Why it is important that it is not PennyMac or Ocwen etc. (It’s usually Fiserv)

The biggest problem for nearly everyone viewing these pages is that besides the legal and financial jargon, the concepts are difficult to understand. So I keep getting questions and comments that basically amount to “So what” What difference does it make whether the named servicer is performing those functions or it is someone else?”

The simple answer is that if you want to keep your home, or if you want to pursue the real gold in the deal you signed, then understanding the difference is key to a successful conclusion. One of my contributors just wrote to me (I can’t remember which one) that she finally got it: this has been all about selling certificates and debt collection — without the debt. She’s right. And why should homeowners be making scheduled payments on a debt that not only does not exist but should not exist?

If you were paid to execute and issue instruments that were part of the sale of certificates to investors, then why should you pay it back, much less with interest? The sales and trading of those certificates and other derivatives based on the existence of those certificates results in at least $12 for every $1 paid to homeowners at “closing.” So homeowners were paid 8% of the deal. But if they are required to pay that back then they’re paid nothing —- and if they are also required to pay additional money (falsely labeled “interest”), they are paid less than nothing.

So some of our intrepid contributors, Summer Chic especially have been pressing the issue. and she has squeezed out some admissions that are very revealing and which regulators as usual are ignoring. So here is what I wrote to her about pressing further:

I think you need to get their attention by starting off with something they might care about. Everything you’re saying is correct but I think it would have far more punch if you said that you believe you have uncovered civil and criminal acts of conspiracy conducted for profit and that the representations we have all previously taken as true are not true. Specifically, you have been subject to claims by PennyMac that it was either the owner or servicer of an unpaid loan.

Correspondence, statements and notices were sent to me not by PennyMac but by another company, Fiserv, who is a payment and ATM processor. Based on what they now admit, and my research, FiServ receives, processes, and accounts for payments from homeowners, depositing the money into an account controlled by an investment bank that uses it not to reduce the balance of any claimed loan account, but as operating capital.
But it is PennyMac whose name is used to present evidence in a court of the right to administer, collect and enforce the alleged loan. And it is a “representative” (robowitness) who provides testimony that is intended to establish the existence of PennyMac business records in order to justify foreclosure.
There are no PennyMac business records related to receipt, processing, or disbursement of payments received from homeowners. All of that data is input by Fiserv people and systems. Fiserv work is NOT contractually governed by any relationship with PennyMac.
This enables investment banks who have no financial stake in the alleged loan to control and receive the money, instead of whoever is named as a claimant in any attempt to administer, collect or enforce the alleged loan. It is the keystone in setting up an infrastructure of sham conduits to conduct debt collection activities on what is probably a non-existent debt — i.e., there is no company or person who maintains a loan account receivable due from the homeowner to anyone. There are only reports issued by PennyMac that are claimed to be “servicer” reports of activities never performed by PennyMac. 

There is not a single “REMIC Trustee” foreclosure in which the REMIC Trust or Trustee has ever received a single penny of homeowner payments or proceeds from the forced sale of their property. It does not happen and it is not intended to happen. the money from foreclosures is distributed as compensation to multiple foreclosure players.
This is vitally important in court if you know what to do with it and it completely accounts for why there are major battles over discovery on items that before the era of “securitization” were routinely delivered to the homeowner or their attorney upon request. The reason is simple: If they open the door to discovery and release all the information required by statute, then they will reveal the absence of any existing unpaid loan account receivable on the books of any creditor.
In order to sell the data from homeowner transactions multiple times, they had to avoid the fraudulent practice of selling the same transaction multiple times. That meant there was no sale and frequently no funding at all even at origination and even though homeowners were led to believe that money had exchanged hands. But in order to “enforce” the nonexisting “loans” they had to create the impression that the loan not only existed but was being bought and sold in the “secondary market.”
Those “sales” never occurred. And that is why the entire industry turned to the fabrication of false, forged, backdated and robosigned documents to create the illusion of a loan market when in fact they were trading in deception.
  • Fabricated because there was no purchase and sale of the debt, note or mortgage.
  • False because it reported a transaction that never existed.
  • Forged using stamped or mechanical signatures so nobody could be pinned with signing it
  • Backdated because they were constructing an alternate fact universe in retrospect
  • Robosigned using stamped or mechanical signatures so nobody could be pinned with signing it

The grotesque error of the last 4 presidential administrations — Bush, Obama, Trump, and Biden — is the failure to reign in the banks and to allow them to compound the fractures they caused in our society.


Does that help?


Nobody paid me to write this. I am self-funded, supported only by donations. My mission is to stop foreclosures and other collection efforts against homeowners and consumers without proof of loss. If you want to support this effort please click on this link and donate as much as you feel you can afford.

Please Donate to Support Neil Garfield’s Efforts to Stop Foreclosure Fraud.

Neil F Garfield, MBA, JD, 75, is a Florida licensed trial and appellate attorney since 1977. He has received multiple academic and achievement awards in business, accounting and law. He is a former investment banker, securities broker, securities analyst, and financial analyst.
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But challenging the “servicers” and other claimants before they seek enforcement can delay action by them for as much as 12 years or more. In addition, although currently rare, it can also result in your homestead being free and clear of any mortgage lien that you contested. (No Guarantee).

Yes you DO need a lawyer.
If you wish to retain me as a legal consultant please write to me at neilfgarfield@hotmail.com.

Please visit www.lendinglies.com for more information.

2 Responses

  1. Will there ever be a U.S. President who will rein in the banks? What are they afraid of is the President really not in charge?

  2. Neil
    Your articles are making it clearer and clearer how banking and money operates.

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