The bottom line is that the loans themselves were fatally defective in terms of the loan documents. The money was delivered but not by the named “lender” nor anyone in privity with the named lender. At all times nearly all of the loans were in actuality involuntary direct loans from investors who had no knowledge their money was being used to originate loans without any semblance of due diligence.
All the other parties were conduits and brokers for conduits. None of them were brokers for a plan of investment to which investors agreed. and all of them were based upon fraudulent inflated appraisals.
In equity, as I have repeatedly said, the debt, regardless of to whom it is owed, should be reduced by the excess appraisal amount, a fact that ought to be presumed when anyone attempts to bring an action in collection or foreclosure.
This is because the source of the loan, regardless of who it might be in actuality, assumed the risk of loss associated with affordability and most importantly the risk from a false inflated appraisal. Licensed appraisers warned congress as early as 2005 when 8,000 of them petitioned Congress to do something about them being forced to either bring in false appraisals or not get any work at all.
Contrary to popular myth there is no such responsibility for borrowers to figure out if they really can afford the loan or if the appraisal is accurate. That is the state of the law under the Truth in Lending Act. The “conventional wisdom” that home buyers and borrowers don’t need a lawyer or a financial adviser on the largest investment of their lives leaves a vacuum where consumers are entirely at the mercy of predatory and fraudulent operators like Wells Fargo, Bank of America, Citi, Chase, US Bank, Deutsch, and others.
“Don’t bother getting a lawyer. Save your money. They can’t change anything anyway.” That is the catch phrase used to make certain that the fraud being perpetrated on consumers will not be revealed until it is too late and the courts presume that the fraud never occurred (or that if it did occur, it’s somehow too late to complain about it).
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PLEASE FILL OUT AND SUBMIT OUR FREE REGISTRATION FORM WITHOUT ANY OBLIGATION. OUR PRIVACY POLICY IS THAT WE DON’T USE THE FORM EXCEPT TO SPEAK WITH YOU OR PERFORM WORK FOR YOU. THE INFORMATION ON THE FORMS ARE NOT SOLD NOR LICENSED IN ANY MANNER, SHAPE OR FORM. NO EXCEPTIONS.
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THIS ARTICLE IS NOT A LEGAL OPINION UPON WHICH YOU CAN RELY IN ANY INDIVIDUAL CASE. HIRE A LAWYER.
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Hat tip to Dan Edstrom
see https://dtc-systems.com/us-sues-ubs-to-recover-penalties-for-fraud-in-the-sale-of-rmbs-securities/
And once again it doesn’t say that the securitization plan itself was fraudulent in that the entities represented as owning the loans did not exist and/or did not own the loans. It also doesn’t say that the use of fraudulent inflated appraisals (a) hurt homeowner and and that therefore (b) UBS lured investors into an investment plan fraught with liabilities.
Filed under: burden of persuasion, burden of pleading, BURDEN OF PROOF, CORRUPTION, discovery, evidence, Fabrication of documents, foreclosure, forensic investigation, Investor, Servicer, TRIAL OBJECTIONS | Tagged: FIRREA, housing, principal, TRUTH |
KALI — I agree. Beneficial security investors are NEVER the lender to borrowers. NEVER. These loans were not funded by anyone. Only cash out was funded — by warehouse lenders. Borrowers owe no money to security investors — if anyone owes to them it is the security underwriters who promoted “debt” cash flows to security investors.
IF it is claimed that security investors FUNDED these loans — that is a violation of TILA. Not only a violation, but TILA protection was withheld altogether. CANNOT say investors funded the loans. And, cannot say money is owed to them by the borrower.
What the courts go on is the “right to enforce the note.” But, since there was no valid note — as the loans have no Lender and loan was never funded — there should be no right to enforce anything. .
These loans were all debt collection pass-through of cash flows. Security investors invested in debt collection. I am hoping someone finally gets these TILA issues to SCOTUS.
@ ALL
The point is: the BAILEE can not purport to sell the BAILOR’s property (in this instance a NOTE) for value, and later ALSO claim the BAILOR owes the BAILEE the value of the property — which the BAILEE does not own.
@ ANON
Regardless of who the origination documentation shows, the purported “lender” (1) DID NOT LEND ANY OF ITS OWN MONIES; (2) DID NOT TAKE A RISK OF LENDING MONIES; and (3) was merely brokering securitization conduit transaction(s) for the fee(s)/commission(s).
Also, the NOTE is personal property of the MAKER/BAILOR, and the property in a special relationship by operation of law: BAILMENT; leaving a vehicle at a repair shop is a BAILMENT; loaning the lawnmower to the neighbor is a BAILMENT; depositing currency in a bank is a BAILMENT; the exchanging of a NOTE for a loan is a BAILMENT. The BAILOR remains the owner of the property, and is the beneficiary of ALL gains from the use of the property, sometimes for an agreed fee.
The misunderstanding is the various legal CAPACITIES that the originating entity was in fact engaged in: BROKERING as a BAILEE.
A BAILEE is not a “lender”, it is the agent of the BAILOR with possession of the property in exchange for its use.
Regardless of the trickery and deceit on the origination documentation, as WELLS FARGO admits: “There was NO LENDER.”
https://livinglies.wordpress.com/2018/01/18/wells-fargo-explains-securitization/
Anon.
