The elephant in the living room: Is the “free house” a windfall or simply just compensation for being drafted into a concealed securities scheme?


I have been beating around the bush too long. In my opinion, rejection of a claim for foreclosure from securitization players is not the equivalent of any windfall for any homeowner. It is merely an acknowledgment of payment for services rendered by the homeowner. The reverse is true: allowing foreclosure to securitization players results in a windfall payment to those players without any corresponding reduction of any “loan” account receivable.

If you send a QWR or DVL out, you are sending it to someone who has no relation to your loan, thus allowing the other players to claim plausible deniability for all the lies you are about to be told. The response is gibberish and in total is the equivalent of “because we said so.”

I might also add that they never assert that the loan account is owned by anyone despite their protestations to the contrary. They often do not identify the originator (like “America’s Whole Lender”) as a legal person or business entity. If it is not a legal person it cannot be a legal person who is the principal in an agency relationship with MERS. People forget that “nominee” means agent.

In lay language, the question is “who do I ask?” What is the name of the company that claims ownership of my underlying obligation resulting from payment of value?
My opinion is that they don’t say it because nobody does. And nobody says it because there is no person or business entity that has any confirmable entry on its ledgers showing payment of value in exchange for a conveyance of ownership of the underlying obligation.
This is not a technical objection. It is completely and utterly substantive. Without payment for the obligation, nobody can claim a loss. They can’t claim a loss because there is no loss. Without a loss there can be no remedy. 
The securitization players offered securities to investors, the proceeds of such sales going to the investment bank who in turn distributed the money to the other players including “borrowers.” Without those securities, there would have been no transaction. But as a result of issuing and selling those securities — and then derivatives of those securities—  the revenue from the sale of securities was in excess of 12  times the amount of the homeowner transaction. {Don’t ask me to justify that — ask ANYONE in the industry if that is not true}
Nobody wanted to be a lender who would then be accountable for violations of lending laws.  So they made sure there was no lender. We are all going down the same rabbit hole when we refer to the homeowner transaction as a loan. It was a payment to get the homeowner to execute documents that were labeled as loan documents — a payment that had to be returned, leaving the homeowner with no compensation for his/her role in generating so much revenue.
In fact when you factor in payments labeled as “interest” the homeowner receives negative compensation. Viewed from that perspective the homeowner is paying for his own execution.

Everyone is shying away from the elephant in the living room. What is so bad about the homeowner getting a “free house” in the context of a larger scheme that produced so much revenue to everyone except the homeowner?

If it was a loan, then there would be a lender with a risk of loss and who was accountable for compliance with lending laws — particularly those requiring disclosure of compensation and revenue arising from the execution of the documents.
If it was a loan, then there would be a lender who was a stakeholder — i.e., someone who retained risk of loss and intent for the transaction to be performed and successful.
Instead, homeowners got no lender and not even a clue as to who they did business with nor the true extent of revenue and profits generated from what was in reality, simply a securities scheme with no substantive characteristics of a loan.
Instead, the homeowner was left with a nonlender who had no role in underwriting the viability of the loan contrary to the express requirements of TILA. In fact, and again contrary to the express requirements of TILA, the homeowner was left with nobody who had any stake in the viability or performance of any loan.
To add insult to injury, the securitization players had substantial financial incentives to steer borrowers into nonviable loans against which the players bet would fail — this producing even more profits.
So tell me again why this is a loan. And tell me why the compensation that the securitization players chose to give to the homeowner should not be retained by the homeowner. And while you are doing that, tell me why the consideration for drafting the homeowner into a concealed securitization scheme should not be expanded.
But don’t tell me you can foreclose and evict a homeowner just to get back the only consideration he/she ever received from you. That’s not capitalism. It is a fraud.
PRACTICE HINT: At the very start be confrontative. When opposing counsel says “Your Honor, this is a standard foreclosure,” you should interrupt and object saying that the face of the complaint or notice shows that this is not a standard foreclosure and it may not be a foreclosure at all if they can’t produce a creditor. Drill in the defense narrative wherever you can create the opportunity. 
Remember that you are not just looking for securitization language. You are also looking for securitization players. If the foreclosure is on behalf of Citi, PennyMac or BofA, those are securitization players. Just because they don’t refer to securitization does not mean that they are holding a ledger showing their payment for the debt and maintenance of a current asset account against which they are claiming a loss. If you don’t understand what that means, go talk to a CPA.
Neil F Garfield, MBA, JD, 73, is a Florida licensed trial and appellate 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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4 Responses

  1. Posted this elsewhere. Everyone should contact newly elected young congresswoman – Kat Cammack. See her story. And no thanks to Obama. Will post this elsewhere too. Time to wake up.

