VA has no direct information about your mortgage loan — and neither does anyone else.

— And neither does Fannie or Freddie or Ginny.


And from our research here and contributions from very persistent readers of the blog, it seems absolutely certain that servicers have no direct information either.

When the first claims of securitization popped up on the radar in the late 1990’s, it was assumed that Wall Street was doing what it always does — which is what it is supposed to do. Convert assets into securities and then sell the securities. That is the foundation of capitalism. Nobody thought to ask whether that was actually happening.

In reality they were creating assets out of data about loans rather than the loans themselves. They never bought, sold or securitized any loans, but almost everyone thinks they did.

The actual promissory notes were regularly and nearly universally destroyed because those original documents could later conflict with whatever digital files had been produced, using scans and annotations of scans for the purpose of creating the illusion that the debt had been purchased first from the homeowner and then from the originator up until it “arrived” at the X Bank as trustee for the registered holders of certificates of ABCDE, Inc Mortgage backed certificates series 2006-A1. That arrival in all cases is entirely faked.

And the reason they do it is to hide the fact that the actual underlying debt, note and mortgage have been retired in the actual securitization process in which data was converted to securities which were sold , thus paying off all the players without ever allocating the proceeds of such sales to the loan account because there was no loan account. From the outside it sounds stupidly counterintuitive which is another word for unbelievable. from the inside of Wall Street it was pure genius.

They got to sell securities issued under a fictitious name of a trust, keep the money and then sell securities based upon the performance of the first securities’ sale and never have any risk of loss from any loan or group of loans. The problem was that if they had no loss they had had no injury and no court in any jurisdiction was going to let them enforce a claim unless they could produce an injured party. But there isn’t one. So they had to invent an injured party for purposes of enforcement. And unfortunately the courts were all too willing to believe it.

While the paperwork showed such transfers there were no actual transfers because nobody owned the loan, debt, note or mortgage. there were only indicia of ownership created by self serving documentation created to make it look like the underlying debt, note and mortgage had all been sold up the line with each “successor” being a buyer and the former “owner” being the “seller.”

Paper instruments are not real, in a legal sense, unless they reflect or memorialize something that happened in the real world. Conveyances of interests in mortgages or deed of trusts without also transferring the underlying debt are a legal nullity in all jurisdictions.

So all of those “transfers” did NOT happen in the legal world. But if the paper instruments are facially valid, the transfers are presumed to have happened because that is how our system works. That presumption is rebuttable and there is no better way to rebut the presumption than to ask the attorneys and the opposing claimant, in lay language, “OK, did it happen or not?”

If the answer is “No” the case is over judgment for homeowner. If the answer is yes, case over, judgment for claimant. If the answer we are not telling you because it would divulge proprietary data or trade secrets, the answer is that they refuse to answer and therefore you are entitled to an inference that the event did NOT happen. This IS the truth in virtually all claims of securitization relating to residential loans.

In nearly all “mortgage loan” cases, I am virtually certain that anyone who paid value did not receive ownership of the debt and anyone who received a paper instrument asserting a transfer of the mortgage did not pay value. That means none of them have a claim because none of them can assert that their receipt of payments from you or a foreclosure will result in paying down the debt.  Nor can they assert injury from nonpayment if they don’t own the debt.  

So back to the current state of affairs. When the scheme first erupted with the first wave of foreclosures in the years 2000-2004 it became apparent that a central repository of data was necessary. The need became apparent when more than one foreclosure was filed contemporaneously with the others, each with different claimants who were asserting through lawyers (under litigation privilege) that they were the “holder” of the promissory note, the original of which was in their possession.

At first these double foreclosures were not noticed because in nearly all cases, the homeowners simply cleaned up , left their keys on the kitchen counter and left the house because they “knew” they were in “default” (but did not know the loan account no longer existed). So the foreclosures went through, the sales of the property occurred and in most cases the registrars for public records never noticed that there were two foreclosure sales on the same property with title issued to two different “lenders.”

Then something happened. First, the registrars for title did start noticing undoubtedly under pressure from member of the public who were beginning to notice and under pressure from people who were trying to buy property that had been twice foreclosed (which was “real”?)

And then another thing happened. A judge was nearing foreclosure cases on a rocket docket and approved the foreclosure on a certain property that happened to be a few doors down from where he lived. A week later, he was looking at a new foreclosure in which the same property was being foreclosed by someone else. Because the property was one he knew, the conflict was immediately apparent to him. He ordered the first one cancelled and the second one dismissed. the case was subsequently settled.

MERS had beene staglished as a sham conduit and adata cetner for fake transfers of the loan paperwork. It’s establ;ishment corroborates the fact that it never takes any interest in the ownership of the debt, note, mortgage or opaymetns to or from any homeowner — which means in legalese that it is nothing and shoudl be ignored. While teh banks were able to lift MERS tot eh status of a party who could receive and grant title to the mortgages, it has always been problematic. But they managed to salvage it as a central repotiory for infomration tha t has often bene treated as an accpetable alternative to laws requiring public reocrds fo alls cuh transfers.