Yes. Been here a long time. I spoke with Neil’s office a few times over the years and I agree with most of what he posts and says but don’t feel they can do much to help me as a pro se with documents the courts do not care about.
So I just don’t see the victory’s from others and would prefer to save my money and fight for myself.
Javagold@outlook.com
Java — have you asked Neil for help on this? I know you have been here a very long time.
Difficult to trace that trust. Countrywide. But, I found it. Do you have the documents? Describes how Freddie was involved. Loans were NOT sold directly to Freddie.
Most of the loans in the private MBS trusts were refinances, but some trusts did “alternative loans.” Often, traced to issues with prior owner. Some, however, were split with the funding to meet Freddie/Fannie standards. Interest Only loans — negative amortization. Countrywide was heavy into this. My nieces had these loans. I remember speaking with a state AG (not mine) who was prominent in the National Settlement — that these types of loans were NOT addressed. The AG knew it was an oversight. I was concerned for nieces. They managed to get out.
No matter what — these trusts have been torn apart and the “servicer” continues to act for debt buyers.
Give me your email — and will send what I found to you.
Anon
New purchase. All done online in 2007. Only spouse name on mortgage. Crazy stuff since day 1. Freddie Mac now admits they were involved as investor/creditor from day1 (they keep switching the terms as they please) although we never heard their name for about 5 years or so.
CWALT, INC ALTERNATIVE LOAN TRUST W2005-36 MORTGAGE PASS. THROUGH .
The CWALT in the original BOA documents is the part of the shell games I still haven’t got my head wrapped around just yet.
And, Java — was it a refinance or new purchase? I know you say CWALT disappeared — but which one was it?
Which CWALT trust is it?
Anon.
Ok.
We have had BOA from beginning. Who has claimed to be lender. Creditor. Servicer. Also then said it was CWALT Trust involved.
That somehow mysteriously got removed from all future BOA documents and Freddie Mac started showing up on documents as the investor. And/or creditor. BOA after 11 years as lservicer , switching the account numbers and the servicer names between BOA Home Loans and BOA NA 4 times just dumped Servicing to Specialized Loan Servicing the lowest of the low of All servicer debt collectors. Who will now to try and fraudclose with the invalid and fraudulent and incorrect documents given to them from BOA.
Can you make out who is who in this above shell game that is being played against us ??
Java — I am not an attorney BUT everyone should understand:
1) Lender is the party that lent you money. That name should be on the original executed document. If they are no longer alive — it should be the successor to that Lender. Trusts are NOT successors to Lenders. (Of course there may have been a warehouse lender for cash-out — but irrelevant to borrower — the LENDER stands as is on documents).
2) Creditor is the Lender — and the party obligated to abide by the TILA. Unless the “creditor” is a debt buyer – then must abide by the FDCPA.
3) Investor is the entity to whom cash flows are passed. The mortgage and note are NOT passed to the “investor” of cash flows. Bernanke also stated this at onset of financial crisis. A beneficial security investor (in cash flows) is NOT the Lender/Creditor according to the Fed Res Opinion of new TILA law — which has been codified.
4) Servicer is the entity one makes payments to for a securitized trust. They are not the creditor, not the lender, and most often not the investor (Servicers internally conceal that they are collecting for swap out derivative debt buyers). Servicers collection does NOT change the Lender — or change the entity to which the debt is owed. Borrowers DO NOT owe to beneficial security investors. And, if they owe to swap out derivative debt buyer contract holder that party should be disclosed. The security underwriter may owe to beneficial security investors — but not the borrowers. .
5) If you have a non-bank servicer, they are a debt collector. Meaning they have been debt collecting since origination of the loan. These debt collectors fail to disclose the true creditor/debt buyer.
The problem is that the government treated all these loans as loans validly in default in origination. Best anyone can get is a loan modification of the default originated debt. This is false — but government may be afraid to fix it. Trillions at stake.
Anon
Lender. Creditor. Investor. Servicer. Debt collectors.
Please explain all of the above.
This is so off — it is so frustrating. Investors are NOT Lenders. Who a bank chooses to pass through cash flows with is their business – and should be of no interest to borrowers. The LENDER remains the LENDER as stated on the original document. If the investors were Lenders to any entity it was the banks — not the borrowers. When will someone get this right?
In addition, nothing was lent to borrowers by the refinance question. . Only any possible cash out. These loans were actually restructuring of loans already wrongly internally reported as in default. The investors are no more than debt buyers. You do not lend money on debt collection.
By far, not everyone subsequently defaulted on the fake loans. To the contrary — the default rate is marginal compared to those that continue to pay. If this could only be admitted by the government — those who did default would be able to easily challenge the false foreclosure.
But, the government continues to wrongly state that ALL the loans were bad and defaulted. The reason the government sees “bad” loans is because the servicers wrongly classified them as bad loans to the original investor — and we all know who that was.
If you keep chasing in wrong circles — you keep coming up with wrong answers and solutions. .
At the same time the Inspector General of TARP reported that local government with same bias is not following actual public policy of TARP to do everything to keep people in their homes
* Appraisals * Paying wrong party * Homeowner victims vs Investor victims
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