Stop Wall Street Looting Act of 2019 Introduced in Congress

When it comes to losing one’s homestead the legislature, the executive branch and the courts insist on knowing that in all events the proceeds of foreclosure sales go to pay down the debt. A party having no risk of loss has no injury thus depriving the court of jurisdiction. A party who has no money at risk fails to satisfy the condition precedent clearly stated in the UCC. 

Long overdue, many politicians are starting to understand the real nature of securitization as it is being practiced in Wall Street. This has produced a heightened awareness of the risks of not dealing with Wall Street practices and the risk of what many are calling the coming economic crash.

see Congress Tackles Looting by Wall Street

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The most salient part of the bill, in my opinion, is the part about retaining risk. It is an official acknowledgement, in addition to other governmental findings that the investment banks and hedge funds who played the unregulated securitizations scheme simply retained no risk or so little risk of loss as to be just a cost of doing business.

This bill seeks to take that issue head-on and prevent “lenders” from (a) hiding their identities and (b) creating junk loan products for the purpose of selling and trading unregulated securities.

I don’t think there is anything more important than the recognition that all or most of the risk of loss has been parsed out into many attributes each of which was sold to different classes of investors using different classes of unregulated security instruments.

None of the buyers or traders in such securities ever purchased the debt of a borrower even they paid money equivalent to a purchase of the debt. No legal title or right to enforce any debt, note or mortgage was ever conveyed to the holders of “REMIC” certificates nor any other class of investors.

Without having technically sold the debt, the investment bank retains bare legal title to the debt, which is an outcome anticipated by the framers of the Uniform Commercial Code Article 9 §203, adopted in all 50 states as law of each state. Bare legal title might be enough to enforce a note that qualifies as a negotiable instrument (article 3) but it is not sufficient to enforce a mortgage in foreclosure.

The reason is obvious and contained in the minutes of committees who created this section and the states who adopted it.

When it comes to losing one’s homestead the legislature, the executive branch and the courts insist on knowing that in all events the proceeds of foreclosure sales go to pay down the debt. A party having no risk of loss has no injury thus depriving the court of jurisdiction. A party who has no money at risk fails to satisfy the condition precedent clearly stated in the UCC. 

 

 

5 Responses

  1. […] Source: Stop Wall Street Looting Act of 2019 Introduced in Congress […]

  2. Even though there is good reason to be cynical, the fight is too important to ignore. per above, Warren and and others who also get it are far and above are far and above better than anything we’ve had thus far on the forefront in exposing the truth. Not campaigning but she in particular DOES understand the And the banks hate her already so she’s and others like her have little to lose.

  3. Once again the question is how did the FDIC when declaring WAMU a “failed bank” and Wells Fargo being the servicer for 1.3 million of WAMU’s Federal Government loans that 95% of all of these loans are in the banks Ginnie Mae MBS, without any purchase of any of the loan debts. Ginnie is not authorized to buy or sell any mortgage loans and does not originate them but they do have the UCC3 blank endorsed Notes relinquished to them.

    What mess up this 3 card monte act, was the fact that usually the issuer of the MBS servicers the loans so the originator of the loans never has to produce proof of ownership to the court under UCC9 because they originated the loans. With the pooling requirement of relinquishing the blank Note to Ginnie the fact that ownership of the Notes is not know to local land recording officials.

    So as in the case of WAMU who had these titles in their name either from originating or purchasing loans and having titles assigned, but Wells used outside law firms to process the foreclosures and presented the foreclosing as if two members of MERS acting as one and there no break in the ownership link, which after Sept 25, 2008 WAMU stops existing and is no a bank and no longer a member of MERS.

    WAMU loss $300 million and Wells or Ginnie did not gain $140 billion in loans having not invested a single red cent in purchasing these loans. The FDIC job was to know who was an actual debtor, but somehow 1.3 million Fed Gov loans that are a part of WAMU Ginnie MBS and that the Notes are the property of Ginnie but not the debt as Ginnie is prohibited from purchasing these loans,

    Wells has told the world its was foreclosing for Ginnie, which is not true and against the law, as Congress said cannot happen. So we got a Fed agency illegally seizing citizens property! Can you say 4th Amendment Rights violation along with a host of criminal violations!

  4. If this were to even take position, it should not be beginning 2020 Wall Street and Banks must be and should be held accountable from Housing Crisis to present. As we all know this garbage is still going on. Don’t wait until you are 2020 Candidate for President. All of you politicians should have already got this under control. Instead any money that should have been returned to homeowner’s you shoved in your own bank accounts and left the American People homeless.

  5. Going after TBTF Wall street may help her campaign bid and this stuff gets her headlines, but it will turn out to be a big, fat, nothing burger. Sorry.

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