But MERS was not the place to centralize the actual conduct of enforcement proceedings because its records were potentially open to inspection, discovery and investigation. Since the banks were intent on committing perjury and other felonies by creating executing and recording false documents, they needed a central repository of information which (a) directed the destruction of original documentation (b) created copies of the original documentation with what changes were necessary for enforcement and (c) resolved conflicts such that multiple foreclosures of the same property would never happen again.

Since they were not buying and selling debts, notes, mortgages and loans, they were dealing with pure data, invented by Wall Street and massaged into something that looked like assets that could be sold as securities. The falsification of documents occurred at Lender Processing Systems (now Black Knight) which operated DOCX, whose president went to prison. See Lorraine Brown.

Since the entire enterprise was based upon illegal practices and weaponizing legal procedures under false pretenses, the Wall Street banks were essentially hiring people to perform illegal tasks. While they could protect them to some extent by compartmentalization — where nobody actually knows the whole process — the fact remained that anyone employed in this scheme was potentially subject to civil and criminal penalties. This required certain types of people, including around 10,000 convicted felons in Florida alone tasked with selling loan products. This was not a case of borrowers looking for loans, this was money looking for borrowers.

From origination to “servicing” to anything else, the people employed were willing to endure or promote moral hazard. So Wall Street made sure that the none of them had actual access to any money that was banks expected to be paid to the banks. In order to prevent theft of money the banks were stealing from investors and homeowners the created an age old system in which they hired “bookkeepers” (i.e., “servicer”) who were actually just nominees, rotated them so nobody got too comfortable thinking they could skim money, and directed all actual monetary transactions to be conducted through a central repository (usually Black Knight).

Black Knight became that central repository, and the only place where transactions with homeowners were handled through lockbox contracts, and where data was posted (usually through automation) to fictitious loan accounts that were not owned by anybody. Black Knight works for the Wall Street banks. But the bookkeepers were sent out to pretend to be servicing loans and to assert that they are servicing on behalf of the anmed claimant who (a) did not exist and (b) never legally owned any underlying debt, note or mortgage.

“Servicers” access only certain restricted data through login crednetials on Black Knight servers. A change of servicers only means that someone new has a login credentials of a username and password (same as MERS). The data, like the debt never actually moves. But lots of time, energy and money is devoted to create the illusion of the movement of data.

Enter the GSE’s, VA, etc. who are all managed by bureaucrats who don’t have single clue about any of the above facts. they simply rely on information received from the bookkeepers (servicers) who just a front for Black Knight behind which the Wall Street banks are hiding.

So what exactly is owned or guaranteed by these behemoth entities that are being played like personal fiddles of Wall street banks. It seems nobody knows and that everyone is relying upon information from shadow intermediaries (like Black Knight) to come to a conclusion. In other words, it means whatever Wall Street says it means. And THAT means that Wall Street is regulating government instead of the other way around.

All in favor of changing that, say “Aye!”

From “summer chic” —

“I want to share information re VA involvement in this scheme and how Black Knight/Fidelity  controls and operates our public offices.

Elle asked how this system works, here are some answers from  VA, but I think other GSE are similar. See links and document attached, it explains how this system works, at least from GSE side. Maybe Neil will post in on his blog, with more details.

Why I think its important? It provides format how loans are entered into GSE system and how Services do it. It can really help with discovery when you know exactly for  which document you are looking for;  who was the entry company; and when it happened.

In short, GSEs  (at least on lower levels) have no idea who are creditors or owners or investors. In fact, they know even less than borrowers.

They only communicate with “Servicers” via “servicing”  systems implemented by Black Knight/Fidelity from at least 2008.

In reality, I think they do not communicate with Servicers either, only can see someone’s input into their database. Everything is happening behind closed by BK curtains.
GSE have no ability to control or monitor any loans, they only rely on the data provide to them by Mr. Foley and Big Banks mob.

Fannie, Freddie and Ginnie do not buy, sell or assign anything from or to anyone. This data is entered in BK-operated system by other parties (their employees). GSEs can only see this data.

Maybe GSE’s employees get instructions from top management to assign a group of loans as a “sale of non-performing loans” to someone – but the actual sale did not occur. Read instruction manual, I found it yesterday and did not review in details yet.

BK  simply delete or disable this field on the system as “sold” – and reactivate or re-enter when they need it “to reassign” – by BK.

But GSE  pay Banks  money from our tax dollars and dump “non-performing loans” to private hedge funds with the click of a keyboard.

On August 4, 2020 I received two (2) identical  letters  of default from VA who informed me that my “mortgage company” reported to them my loan as “defaulted” and VA recommended me to contact my Servicer PennyMac to request for forbearance. The letter further said that my mortgage company is responsible for servicing of my loan.

VA further said that I can contact them at email provided to assist me to “understand” options I have available.

First, PennyMac is not my mortgage company. I never had any loans with PennyMac or any other agreements. I from day  one knew they are thieves.
Second, PennyMac is not my Servicer because they don’t have any information or proof of ownership of my loan and even cannot explain whom they servicing. After October 31st 2019 PennyMac is not even a member of Black Knight whose systems VA uses.

Without access to Black Knight’s database PennyMac cannot make any entries or report any changes.

So, I used the email to contact VA respresentative who is assigned to my loan and requested disclosures who is my creditor and whom PennyMac is servicing.

VA tech responded that VA letters were sent automatically (!) by VA who uses a shared system (VALERI, who utilizes servicing bureaus Mortgage Servicing Platform (MSP), Sagent (whose CEO is former BK/LPS/ServiceLink CEO) and former CEO is Fiserv (owned by Fidelity, as you see below)  and Servicers Web Portal SWP) which was created in 2008 by Fidelity.

Note that in 2009 VA used Fiserv/Fidelity as  their main servicing bureau. Later they switch to MSP/Sagent (Black Knight/Fidelity)
In 2020 Sagent apponted Dan Sogorka (LPS/ServiceLink CEO)  as their President to replace Bret Leech (former Fiserv CEO)

In other words, Black Knight sends letters of default, probably from different clouts of data (2 letters)  while PennyMac  “approve” forbearance without access to BK system.

In reality, my Black Knight uses PennyMac’s name in their system to defraud VA and Ginnie Mae and receive “servicer advances” under PennyMac’s name, after which they will send PM into a bankruptcy since PennyMac has nothing to do with GSE’s databases.

Big Banks need to keep PennyMac alive and appear as a Servicer until a bailout and foreclosures wave  – after which  it will be destroyed .

When I asked VA tech whom PennyMac is servicing and are owners/investors in this Trust – he responded that VA only has contact with Servicers, not with  other third parties . In other words, VA does not know who are investors and owners of the debt.

Which is very strange for any person with common sense because  GSEs cover missed payments to someone whom they do not even know.

I asked VA tech to contact PennyMac and ask whom they are servicing and who is the creditor.

Lets see which lie PM is going to supply this time.
I hope it helps.

Here is a link to another brochure

The VA Loan Electronic Reporting Interface (VALERI) is a web-based system that supports VA employees and servicers operating inthe new regulatory environment. As a VA loan servicer, you are required to report certain events to VA according to 38 CFR 36.4817.There are two methods of reporting events to VA. The first method is via a direct connection to VA (typically for servicers that use a service bureau such as Fidelity MSP or Fiserv-Mortgageserv). The second method is to report all loan servicing events through theVALERI Servicer Web Portal (SWP). This method is used if you do not have a direct connection to VA.This document has been developed to provide you as a VALERI Servicer Web Portal user, with guidance on how to manage your loan portfolio using the SWP. This is a quick reference guide only. Please refer to the VALERI Servicer Guide for in depth information on event definitions, reporting timeframes, data elements, and post-audit documents.This document describes how to:ƒLog into the SWP.ƒAssociate loans in VALERI to your company.ƒReport necessary events on “Day One.”ƒReport events in the SWP after “Day One.”ƒAccess VALERI reports.

*Neil F Garfield, MBA, JD, 73, is a Florida licensed trial attorney since 1977. He has received multiple academic and achievement awards in business and law. He is a former investment banker, securities broker, securities analyst, and financial analyst.*


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  • But it is also true that challenging the “servicers” and other claimants before they seek enforcement can delay action by them for as much as 12 years or more. 

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4 Responses

  1. Neil and Friends,

    We see how the fraudulent lenders, banks, financial institutions, and “Servicers” get paid in this scheme. But… how do the lawyers and law firms get paid in this scheme? Someone has to be paying their fees. Doesn’t it make them culpable in the fraud too? Shouldn’t they face charges of conspiring with the others to defraud homeowners and the Court?

  2. Very informative Neil.

    And QUOTE – – “At first these double foreclosures were not noticed because in nearly all cases, the homeowners simply cleaned up , left their keys on the kitchen counter and left the house because they “knew” they were in “default” (but did not know the loan account no longer existed).” — THIS is very true.

    But — I never defaulted — AND – I am nevertheless reported in default to TWO “BS” TRUSTS —- it was called “LIQUIDATION.” No one expected anyone to pay by check — and have the cancelled check. Sometimes — high tech “wire” is an avenue to conceal and good old fashioned way is better. Not that that got me anywhere though. NO TITLE. And, -not MERS – dropped at last previous “liquidation.”

    Liquidation is liquidation.

    Hammer — this all happened on the Democrats clock. Agree, Trump did nothing to expose it. Had he been smart -he would not have appointed Mnuchin or Ross and he would have called for an immediate investigation into the Democrat concealment. He was not that smart. Now stuck — he followed the crowd.

  3. Great post. Need a counter wave of complaints against non banks and all the white collar, white nationalist criminals. Stop the Trump and Wall Street dictatorships!

  4. Hmmmm. ….. I guess Black Lives really do matter, when dealing with who is hidden in Fraudclosures !!!!

    Black Knight.
    Black Rock.
    Black Stone.

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