  2. The Elephant in the Room is Federal Reserve (aka Big Investment Banks who own Federal Reserve as their common operating pool); Depository Trust Corporation (DTC) , a self-regulated member of Federal Reserve who issue all securities in Street Name; Cede& Co, which consists of certain employees of DTC the sole beneficiary for these securities who sell Investors some “beneficial rights”; and Fidelity National Financial (owner of Black Knight, Inc and a bundle of Title Insurance companies) and First American Finance, partner with CoreLogic, Inc and owner of First American Title.

    This is it. And a bundle of Pension Funds and Investors to pay for thin-air information about some certificates which none of these investors are not even allowed to have, see Ginnie Mae Prospectus below.

    Here is how it works.

    A potential home buyer approach a purported “independent” Lender (non-existing in totally monopolized housing market by Federal Reserve owners) .

    The “Lender” collects borrowers personal information and pass it via web Empower (Black Knight) or some similar platform with CoreLogic, to Big Banks EACH of whom operate a separate scheme with the same borrower’s identity.

    Big Banks who have common operating pool (which based on all evidence handled by Federal Reserve) pass borrowers a one-time payment for their secretive participation in securitization scheme which is not disclosed in any documents (Mortgages contain a standard provision that Notes or part of Notes can be sold – but they are never SOLD to anyone) . Real Partiers are not disclosed either.

    Big Banks and GSEs who cover for this fraud usually issue a Prospectus based on forward-looking statements we “WILL” create a Trust which WILL purchase mortgages which SHALL be pooled into the Trust which WILL issue securities and other empty bla-blas.

    The one thing in common – ALL securities will be issued via DTC in book-entry form.

    Investors pay trillions of Pensions money to by forward-looking promises of Investment

    After Borrower (aka Initial Issuer of Security called Promissory Note perform their part of the Contract – thinking that they borrowed someone’s money and that an independent Lender will sell their mortgage to someone to generate more money (which is a lie) – their personal DATA and information about loan is scanned and placed in form of images with Black Knight MSP and or CoreLogic’s VendorScape – who are the actual Servicers who coordinate collection of money from homeowners via lockbox agreements with Transcentra/Regulus, which are processed by Federal Reserve for a benefit for its Members .

    All collections, foreclosures and coordinations of trades are done by Black Knight and CoreLogic whose other branches defraud homeowners with fictitious “Title Insurances” via sham conduits who pose as “issuers”.

    Self-proclaimed “Servicers” such as Caliber, PennyMac, Ocwen, ect – have nothing to do with any servicing or collection activities – their duties are merely to pretend to be the actual parties who “own” someone’s obligation and help Black Knihgt and Coreogic to push people into defaults by any possible means – junk “insurances”; bogis “fees” non-existing “deficiencies, ect.

    In the meanwhile, IMAGES with INFORMATION about perfomance of someone’s loan are traded by multiply parties at the same time, and EACH of them receive a windfall of profits by selling thin-air backed virtual certificates which do not even physically exist, to investors

    Homeowner, in the meanwhile, are convnved that they repay someone some debt, return their only compensation for services to Federal Reserve Banks – with interest, which I consider as a most cynical type of slavery ever existed on the Earth.

    Plus give up their home when Black Knight and CoreLogic push them in non-existing “defautls”

    Neil posted excellent article re GSEs lies to investors

    I want to share an older Ginnie Mae Prospectus as well as some articles from Wall Street on Parade who said that Federal Reserve entrusted JP Morgan over $2 Trillion of so-called “GSEs Mortgage Backed Securities”

    Most people do not realize that Federal Reserve and Big Banks are THE SAME organization which wants to look different in the public eyes.

    While Big Banks massively defraud the World, Federal Reserve acts as A Savior – while no one of Federal Reserve owners ever suffered any damages for all crimes.

    Very typical structure for any criminal scheme.
    American Government does not issue currency – PRIVATE Federal Reserve aka Big Banks do

    According to Wall Street on Parade, FR started to secretly give “bailouts” to Big Banks.

    But since Big Banks ARE Federal Reserve it can only mean that their Ponzi Scheme collapsed around June -July 2019 (as I said before) and some Investors (my guess – China) – demanded their funds back . So Banks urgently needed money to keep it under the table and took it from their OPERATING POOL (a common fund for organized criminals) – which is held under name of Federal Reserve.

    Next we know – China was “originator” of COVID which diverted all public attention from Banks and which was blamed for the total collapse of the economy,

    The Govenment gave people a bare bone – extension of returns of compensation for financial services named “mortgages” – and just wait until this moratorium will expire to flood all courts with illegal foreclosures – which are a live hood for Federal Reserve scheme.

    When Federal Reserve purportedly started to “buy” “MBS” notes from GSE’s – none of us was informed about this drastic change of ownership.

    Now it appears that Federal Reserve assigned its over $2 Trillion GSE’s MBS to JP Morgan – who IS the Federal Reserve.

    But Feds did not buy any MBS certificated from GSEs who have nothing to sell. As you can see below, ALL securities are held by financial intermediaties via Depository Trust Corporation owned by Federal Reserve. Thus, Federal Reserve (aka Big Banks) always hold these securities and sell IMAGES about performance of securitized DATA to many other investors.

    When some investors demanded their funds back, Feds merely turned a switch on their DTC/Cede platform to change name “Ginnie Mae” with “JP Morgan” who in turn will use Black Knight’s MSP to “assign” non-existing mortgages into non-existing Trusts and send their fake “Servicers” to all Courts with forged documents about non-existing transactions.

    Based on ALL evidence money for funding so-called “mortgages” are coming from the Common Pool operated by several banks (aka Federal Reserve) and securitization schemes with borrowers DATA about the SAME mortgage is traded by several players who have membership with DTC at the same time. This is how Ponzi Scheme with derivatives went well above $1.2 Quadrillion

    SAME data about SAME loan is traded hundreds of times by different players.

    I found 2004 Ginnie Mae’s prospectus, all the same parties, Federal Reserve.

    Ginnie Mae will guarantee the timely payment of principal and interest on the Securities.

    The Trust and its Assets The Trust will own a Ginnie Mae Platinum Certificate

    The Securities will be issued in book-entry form through the book entry system of the U.S. Federal Reserve Banks

    The Mortgage Loans underlying the Trust Asset will have, on a weighted average basis, the characteristics

    Each Class of Securities will be issued and maintained, and may be transferred only on the Fedwire Book-Entry System. Beneficial Owners of Book-Entry Securities will ordinarily hold these Securities through one or more financial intermediaries, such as banks, brokerage firms and S-8 securities clearing organizations that are eligible to maintain book-entry accounts on the Fedwire Book-Entry System.

    Distribution Amount will be distributed to the Holders of record as of the close of business on the last Business Day of the calendar month immediately preceding the month in which the Distribution Date occurs. Beneficial Owners of Book-Entry Securities will receive distributions through credits to accounts maintained for their benefit on the books and records of the appropriate financial intermediaries.

    So, INVESTORS do NOT hold ANY securities. Not mortgage backed or non-mortgage backed.

    NONE. It all held by financial intermediaries who have absolutely no relationship to any loans.

    This is why INVESTORS legal cases are usually tossed by the Courts, maybe with some minor settlements.

    Investors actually knew that they are buying nothing but hopes to be paid even though their hopes were based on “may” “will” and “ifs” . Investors do not even have standing to sue since they do not own their securities. Financial intermediaries do.

    Sponsor: Goldman, Sachs & Co.
    Co-Managers: Greenwich Capital Markets Inc. UBS Securities LLC Bear, Stearns & Co. Inc. Deutsche Bank Securities J.P. Morgan Securities Inc. Banc of America Securities LLC Citigroup Global Markets Inc. Countrywide Securities Corp. Merrill Lynch & Co. Inc. Morgan Stanley & Co. Inc. Credit Suisse First Boston LLC Nomura Securities International, Inc. Lehman Brothers Inc. Trustee: U.S. Bank National Association Tax Administrator: The Trustee Closing Date: July 30, 2004

  3. UNSECURED DEBT. Cannot be Fraudclosed against. Simple. Just Follow the law !!!!!!
    (Although of course, that might collapse the Ponzi that is keeping this Bubble economy going). But if they don’t have to follow the law, than 300 million others will eventually realize they don’t have to follow the law either. Tick Tock. Tick Tock.

  4. What is explained here is violation of the FDCPA. But, it will not cure title to the property. Meaning, even if you beat the foreclosure, and stop the sale, you will still not own the property. Someone extended “credit” without a creditor. That is FDCPA violation — and that means – you never had a mortgage to being with. THAT is how you restore title and ownership to your property. Only problem is – FDCPA has a short one year SOL.

    If there is no Lender, no consideration, that does not mean you still do not owe a debt. Until you find out to WHO that debt is owed, the debt stands. So the objective here, to me, is to show you have an unsecured debt to an unidentified creditor. It is not the “loan” that is an asset — it is the property that is an asset. And, change of debt collector does not change recorded property ownership — which was recorded before you signed on the dotted line.

    So great advice from Neil — but, needs to go a step further.

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