Confused? Beware of Scams

One of the fundamental cancers growing out of the “Securitization” craze is that it opened the door to financial scams of increasing diversity. The article below demonstrates one of those scams. None of this would be possible if it were not for the fact that “securitization” was and continues to be a scam as to residential loans starting in the late 1990’s.

Basic rule for all “deals”: if you don’t fully understand it or have someone who does understand it, don’t do it. With 50 years of experience on Wall Street, in business and practicing law (41 years) I can sniff out a scam in minutes.

Let us help you plan for trial and draft your foreclosure defense strategy, discovery requests and defense narrative: 202-838-6345. Ask for a Consult.

I provide advice and consent to many people and lawyers so they can spot the key elements of a scam. If you have a deal you want skimmed for red flags order the Consult and fill out the REGISTRATION FORM. A few hundred dollars well spent is worth a lifetime of financial ruin.

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Get a Consult and TERA (Title & Encumbrances Analysis and & Report) 202-838-6345. The TEAR replaces and greatly enhances the former COTA (Chain of Title Analysis, including a one page summary of Title History and Gaps).

THIS ARTICLE IS NOT A LEGAL OPINION UPON WHICH YOU CAN RELY IN ANY INDIVIDUAL CASE. HIRE A LAWYER.

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LOOK BEFORE YOU LEAP!

see – More REMIC Scams Emerging – Fla. Office of financial Regulation Starts Investigation

This scam was only possible because nobody understands “Securitization.” Even fewer people understand what “REMIC” means. This scam told people that the IRS would pay refunds to them to pay off their residential mortgage loans. The money was to be derived from a REMIC Trust.

Because REMIC Trusts rarely exist, the perpetrators of this nonsense were able to use that fact to convince people that this REMIC did exist. All the criminals had to do was copy the PSA from some other scam masquerading as a REMIC Trust and Presto! they could say they had a trust. The “REMIC” designation was simply added for flavor, as though the entity actually was formed and funded and acquired residential mortgages with money derived from mostly institutional investors.

Securitization comes in three main flavors:

  1. Securitization as a concept
  2. Securitization documents as they are written
  3. Securitization in practice in real life.

In the real world those three flavors should all be the same, but they are not. real life practice is inconsistent with the written documents and the concept of securitization. Instead of spreading risk the investment banks are concentrating it. That’s why the 2008 hiccup turned into a landslide. The only people making money off of alleged
“loans” are the investment banks acting as intermediaries between the investors and borrowers.

There is nothing wrong with securitization as a concept. There is everything wrong with securitization as it has been written into thousands of false REMIC documents supposedly creating a REMIC Trust. And in practice it was wide open for “moral hazard” — i.e., outright theft.

The reason that virtually all “documents” are fabricated in foreclosures is that the actual path of investment ran off a completely different track than the one portrayed in court. But using false documents has now been institutionalized, paving the way for the proliferation of financial scams against people who were already scammed.

I offer the following guide: if the word “REMIC” is used, the real facts are almost always certain to reveal a scam, whether you are in foreclosure proceedings or dealing with some “rescue operation”.

IN ALL CASES HIRE AN INDEPENDENT FINANCIAL AND /OR LEGAL ADVISER BEFORE YOU SPEND MONEY THAT YOU WILL NEVER SEE AGAIN.

5 Responses

  1. If there is any changes for better in this life it’s because of you Mr. Garfield!

  2. Most of the REMIC loans were refinances. There was no transfer of money. No payoff of prior loan either. Just transfer of debt. If the loan was was for a new purchase, it was one of those “exotic” loans.

    The national mortgage settlement monitoring ended this morning. The monitor says the servicers have complied. Really?

    https://www.housingwire.com/articles/46538-the-national-mortgage-settlement-is-officially-over

  3. @ Javagold

    I suspect that the downpayment(s) (“deposit”) were pocketed by the originator(s). Nonetheless, the full amount of your personal property, and the source of the originator(s) further gross enrichment, the PROMISSORY NOTE, was laundered by securitization through the REMIC(s) and bond certificate purchasers.

  4. Forgery as a way of doing law.

  5. Where did my $100,000 hard cash deposit go ??

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