Tonight! Rogue REMIC Trusts as Illegal Fencing Operations

Thursdays LIVE! Click in to the Neil Garfield Show

Tonight’s Show Hosted by Charles Marshall, Esq. and Bill Paatalo, PI

Call in at (347) 850-1260, 6pm Eastern Thursdays

In the spotlight: US Bank LSF9 Master Participation Trust

The term “robo-signing” was coined about 6 months after I had concluded that the documents being used in foreclosure were fabricated and executed by people who knew nothing about them or even rubber stamped with signatures probably unknown to the party whose signature was copied for the rubber stamp.

It was a simple process. When I asked for documents for cases that were in litigation or foreclosure, I got a response. When I asked for documents for cases that were not in litigation or foreclosure I received nothing. Crickets. My conclusion was that the documents didn’t exist for loans that were current and thus were created after the decision was made to send the file to a foreclosure mill. When the Rice study came to my attention in 2008 showing that at least 40% of all notes were intentionally destroyed or “lost” immediately after execution, that was the nail in the coffin.

So now I have identified the fact that most so-called trusts do not really exist, nor are they meant to. And so someone who did the same analysis I did has coined the term “Rogue REMIC,” as I have already discussed in a prior article.

The Rogue REMIC is defined by the use of a name that implies the existence of both a trust and that assets including a loan in foreclosure are part of the property of the trust. In fact the trust does not exist and nobody owns the subject loan as part of any trust arrangement. This has created an opportunity for banks, servicers and especially lsawyers to misdirect the court, the borrower, the borrower’s lawyer and anyone else involved with the filing of an illegal, unauthorized and/or wrongful foreclosure.

Bill Paatalo has another worthy Blog Post about how certain rogue REMIC trusts are akin to fencing operations. I would add that money laundering is part of the scheme as well.

Today, we revisit the US Bank LSF9 Master Participation Trust, purportedly located and operating out of and receiving mail in Florida, but in fact set up, to the extent it is organized in a legally and meaningfully manner, in the Virgin Islands. The only reason I can detect and which my sources can tell me is that there is an intent to avoid prying eyes.

Bill will discuss this and related cases, and we will delve into the implications of this situation for pleading practice, impacting both judicial and non-judicial foreclosure cases.

6 Responses

  1. Ian — you are familiar with my situation. I risk backlash, in multiple ways, by directing here to my own situation. But, I am close to being out of that position.

    I can say this. 1) Neil is right about everything he says about the trusts. These were set up to simply divert borrowers (and investors) from the true nature of the loans. The actual parties are hiding being a trust “iron” curtain. 2) I am not in foreclosure — or should not be in foreclosure, but past payments and payoffs (by refinance) were never applied. I have proof. Unfortunately, proof does not always matter. 3) The documents “created” and filed across the country are false. But, the problems do not start with the false documents. These documents are the effect, and not the cause of great financial crisis.

    Warehouse lending plays a big role. This is because those warehouse lenders, and not the “trust,’ trustee,” or servicer, hold collateral, until the loan is sold into the secondary market (and warehouse lender is paid).. Yet these loans never actually went to secondary market “trusts” (or trustees) , so warehouse lender was never paid. In fact, most of the entities that practiced during the financial crisis failed before warehouse lenders could even be paid. As Neil points out — most of these so-called trusts do not exist (at least not in form that was claimed). It is difficult to ascertain the warehouse lender unless you get lucky by documents provided by discovery. Most will deny there even was one. With this information in hand — the whole ball game changes – but, that still does not mean you can win. .

    Title is massively destroyed across the country. Wrong parties are “paid” – creating a situation from which borrowers will not recover. Because the situation is so massive, the government failed to attack it, and instead, concealed it. This leaves borrowers alone in the battlefield, in which they should win hands down, but, courts give borrowers little credit. .

    While I sometimes disagree with some issues Neil posts, for the most part he is correct, and borrowers need research help. The research must be deep. I wish there was some representative that I could reach that would help expose, and correct what happened. Unfortunately, over many years, I have found none. If anyone knows of a representative that will listen — let me know. .

  2. ANON- what or who is going public shortly? Don’t keep us in suspense…….!
    I appreciate all your posts, as we have spoken and emailed, and I understand where you have been with this fraudulent mortgage fraud/ identity theft, sham trusts, corrupted titles, forged documents etcetera.
    It’s the “Truth in Lending Act” doing its job!

  3. Javagold- it has been said that homeowners spend more time comparing and buying a television than they spend comparing and signing a mortgage.
    I was one of these people, I left it to the mortgage broker.
    “He seems like a nice guy”
    “The rates are all the same”
    “He told me I should take the cheaper adjustable (teaser) rate mortgage to save money and refinance later”
    When I signed all the docs, he said they would be mailing my docs to me. Within a day or two of course , I didn’t remember everything on the 30+ pages I signed. Except the monthly payment, tied to 6 month LIBOR. My purchase money mortgage was the only one for which I received the wet ink note back “paid in full”. Subsequent refinances were copies of copies, with a “satisfaction of mortgage” .

  4. How many original notes and mortgage are signed at closing. And does every party at closing get a wet ink document???

  5. Will be going public shortly. Title is destroyed. It does not matter if one is paying or not — destroyed. You pay — you pay wrong party. Can never be fixed. .

    All is far more complex then is even discussed.


  6. No note, so they make a copy of one at book of deeds but no original. A copy? No original! I’m convinced my mortgage is highly qualified in fraud

Leave a Reply

%d bloggers like this: