Mnuchin as Treasury Secretary: Lackey for the TBTF Banks

Mnuchin was and remains “the guy between the guys.” Billed as the organizer of OneWest his role was to provide a layer between the founders and the rest of the world. His prospective appointment As Secretary of the US Treasury means that the TBTF banks would have a lackey to do what the banks wanted the US Treasury to do.

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It is reported that OneWest foreclosed on 40,000 homes. I have already described to you that Foreclosures sponsored or initiated by OneWest were very often done in the name of another entity. For example, Fannie Mae or Freddie Mac. Those are not counted in the number of homes foreclosed by OneWest. My experience is that the number of homes foreclosed where OneWest was the party “pulling the strings” (not entirely accurate since control was centralized far from OneWest) is at least equal to the number reported for foreclosure cases in which OneWest was the foreclosing party.
The average “originated” principal amount of debt in which a homeowner received financial benefit from a direct receipt of funds or funds paid out on behalf of the homeowners to pay off an old “loan” or to pay the seller is reported as an average of $225,000.
The rest is arithmetic. If you multiply the number of foreclosures reported (40,000) times the principal amount of debt that a rose from the origination of transactions with homeowners on refi or prospective homeowners who were buying ($225,000) then you get a total of $9,000,000,000.
If you look at the deal between the FDIC, the US Bankruptcy Trustee for IndyMac, and OneWest, you will not find $9 billion in consideration for the purchase of loans by OneWest from the IndyMac estate. Both the FDIC and the US Bankruptcy Trustee were under a duty to maximize the return to creditors. They did not receive $9 billion for sold loans because there were no loans to sell. OneWest principals merely put up or promised to commit around $1-$2 Billion in capital to qualify as a bank and to take over the service contracts and brick and mortar locations of IndyMac. This is nearly identical to the Chase-WAMU deal.
But there is more: under a very lucrative loss sharing agreement with the FDIC, OneWest submitted claims to the FDIC to cover 80% of the alleged losses on nonperforming loans and then, after getting paid, proceeded to foreclose for the whole amount. 
There is no evidence of any particular loan or pool of loans being sold to OneWest for any consideration that traveled from OneWest to either the FDIC as receiver or the US Bankruptcy trustee for the state of IndyMac. Yet OneWest followed the industry practice of stepping AS THOUGH they were the creditor, claiming they were the holder of negotiable paper because the real creditors — investors who advanced money as though they were buying real MBS (which were bogus securities issued by a nonexistent entity that never did any business) — were unaware of the status of their claim against the REMIC Trusts that were ostensibly purchasing loan portfolios but lacked the funding to do so because the Trusts never received the proceeds of sale of the MBS. 
Second, OneWest did not actually have any business records. They are all  fabricated or outsourced (or both) to a subdivision of several different “servicing” entities that are directed by LPS/Blacknight. LPS is tasked with (1) selecting the Plaintiff or beneficiary of a foreclosure (2) collecting and creating records (3) fabrications and forgeries (and robosigning) of assignments, endorsements etc.
Bottom Line: OneWest foreclosed on loans in which it was neither the owner nor the servicer. While it acquired servicing rights from IndyMac, the real servicers were selected by “Master Servicers” (underwriters/TBTF Banks) of the nonexistent trusts. So while IndyMac theoretically had servicing rights for the most part the actual job of servicing was done elsewhere, under the watchful eye of LPS. Thus when OneWest acquired the IndyMac servicing “business” it was in a actuality acquiring nothing.
Thus approximately $9 billion in foreclosures, as reported in the media resulted in windfall profits to OneWest of a percentage of the liquidated properties, estimated total at around $6 billion, around two thirds of which $6 billion) was given to the “Master Servicers” as “recovery” of “servicer advances” (which neither came from the servicers nor were they advances as the payments were taken from dynamic dark pools consisting mostly of investor money), netting $2 Billion to OneWest plus “servicing fees” despite the fact that they performed very little or no servicing.
The organizers of OneWest were billionaires that went into it on the premise and promise that they would make a few billion dollars, although they were never entirely clear on where the profits were coming from. OneWest was then sold after the windfall the profit projections slumped because there were practically no more alleged IndyMac originated “loans” to foreclose. The PR spin was that they were getting out because their temporary agreement to operate OneWest was expiring. But the real reason was that there was nothing left to plunder and the founders were getting increasingly uncomfortable about where the money was coming from. OneWest could have easily slipped into the roles occupied by Ocwen, SPS, Bayview et al etc and “acquired” more loans in Re-REMIC deals, but the founders wanted no part of it.
Homeowners lost their homes on the premise that they thought they had a legitimate loan from a legitimate lender. But IndyMac was originating loans under pre-sale agreements that were effective BEFORE even the applications for loans were received. The Purchase and Assumption Agreement provided that the actual lender’s identity would be withheld from the borrower (a direct violation of TILA). The money for the funding of the alleged loan transactions came from the dark pools, the constituents of which were robbed of their right to the notes and mortgages. The irony is that the counterparty to IndyMac’s Purchase and Assumption Agreements were mere conduits and in many cases sham conduits.
Mnuchin was and remains “the guy between the guys.” Billed as the organizer of OneWest his role was to provide a layer between the founders and the rest of the world. His prospective appointment As Secretary of the US Treasury means that the TBTF banks would have a lackey to do what the banks wanted the US Treasury to do. This greases the wheels of false securitization. The banks have never stopped in their “perfect” crime wave and are if anything speeding up with false and sometimes true claims of securitization of just about anything — including “servicer advances.” That adds insult to injury in that they are using their scheme of theft from investors and selling rights to participate in the scheme to investors. In the end, it is simply a scheme to use other people’s money and then step into their shoes without them knowing it.

