Actual Fiction and Legal Fiction: Why the Big Settlements Are Not Reducing Borrower Debt

LIVING LIES: “It’s complicated. Giving the investors money was a pay down of the obligation owed by the investment Banks, not the Borrowers. It didn’t change anything in the trust.

But that begs the real question. The trust never owned anything to begin with. The trust does not exist as a legal person under any law of any jurisdiction simply because there is absolutely nothing in it. Therefore there is no law that could or would support any claim on behalf of a REMIC trust as a claimant in bankruptcy, a Plaintiff in judicial foreclosure or a beneficiary in nonjudicial foreclosure.

Yes it is that simple. But getting there is difficult particularly when dealing with widely held misconceptions of the facts. And failure to raise the point might in effect give the lawyers for “the trust” judicial standing for the purpose of that action in court.”

Source: Actual Fiction and Legal Fiction: Why the Big Settlements Are Not Reducing Borrower Debt

The Reason Why the PSA Becomes Part of the Loan Contract and Therefore the Borrower Has Standing to at Least Make Inquiries About the PSA Terms, Exhibits and Actual Workings of the Parties to It

LIVING LIES: “The bottom line is that every decision regarding payoff, collection, forbearance and foreclosure must satisfy the conditions of the alleged REMIC securitization.

The securitization is most often proffered in court in the form of a Pooling and Servicing Agreement (PSA) which in turn is supposed to have a Mortgage Loan Schedule (MLS) attached but the MLS is actually a fabricated document that didn’t exist when the PSA was created.

So if you want to settle a foreclosure, it must pass through several layers of approvals, and the authority for each level is in considerable doubt.”

Source: The Reason Why the PSA Becomes Part of the Loan Contract and Therefore the Borrower Has Standing to at Least Make Inquiries About the PSA Terms, Exhibits and Actual Workings of the Parties to It

Foreclosures and Evictions Grinding to a Temporary Halt

Besides giving the obvious relief to many homeowners facing dispossession from their homes, this provides homeowners with a unique period of time in which they can prepare to confront the participants who are pursuing schemes of illegal foreclosures. While most foreclosures and evictions will be suspended don’t make the mistake of thinking they are cancelled.…

Source: Foreclosures and Evictions Grinding to a Temporary Halt

The Real Story Behind Wells Fargo Scandals

So the question of the day is this: After tallying all of the Wells Fargo scandals why would anyone, much less a judge, accept the facial validity of documents knowing that the source of those documents had engaged in a long-term pattern of conduct that involved falsifying documents?

Why would any judge not insist on actual proof instead of allowing Wells Fargo to make use of presumptions based upon the apparent credibility of documents?

Good questions. So Judge, you follow this – can you answer these questions honestly? Are you compromised? Is (or was) your own mortgage with Wells Fargo? Are you invested in “preferred” (betting against the American Homeowners) MBS?

Source: The Real Story Behind Wells Fargo Scandals

Closely Watched Case on Disgorgement Could Have Effects on Foreclosure Litigation

There is nothing wrong with securitization. it has been the basis for capitalism for hundreds of years. You can argue about the flaws of capitalism but it is still the best system devised, so far, in human evolution. But theft is not capitalism.

Unfortunately the United States Supreme Court seems to be moving dangerously close the edge by allowing theft to prevail and the Securities and Exchange Commission is arguing with the court about it. For those concerned about the future of the country now i the time to start making calls to public figures and letting them know how you feel about this.

Source: Closely Watched Case on Disgorgement Could Have Effects on Foreclosure Litigation

In case you think I am making this stuff up….read this

Bottom Line: the consensus view that we are dealing with unpaid loans is false. There can’t be a default if all the players are getting paid and actually making money on the decline in the value of the loan data.

And those false pretenses included false or incomplete appraisals and other computations of viability of loans — a duty that is strictly put on the lenders (TILA) not the borrowers who as a matter of statute and public policy do not have the education, training skills or understanding of mortgage lending.

Source: In case you think I am making this stuff up….read this

Ex-OneWest Chief Surprises Wells Fargo With OCC Enforcement

On Thursday, the OCC banned former Wells Fargo CEO John Stumpf from the banking industry and fined him $17.5 million (13 million pounds) to settle charges he failed to put a stop to sales misconduct – the most it has ever secured from an individual. Among other former executives charged was retail banking head Carrie…

Source: Ex-OneWest Chief Surprises Wells Fargo With OCC Enforcement

Where are you George Bailey? You apparently are not in the White House…

Worth remembering.

Deadly Clear

In 2010, Meg Rehrauer, a J.D. Candidate at Northeastern University School of Law, wrote a memorable paper:


It’s Christmas 2 years later and we’re still reeling in foreclosures and frauds committed by the banks because America is stuck in the portion of George Bailey’s dream as if he hadn’t been born.

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The Eerie Similarities Between American Homeowner Foreclosure and the US House Impeachment Inquiry(s)

By Sydney Sullivan

For over a decade, American Homeowners have been fighting the corruption that stems from the banks to legislators and down through the judiciary… and all the way up to the top of the political chain. Mortgages and Notes were faux pieces of paper created after American Homeowners filled out Fannie Mae 1003 applications where their personal  information and properties were sold into securitization/rehypothecation slavery before they signed the fake mortgage deals.

With this corruption grew tons of charlatans riding the gravy train at the expense of naive, sleepy homeowners and business owners who trusted their banks and Continue reading

Answering the Shell Game

LivingLies: “Everything that happens in correspondence, statements and enforcement actions is specifically designed to make lawyers, homeowners and judges think that is not the case. Everything is designed to create the false impression that the parties involved have every legal right to originate, process and enforce residential loans when in fact no such authority exists.

The foreclosure process is just one step in many that results in unconscionable profits, fees and commissions distributed to a multitude of players whose livelihood depends upon successfully duping the courts into allowing foreclosure despite the fact that the money from the forced sale will never be paid to the investors who paid for the debt.”

Source: Answering the Shell Game