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Suit Filed Incorporating Agency Sanctions and Consent Decrees from Last Week

“And most importantly, Fagan goes again to the heart of the securitization illusion, the falsity of the presentations made to both investor-lenders and homeowners, and the manner in which the “fair market value” was intentionally misstated to justify the inflation of the “value” of the bogus mortgage bonds sold to investor lenders. The importance of this attack cannot be overstated — because it debunks, once and for all, the myth that greedy unscrupulous borrowers caused this mess. It states unequivocally that the value of the property was intentionally overstated to induce Fagan and millions of other borrowers in more than 80 million “loan” transactions to assume that the value of the property was worth far more than the value of the loan product they were purchasing from the mortgage broker and mortgage originator. Neither the investor-lender nor the homeowner would have even considered the possibility of entering into this transaction without the value of the property being real — as the ultimate protection for the investor-lender and the homeowner. This is why the reduction of principal is no gift. It is merely a correction that is due to BOTH the investor-lender and the borrower.”

Barry Fagan v Wells Fargo Bank SC112044 OBJECTION TO DISCLAIMER AND DECLARATION OF NON-MONETARY STATUS OF T.D

Barry S. Fagan v Wells fargo Bank Complaint with Exhibits-1

Barry Fagan v Wells Fargo Bank SC112044 REQUEST FOR JUDICIAL NOTICE OCC CONSENT ORDER & PROOF OF SERVICE 4 21 2011

1. The first thing that is important to note is the identity of the defendants sued by Fagan: Besides Wells Fargo, he names American Securities Company, T.D. Service Company and Ebert Appraisal Service Inc. He thus sets the stage for attacking the reality of the transaction he was tricked into. Naming the Service Company and the Appraisal Company is different from what most people are doing and he really pursues both them and the service company that initiated the foreclosure proceeding.
2. The second thing of importance is the filing of the objection to disclaimer of non-monetary status of T.D. Service. This is the first time I have seen someone “get it” and realize that T.D. or any company that initiates foreclosures is probably controlled by one of the Wall Street bankruptcy remote shells, and is NOT a party without an interest in the outcome. That is why we see substitutions of trustee every time there is a foreclosure. Why is that necessary — precisely because, as Fagan points out, that an arm’s length company with no interest in the proceeding would never do what T.D. is doing because of the potential exposure to liability — and because T.D. and others like it are siphoning off the money that could otherwise go to the investor-lenders.
3. As I  have repeatedly said, the consensus of lawyers is that without objecting to EVERYTHING you are conceding that there might be a shred of legitimacy to what is clearly a completely fraudulent claim, fraudulent foreclosure on a fraudulent mortgage securing a fraudulent note. Fagan accuses TD of proceeding despite their knowledge that Wells Fargo was not the creditor, not the real party in interest, lacked standing, had no money in the deal, was not the lender and never purchased the receivable.
4. In addition Fagan, obviously knowledgeable about the actual procedures in use, thrusts his litigation dagger into the heart of the matter by alleging that the person signing the papers, besides lacking authority, lacked any knowledge of the transaction, and had no way of knowing the identity of the real creditor except that Wells Fargo is plainly eliminated as a real creditor.
5. Lastly, Fagan attacks at the Achilles heal of the securitization illusion: that the transaction occurred between the borrower and an undisclosed creditor, that the closing documents reflected none of the realities of the real transaction, and that no attempt was made to conform to the the requirements of the pooling and service agreement regarding the transfer of the receivable, the note (fatally defective anyway) and deed of trust (fatally defective anyway). He specifically names for example that the alleged assignments, even putting all the defects in the instrument itself aside, is executed far past the cut-off date stated in the pooling and service agreement. This creates a double violation of the PSA, to wit: that the assignment needs to be recorded or in recordable form within 90 days of the creation of the pool, and the “asset” must consist of a rel asset meaning one that is performing and not in default.
6. Any reasonable person can understand that the rules accepted by the investor-lenders were that they would be receiving performing loans complying (as per the PSA) with industry standard underwriting guidelines, and within the time periods prescribed by the PSA. Otherwise the investor-lender has advanced money for nothing, which is why they are now all suing the investment banks and NONE of the investors is making any claims against the homeowners; in fact the investors are alleging the mortgages were bad from the beginning and are unenforceable. SO we have the actual lender agreeing with the actual borrower that the real transaction is not the reference point of the closing documents and therefore the closing documents are merely part of an illusion of underwriting mortgages and securitizing them, neither of which actually occurred. 
7. The next thing to note is that Fagan filed a verified complaint — requiring in California, a verified response. This  puts the other side at jeopardy for perjury prosecution because if Fagan is right, and I am sure he is, none of these parties can file a verified response which would require the signature of a competent witness. A competent witness is one who takes an oath, has personal knowledge through his/her own senses of the facts or statements alleged, has personal recollection of those facts and is able to communicate that knowledge. 
8. Fagan also includes a compelling argument and pleading for quiet title that I recommend reading and using for those in like situations.
9. And most importantly, Fagan goes again to the heart of the securitization illusion, the falsity of the presentations made to both investor-lenders and homeowners, and the manner in which the “fair market value” was intentionally misstated to justify the inflation of the “value” of the bogus mortgage bonds sold to investor lenders. The importance of this attack cannot be overstated — because it debunks, once and for all, the myth that greedy unscrupulous borrowers caused this mess. It states unequivocally that the value of the property was intentionally overstated to induce Fagan and millions of other borrowers in more than 80 million “loan” transactions to assume that the value of the property was worth far more than the value of the loan product they were purchasing from the mortgage broker and mortgage originator. Neither the investor-lender nor the homeowner would have even considered the possibility of entering into this transaction without the value of the property being real — as the ultimate protection for the investor-lender and the homeowner. This is why the reduction of principal is no gift. It is merely a correction that is due to BOTH the investor-lender and the borrower.

Filed under: bubble, CDO, CORRUPTION, currency, Eviction, foreclosure, GTC | Honor, Investor, Mortgage, securities fraud | Tagged: appraisal fraud, borrower, damages, disclosure, FAGAN, foreclosure, foreclosure defense, foreclosure offense, FORMS, fraud, investor-lenders, investors, Lender Liability, lenders, Pleading, predatory lending, quiet title, rescission, RESPA, securitization, TILA audit, trustee, Wells Fargo | 17 Comments »