugar coat DESTRUCTION OF EVIDENCE by criminals who think they’re the law of this land & they’re not.

    You want to hear ranting, go listen to the FRAUDCLOSURE JUDGES chew out the defenseless property owners who they’re trying to screw out of everything unlawfully.

  13. ivent

    believe it or not – on the subject of your basis for your rant – i agree with you… i just don’t see it having a peaceful, actionable answer within the context of courtroom defenses or offenses for homeowners.

    to fix what you are talking about is to fix something outside the court system, by removing the presumption of ownership or lien on the title of being, which is your own name…

    that is something one must do by learning what folks like Kurt Kallenbach have been doing for several years…

    if that is he solution being sought by you, i highly recommend you google Kurt and read and listen to the results of his research and personal experiments…

  14. What does the FEDERAL OPEN MARKET COMMITTEE (FOMC) MARKET that isn’t on par with CHARITABLE DONATIONS because what they market has no SUBSTANATIVE VALUE.


    It’s non-beneficial benefactorialism to re-distribute things you never owned & call that being CHARITABLE.

    That’s how they steal the LEGAL RIGHTS OF OTHERS by using our legal rights like they’re nothing but NON PROFIT CHARITY.

  15. Why should FC victims cover up for them & file BK when the BANKSTERS don’t have the proper legal documentation to collect nothing from us lawfully?

    The truth is they’re hiding non-disclosure issues with non-disclosure issues in FC from the closing table & therefore filing BK is AIDING & ABETTING that cover up.

    Why should we enable them to CREDIT BREACH in our names unlawfully to RACKETEER with our TITLES unjustifiably?

    Filing BK let’s them charge off their CREDIT FRAUD in our names & they did that before the closing table.

  16. Reblogged this on Deadly Clear and commented:
    Realize the bankruptcy sealed documents tell a lot more of the truth than you will ever get from a human in co-hoots with the system.


    Sure they could & wouldn’t that be the perfect cover for BLACK BANK OPS on U.S. SOIL?

    That’s what FINCEN does is cover up for the foreign interest who is not working in our best interest.

    FINCEN was MANDATED by CONGRESS to engage themselves on U.S. SOIL without LEGAL PROOF OF CLAIM of course.

    No different than the CREDIT BAILOUTS of themselves, it’s CREDIT EXTORTION & most of CONGRESS & THE SENATE have LAW DEGREES & probably work for CHASE.

    Imagine if we could print our own BAILOUTS?

    There would be no CHASE LAWYERS.

  18. Moreover, you might not know CHASE LAWYERS if they were staring you in the face because they’re prone to take on many identities.

    Who knows, the ILLINOIS STATES ATTORNEY might be one & how would you know? Or the cop on the beat, the county sheriff, the judge on the bench, politicians or the store clerk.

    That’s the way they operate their criminal cover ups AKA CONTROL FRAUD by BREAKING & ENTERING into our private lives to try to CRIMINALLY ENTRAP us in their FRAUD IN THE ISSUING OF CREDIT SCAM.

  19. It’s easier to say it’s not true, than to prove that it is.


    Why would they do that if they were not covering up they’ve been engaging in UNLAWFUL SPYING?

    The catch phrase is GANG STALKING & their AGENTS do that to DESTROY EVIDENCE they’re SECURITY HACKERS.

  20. So Greg, prove it’s not true because I can prove it is true.

    CHRIS WHALEN who used to work for the FEDERAL RESERVE BANK said it’s ANOTHER HITLER PLAN on BLOOMBERG NEWS so debunk him because he’s certainly in the know.

    You can’t make this stuff up otherwise you would never have to defend it.

  21. You want solutions Greg to their FINAL SOLUTION of MARKED CREDIT FRAUD REPURCHASES of FICTITIOUS GAMBLES on their theft of our IDENTITY to RACKETEER with our U.S. BIRTH CERTIFICATES unlawfully?

    They’ve got mischevious plans galore so maybe we should invade their privacy like they do ours?

    Why not walk in on one of their SECRET GOLF OUTINGS & oggle them like they barge in to oggle us.

    They don’t think they need WARRANTS so neither do we.

  22. ALEX JONES would never sound like me Greg because he never defended 2 FRAUDCLOSURES PRO SE for the past 5 years like me.

    The problem is those invested in the FRAUD. The lawyers, cops, judges, justices, politicians & thr rest of the MERS SUBSTANDARDIZED HOUSING EMLOYEES.

  23. ivent…
    will you ever stop sounding like Alex Jones and present some meaningful, practical, actionable solutions?
    we have enough chicken littles, don’t ya think?

  24. ever wonder why the government has never declared war on foreclosures when they seem most easily persuaded to declare war on most anything these days?

  25. Because of the FRAUD IN THE FACTUM, the person who comes to your door could be some IMPOSTER DRUG DEALER or GANG BANGER dressed up like you name it.

    WALL STREET is playing TAG YOUR IT with our identities & that involves innumerable felonies by their BOARD MEMBERS.

