2018 DOJ Lawsuit Reveals Securitization Equivalent to “Leprosy” According to Wall Street Insiders

see US v UBS Re: Countrywide, WAMU, Fremont, Am Home Mtge, And IndyMac (OneWest)

Although the US Department of Justice has never filed criminal charges against anyone, they clearly wanted to do so. Having been limited by some sort of executive direction, they have been filing civil complaints. Such cases often bear the name of an entity not publicly known as a player in securitization scheme that started 20 years ago.

If you read the complaint you will see how it was widely known and accepted that loans were being sold to consumers under circumstances where repayment would most likely never occur and where the value of the collateral was far less than the ultimate value of the loan. In my opinion, this demonstrates the fact that the original loan contract was not representative of the entire transaction. Nobody makes a loan knowing that it won’t be repaid. In fact if they do something like that, it can’t be considered actually a loan. It is either a gift or it is part of a larger transaction.

No reasonable person could conclude that the intent of Wall Street was to give a gift to every one of the homeowners who received money as a result of their scheme. That leaves only one possible conclusion, to wit: that the loan origination was only one part of a much larger undisclosed scheme, the existence of which was intentionally obscured and withheld from the borrower, whose name, signature reputation and home were not just material, but absolutely essential requirements for the success of the scheme.

The intent was clearly not to receive repayment of a loan. In fact all evidence currently available suggests that any money that has been received as a result of the “loans” to consumers was actually revenue disguised as principal, interest, or the proceeds of property sales – voluntary or involuntary. The current evidence strongly suggests that there was a complete conversion of the loan receivable from the category of “asset” to “income.”

All attributes of the debt and all revenue streams or profits from treating indirectly on the debt were sold for profit in which the participants in that revenue stream received at least 11 times the amount of the purported “loan.”

As part of the cover-up most of the revenue stream was reported as return of capital, implying that the conversion to income had never occurred. This enabled avoidance of substantial income taxes on regular trading income. The taxes lost to State and Federal Government were far in excess of the cost of various packages that were used to stimulate the economy after the crash caused by the very same investment bankers who had cheated the government out of the receipt of tax revenues, cheated homeowners, and cheated investors.

In order to maintain the illusion, which required concealment of the conversion of the apparent loan receivable from asset to income, it was necessary to bring foreclosure actions on those consumers who had stopped making payments. This was true even though the parties to whom they were making payments, were not collecting on behalf of any party who owned the debt by virtue of having paid money for ownership of the debt and the rights to enforce it.

But since the loan receivable had been converted from asset to income they had to create the appearance that the conversion had never occurred. And that is why we saw widespread fabrication, forgery and Robo signing of backdated documents that referred to nonexistent transactions. In reality it is simply not possible that anyone in the chain of title could have paid any money for ownership of the debt and the rights to enforce it; this was simply because none of those parties had ever funded the origination or acquisition of the debt.

As I stated in 2008 the process of securitization as it was being practiced by Wall Street, was roughly the equivalent of placing a variety of fruits into a food processor and blending the fruits into a fruit smoothy. The process of fabricating documents for foreclosures was the equivalent of taking this fruit smoothy and extracting the original fruits.

Somehow investment bankers convinced people who had controls over the levers of power in our government that the pain of the scheme should be borne entirely by homeowners and investors whose only role was that they were victims of the scheme and continue to be deprived of any participation in the revenue stream that could never have been produced but for investment bankers successfully deceiving both the investors and the homeowner’s into signing on to agreements that were essentially irrelevant to the actual scheme in play.

As you will see from reading the complaint filed by the Department of Justice against UBS, the insiders who were trading digitized certificates and contracts deriving value from an index that referred to a group of loans that were not owned by any of the participants, referred to the “pooling” and the derivatives as a bag of shit whose value was something less then leprosy.

And that is what is being enforced in foreclosure courts across the country. And somehow most homeowners continue to experience feelings of shame and regret for not giving even more revenue to players who will already profited in pornographic proportions to any money that was loaned. Those homeowners think that they are either paying a debt if they are making monthly payments, or they are giving up their house to pay a debt. If that was true, that none of the fabrication of documents, forgery or Robo signing would have been necessary.

9 Responses

  1. I will close by saying this: it is these folks who blew up the economy in 2008 forward and they are traveling the same path again…real estate pricing is “inflated”…taxes move higher with market values, price per square foot, but interest is low. Jeez, is anyone rationale? You are overpaying…just ’cause interest is low, you’ll pay more than the property is worth?

    Then let’s get people to buy houses, they cannot afford…again, if you do not have money for a down payment, how can you afford the payment with PMI, taxes, insurance, maintenance, for crikes sakes…home ownership is not for everyone.

