there is no incentive for the homeowner to sign the absurd documents falsely declaring that the transaction is a loan and that the counterparty is a lender. The homeowner is only left with financial loss and prospective loss of property, possession, quiet enjoyment and lifestyle.
At the conclusion of the transaction with a homeowner, the homeowner is left without a lender, without lender compliance with lending the laws, and without a loan account. There is no possibility of settlement or modification except on a random arbitrary basis as ordered by the investment bank that controls the securitization process without ever loaning money, buying loans, or owning debt.
The counterparties to his or her transaction have an incentive to inflate the appraisal and overstate the viability of the loan in a fake underwriting procedure. The homeowner is providing the sole basis for the launch of a securitization scheme that will generate $12 for every dollar transacted with the homeowner. The fee, therefore, is the money received by the homeowner which is about 8% of the scheme. But the lie about the “Loan transaction” lures the homeowner into paying back the fee plus interest and fees.
So the bottom line is that the homeowner is assuming risks that are outside of any normal loan transaction. This includes the immediate loss associated with the inflated appraisal and the future loss generated by terms and conditions that are only understood by the investment bank that controls the securitization process. Further, the homeowner is getting negative consideration because he or she is required to pay back the fee with interest and fees involved in the fictitious servicing of the “loan” account.
The remote sellers of these warped financial products are already offering absurd incentives if one were to use the perspective of a loan transaction. They will pay everything including your first few payments. And practically every service provider and every sale of every product involve a concurrent or offer of fictitious credit funded by a securitization scheme in which securities are issued but no securitization of death ever occurs.
Instead of paying people who were felons convicted of economic crimes to sell these financial products, the incentive payments should go directly to the homeowner. It is the homeowner who is assuming all the risks. Nobody fails to receive an expected payment that is legally due regardless of whether or not the homeowner makes a scheduled payment.
The securitization scheme resembles artwork by M.C. Escher who famously created a work called Penrose Staircase or “the impossible staircase.” Without the homeowner agreeing that this is a loan transaction and agreeing to make payments there can be no sale of securities that are referenced upon the data of that transaction, regardless of the ownership of the “rights” supposedly acquired in that transaction.
But it isn’t a loan transaction. Since the homeowner is the unwitting participant in this endless series of fabrication and deception, they should be paid for it. If the homeowner is going to agree to pay back a certain amount of money, then in order to grant the homeowner some consideration for participation in a highly profitable securities sales scheme, he or she should get much more money (another 8%)?) Without that there is no incentive for the homeowner to sign the absurd documents falsely declaring that the transaction is a loan and that the counterparty is a lender.
The homeowner is only left with financial loss and prospective loss of property, possession, quiet enjoyment and lifestyle.
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Blessings
Well what do ya know finally got it right … yea.. it took what 15 years??
The ONLY purpose of each “home buying” is a default and foreclosures to refuse payments to investors
This is the only way to steal all fees paid to the homeowner plus the property and refuse to pay investors due to “homeowners’ failure to pay” and expose them to public schame. Which is clearly a defamation of character.
Wall Street fascists start to create “defaults” as soon as “loan transactions” are signed. One of most favorite methods is a fabricated by Black Knight “deficiency” (sometimes as high as 15-20K! ) plus increased “monthly payments” (aka returns of fees) which guarantee a “default” for which homeowners will blame themselves.
Second, a “refinancing” under predatory terms. Third, various junk “insurances”
https://www.nj.com/coronavirus/2021/06/gov-murphy-officially-ends-njs-covid-health-emergency-here-are-the-powers-he-loses-and-keeps.html
Looks like the Blue States are extending the moratorium until 2022. It’s good to see a small start. Now what’s the Federal going to do ???
How true to all. And there were many players. THAT is the problem. Government can only focus on one at a time. Thus, they did nothing.
Excellent article again Neil – thanks!
“The homeowner is only left with financial loss and prospective loss of property, possessions, quiet enjoyment, excellent stellar credit, loss of purchasing power, lost opportunities, lost time never regained and lifestyle.” How true.
And just Imagine putting down $100,000 hard money deposit to get yourself caught in this web of deception.
Ken Lewis I’m looking at you. And now Mitchell Samberg I’m staring hard at you.