Why are modifications being undermined when they would so obviously preserve the value of the “loan?” The answer is because the real party in interest in the foreclosures is the servicer, not the trust, which doesn’t own the loan anyway, nor even the investor/beneficiaries, who reap very little out of the proceeds of foreclosure.

The servicer wants the loan to fail. The investor expects the servicer and trustee of the REMIC trust to make sure value is preserved. But that isn’t the game. If the property goes to foreclosure sale then the “servicer” can make its claim for “recovery” of “servicer advances.” The fact that “servicer advances” are made from a pool of funds established by investor money and the fact that the servicer accesses these funds to make payments, regardless of whether the borrower pays or not — all of that makes no difference in the game.

In that context a modified loan is worthless. A failed loan is the gold standard.


HAMP Modifications Sabotaged to Fail by the Usual Suspects

By William Hudson

Click to access Homeowners_Wrongfully_Terminated_Out_of_HAMP.pdf

On January 27, 2016 The Special Inspector General over the Troubled Asset Relief Program (SIGTARP) released data on the poorly executed and enforced Home Affordable Mortgage Program (“HAMP”) that shows that the banks not only have the right to modify loans they don’t own, but have no interest in helping homeowners save their homes through modification when they can set the homeowner up to fail.

HAMP was created to provide sustainable and affordable mortgage assistance to homeowners at risk of foreclosure but has instead forced many homeowners into foreclosure by requiring homeowners to miss payments, revoking approved modifications and a slew of other unethical practices.

The Inspector General writes that, “mortgage servicers administering HAMP will continue to need strict oversight in upcoming years because apparently the servicers are unable to implement and properly administer the program without resorting to sabotaging compliant homeowners.”

The audit notes that  the “largest seven mortgage servicers in HAMP over the most recent four quarters show disturbing and what should be unacceptable results, as 6 of 7 of the mortgage servicers had wrongfully terminated homeowners who were in “good standing”  with their HAMP modifications.”

These failure rates demonstrate that servicer misconduct is continuing to contribute to homeowners falling out of HAMP by terminating the agreement when homeowners are making timely payments.  This practice is an obvious attempt to put homeowners at risk of losing their home so that when the foreclosure occurs, the servicer can swoop in and steal the home while keeping all of the homeowner’s equity, payments and improvements.

This study provides further documentation that homeowners are being forced out of the HAMP program for no reason and that servicers are using HAMP as another tool to steal homes.  If the servicer can keep the homeowner in a state of vulnerability, create further arrearages and provide the homeowner contradictory and confusing information- their chances of taking back the home increase exponentially. This is the modification business model of the major loan servicers.

The servicers are running the show and the government is apparently impotent to stop them from their illegal tactics. The treasury admits that they have no idea how many other homeowners were forced out of HAMP.  I can attest that I was one of the homeowners forced out of a loan modification in which I was 100% compliant. For a year I repeatedly applied for modifications, sending in documentation and spending hours and hours going through CitiMortgage’s futile application process.  Either CitiMortgage representatives are completely incompetent or their modification process is intentionally set-up to create such a diabolical application process that most borrowers give up.

Thirteen applications later and a year later I was granted an “approved repayment plan” that required three timely payments before becoming permanent.  If all three payments were made  by the first of each month I would be given a permanent modification with no need for further qualification.  After making the third timely payment by certified mail I didn’t hear back from CitiMortgage. By then I was familiar with their lack of competence and accountability so I continued to make payments hoping I would hear from them any day.

When I received the “approved repayment plan” I celebrated thinking that I was finally free from seven years of servicer torment.  The modification would allow me to immediately sell the home in which I had several buyers- and make Citi 100% whole including being paid over 15k in fees they had assessed.  At the time I received the loan modification I had over 100k in equity.  I would have paid CitiMortgage any amount they claimed I owed to be free of their tyrannical servicing practices.

Not trusting CitiMortgage to honor their word- I called CitiMortgage and once again confirmed that “approved” meant “approved” and that I could prepare the home for sale. The CitiMortgage agent promised me that as long as all three payments were made it was a done deal.  I didn’t want any surprises down the road if they changed their minds.  The home needed some updating prior to being placed on the market so I took 35k from my retirement account and went to work renovating the home top to bottom.  By the time my third payment was made I had a beautifully restored home and two anxious buyers for the property.  I was close to grasping the golden ring…..until CitiMortgage grasped the ring right out of my hands.

When I didn’t hear from Citimortgage I continued to make the modification payments for three more months while waiting to hear from them about the new loan terms. Unbeknownst to me the modification payments I had made were not being applied to my loan but placed in a suspense account while CitiMortgage was continuing to add on late payments and other delinquent fees.  I had not agreed to this arrangement but was powerless to complain.

I finally received a letter from CitiMortgage stating my check (my fifth payment) was being returned to me with no reason provided. I knew CitiMortgage was up to something, so I checked the internet to discover that CitiMortgage was dual-tracking me and had filed to foreclose on me while compliant with the modification plan. To add further injury,  I received two more offers from CitiMortgage that week offering to modify my loan! CitiMortgage did not want full payment- they wanted my house and the financial windfall that follows a successful foreclosure.

It has now been six years and the house has sat vacant since Citi revoked my modification.  All the work I did has been reversed by humidity and vacancy.  I no longer have any equity in the property.  I sued CitiMortgage over this egregious bait and switch scheme and even provided evidence to the court that I was granted an “approved repayment plan” with no contingencies.  The judge in my case, with 20 percent of his retirement in CitiMortgage, did not recuse himself but instead threw out my entire complaint and provided no reason for his decision.  Not only did CitiMortgage get away with this fraud, the corrupt judge dismissed my case on summary judgement stating there was no controversy.  Even when you have irrefutable evidence of fraud- if you have a biased and unethical judge you will not prevail.   I reported my experience to SigTarp, the CFPB, FCC and the Office of the Comptroller- and not one agency bothered to respond to my complaint or sanction CitiMortgage for this blatant contract violation.  I requested that CitiMortgage return the modification payments they fraudulently extorted from me- and of course they refused.

My situation appears to be the norm, not the exception.  SigTarp reported that one out of every three homeowners in HAMP re-defaults on their payments. They suggest that the Treasury, “research and analyze whether, and to what extent, the conduct of HAMP mortgage servicers contributed to homeowners redefaulting on HAMP permanent mortgage modifications.”  I can tell them from experience that examining the behaviors and motivations of the servicers would be a great place to start. I can almost guarantee in most modification cases that it isn’t the homeowner who defaults.  In the first place, a homeowner who prevails in obtaining a loan modification may work diligently for years before being granted a modification and persevere against great odds! I would estimate I spent around 45 hours on the phone, faxing and following up with CitiMortgage before receiving my modification.  In fact, dealing with CitiMortgage became my occupation.  The homeowner who receives a modification, in most cases, has fought a long and hard battle for the modification and has no idea that the bank can refuse to honor the agreement.

To get the true story about what is going on, the Treasury could begin by sending out questionnaires to prior homeowners in HAMP that were compliant when their modifications were revoked for no other reason than the servicer wanting to take another stab at stealing the home.  SIGTARP’s concerns over servicer misconduct contributing to homeowner redefaults in HAMP was revealed through the Treasury’s on-site visits to the largest seven mortgage servicers in HAMP over the last year and apparently reveal disturbing and unacceptable results, finding that 6 of 7 of the mortgage servicers had wrongfully terminated homeowners who were in “good standing”.

It doesn’t take a rocket scientist to assume that servicers are up to their same old tricks and forcing compliant homeowners out of HAMP.  Servicers have no incentive to not unjustly enrich themselves at the expense of the homeowner when a successful foreclosure is more lucrative than modifying a mortgage.  The usual six non-compliant culprits are named in the report:


Q4 2014 TO Q3 2015    

Servicer                                       Wrongful Termination of Homeowner  From HAMP

Bank of America, N.A.                                        X

CitiMortgage Inc                                                  X

JPMorgan Chase Bank, N.A.                              X

Nationstar Mortgage LLC                                    X

Ocwen Loan Servicing, LLC                               X

Select Portfolio Servicing, Inc.

Wells Fargo Bank, N.A.                                       X

According to SIGTARP, homeowners who make their modified mortgage payments on time, or who do not fall three months behind on those payments are entitled to remain in HAMP. However, the Treasury’s results found that, within the last year, Bank of America,CitiMortgage, JP Morgan Chase, Nationstar, Ocwen and Wells Fargo all claimed that homeowners had redefaulted out of HAMP by missing three payments when, in reality, they had not.

These six mortgage servicers account for 74% of non-GSE HAMP modifications funded by TARP since the start of the program. Upon further reading, and despite the fact that the Treasury has done nothing to stop this misconduct, the servicers are engaging in a process of holding the homeowner’s payments in suspense accounts (so they can continue accruing late fees and other delinquent charges), reversing and reapplying the homeowner’s payments improperly and terminating homeowners who have not defaulted on the required three payments.

This misconduct is also probably much larger in scale than it appears because the Treasury only samples 100 redefaulted homeowners per servicer each quarter.  It is possible that the number of homeowners impacted is much, much larger.  This has been going on since the inception of the program and the Treasury’s response over time has been anemic and unresponsive.  The servicers appear to have an understanding that if they don’t comply there is no consequence other than a little bad publicity (as if a little more bad publicity would impact them at this point).

The potential profit of a fraudulent foreclosure is incentive enough to kick compliant homeowners out of the HAMP program. It should be known that many of the servicers making offers to modify do not have legal standing to make an offer to modify the loan in the first place and are simply engaging in a process to get the homeowner further into default.

In my particular case, all I wanted was to modify my mortgage, sell my home, and go forward with my life.  CitiMortgage did NOT want payment- they WANTED the HOME and used modification as a tool to  obtain this goal.  A modification is nothing short of a tool of deception used by servicers to steal a home.  Servicers use modification for these purposes:

1.  Intimidate the unsophisticated or vulnerable Homeowner- Create Fear and Confusion by processes of circular phone transfers, lost documents, false claims, conflicting messages and blatant lies.

2. Time Destruction- Time spent in modification compromises other available options like refinancing, a short sale or hiring an attorney.  A consumer’s options diminish as time goes by. It is to the bank’s benefit to not modify the loan but to paint the homeowner into a corner.

3. Equity Erosion- Every month while in a modification the equity in the home is eroded by late fees and other charges the consumer is not advised about in advance.

4. Payment Hostage- The servicer retains the monthly modification payment in a suspense account.  These funds then cannot be used for a more beneficial purpose like retaining an attorney or refinancing. The consumer is not told that the payment will not be applied to their mortgage or if the modification fails that the payments will not be returned.

5. Dual-Tracking- A homeowner in the process of modifying their mortgage or who has an approved modification may be subsequently foreclosed upon in violation of law.

6. Government Kickbacks- Servicers who engage in the modification process receive compensation for each modification attempt and successful modification.  Servicers are accepting government payments (from tax payers) only to sabotage modifications.

The time has come for a full investigation into the behavior of loan servicers.  Not only do servicers make offers to modify loans they have no legal right to modify, but they engage in fraudulent practices that are not in the best interest of the homeowner, investor or community.  This article won’t get into the fact that servicers lie about their relationship to the loan, the balance owed and need to be heavily fined and sanctioned for forging documents, filing false affidavits and other criminal acts.  The bottom line is that a servicer is incentivized to lie, to cheat and to steal by a lack of governmental oversight and by the  potential windfall of profits that occur upon a successful foreclosure (including insurance, “servicer advances” and other compensation).  The bank has bet your mortgage will fail, and you can bet they will resort to every trick in the book to take your home including the use of faux modifications.

It is ironic that two months ago I received a letter from CitiMortgage offering to modify again.  This is despite the fact that the note and mortgage were rescinded under TILA.  I’m not sure what CitiMortgage thinks they are going to modify now that the note and mortgage are void by operation of law- but why would I expect rogue servicer CitiMortgage to comply with any state or federal law?

Advice: Your servicer is not your friend and will act only in their best interest.

I have attached copies of my “approved repayment plan” as evidence of the modification agreement.

If you would like to share your modification story with us please email us at:  We would like to hear about your experiences.


Repayment Plan One cleanRepayment Plan Two clean

25 Responses

  1. Hi my loved one! I want to say that this article is amazing, great written and include almost all vital infos. I would like to see extra posts like this.

  2. check out, was a class action where chase mislead and breached customers hamp loans. this is old news, been there done that and the corrupt bankers continue to this day. let them fall. I will be lauging all the way at the banksters.

  3. I know this story first hand. Several of my mortgage payments were placed in suspence accounts listed as suspence accounts ledger entries. The documents are in a December 29, 2015  Motion as Exhibits 07 CH 8830 Cook County Clerk in Illinois. It’s so unbelievable that America has come to this level of pure gangsterdom by the banks. That’s what gangsters do, they in essense say I’m going to take your property and there is nothing you can do to stop me. What we need is for it to happen to a Senator or one of his family members he adores but he has lost contact with them and they have a similar situation.  The banks laugh and mock us. Citi Bank did the Independant foreclosure review dispursement of the funds for violations against homeowners that included corrupt attorneys involvement in deception.  Sent from Yahoo Mail on Android

  4. Reblogged this on Deadly Clear.

  5. and I liked this quote for today
    ” welcome to the karma cafe there is no menu but you will get served what you deserve”

  6. do not be discouraged then you lose

  7. And yes Jesinoski is the epitome of why they cant meet the burden

  8. Based on what Neil wrote many years ago, I quit making payments on my home after learning about pretender lenders and used that money to pay for a Forensic Mortgage Analysis through Neil’s office and discovered all kinds of Fraud, deception, mis-representation and TILA violations. Since I’ve been reading Neil’s site faithfully, I also rescinded my loan. I have gone through several attorneys but still have not made any payments for 8 years now and use the money to fight my legal battles. I have had several friends do the same and they are all still in their houses. Unfortunately, several quit making payments and started having fun and now they have lost their homes. Like Neil mentioned 8 + years ago, sooner or later, the tides will turn in favor of the homeowners. Read Jesinoski and a number of other cases where homeowners are coming out on top. It is taking time but we will get there and the banks will fail. Unfortunately, so will the entire economy so maybe use the rest of your extra money to buy some gold and silver and some rations! It is time for a revolution! I am still fighting my bank but I refuse to let them steal my home! In the meanwhile, they will not get payments, I will not vacate and I will keep hiring attorneys as needed!

  9. I take thAt back the smelly sneaker insoles were worth a fortune to the banks but worthless to anyone else or rather a financial weight against their name from which they may never in their working life recover from

  10. I agree Loiuse
    Empty boxes that were filled after selling the empty box as containing very expensive shoes, only to be actually filled with a pair of smelly sneaker insoles

  11. If They get away with this all i can say is what fresh he#% is next

  12. Ian, the scam goes all the way back to when you put in an application, and they stole your Identity. Everything is a scam from BEFORE the beginning and before you sat down at the closing table. I want all the money they generated from my signature. I will be set for life.

  13. yes

  14. Retired NY Atty discusses:
    How Wall Street Turned “The Note” Into “God” and Convinced Courts to Join Their “Church”
    Thursday, February 18, 2016 at 6:45 PM EST
    (on that other bird-brained talk show)

  15. In the narrative that follows, bear in mind, the answer is Senator Sanders and Abraham Lincoln’s “Greenback Dollar” 2016.

    The “Capitalist Bankers”, read: “Criminals”, used a “Socialist Bailout” for Privatized Gain”.

    They took Taxpayer Money to Bailout any number of Criminal Ponzi SCAMS, predicated upon “Mortgage Fraud”.

    The “Capitalist Bankers”, read: “Criminals”, have destroyed themselves and are presently Insolvent. (see below).

    The Capitalist Bankers, read: “Criminals”, are already hosting the “Communist Chinese Yuan”, as intended currency, as “vehicle of choice”, with, “store of value” to penetrate Chinese and Indian Markets, while using Australia as the base of operations.

    … From the article above: “Only 11 percent of respondents have said that they do not expect the yuan to become a major reserve currency,”.

    Those same 11%, of some 200 “senior”… “institutional investers”also explained they had reservations regarding, “the yuan as a store of value”. That leaves some 89% to agree the Yuan is already poised as major player.

    Also, from the article, above: “… the consensus is that one day it will be a yuan world, according to the survey.”.

    Also, (Google: “TPP”).

    The US debt to the Chinese is hovering around 6 Trillion, while, as placed within context, is not, an insurmountable Sum.

    The US Stock Market has been manipulated for years and gold has been artificially depressed in preparation for the currency switch, to give Australia the decided-advantage: Australia has been amassing huge gold reserves.

    “HSBC Bank”, “Hong Kong Shanghai Banking Corp” is presently using American Mortgages to launder terrorist and drug Carel Money… as are, “Bank of America” and “Wells Fargo”.

    Justice Scalia wrote the unanimous “Jesinoski Decision”.

    Visit, Neil Garfield,s website, “Livinglies” to begin learn how to fight the criminals in the banking industry. His “self-help” site is extraordinary and Neil Garfiled is a Patriot.

    The “Jesinoski Decision” and “TILA Rescission” are a victory for homeowners in distressed property proceedings. None of the banks claiming “ownership” of people’s “loans” for their “mortgages”, are legitimate. They are what have been called: “Pretender Lenders”.

    There is evidence each and every “loan” has already been satisfied. Things like TARP:
    As probably a best example.

    Although “Residential Capital”…

    As part of a restructuring of :GMAC Financial” , probably already paid off your “loan”, as well.

    For those counting: your “loan” has been paid off, at least twice, thus far.

    So why are “Pretender Lenders” still claiming you, as “borrower” still owe money on a “loan” that is already satisfied?

    The banks have destroyed themselves and they are admanant in their refusal to explain as much to the American People; US: the people they defrauded.

    In the wake of Bill Clinton’s marital infidelities, his impeachment and collusion with 3 republican senators: “Gramm, Leach” and “Bliley”, “Glass-Steagall” was suppressed. “Glass-Steagall” was already weakened and Bill Clinton and his republican Pals put the finishing touches on its complete destruction.

    One consequence of Bill Clinton’s collusion and conspiracy in service to 3 republican senators, while facing impeachment, is the fact AIG Insurance was used, for a time, to capitalize “SubPrime Lending”.

    AIG, as an insurance company had different ratios, regarding, “Capital Reserves” that needed to be set aside each time an asset had been created.

    In other words, for each “loan” the banks created, a certain amount, as a percentage of that “loan” had to be set aside, against the day that “loan” was “restructured’.

    The foreclosure SCAM first came into the awareness of the fraud machine, that is the US central banking system, as banks realized that “capital reserves” must be set aside against the day a “loan” restructured” through a “refinance”.

    A “refinance” was the original reason banks set money aside, in the first place. A “refinance” only happened when rates dipped. So, banks anticpated those rates dipping; hence, “capital reserve requirements”.

    Michael Lewis, in his book version of “The Big Short” explains as much, in the early chapters.

    In the book version, Michael Lewis also explains the probable template, criminal bankers used to perpetrate , “foreclosure fraud” predicated upon “SubPrime Lending” in his explanation of “Household Finance Comp.” as the original fraud machine.

    In other words, as regards a later manifestation of the frauds to come, a “refinance”, was, technically, a “loss”, for the banks and therefore, a certain percent of the “loans” on the books had to be set aside for when that “refinance loss” took place… when interest rates dipped.

    When the rates dipped, people “restructured” and the banks took a hit.

    Of course, the banks used this experience to create the foreclosure “Crisis” that was to come, some years later.

    George Bush eliminated the strictures regarding how long a “loan” must be kept on the criminal banker’s books, before that “loan” could be pawned –off on an innocent unsuspecting “third party”…

    That is you, by the way: “The American Taxpayer”.

    Don’t be confused by the following link, for the sake of brevity it is included to illustrate the fact the duration a bank was required to retain a loan was reduced to “30 days”, under George Bush.

    This lessening of the loan retention period, emboldened those inclined to subvert practical standards to do exactly that.

    Having said as much, it is curious that this revision, under the Scalia Court, does lessen the burden of those that would wish to game the system, to a mere 30 days.

    In other words, if a bank writing a “loan” need only hold it for “30 days”, any deficiency in that particular loan (inability to pay, insufficient income, fraud, “liar loans”, etc.), became the problem of some other bank or some other recipient, to whom the “loan” was assigned, further along in the chain.

    Of course, those are all, now concerns for a by-gone era (see, “1200 Trillion Dollars”, owed to “Notional Derivatives”, below).

    After all, the banks obviously adapted using phony “insurance products” once the damage had been done in the “SubPrime Lending Markets” (Credit Default Swaps, Collateralized Debt Obligations, “Synthetic” Collateralized Debt Obligations).

    So, are those really, the concerns of a “by-gone era”?

    For example, everyone recognizes that the “Servicing” of their loans has enjoyed any number of transfers, assignments, nominations, etc. What if those transfers and assignments were meant to capitalize on “short-sale bets”, in a “closed system”?

    Wolud a 30 day requirement, therefore, make it easier, or harder to place the “bets”, predicated upon fraud, before the wheel had begun to spin?


    I don’t wonder what Justice Scalia might have to say. But that “bet” has already paid off.

    This far along, it is obvious this not a discussion for the weak of heart and it is recommended, the reader should go see ”The Big Short”, the movie adaption of the book by Michael lewis.

    The producers were presented a difficult task and to their credit, they did an outstanding job placing this part of the story into proper perspective: mind-numbing, system-crippling mendacity, in service to Greed.

    Anyway, once enormous amounts of money were used to create “SubPrime Loans”
    This opened the door to any number of fraudulent behaviors, but, perhaps the worst predatory behaviors are those where banks that are “Servicing banks” are masquerading as “Lending Banks”.

    It is fraud: robo-signing is Forgery. The “REMIC Trusts” the “loans” are supposedly entered into, are bogus: a legal fiction. The “Trusts” never registered with either of the two states, NY or Delaware they are claimed as having registered with.

    The “REMIC Trusts” were supposed to thwart people like Neil Bush, George’s younger brother, in committing bank fraud.

    As part of the “S&L Scandals”, degenerate criminals, like neil Bush, insinuated themselves into loans they were making to their friends as bank executives and then bankrupting the banks they were executives of…

    That way their acquaintances were given access to “free money”; of course, the Taxpayers always picked up the tab.

    When a bank fails, the FDIC picks up the tab. You, as the American Taxpayer, fund, the FDIC.

    In a similar vein, Fannie and Freddie are also “on-the-hook” for criminal banking behaviors; although, in the “Mortgage Banking Industry”.

    For example, just as the FDIC picks up the tab and the American Taxpayers pay it, the same is true of the “Government-Sponsored Entities, GSEs”, “Fannie” and “Freddie”.

    Fannie and Freddie were “privately-owned” and “privately-operated” by the same criminals that own and operate the intentionally-mislabled, “Federal Reserve”; neither “federal, as privately-owned”, nor possessing Any “reserves-our currency is debt-currency; created, by ‘FIAT’, out-of-thin-air”.

    Incidentally, that currency has been rendered so “hyper-inflationary”, it is essentially worthless, with the only thing preventing financial Armageddon, the “Full Faith and Credit of the United states”: that is you again: the Taxpayer.

    In the meantime, “REMIC Trusts” were created to thwart “lending money” and then, burning the “investors”. The “REMIC Trusts” were supposed to guarantee, criminal bankers couldn’t beat the system.

    They failed.

    There are Trillions owed the Taxman.

    A “REMIC Trust” is a group of “loans”. It can be called: “a Pool”. It can be called: “a Trust”… point is: it groups “loans” together and then it gets those revenue streams (cash every 30 days) Tax Protected, through what are called, “Pass-Through Certificates”.

    A “Lending Bank” is given 90 days in which to enter “Mortgage Loans” into proper, lawful, tax –deferred “Real Estate Mortgage Investment Conduits”.

    When banks decided to cheat this system, those “REMICS” became, “Real Estate Mortgage Insurance Conduits”. The Insurance speaks for “Naked, short-sale bets” taken by banks that have robbed the “Trusts” using “table-funded loans (somebody-else’s money).

    Again, the bankers and their lawyers are defrauding the universe, lying about it and playing word games while they are about it.

    In other words, the criminal bankers took money from third parties and paid the Mortgages, in-full. Then they put those “loans” into their own possession (Google: “Bucketeering”).

    The point is: the lawful “Trusts” are no such thing and the third parties have been robbed (pension plans, as an example). There are nor “RES” in the “Trusts”. There are no “assets” (“RES: titles to loans, that speak for somone’s home”.)

    A legal “non-entity” cannot own the debt of anybody.

    (See: Carpenter v. Longan, Supreme Court, 1872. It establishes the precedent, nobody can collect a debt unless they “own” the contract first; “The Lien follows the Note”).

    Moreover, the banks are counting on the courts to deny any homeowner in distress, the tools (“Discovery”), to begin to understand the depth and gravity of how they were abused, even as the banks continue to abuse them on a daily basis.

    A bank may not take a “promise to pay” on a mortgage and, through a “Conversion Fraud”, attach the underlying collateral (the House) to a “SPV” of “MBS”, without alerting the person that signed the “Mortgage” that it was the bank’s intention, from the start to do exactly that.

    In other words, “borrowers” thought they were signing for a mortgage. The signature and their identity belongs to them. A bank cannot rob that signature and then place the “mortgage” as collateral to go gamble the underlying “asset” (the house), on Wall Street.

    Nobody told the “borrowers” this is the bank’s business plan and it is Fraud.