    These guys know exactly what’s up and they play the game well. People need to know, the game is not set up for us, it is always a win-win for them. If people want houses, which I think real estate is always a good investment. Make sure you have equity, not just money from a net pay check…and the payments are comfortable. They sell everything based on what you can afford each month…this is not a car. There are ways to use others money. A “home” is not it. Most here know this…millions of others, not so much. Right now people are chomping at the bit to buy houses…low interest-higher prices. The big shiny hook…

  2. ANON, I too going back tried to join others in my New Century case…I found only one person who used to blog here, that would jump in. It was every man/woman for herself. In truth, my son was the one who found the “one” document in the bankruptcy case that led to the claims being paid…with the notice from attorney Suzanne Uhland, (this chick lives in Pacific Heights and buys property from ReCon Trust), (she has been investigated for fraud 5 times), regarding the bar date and claims. The bar date was published in the Wall Street Journal in three (3) “regional papers of that publication, not “nationwide” as stated. Billions of dollars in loans and only posted notice in and around the Dallas area, Orange County and New York City…a mere gesture the appellate court stated. And it was posted for one (1) day in the technology section. It was an affidavit by Hellums…you can pick and choose what counties the notices are printed in. Record is available in the NCMC bankruptcy files, 2007.

    It went the Circuit Court on appeal and the New Century Liquidating Trust and their attorney’s lost. The point here, together we have resources to fight, diversity in ideas, strategies and numbers. Solo, the fight is grueling. All of my problems started with this bankruptcy and the lawyers “giving” notes to people who did not own them and had no rights…I want to know who lent me money, so I can have recourse with them and resolve my problems. At no time have I asked for a free anything. But, it goes sideways up mine, they have been paid for defaults, then faux modify with more guarantee’s and my note was in default from day one of the payment due, even as I paid. They bought my debt for pennies or nothing and will not fix the problem. And on the face it looks like this will be the third time someone will attempt to received a payout, off a newly originated debt.

    The game needs to be playable for us too. Their is a game within a game here. And we are not able to play, because they hold some of the cards, most of them actually. In my case the cost does not bear out. It is about more than money for me.

  3. Everyone – no one joined together when I urged ten years ago. Settlements negated investigation. Borrowers were left to fend for themselves in courts – despite the massive fraud. Settlements negated investigation. All was shut down. Orders from the top.

    The issue remains – what the heck kind of loan did anyone really get??

    All concealed.

    The power, however, is beyond us. We can try, whatever way we can, but we need MORE. And, no one is willing to help on mass scale. NO ONE.

    Thanks.

  4. We are one among the scores of victims of Chase’s fraudulent enforcement of Notes originated by Washington Mutual Bank. Go to my facebook page “The Fraudulent Foreclosure Foxes” for most of the details. Judges are the biggest perpetrators of the scheme. In Nevada, the Chase/WaMu scheme has corrupted Judges all the way to the Supreme Court – including Gibbons, its Chief Judge. I am days away from submitting a version of the Chase scheme to the Department of Justice, where the Nevada Supreme Court is a principal Associate of the scheme. Extortion through RICO is what Chase is subjecting WaMu homeowners, and Chase and Associates have raked in the millions from Fraudulent foreclosures. All of our problems is the fallout from divide and conquer. Because the Feds are resisting getting involved, we are left fighting before individual state courts. If the Feds would treat all of this like one huge RICO enterprise, we would not have enough jails to house state judges, bank officials and attorneys. I would love to forward copies of my DOJ Complaint to all interested. It shows just how far courts are going to validate the perpetrators. Chief Judge Navarro of the Nevada Federal District Court, is a prominent player in two cases where the scheme ended up before her. I am at rnwil3@aol.com. Would like to spread my DOJ complaint around. It is shocking what it exposes.

  5. And they got insurance payouts on them…so they have been made whole. Even on modifications, if you default they have FHA insurance on them….

  6. Conversion to “income” is how debt buyers account. These “banks” bought DEBT from GSEs. Thus, borrowers were put in default BEFORE they ever even defaulted.

  7. Here is the piece you’re missing , the banks are not foreclosing on anybody, I know it’s a shock, to complete the securitization cycle loans had to be ‘sold’ for nothing to debt collectors attorneys posing as representing beneficiary banks.

  8. Looting and Laundering with FORECLOSURES I am in Federal Court with this and it’s real …… https://laymanslaw.home.blog/how-to-steal-and-launder-trillions-in-american-foreclosures/

  9. TRUMP 2020!
    Junior ’24!

Leave a Reply

%d bloggers like this: