Homeowners need to understand that they are investors, not borrowers.

In nearly all cases that the amount of money paid to a “prior lender” is entirely or mostly fictional in all cases of refinancing and nearly all cases in purchase money mortgages. As long as the same underlying investment bank is the same for both the Buyer and Seller or the same for both the new “Lender” and the old “lender.”
But in cases where the Seller gets money (equity) at least some money is actually produced for closing. And as long as the refinancing produces cash to the homeowner, some money is actually produced at closing. So for example, if the Seller nets $50,000 from the closing statement, that is what the Seller receives and the Seller does not care where it came from. If the homeowner receives $50,000, that is what the homeowner receives and the homeowner does not care where it came from — because the homeowner does not know that he or she has been surreptitiously recruited into a scam plan for the sale of unregulated securities.
BUT remember that each new “closing” produces a brand new securitization chain. In plain language, if the investment bank is selling securities worth $12 for each dollar that is reportedly paid in “closings,” then each closing represents another $12. So if you have an alleged purchase money mortgage plus 3 refinancing transactions, the total generated could be as high as $48 for each dollar reported as paid in all the closings. Those “reports” of payment are also entirely fictional insomuch as they include money that was NOT paid.
So a $200,000 mortgage represents the base transaction in a $10 million scheme. This is why so many people on Wall Street received bonuses equal to three times their previous annual earnings. It is also how convicted felons who had $10 per hour jobs earned upwards of $1 million per year. It was a heist. Most of that money went to investment banks who then scattered the funds all over the world. They are still sitting on trillions of dollars.
If homeowners were only allowed the minimum “introductory fee” (common on Wall Street that would mean that the homeowner was entitled to receive a $200,000 payment in exchange for issuing virtual notes and virtual mortgages and the homeowner’s consent to treat them as real.
What makes me burn is the idea that the players can get back the money they paid to homeowners without any consideration for their role in an undisclosed transaction that can no longer be unwound. In such instances, it is up to a court to “reform” the transaction to reflect the economic realities. But NOBODY is doing that. I think there is a strong case for that. The investment banks don’t want to do that because they refuse to share with lowly homeowners.  And the courts are both brainwashed and somewhat corrupt because they are accepting “instructions” about mortgage cases.

But the courts are NOT corrupt in the sense that most people keep saying. And that is why I have won so many cases, and other lawyers have done the same. They all start out with bias but they CAN be turned.

3 Responses

  1. PennyMac is a renamed Countrywide Financial. They do absoltuely nothing regarding servicing except rent their name for a fee to 15+ secretive compnaies who do all the work under “PennyMac’ name

  2. While all this may true, it does not change the system or courts. First, Wall Street is not just downtown NYC – it is all over world. And what we say to our U.S. government is not what they can or will relay to the rest of the WS world. That would put them in a horrible position. Second, the loans originally came from the GSEs – not WS. When PLMBS happened — the “Crisis” loans then went to WS but in a form that is NOT in “Mortgage” form. Third, you can’t, or should not have multiple lenders — how would that be possibly prorated? It can’t. So when you got your refinance (or purchase – most in crisis were refinances) — it could NOT be the same “LENDER” as nearly 100% of the PLMBS fake trusts had multiple security underwriters. SO that is out as to the “New Lender” and “Old Lender” being the same. Of course, according to Fed Res Opinion on Dodd Frank changes to TILA — beneficial security investors do NOT lend money and are NEVER the holder of mortgages. So you have one trustee – who knows nothing — which is against all American law. A “trust” itself is nothing but a shell — no financial accounting – and the only records are supposed to be what the claimed servicer sends them. But the claimed servicer sends nothing. And, the trustee distributes nothing to claimed security investors — who own and hold – NOTHING (their claim to false derived cash flows was “paid-out” by TARP) . But, again we live in a global world where WS is found all over. And, U.S. claiming no debt to a foreign entity — well, that won’t be taken lightly. So the issue becomes — if you are in any crisis trust or with any servicer (who is actually a debt collector for invalid PLMBS) — who is your LENDER? You don’t have one. Nothing funded — NO LENDER and tile corrupted. Because if no Lender — no entity can “discharge” or claim satisfaction for ANY mortgage – because there is none. This gets passed onto the entities who are NOT WS but, rather, unregulated debt buyers who never show their face in violation of the few consumer protection laws we have. You don’t owe the world. There can be only ONE successor Lender. We don’t have a Lender at all. Courts? Clueless because our government is in a big predicament. — Save face – or make sure courts cooperate with continued scheme. The latter is what happened and continues to happen. We are not investors — we are victims of massive financial fraud.

  3. PennyMac tied to Countrywide, WaMu but also Chase looks like from recent posts.

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