    Incidentally, the paper, contractual, “wet-ink” “signature” “contracts” were destroyed because a mortgage “loan” and a “security agreement” for an SPV, or, “Mortgage-Backed Security”, cannot exist, at the same time. It must be either one, or, the other.

    Google “Lynn Szymoniak”.

    David Dayen has a book coming out this Spring:
    The book is called Chain of Title. And you can write about it wherever and whenever! It’s available for pre-order, here’s the Amazon link.

    If the “wet-ink” “signature contracts” are not destroyed, the “borrower could be placed, “on-the-hook” to pay for the “loan”, more than once… and, that is precisely what is happening.

    Evidence is beginning to surface the bankers have so corrupted the system that it was never intended as a “mortgage loan” in the first place and it is instead, a “Deed of Trust” that is being used as a “Conversion Fraud” to Lease” the intended victim, “The Homeowner”, the underlying property…

    Not a “sale”, but a “Lease”, believe it or not.

    Incredible really.

    This is another reason why, once a property has been taken in a distressed property proceeding, the banks that stole the home refuse to return the cancelled Note and Mortgage to the person they just defrauded: they are still claiming the right under a “Deed of Trust” to create another “Lease Agreement” on the same property.

    They are claiming a “Re-Lease” Abilty. They are claiming the homeowner’s default on their mortagae allows the fraudsters to re-rent the underlying collateral (someone’s home).

    This what that predator, Mitt Romney was talking about in the “Las Vegas Journal Review” on either March 17 or April 17 of 2010, if memeory serves:

    The whole thing has been planned, all along.

    The bankers are refusing to “Re-Lease” the debt, because they claim the homeowner defaulted on the “Deed of Trust” to which the homeowner was never made a knowing partner to, in the first palce.

    In order for a contract to be binding, there must be an, “offer”, “acceptance” and consideration”. None of these elements are present in the absence of “full disclosure”.

    “Full Disclosure” speaks to the necessity that any “borrower” must be made aware, of who it is they are entering into contract with.

    That never happened and there is evidence the banks stole “ownership” to “loans” that “third parties” to these contracts paid, “in-full”, at the closing table. (“Table-funded” “loans”: a violation of “Regulation Z”, as Justice Scalia and his colleagues most-assuredly were aware, when they wrote the “Jesinoski Decision”).

    In other words, to defeat the Taxman, among others, criminal bankers took possession of “loans” somebody else already paid for and then put those “loans” into their own, private, accounts.

    Think about it: somebody paid the debt and then the bankers hired a collection agency (a “Servicing Bank”) to collect that debt every 30 days.

    The Criminal Bankers posing as “Lenders”, sat back and collected principal and interest payments on “loans” somebody else already paid for and beat the Taxman into the bargain.

    They concealed thier duplicity with the careful compliance of their secretaries: “The Servicing Banks”, even as those banks sold their credit and their business license (totally illegal, btw) in order to conceal what is really going on.

    These people are avoiding criminal scrutiny while avoiding the tax burden and sticking American Taxpayers with the tab.

    The “Third Parties” are proving to be “pension plans” and “drug” and “terrorist” Cartels:

    Bank of America is also laundering drug money and terrorist cartel money.

    Any homeowner, whether in “foreclosure”, predicated upon fraud- they all are, again, btw, or not, can question the “ownership” of their “mortgage loan”.

    I frankly, feel, it is the Patriotic thing to “Stop” paying your mortgage.

    Incidentally, no “True “ “Owner” of any “Mortgage Debt” will ever step forward because the Tax implications are crushing, even as it is likely that individual is fronting for illegal behavior.

    Google: the “MERS”. The individual that wrote the seminal treatment of the “MERS” is Professor Christopher L. Peterson.

    Professor Peterson is now the chief counsel for enforcement for the CFPB.

    The “MERS” is a dummy, electronic filing cabinet and the CEO was deposed to admit he has NO employees. Yet, the “MERS” claims it has the “ownership” ability to “transfer” and “assign” the debts within its filing cabinets to some 70 million “mortgages”.

    Again, “The MERS” has NO employees and “Land Titles” are hopelessly corrupted.

    Google: “Landtegrity”.

    I wrote a petition about it awhile back:

    Under the Obama Administration there have been no prosecutions.

    Eric Holder’s Law Firm, “Covington and Burling” participated in the creation of “The MERS”. The “MERS” is under assault, as it should be, in every state in the union.

    Eric Holder didn’t bother to perform his function. He left the admisitration and now enjoys a lofty office within the employment of his old Law Firm.


    Has America been duped by the greatest double agent in history? That’s one take on Eric Holder’s return to Covington & Burling (they even kept his office waiting for him). [Rolling Stone]

    Certainly, some among “Law Enforcement’ have profited without really bringing any convictions to the table, “criminal”, or otherwise. Having experienced this intentional SCAM, first-hand, it is soul crushing and incredibly complicated: it seems the “smart money” has decided not to get too involved; “after all, it seems, the American People will never be able to figure this criminal nonsense out”.

    As an example, Ag Schneiderman of New York, successfully led the charge, at first, until all the AGs decided to settle for less:

    Of course, none of the AGs did anything to disclose the criminal behaviors of the banks even as it does appear, the AGs ran interference only, so long as it took to allow the banks to conceal their deceptions.

    In light of the events in Flint, Michigan, this is disturbing, because, while the MERS was robbing everyone in sight, it appears the AGs were complacent if not complicit, in allowing them to do so.

    What does this mean?

    It means: the MERS avoided, lawful recording of land titles through the mechanism of “Public County Recorders” and they were, instead, allowed to escape using a wholly-unvetted, private recording system that denied Billions, in revenue, to the 1300, or so, municipalities across the country.

    Could some of those funds have found their way into alleviating the burdens on Municpal water supplies? Seems redundant to even ask the question.

    Presntly, there are 1200 Trillion Dollars owed to “Notional Derivatives”. Those “notional Derivatives” are “short sale bets” that “borrowers” will lose their homes in foreclosure.

    Because the banks control the terrain and every aspect of the environment the “Notion” the “borrower” will default and the notion the bank may place a “short sale bet” on that default are a “Self-Fulfilling Prophecy”.

    These “bets” are essentially “shorting” the homeowners position in the house, even as it is a misnomer to describe the homeowner as a “borrower”. The only entity that is “borrowing” “anything” is the phony banker, claiming “title” to the underlying asset (the home) and then using money, created out-of-thin-air, to place a “bet” on the outcome of any number of concealed, criminal Frauds…

    In other words, “Naked, Short-Sale Bets”.

    600 Trillion is part of the Public Discourse, with another 600-plus withheld from “Public Scrutiny” by the concerns of the shadow banking world… as if 600 Trillion isn’t damage enough.

    600 Trillion is ten times the combined “GDP” of every country on the planet, combined.

    When I started down this road, I likened the criminal bankers in every strip mall across the US, to the phony occupants of the bogus, “Gambling Parlor”, in the movie, “the Sting”.

    The gamblers, in each instance are betting on outcomes; the gamblers, in the movie: “Horse Races”; the gamblers in the phony strip mall, mortgage brokerage: “House Races”.

    In each instance, the gamblers control the environment and the game is “fixed’; it is either how the “Horse” will finish, or, how the bankers will finish somebody’s “House”.

    Put simply: the international, central banking Cartel of illegal (they use “US Federal Reserve Notes” to perpetrate international Fraud- there is no mechanism, in the Constitution, they should ever be there in the first place.), privately-owned, criminal, drug and terrorist laundering bankers, in residence, of the US financial system, don’t belong there.

    Google, Ellen Brown’s website: “The Web of Debt” and buy her book of the same name:

    The criminal bankers are employing any number of frauds while using American Mortgages to launder terrorist and drug Cartel Money…

    Oh, and they have destroyed themselves. They are, according to their own rules Insolvent. 1200 Trillion is an impossible Sum… hell, even 600 Trillion is an impossible Sum.

    The aggregate accounting of Banking Assets v Liabilities is reckoned as the “M3”.

    The “M3” has been unavailable since 2006. During the height of the Bush and Clinton SCAMS that are playing out, presently, in real time.

    President Obama, you say? Well, for me, the jury is still out.

    I do know that President Jackson enjoys residence on the $20.00 Bill because he undid the bankers of his generation and destroyed the”Second US Bank”; the second manifestation of a US “Central Bank”.

    Google: Nicholas Biddle”. He told “Old Hickory” he was going to destroy him and there were two attempts on President Jackson’s life… one of which he personally thwarted, with his bare hands.

    I don’t consider the current President much, by way of “Pugilism”; as more of a “thinking man”. Time will tell.

    Insofar as Jesinoski goes: of course, the banks control the narrative and they will not allow homeowners any “Discovery”; it is simply the bank’s word against the “borrower’s” word…

    Except it is now proving, the “Borrower” never “Borrowed” “anything” in the first place.

    TILA Rescission is based upon a homeowner simply sending a letter to whomever it is claiming to “own” their “loan”. You should certify it.

    If the homeowner can show there was never any “full disclosure”, hence: no “True Consummation”, the bank criminals have to cancel the debt and return all the money… oh, and the “Note” and the “Mortgage”.

    The future of this country is at stake. There are Trillions of hyper-inflationary Us Fed Notes owed to system, so steeped in Fraud, it keeps some of US awake at night.

    I am an “Optimist” and I believe the Fraud will come into the light of day.

    I also believe We The People need to put down the “Reality Shows”, Donald Trump, included and get on with the business of re-evaluating the need for prosecutions, across-the-board and re-establishing the “Sovereignty” of our “Constitution”; banker fraud, notwithstanding.

  16. Louise- originators have never been lenders. LINO ( lender in name only) has been used all of a sudden lately, that term never having been used the last 8 years.
    I have often wondered about the use of quotation marks before and after the word lender on loan documents. Sort of like the word “expert”- taken in context- he was a so-called “expert”. As if it is t certain whether he is or isnt an “expert”. I am serious as to this having different meanings.

  17. “My situation appears to be the norm, not the exception. SigTarp reported that one out of every three homeowners in HAMP re-defaults on their payments. They suggest that the Treasury, “research and analyze whether, and to what extent, the conduct of HAMP mortgage servicers contributed to homeowners redefaulting on HAMP permanent mortgage modifications.” ”


    “To get the true story about what is going on, the Treasury could begin by……”

    Let’s analyze the probable outcome here. But to do that, we have to climb into the way-back machine to answer some questions…..

    The poor bloke in the above tale is being screwed by CitiMortgage. CitiMortgage is a criminal arm of Citibank, which is a criminal arm of Citigroup. Citi received over $300 billion dollars from us, the people of the United States, due to no fault on our part, but due to their reckless behavior at attempting to shovel money by the truckload and hidden offshore. BTW, they were wildly successful at that endeavor.

    Starting in June 2006, Senior Vice President Richard M. Bowen III, the chief underwriter of Citigroup’s Consumer Lending Group, began warning the board of directors about the extreme risks being taken on by the mortgage operation that could potentially result in massive losses. The group bought and sold $90 billion of residential mortgages annually. Bowen’s responsibility was essentially to serve as the quality control supervisor ensuring the unit’s creditworthiness. When Bowen first blew the whistle in 2006, 60% of the mortgages were defective. The amount of bad mortgages began increasing throughout 2007 and eventually exceeded 80% of the volume. Many of the mortgages were not only defective, but were fraudulent. Bowen attempted to rouse the board via weekly reports and other communications. On November 3, 2007, Bowen emailed Citigroup Chairman Robert Rubin and the bank’s chief financial officer, head auditor and the chief risk management officer to again expose the risk and potential losses, claiming that the group’s internal controls had broken down and requesting an outside investigation of his business unit. The subsequent investigation revealed that at the Consumer Lending Group had suffered a breakdown of internal controls since 2005. Regardless of the findings of the investigation, Bowen’s charges were ignored, despite the fact that withholding such information from shareholders violated the Sarbanes–Oxley Act (SOX), which he had pointed out. Citigroup CEO Charles Prince signed a certification that the bank was in compliance with SOX despite Bowen revealing this wasn’t so. Citigroup eventually stripped Bowen of most of his responsibilities and informing him that his physical presence was no longer required at the bank.

    And we all know that Robert Rubin, former Secretary of the treasury, was arrested and is serving 30 years to life for his part…..oh wait. That’s not quite right. Robert Rubin, alongside Austan Goolsbee and Paul Volcker, was one of Obama’s trusted economic advisers.

    I imagine he’s the one that counseled Obama to defend the bankers from the imaginary pitchforks of the American people.

    Now, as to the present Secretary of the Treasury, Jack Lew, and the possibility of getting him to act against these criminals, Wikipedia says, “In June 2006, Lew was named chief operating officer of Citigroup’s Alternative Investments unit, a proprietary trading group. The unit he oversaw invested in a hedge fund “that bet on the housing market to collapse.” During his work at Citigroup, Lew had invested heavily in funds in Ugland House while he worked as an investment banker at Citigroup during the 2008 financial meltdown. Lew also had oversight of Citigroup subsidiaries in countries including, Bermuda, the Cayman Islands, and Hong Kong; and during his time at Citigroup, Citigroup subsidiaries in the Cayman Islands increased to 113”

    Do you see what he was up to there? All of these actions would be illegal, if in fact these behemoth banks hadn’t had policies rewritten to support their criminal behavior. Make no mistake, they are the enemy of the United States, and should be held on multiple felony charges, each and every one.

    So, as to the poor once homeowner in the article above….go ahead….beseech Treasury to do something, anything, to right the wrong. My guess would be that they’re way too busy off-shoring this poor guy’s money, along with billions more from the rest of us that they took during the initial heist, and are still taking under the watchful eye of any number of various governmental agencies and regulatory officials.

    It’s a big club and we aren’t in it, save to fund their shenanigans, as Hillary calls it.

  18. @Javagold – I am afraid Dr. David and Louise are correct but I would have done anything to keep my house and ancestral waterfront property. We lost five years, our house and 401k. It took an emotional toll as well. I neglected my husband because I was consumed by the fraudclosure 24/7 – a year later and I am still consumed by it. It has nearly destroyed my marriage. Shame and guilt are very powerful emotions. I will never be the same again.

  19. So, if my take on this is correct… All of the modifications secured by defense attorneys are malpractice because the homeowner’s attorney knew, or should have known, that the entity offering the restructuring was not authorized to do so?

    Sounds like an awesome class action suit for malpractice and or professional negligence.

  20., the following transaction has occurred in:
    Case: S218973, Supreme Court of California

    Date (YYYY-MM-DD): 2016-02-17
    Event Description: Notice of forthcoming opinion posted

    Notes: To be filed Thursday, February 18, 2016 at 10:00 a.m.

  21., the following transaction has occurred in:
    Case: S218973, Supreme Court of California

    Date (YYYY-MM-DD): 2016-02-17
    Event Description: Notice of forthcoming opinion posted

    Notes: To be filed Thursday, February 18, 2016 at 10:00 a.m.

    For more information on this case, go to:

  22. My friend actually got a modification. But 4 years later is starting to think he was taken advantage of again. I don’t agree. I think the modification is better than a fraudclosure. What say all of you ???

  23. Fighting them is an exercise in futility. The deck is stacked against you. The court is stacked against you. Time and money is against you. The truth shall NOT set you free.

  24. The terrible truth is that the Servicers do not want to modify your alleged loan. Actually, they do not have the right to do so. They are not the original so-called lender. Now, we know that the lenders do not exist. They are originators. I do not remember anything in RESPA, TILA, FCRA, FDCPA that states that originators are lenders.

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