16 Responses

  1. I hate to sound like I am obsessed with government control, but when you put all the facts, cases, and opinions together there is little doubt that we have ALL been scammed by our very own government and all the corruption and fraud.

    The big banks are all corrupt as case after case is decided and Fannie Mae, Freddie, and others all know full well what is going on with the crooked, fraudulent so called “Servicers” that wrongfully foreclose on millions of property owners- it is truly sickening but what can you do and all the government co-conspirators, congress people, and state governors/attorney generals keep allowing this to happen and will not stand up to the likes of the phony, inept, dysfunctional CFPB, OIG, USDOJ, and others.

    Big banks like Bank of America, Wells, and Chase ALL know this and also take comfort in knowing that the government is apparently our banking system and even fighting to insure that smaller, more honest, and more customer oriented banks don’t have any power to help.

    Someone MUCH smarter than I needs to confirm and figure out what our next move might be (if there is one) as Mr. Trump does not seem to grasp all this, OR HE KNOWS FULL WELL AND HAS CHOSEN PEOPLE ACCORDINGLY, EITHER WAY I THINK WE LOSE.


  2. I am tweeting this….please do the same send to @realdonaldtrump and @kellyannepolls they need to hear this…..

  3. SUSAN R., Thanks for the link. I posted this story:

    THE FORECLOSURE CRIME is the greatest financial crime in human history, according to attorney Neil Garfield. Mr. Mnuchin is not a good choice for Secretary of the Treasury.

    To make America great, invite Mr. Garfield to explain the foreclosure crime to President-Elect Donald Trump.

    First, we have to have redress for the victims of the loan modification scam known as HAMP. TIMOTHY GEITHNER should be indicted. The executives of loan servicers like Green Tree, Ocwen, Residential Credit Solutions, etc., should be indicted for taking TARP funds and abusing HAMP to leading working people into foreclosures that left them penniless and hopeless.

    Those who lost houses and money in the HAMP trap should be allowed to claim their losses, to be reimbursed out of the pockets of the executives who profited from fraud.

    All that profit came from taxpayer money. The executives should hand it back on their way to prison.

  4. Remarkable work. Your opine, Not their’s !

  5. While numbchin ran OneWorst Bank, you have to examine the FDIC docs to trace the moneythat got the indymac buyout done.
    Some one who doesnt post much here had first hand info regsrding that deal, look up posts under iwantmynpv.
    More to it than just numbchin.

  6. Reblogged this on Deadly Clear and commented:
    The TBTF banks are so far gone that there is probably little Mnuchin can do to stave off the inevitable. No doubt there is an Oligarchy – whether they planted Mnuchin and Ross is yet to be seen. Maybe the realities of the rigged system caused a tad bit of conscience to develop since there servicer-related escapades.

  7. Considering the FDIC, please look at the bottom of page 9 and page 10 of hearing on Sep. 12 this year and tellme if I landed a lucky punch during this hearing. Steve

  8. I’ve been fighting Chase bank going on 8 yrs. Originally WAMU loans that were made when they were not in business. One loan we appealed to the 9th Circut Court and they returned it back to the lower court for review. But before we could get back into court their San Francisco Attorneys foreclosed and took the house. We are going for Wrongful Foreclosure now.

  9. What do you expect? Most people know that Fannie and Freddie are the GSE -Government Services Enterprise as I have been told and studied about. Fannie is just as crooked as nasty old Bank of America, Seterus, Urban Settlement and all the rest.
    They got bailed out on our money, then refused to help many with the “RACKETEERING SCAM” as properly identified and referenced in the 10th Circuit Court Ruling here in Colorado where Rule 120 has ruled so long!!! I am sure the crooks will figure out a way to take this down or the lawyers will cave in for the money and a confidential settlement like many. Too bad we don’t have unity and common ground (plus common sense) working for us all to take down this huge mess. BUT, what can you expect when your very own government is against you and part of the scam!!! As I see it nice circular movement of our money that was loaned to them and them circled right back to them to keep fighting all the sins and corruption involved and encouraged by our own government. Look like the new president and his staff have been bought out as well with terrible cabinet pick, some of who created this mess in the first place. Thanks everyone and especially to Neil and friends in keeping up the fight-Semper Fi

  10. Your talking about Fannie & Freddie loans that are suppose to be purchase by the two agencies, and IndyMac did not do Federal government loans (FHA, VA, USDA). Now understand that Washington Mutual Bank (WaMu) turn over all 1.3 million of it’s Fed Gov loans to Wells Fargo as these loan were in WaMu MBS.

    There a big difference in where Ginnie Mae does not and cannot purchase the loan places in any Ginnie Mae MBS pool. Look at states local recording offices and you see where the two in Fannie & Freddie are listed as the owner but never Ginnie.

    WaMu is dead Sept 25, 2008 and any and all interest is the WaMu Ginnie created has long been detached from WaMu, and neither Ginnie or Wells has a financial interest, and only one party in the homeowner has a financial stake in the property as the lender fails to exist!

  11. I keep posting foreclosure stories here…there is a big button for ‘Share your story’. So go tell it on the mountain. Reality is, if enough folks do it we will have results. Just look at Dakota Pipeline. Press, we need more press.

    In the meantime, keep posting at

  12. Wouldn’t be nice if someone were to look to see if those alleged trust were actually registered in the State that they reported to the SEC as doing business in. If they didn’t register the Trust (Declaration of Trust) in the State as they reported to the SEC as doing business in, then the Trustee can’t be a Trustee over a nonexistent Trust. To sue or be sued.
    Were looking into that scenario right now where over a 150 billion worth of MBS’s were registered with the SEC as doing business in a certain State.
    The S.O.S. has supplied us with Certificates of
    “NO-RECORD” on 4 separate series totaling more than 180 billion. The S.O.S. states that it is the law to register in their state, but they never registered in any State. Selling securities in a State that requires registering and not pay taxes in their Stated Jurisdiction. That’s just 4 securities.

  13. Imagine what’s gonna happen when Deutche Bank goes under, and Chase purchases all their (Trust) assets.

    It’s as if this is all part of (shell game) plan!

  14. So what’s the plan. Like the old nuclear attack drills I did in grade school? Spread my legs- put my head between my legs – Kiss my butt goodbye.

  15. So in other words, nothing is going to change? If you voted for Trump for President, you could just as easily have voted for Hillary because nothing will change either way, and illegal foreclosures will just continue to roll on?

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