  26. Moreover, they’re SOLICITING something they do not want to reveal.

    They’re certainly not coming to TITLE SWAP our LEGAL TITLES without LEGAL JUST CAUSE just to unwarrantedly extradite us because they don’t have the notes.

    They’re unlawfully soliciting fake, phony, fraudulent BUY/SELL AGREEMENTS they create by FICTITIOUS DOWNLOADS of GAMBLING PAYOUTS like the U.S. is their own CASINO.

  27. They want LEGAL CUSTODY of their own CRIME SCENES they created by COUNTERFEITING their own FRAUD by DERIVATIVES FALSIFICATION OF our identities.

    Think it’s not true? Where’s the DERIVATIVE?

    What is it & where was it derived because my identity is no ones “DERIVATIVE.”

    DERIVATIVES FRAUD is one giant MASQUERADE BALL by CRIME SYNDIGATE HOODLUMS to hide their unlawful SHENANIGANS with our identities .


  28. These deviants would love to have us believe because they’re demon possessed, means they’ve got the security & they don’t.

    Therefore, it’s time to call the exorcist to the board room of AIG & start there.

    They insured SECURITIES FRAUD, COUNTERFEITING, FORGERY to RACKETEER with our LEGAL RIGHTS because they don’t think we have none.


    They think they govern us from cyberspace & to that I say show us your CREDENTIALS that make DICTATING FRAUD something other than CRIMINAL TRESSPASSING.

  29. The arrogance – the same games they play with us to get to admit debt, transaction they did with the FDIC. But every agency acts like we’re just internet crazies. The system is BROKEN we need to put pressure on politicians, agencies responsible. I’m hearing more and mire homeowners saying responses from banks are redacted.

  30. ugh Charles reed – the government is complicit, go see what else is purchased inside the Ginnie Pools, guess what investment vehicle is chosen for the reserves and the overallotment. If you said Treasuries, you are right.

  31. This why Scalia and the unanimous SCOTUS ruled in Jesinoskii. Congress and the then President.
    So the Judges and the borrower don’t have to……,.,,,,,,,,,,,,,,


  32. Great post Neil

  33. Dude got a web site that he come here talking about this 7yr old issue with WaMu & Chase and Wells Fargo Bank that servicing still part of the 1.3 million mostly government insured loan.

    Wells & WaMu entered into a servicing agreement only to take effect on Jul 31, 2006, but there is a fundamental when this agreement is done and that is that because WaMu physically transferred the blank endorsed Notes to Wells that ownership of the debt could never and was never transferred back to WaMu.

    WaMu did not and could not petition the courts to call the Notes due as on Sept 26, 2008 WaMu no longer exist as it was declared a “failed bank” on Sept 25 by the FDIC. Instead of trying to figure out where the loan funding monies came from, and instead obtaining documentation from Ginnie Mae that is 100% owned by the Fed Gov, and because the Notes are in the physical possession of Ginnie with Wells as the custodian of records, means that the evidence is owned by the Fed Gov who is a party being abused by the illegal actions of Wells & MERS.

    Bottom line is it not going to be Neil that helps because the hundreds of billions to be recovered for the Fed Gov, which would expose the crimes against the homeowners at the same time seems to be impossible for Neil and other attorney to comprehend totally. This is why in Nov 2015 after $100 billion in settlements Neil reading the Chase agreement and some light bulb go off that Chase did not purchase any loans, but we know that on Jul 31, 2006 Wells Fargo is servicing 1.3 million loans on that day and still today of WaMu Ginnie Mae & Freddie Mac loans that the two have lost in State Court in MO and Bankruptcy case in NY!

  34. Ok Neil, you have made a great point. i also visit the FDIC’s propaganda website. They have taken down or changed many of the documents to maintain the vague setting known as Ownership.

    Why are attorneys not filing counterclaims for fraud against the FDIC and the Depositor’s, and against the Master Servicer, which is in control of the reserve and collection accounts tied to the loan pool?

    The FDIC exists merely to keep the credit inside the system. Let’s take Indymac for an example.. The FDIC could have simply wiped out the common shareholders, paid 100% of the brokered deposits and let every homeowner (current on payments) refinance out with a 10% discount, which was borne by equity shareholders anyway.

    Instead, they did not sell any loans to OneWest, they just created a scenario of a purchase agreement. One West simply recapitalized the reserves on the Indy portfolio that was initially held for sale and converted to held to maturity on the balance sheet.

    If they allowed the homeowners to refinance they removed the credit debt from the system, which would have started a wind-down.

    The FDIC exists merely to protect the banks ability to continue fractional lending ( expansion / contraction ). If lenders do not trust one another’s solvency, they can’t lend!

    George Carlin said is best: it’s a big elitist social club, and we the people are not invited.

    Finally, Chase did purchase the mortgage service rights, which ownership never left the Depositor, and instead creates the basis to sell debt secured by the servicer advances (collection account).

Contribute to the discussion!

%d bloggers like this: