Category Archives: Securitization Issues

AMERICA’S HOUSING CRISIS, LIKE EVERYTHING ELSE, IS THE GOVERNMENT’S FAULT!

(OP-ED) — The author of this post is a consultant to trial lawyers handling chain of title and foreclosure matters and thus, cannot render legal or financial advice.  This post is for educational purposes only. 

I was reading a news article in the local paper by a local columnist entitled, “There’s no place for you here …”   The article basically pontificated that low and middle class workers cannot afford this area’s housing market.  If what that columnist said were absolutely true (and I debate his viewpoints in so many ways), whose fault is that?

America continues to face a housing crisis that state governments could create a master plan to solve, yet nothing obvious and straightforward is being done.  We all think that our elected congresspeople and senators in DC will do something about it, since the issue seems to be promoted as a national issue and not a state one.  Not so in my book because it’s all become politically relative.  Politicians simply say what the voters want to hear, whether what they say means anything or not.  The system is rigged to favor the elected and not the body politic.  We need to wake up and face that fact.

THE FORECLOSURE CRISIS CONTINUES TO FUEL THE HOUSING CRISIS … AND VICE VERSA

The “American Dream” has brought with it a ton of lobbying by the banks and their minions and history has shown us the “American Dream” has brought with it a ton of scandal, including the illicit manner that continues to happen in every county’s land records: manufactured assignments.  This garbage is the by-product of Wall Street and its desire to make itself rich through securitization, off the backs of investors and borrowers alike.  Because the laws that are legislated into existence seem to favor the banks and the oligarchs that run this country, a number of ideas are contemplated here:

  1. The politicians that run this country, BOTH Democratic and Republican, have notions in their head that they think they’re better than we are.
  2. Every two to four years, we all get to watch them smear each other on TV with negative campaign ads that frankly unzip the fly of dysfunctional governments at both state and federal levels.
  3. The two-party system rightfully caused this mess and the mess won’t stop until “the system of things” is changed in favor of the people and not in favor of politicians, who get to live out their retirement better than we Americans could ever have it, if we even get to retire.

Despite what you’re reading that is spewed from spoon-fed, government sources, fake news or not, foreclosures are continuing, whether in record numbers or not … and talk about a resolution to this mess is cheap in DC.  With the CFPB (or whatever “new and improved” acronym they want to apply to this now-seemingly worthless bunch of bungling bureaucrats) being watered down, aggrieved consumers can now stop turning to the U.S. government for answers and resolution because it won’t be there for them.

Our problem is … we depend too much on government to be our savior because the government has a bad habit of promising everything, but not without strings attached.  The banks have made sure of that.  Thus, securitization is back in full swing again and the same people who got stung by the last housing crisis are the first in line to apply for their MERS-originated mortgages … rinse and repeat.  Drink the Kool-Aid … rinse and repeat.  People who are ignorant of history are doomed to repeat it. 

This means more theft of homes, more trashed out and worthless chains of title and more shadow inventory being kept off the books, thus skewing the real numbers of  what’s being illicitly taken … and taken for granted … maybe we don’t have a crisis after all … ahhh … but we do.  And it’s not going away any time soon. As long as builders are building unaffordable homes (homes with a market value of over $250,000), this will force Americans to have to borrow more and drive them deeper into debt.  This is the typical Catch 22 syndrome of the mistakes we made in the last housing boom. Until builders are reigned in or people stop drinking the Kool-Aid, it will be status quo in America. The state and local governments could change that, but they’re not doing anything worth mentioning.

THE “CLASS SYSTEM” GAP IS EXPANDING IN AMERICA

I live in a county where retirees (some with accumulated wealth) comprise better than 25% of the population.  Home building permitting is at a standstill because of the backlog of builders coming back into the picture and the government has complete control of what these builders do, what they build and who they employ while building what they’re building.  Because permitting is taking so long and counties are becoming more particular about construction and design issues as well as code enforcement, the cost of housing becomes the victim of cost overruns.

Only one “affordable housing” project has been contemplated for this area and surprisingly, the home builders who are continuing to build “upscale” housing are part of the debate to limit that type of housing because of the “riffraff” it brings with it.  No one said anything about building “projects” here, as if that has some sort of negative connotation attached to it.   These builders however seem to forget that if only the wealthy people can buy homes in this area and rents are too expensive to support the lower income and middle income families, there won’t be any labor force to accommodate the service businesses needed to wipe the noses (and asses) of the rich people.  Yowsah! Yowsah! Yowsah!  I’m perturbed by this, because I used to own/manage/work in the restaurant business for many years and I can tell you how unpleasant things can get when people who have money take people for granted who are just trying to keep up, absent the snobbish behavior.  I must be a black man trapped in a white man’s body because there are days I wake up and I feel like a “slave to the riddim”.

And I’m not being facetious here.  I’m one of the lower to middle class, just like most of you.  Sure, I have my “American Dream” but it’s different from yours.  I do not support the DC behaviors.  Deep State is counterproductive to forward-thinking government progress because it seeks to disrupt change for the better.  I do not support the two-party system because of what it’s done to America.  I am non-partisan in my thinking here.  I have to be.  We all need to be realistic for the moment because our “spending habits” (Americans are deeper in credit card debt than ever before), which are created by the spending boom that occurs with “holidays” like Black Friday, fuels negative habit patterns that will drive lower to middle-income wage earners deeper into the abyss of debt and make them less likely to be able to even afford to rent because they’re too consumed with their “comfort zones” (what it takes to make us happy in the short term).  Americans rarely ever save (unless they’re rich and they can afford to save) and most live paycheck to paycheck.  What’s in your wallet?  More month than the end of the money?

So if you were fortunate enough to have been born into wealth or accumulated it through investing and working smart, then you can certainly understand what might be in the mindset of that waitress or waiter that takes your order the next time you go out to feast at a corporate restaurant chain because all of the mom and pop operations have since become scarce due to the way our economy has made it unaffordable to start competing small businesses … and yes, not without strings attached … again.

Our state and local governments have played right into this scenario by not mandating affordable housing as part of their “master plan” (albeit Multnomah County/Portland, Oregon is attempting a stab at it) in subdivisions that still provide decent living standards for lower to middle income families with homes priced between $50,000 and 100,000.00!  The success of that program remains to be seen.  The days of the McMansion are gone thanks to the new tax laws that limit the amount of property taxes that can be deducted on a 1040 tax form.  You can thank your DC bunch for that. Only the rich will be able to afford them … and with that … comes a whole different set of problems and risks.

Coupled with the foreclosure crisis, anyone attempting to buy shadow inventory at a discount risks legal battles (prolonged quiet title actions for example) that could prevent them from actually getting a bargain, unscathed.  This includes investors that are trying to accommodate the poor in making housing affordable.  There is going to have to be consideration factored in for rents, because what people will be able to afford will be way less than what the rich can afford.

There is further conflict in reports of whether millienials migrate to the inner city because of job growth or in the alternative, move out into “the ‘burbs” because of space and security.  While one study says millennials can’t afford today’s housing because they don’t save, live from paycheck to paycheck, continue to rely on mommy and daddy when things get tough and are least immune from impulse spending … another study says they’re just fine if they want to move to suburbia and that most of them are, according to studies.  The disinformation campaign isn’t helping matters much because it means more gobbledygook to wade through to get at the real truth.

The influx of foreign workers into this country isn’t helping our economy much because jobs are being created to accommodate those who will work for less.  This is forcing the class system in America to widen because the rich are paying this influx lower wages so they (the rich) can make more money.  Many workers who have migrated into the U.S. seek jobs that pay cash; thus, they pay no taxes, yet they get social security benefits and free health care, which someone else has to pay for.  The two-party system sees this as a means to an end … to woo more non-citizens to become voters so they can vote for the “party”, who influences their choice.  In the meantime, you saw what banks like Wells Fargo did to “encourage” migrant illegal aliens to open bank accounts.  The banks are supported by the U.S. government.  The servicers who work of the banks lie, cheat and steal in the name of the banks, taking property away from hard-working Americans using servicer-manufactured documents containing false and misrepresentative declarations.

WE HAVEN’T EVEN APPROACHED THE IDEA OF A CASHLESS SOCIETY YET

What the banks really want is a cashless society.   Many in the U.S. government support this idea.  Why?

  1. It’s a way to gain personal control of every hard-working American, forcing them to do transactions using a debit or credit card.
  2. Every transaction of the type identified in #1 is already being monitored by the U.S. government (FINCEN) and the private banking sector.
  3. It reduces the amount of goods and services sold and traded in the underground economy (or so they think).  It would actually promote and increase (incentivize) participation in the underground economy, more in rural areas than in the major cities.
  4. The U.S. government can simply take earned “credits” right out of peoples’ bank accounts any time it wants to, for taxes, child support, etc., leaving the individual with nothing to live on.

No one would want to migrate here after a move like that because illegals work for cash.  If no one possessed fiat “cash” (M1) then privacy rights would be completely removed.  By tapping into a bank account, the government could purposefully screw with anyone it wanted to, knowing exactly how much an individual is “leveraged”.  How in the world do you think the writers of Enemy Of The State fathomed this story line?  Do the writers know something we don’t?

When an individual can’t eat and feed his family because his “line of credit” or cash flow is suddenly cut off, what do you think will happen?   A classic “have not” scenario.  He takes from the “haves” by whatever means possible.   You really want to live in a society like that?  America is already ranked as one of the most dangerous places to live by Atlas & Boots and Forbes Magazine.  A cashless society would make a bad thing worse because the police cannot stop random acts of violence when they themselves could become instant victims.  No amount of deposited “fiat credit money” can stop a rebellion or even a full-scale revolution, which is what you’d have if the government insisted on going this route. The major cities would turn into blood baths.  I’m not being paranoid here.  Think about what you would do if you had to face this situation head-on.  What would you do?  After all, you gave the government your tax dollars and you voted for all of these politicians who loaded your “Government By The People” with hundreds of layers of bureaucracy, some of which has broken off and become a part of Deep State.

DO YOU SMELL SOCIALISM?

I majored in political science and journalism in college; thus, I posit the following scenario:

Imagine taking all of the money away from the rich and passing it around to all of the poor to fund the services necessary to accommodate the influx of non-citizens into America.  The poor will spend through all of their newly-found gratis like shit through a goose (an old saying of Gen. George S. Patton) and will then expect MORE.  Now there’s no future for American businesses because the wealthy will not be able to support their businesses and expand their businesses to accommodate more employees because they are broke (or taxed into non-existence), just like the rest of us.  This is why socialism hasn’t worked wherever it’s proliferated because someone has to pay for the “nanny state”, which the government created with your tax dollars. Socialism begats authoritarianism, which begats communism.  The result of communistic behaviors promotes crime (e.g. the Russian mafia, etc.) in order to circumvent and deliberately retaliate against government behaviors.

Everybody likes free stuff!  However, someone has to pay for the services that illegal immigrants are receiving in this country.  Someone has lost a job to an illegal immigrant.  Someone died at the hands of an illegal immigrant.   And more than 5,000 people are trying to get into this country illegally and the whole mess at the San Ysidro border crossing has been politicized to the point of nauseation.  No one is a racist just because they are implementing the laws that are in place in this country.  This is what the executive branch of our federal government was designed to do.  Blame our founding fathers for even thinking that we should all be safe and secure and live in peace and freedom.  Now I’m being facetious.  Depending on which political party (of the two) you belong to, you see 5,000 new voters, voting towards socialism and getting free stuff, or you see 5,000 new voters sucking off the teat of America and at some point in time, someone will have to pay for it. But how?

INCREASING TAXES PROMOTES REVOLUTIONARY IDEAS

Yes … just like in America’s Prohibition Era, whenever taxes were increased, people went underground to survive and the shadow economy flourished.  History has not changed.  U.S. government economists (like Bruce Bartlett) and socialist think tanks are still trying to figure out how to bring the shadow economy under control so they can tax it … yeah, good luck with that.  And who profits from all of this?  The banks.  After all, their “fed” is the one who keeps “loaning money” to the government, so it can continue to write checks its body can’t cash to support “nanny state” philosophies.

People seem to forget how history repeats itself.  It further seems to me that we got into a war with the British over a 3% tea tax, right?

The big outcry at the time was taxation without representation.  Think about the 23 taxes you pay on a loaf of bread and tell me that this country is not the frog swimming around in luke warm water. Unbeknownst to him, the master of the fire is turning the heat up to gradually boil him alive! Think about that the next time you have to pay for someone else’s direct benefit to your detriment (you’re broke again?).

TAXING APPROPRIATE SOURCES

Colorado and Washington State have discovered just how much extra revenue the recreational marijuana business brings in.  The federal government however, ironically doesn’t want to allow marijuana businesses to have bank accounts that the government can get legitimate tax gains from.  The irony of it all is that banks are great sources for laundering drug money, aren’t they?  When people who buy controlled substances like marijuana use cash they’ve taken from their pocket or their bank account, give it to a drug dealer in exchange for pot, who then uses those funds to go out and buy basic necessities to live on and spends the cash right back into the mainstream economy … that money ends up getting deposited into someone else’s bank account at some point in time down the road.  Yet, those in government that have created all of this “reefer madness paranoia” legislation seem to believe that the banking system Uncle Sam borrows from (and then spends it like a drunken sailor) plays no part in it; thus, the government shouldn’t be held accountable, even though it provided the vehicles and the mechanisms in which buying drugs is facilitated.  People pay for drugs with cash … not a debit or credit card.  Any cash can be “laundered” no matter what source it came from, even if legitimate.  Our foolish government could be taxing pot sales at all levels but the politicians won’t listen to the voters, will they?  And that’s just one area that the politicians who allegedly run this country aren’t listening to … or if they are listening … they don’t care and they vote the way they want to vote.  If they want to keep pot illegal, despite what the voters want, they’ll keep pot illegal.  This is another prime example of the way our government is to blame for its failure to counterbalance revenue shortfalls.

THE “CLASS SYSTEM” GAP FUELS THE CRIME RATE

And just when you thought that a cop shooting an unarmed “African-American” wasn’t bad enough, I still maintain that when you displace a family on the street … and the head of household runs out of options, you end up with more murder-suicides, suicides, death by cop and crimes against property when the system can ill afford to maintain law and order in the present day as it is … all because the local government, which has every means to change the environment in every one’s favor, still wants to make its “master plans” cater to those who can afford it.  It doesn’t matter what race, color or creed you are!  The biggest mistake facing America today is allowing the class system “gap” to widen. By allowing the class system gap to proliferate throughout America, the scales could tip to the point that when there’s nothing the “have nots” won’t do to take from the “haves”, we’ll end up in another civil war (regional in nature, maybe) … and it’s our state and federal politicians that have widened this gap … so they can come in and play nanny state.  The widening of the gap promotes the idea that socialism will fix it, which is false (if you’ve studied economics).

When it comes to a prime example of how easy it would be for civil insurrection to occur, visit an area that’s been placed under martial law (you may not see eye to eye with me on this).   Here’s a mild example … go into any hurricane-affected area and see how the government treats the locals.  Why was Blackwater brought into New Orleans following Hurricane Katrina?  To prevent armed insurrection … because that’s where the city was headed. Anyone who has been through the “Superdome” experience can attest to that. When disaster strikes, what’s the first thing the “have nots” do?  Loot!  It never ceases to amaze me that “have nots” would grab TV sets while looting a disaster area when the electricity is out.  You can’t eat or drink a TV.  You really think the pawn shops are going to accept stolen merchandise, just so you can have a cheeseburger?  The “have nots” come in every race, color and creed.  If they have no money and they’re hungry, what do think they’re going to do at the first opportunity? (I’ll let you figure that one out.)

When the 2008 financial collapse occurred on Wall Street, then-Secretary of the Treasury Hank Paulson was calling congressmen telling them that if they didn’t bail out the banks, martial law might have to be declared.  You see how the government’s mindset behaves when a disaster strikes. Hence, TARP was created.  Even more sadly, most government employees believe everything their government tells them!  That’s how the government gets more support for its nanny state policies!

THE FOUR MOST IMPORTANT BASICS IN LIFE: FOOD, WATER, SHELTER … AND A WAY TO MAKE A DECENT LIVING

If you’re employed in any one of these first three areas, you will always have an income because everyone needs these three things to survive in America.  This is no longer the American Dream but the American Nightmare.  Anyone living under substandard conditions will agree with me that the family unit is in jeopardy.  Tempers flare because of lack of money or the sudden shift in any one of the basic three things needed to survive, which includes being displaced from your home.  I wrote about this in Clouded Titles.

Now that I’ve painted a minuscule picture of  “the ghost of things to come”, we need to take a stand (at least on our own behalf) to take all of these factors into consideration … and then do something civil about it.

FOOD

I find it best to research one of the basic first three areas and find a niche within it.  I know a lot of people that are resellers for survival foods.  I know fewer who have actually now resorted to truck farming (it’s also an underground economic niche and can be very profitable) and I used to help pay my mortgage payments on my first home with a hen house full of laying hens (eggs are great barter material too).  In order to accomplish all that, you might think “country”.  There is a lot of unrestricted land out there and folks living in these areas tend to think a lot alike (they don’t like big government) … something the U.S. government doesn’t like.  Whatever the government doesn’t like is probably a great thing for America because anything that happens in the hinterland benefits the local economy, not DC.  All of the possible changes you could employ to affect a positive outcome for your local economy are a good thing, even if you’ve been foreclosed on and have to start over again.   There are areas of the country where land is still cheap and food production is in demand.  Even in WWII we had “Victory Gardens”.  Flea markets are a great source of networking!  Food trucks can also be a profitable business if run right, albeit you’ll be facing permitting issues and health regulations.

WATER

I cannot believe that people have actually run afoul of the law for harvesting rainwater.  However, it’s a great source of income.  Who would have ever thought that putting water in a plastic bottle and selling bottled water would ever work?  Whoever did is making a killing now because the well hasn’t run dry and the merchants have made the bottled water industry a necessity of life, even if it means you have to dispose of something that’s not biodegradable. With our water supplies / groundwater becoming contaminated (see Flint, Michigan), water filtration systems is also another big business that the wealthy certainly can afford.  Even smaller supply, pour-over systems sell well during hard times.  Man cannot live without water … so getting into any business that involves the production or supply of clean, potable water is a good thing.

SHELTER

Your PLAN B might include doing what I did in buying a tract of land, owner finance. My payments were $222 a month for 10 years.  Even on a fixed income, pulling a used mobile home out onto a tract of land works, especially if it’s paid off.  I used an investment return to pay for getting set up on 3/4-acre mortgage free.  Just to show you I’m not kidding, see below (front and back yard).  I was only 40 minutes from Austin, Texas!

This is what mortgage-free living can look like, if you have a PLAN B that you can start up on a small budget without having to get a mortgage. Anything relative to setting up shelters for people on unrestricted land out in the country is a good thing.  We had German Shepherds roaming the property so we never had to worry about break-ins.  It cost me less than $15,000 out of pocket to set up!   You could even do it for less with a little creative thinking!

It is amazing what you can find out there to live in, it’s peace and quiet country living … and you could put your property into a trust for asset protection to keep it away from the money-grubbing banksters or debt collectors trying to collect on judgments!  Sure, it’s not a McMansion, but it’s home and it’s a stress-free environment!  It’s also far from the madding crowd … so in the event of unrest, you’ve got more time to plan and react if you need to.  Anything connected to real estate … agents, brokers, investors, developers, storage sheds, portable buildings (which can be converted into housing) and cabins … can be profitable with a little marketing. Any carpentry skills become a real plus!

MAKING A DECENT LIVING

Retirement is NOT a part of my vocabulary. I don’t see what the big rush is to retire anyway, given the fact that the government would like you to wait until you’re 70 to start drawing Social In-security. Besides, any business worth having means that an entrepreneurial spirit is probably alive and well and is driving the business forward.  If you’ve lost your regular job (or you think you might lose your job), this is the time to start planning for your future.  An active LLC or incorporation costs next to nothing to set up and consulting businesses (like mine) take a lot less money to start up.  There are books out there that have oodles of information in them on how to start your own business. Find something you’re good at and go for it.  Don’t turn a negative foreclosure into a pity party.  Use it as your learning curve and don’t make the same mistake next time.  Examine what caused you to get into the mess in the first place and then … go out and do just the opposite.  The banks may hate you … but hey, mortgage free living is really where it’s at!  Being self-employed means taking home more of your paycheck NOW and not having to wait on a tax refund from the government, which has been operating in the negative since 1933.  It’s also another great way to live without borrowing!  Being creative about it is what I find most rewarding.  As an afterthought, only create these entities if you have the means to keep track of their accounting and tax filing status.

Retraining in later life is not as bad as it sounds, even if you’re disabled.  As long as you’ve got brains, there’s a consulting position out there or a desk job that will pay you a decent living with little up-front investment.  Thinking positive in this day and age is hard to do. There’s so much negativity around. The idea behind all of what I’ve just stated in my foregoing diatribe is designed to get your inner sanctum churning because the times, they are a-changing, again!

 

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Filed under INVESTOR END-GAME STRATEGIES, OP-ED, Securitization Issues

UPDATE: PRO-BANK 5TH U.S. CIRCUIT APPELATES TAKE DOWN ANOTHER HOMEOWNER … MAYBE?

(BREAKING NEWS — OP-ED) —  The author of this post is a paralegal and consultant to attorneys in foreclosure matters and issues involving “the system of things”.  None of what you’re reading in this post should be construed as legal advice nor posited to guarantee a legal outcome.  

UPDATE: Now that the legal community has had somewhat of a chance to review the previously discussed Fifth U.S. Circuit ruling (in THIS case), let’s see what one law firm has to say:  5th Circuit Holds Bankruptcy Stay Tolls Statute of Limitations | Weiner Brodsky Kider PC – JDSupra

This will certainly give you an idea of how the other side thinks.

_______________________________________________________

As promised, I bring you the latest relevant case from the Fifth U.S. Circuit Court of Appeals in the Big Easy.  But wait … it wasn’t a “big easy” for the borrower, whose case I worked on long ago (in doing a chain of title assessment for) and whose assignments of deed of trust I use in my chain of title workshops to show “document manufacturing gone wrong”.  Wilshire Credit Corporation, used by Countrywide as one of its servicers,  is to blame for that screw-up.

None of what you’re about to read in this ruling appears proper because no one ever attacked the assignments head on, even when it was suggested to do so. Remember, I can’t give legal advice and it’s sad when I have to read rulings like this, knowing what I know that should have been done, but wasn’t.

So … let’s read the ruling first, then we’ll analyze how the homeowner shot himself in the foot because he put his money where it shouldn’t have been put and didn’t put his money where it should have been put:

HSBC Bank USA NA v Crum, 5th App Cir No 17-11206 (Oct 17, 2018)

We’ll do a little analysis on the chain of title and show you what suspect document manufacturing looks like and my perspective on HOW it should have been challenged.  Is it because of attorney ignorance or just plain and simple frustration?

Let’s see how sharp you are in detecting WHAT went wrong here:

ASSIGNMENT NUMBER ONE                                                                                              

NOTE: Click on the assignment to see it in larger print and click the BACK tab on your computer screen to get back to the article.

I put this assignment FIRST for a reason … look at the time (in the upper, right-hand corner) as to WHEN the assignment was recorded … 11:04:32 a.m. on July 14, 2009.   I surmise that this document was manufactured by employees of the servicer, Wilshire Credit Corporation, to create standing for HSBC Bank USA NA as Trustee for MLMI (that’s Merrill Lynch Mortgage Investors) Trust Series 2005-WMC1.  It should be clear to you that “WMC” in the REMIC series was a REMIC set up by WMC Mortgage Corporation, which was the alleged original lender.

The 5th Circuit has already ruled that it doesn’t matter if the original lender went bust BEFORE the documents were created.  How could they do that?   Corruption?  Maybe?   Maybe it was given the wrong information in the pleading.  Maybe?   The appellate court can only rule on the information it was provided and I don’t believe that any of this stuff I’m showing you here was properly vetted in discovery, was it?

Notice something else?   The signer executing this document (a known robosigner), claims to be an “Attorney-in-Fact” for MLMI Lending, Inc., however; as I will show you, she’s not acting as an attorney in fact for WMC Mortgage Corporation, is she?   There’s no written evidence of where the Limited Power of Attorney is recorded on this document, is there?

Also notice that Wilshire Credit Corporation (the mortgage loan servicer) prepared this document and after it was recorded, got it back through the U.S. Mail. This will be important to note for future discussion.

This recording was a 3-page document.  Page 2 contained the legal description.  Now … wait until you see Page 3!

What’s wrong with this picture?  These F**KTARDS can’t even do their job right, can they?   The executor of this document prepared this Allonge to show that the Depositor conveyed it into the REMIC on July 6, 2009.  If you look at the Trust’s 424(b)(5) Prospectus (shown below), the Cut-Off Date for assigning the note and mortgage to the REMIC was January 1, 2005, because (according to the IRS’s Start-up Date for the REMIC) the Closing Date of the REMIC was January 27, 2005.  This Allonge was done over 4-1/2 years later … in violation of the REMIC’s own regulations!  Besides, what do $10/hour employees of Wilshire Credit Corporation know anyway, right?   Who investigated this?  I did!  I told the Borrower long ago what happened to his chain of title.  His attorney apparently didn’t care enough to depose anyone.

Here’s what wrong with this picture:

First, you attach an “Allonge” to the promissory note, NOT an assignment!

Second, the executor of the document, a robosigner-employee of the servicer, claiming to be an attorney-in-fact for MLMI Lending, Inc., not WMC Mortgage Corporation, executed this Allonge less than a WEEK PRIOR TO the actual recording of this assignment!   How convenient is that, considering she is NOT the Lender.

Third, WMC Mortgage Corporation, owned by GE, was closed in 2007 due to the subprime mortgage collapse.  So here we have a servicer’s employee, two years later, claiming she has “attorney-in-fact” status, when most powers of attorney expire when the company GRANTING the LPOA ceases to do business!  It doesn’t take a rocket scientist to figure this out!  AND …

Fourth, the signer of this document and Allonge is claiming she has power of attorney for MLMI Lending, Inc., right?  Would you please look at the above list of Principal Parties and tell me you see MLMI Lending Inc. anywhere in that document as a listed party to the equation?   So where is Treva Moreland’s authority as a $10/hour mortgage loan servicer’s employee attorney-in-fact status for a lender that closed up shop years earlier?  Oh, wait, the Pro-Bank 5th Circuit doesn’t give a shit, do they?   Or was it the Borrower or the Borrower’s attorney’s fault for not checking into this further?

But wait … it gets better!  (That’s an Al West sarcastic remark!) 

ASSIGNMENT NUMBER TWO

I put this assignment SECOND for a reason … look at the time (in the upper, right-hand corner) as to WHEN the assignment was recorded … 11:13:08 a.m. on July 14, 2009. This document was recorded SEVEN MINUTES AFTER THE FIRST ASSIGNMENT!  Again, I surmise that this document was manufactured by F**KTARD employees of the servicer, Wilshire Credit Corporation, to create standing for HSBC Bank USA NA as Trustee for MLMI (that’s Merrill Lynch Mortgage Investors) Trust Series 2005-WMC1.  Notice the same Oregon notary (Justin M. Burns) appears on this assignment as well, claiming that on July 6, 2009, the same day as Treva Moreland, the signer of the first-recorded assignment claims to have attorney-in-fact status …

Here comes Melissa Tomlin (another $10/hour Wilshire Credit Corporation F**KTARD employee), claiming she’s an Assistant Secretary for “MERS” as Mortgage Electronic Registration Systems, Inc. for then-defunct WMC Mortgage Corporation … AND … she’s assigning BOTH the Note and Mortgage to Merrill Lynch Mortgage Lending, Inc. from WMC Mortgage Corporation who (now-defunct) is a “valid Assistant Secretary” for MERS … WOW!  MERS’s resolutions must really be legally sound to be able to have servicer’s employees creating shit documents out of thin air using MERS as a nominee for a closed company … Hmmm … I wonder what agency relationship existed between MERS and WMC after GE closed WMC over two years earlier?

This assignment was also 3 pages in length and was prepared and mailed back to Wilshire Credit Corporation after it was recorded.  Page 2, like before, contains the legal description of the subject property.   And now … for the GRAND FINALE … let’s see what’s on Page 3, shall we? (I am chuckling at this juncture, see if you can figure out why):


Notice what’s on the last page?   AN INDORSEMENT STAMP to Merrill Lynch Mortgage Lending, Inc. by WMC Mortgage Corporation!   Again, I surmise the following:

First, endorsements belong on either the promissory note or the allonge to note (if the promissory note is full of endorsements and cannot accommodate any more of them) … NOT ON A RECORDED ASSIGNMENT!

Second, the executor of the document, a robosigner-employee of the servicer, claiming to be an Assistant Secretary for MERS as nominee for then-defunct WMC Mortgage Corporation, HAD KNOWLEDGE OF what she signed when she affixed her signature to the document (that the indorsement stamp was affixed to page 3 therein), or should have had knowledge of it, right?

Third, you’d think she’d have every opportunity, being an Officer of Mortgage Electronic Registration Systems, Inc. (Assistant Secretary), by alleged resolution ONLY and not attorney-in-fact, that she’d have some smarts about stuff like this. Nope! Doesn’t appear that way, does it?  In fact, I’m not even sure that Melissa Tomlin (after doing several signature comparisons on assignments from around the country) actually was the party executing this document!

Fourth, remember, WMC Mortgage Corporation, owned by GE, was closed in 2007 due to the subprime mortgage collapse.  So here we have a servicer’s employee, two years later, claiming she has an agency relationship with MERS as an Assistant Secretary, when in fact she’s a Wilshire Credit Corporation employee (clearly, a misrepresentation of fact), when the company GRANTING the nominee status to MERS to create an alleged (unproven) agency relationship in the first place, is no longer business!

Fifth, it doesn’t take a rocket scientist to figure out that when a company goes bust, agency relationships can be challenged!  I don’t ever see that happening in this case, do you?  (If you do, please correct me in the comments section of this post so everyone can see how uninformed I am!)

But wait … it gets better!  (That’s another Al West sarcastic remark!) 

No one knows how this happened … BUT … either the documents were improperly submitted wrong by Wilshire Credit Corporation when they mailed the packet to the Dallas County Clerk’s Office for recording in his Official Real Property Records … OR … the Clerk’s office juxtaposed the documents … SO … here’s what happened (you may have already figured this out … this is a fun example of a brain teaser for you researchers out there) to screw up the borrower’s chain of title with suspect documents (fact check these if you will):

(1) At the time BOTH assignments were executed, WMC Mortgage Corporation was no longer in business (not that the 5th U.S. Circuit really cares).

(2) MERS was used to cover up the chain of title, even though the agency relationship more than likely ended when WMC closed up shop (there was never a repudiation agreement against the MERSCORP executory contract ever filed in WMC’s bankruptcy, if it fact, it filed for such).

(3) In order for the facts to present themselves in proper order, the second assignment SHOULD HAVE BEEN recorded FIRST to reflect the transfer of the Note and Mortgage to MLMI Lending, Inc. from WMC, so MLMI Lending, Inc. could properly convey it into the REMIC Trust.

(4) But wait!  MLMI Lending, Inc. is nowhere to be found in the Prospectus for the REMIC under “Principal Parties”.  The originating lender was subprime mortgage lender WMC Mortgage Corporation.  True sale #1 would have been from WMC to the Seller, Merrill Lynch Mortgage Capital, Inc., an entirely separate corporation from Merrill Lynch Mortgage Investors Lending, Inc., right?  So True Sale #1 was F**KED UP!

(5) True Sale #2 should have been from Merrill Lynch Mortgage Capital Inc. to Merrill Lynch Mortgage Investors, Inc., the Depositor for the trust, who, under the Pooling and Servicing Agreement found in the Prospectus, signed under penalty of perjury under the Sarbanes-Oxley Act, would have and should have completed True Sale #3 by transferring it into the REMIC itself, as the Issuer of the Certificates!

(6) All true sales had to be completed before the Cut-Off Date … so in fact we have a violation of the trust agreement and a misrepresentation in the Prospectus, if we are to believe what just happened here was factual.

(7) The misrepresentations contained within the Assignments themselves purport to have transferred everything (in order) from WMC to MLMI Lending, Inc. and from MLMI Lending, Inc. to the REMIC Trust; however, with them being recorded in reverse, it would have been impossible to represent this the other way around, so the entire chain of custody of the note is convoluted and so is the chain of title, creating suspect issues for discovery.

(8) Because MERS (Mortgage Electronic Registration Systems, Inc.) cannot convey Notes because it doesn’t have an interest in the Notes (it only allows lenders to record them in the MERS® System database), then the entire claimed transfer by the servicer’s employee (and NOT the lender itself, who was by then defunct) was also misrepresentative in fact.

(9) Further, all of these misrepresentations appear to constitute violations of the Texas Penal Code and the fact the U.S. Mails were used could constitute felony mail fraud (two counts), which is a 95% slam dunk for the prosecution.  Thus, had “the system of things” played itself out the way it should have been played out, Treva Moreland, Melissa Tomlin and Justin Burns would all be doing time instead of going about their feeble lives doing whatever.

(10) Under “the system of things”, the attorneys for the bank relied on these assignments to steal Mr. Crum’s property and should be disbarred.  The judge in the state court could obviously NOT be held accountable for the fraud on his court, because he wasn’t made aware of it at the time the suit was filed and answered (the Texas Constitution requires all HELOC’s to be judicial challenges under Rule 736 of the Texas Rules of Civil Procedure).  If the judge was made aware, he could have lost his bond and have been removed from the bench and the headlines would have grabbed national attention!

(11) And now … for the piece d’resistance … the lawsuit filed by the alleged REMIC, for which it got a judgment against Mr. Crum, conveniently alleged that Mr. Crum was in default, when in fact, the REMIC’s own Prospectus required Wilshire Credit Corporation to make Mr. Crum’s payments on the home if he couldn’t make them … see here, see here:

Notice where is says (in Paragraph 2 of the foregoing paragraphs) that the Servicer (Wilshire) is obligated to make such advances with respect to delinquent payments of principal and interest on each Mortgage loan … how then, could Mr. Crum be in default?   If MLMI 2005-WMC1 was never aware of the default, which we know probably didn’t happen since the servicer was making all of the advance payments, then WHO actually was foreclosing on Mr. Crum?

(12) Wilshire Credit Corporation … using what I claim are false and misrepresentative documents!  But I’m not the expert witness here (but I have an attorney who is though).  I still see a mess in the constructive notice to the world of when the documents were juxtaposed.  Improperly recorded documents put the cart before the horse, didn’t they?  Can you see it spelled out now?

Any decent, well-informed, non-agenda’d judge should have been aware of all of this … but then again, they only review what’s put in front of them and what’s challenged and why.   You be the judge as to WHO failed WHO here and why.

I had all the facts in 2011.  Now they’ve come home to roost over seven years later … in a bad way!  I can definitely say discovery was sorely lacking here!

Join Dave Krieger and R. J. Malloy for another exciting segment of City Spotlight – Special Edition on WKDW-FM, 97.5 in North Port, Florida, this Friday night at 6:00 p.m. (Eastern) … the subject matter this week … blockchain, jurisdictional issues, societal breakdown and the latest from the ABA blogs!  To listen to the show, CLICK HERE!

 

 

 

 

 

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5TH U.S. CIRCUIT MAKES IT CLEAR … NO FREE HOUSE! MERS RULES!

(BREAKING NEWS – OP-ED) — 

The author of this post is not an attorney and therefore cannot render legal advice.  However, he believes that everyone reading this post can clearly understand the intentions of the 5th U.S. Circuit Court of Appeals.  It doesn’t take an Einstein to figure out the blatant meaning behind the Circuit Court’s thinking here.  As an Op-Ed piece, I would think the Burke’s counsel needed to approach the assignment of deed of trust to Deutsche Bank (who I refer to hereinafter … and not lovingly … as Douche Bank) National Trust Company, as Trustee for a REMIC that was empty in the first place!  The courts still do not “get” this yet; thus, we have a ruling that is holding the lower court’s feet to the fire (the lower court may have gotten it right).  Here’s the case for your review:  DBNTC v Burke, 5th App Cir No 18-20026 (Sep 5, 2018)

NO ONE CHALLENGED FULLY CHALLENGED THE DOCUMENT! 

For a number of posts since the McGinnis case was brought up, I’ve been talking about the assignments. I am not totally sure that the Burke’s lawyer was up to speed on any of what I’ve been talking about, but if we were to look up the assignment in question, which the lower judge took issue with, we could pick it apart, piece by piece … and figure out how and why Douche Bank went to federal court to get the result it did, when home equity lines of credit in Texas start out as Rule 736 motions (the cheapest way for the lender’s servicer to steal the property in any Texas state court).  Once you’re done consuming the contents of the 6-page ruling, you can decide where the “manifest injustice” really is!

You see, the Burke’s probably had the funds to fight this the right way.  How and why they didn’t plead or properly attack the assignment is beyond me.  Why they didn’t attack MERS’s “beneficial” interest is beyond me too, because Restatement of Mortgages (Third) § 5.4 clearly does NOT fit Mortgage Electronic Registration Systems, Inc.

However, if you look at the bad case law set by the suit against MERSCORP in the Southern District of Texas, the Burke’s arguments fall short of a “win” (which is not what was desired here).  Instead, from all appearances, the lower court (Judge William Smith, U.S. District Court, Houston) justice got into a pissing contest with the 5th Circuit over the validity of the assignment.  In order to fully comprehend what’s happening there, you’d have to pull the law of the case on the subject (which I did) … see it below:

DBNTC v Burke, U.S. S.D. Tex No 4-11-CV-01658 (Sep 16, 2014)

If you notice the numbers on the case, it’s been going on since 2011.  I would suspect it’s been going on since the “suspect” assignment was recorded in Harris County, Texas and Douche Bank and Ocwen (who was the servicer in that case) “manufactured” the document with the intent to steal the property.  The problem is, the Burke’s put an Affidant forward to the Court from a “Chief Fraud Examiner” (Charles K. Lamm) … hmmm … who died and made him chief?   Mr. Lamm’s affidavit was excluded because he was NOT allowed to be an “expert witness” at trial.  Another presumptive mistake by the Burkes and their counsel.  Again, as I spoke of earlier in the articles GUTTING THE UNDERBELLY OF THE BEAST, the first mistake was allowing this case to proceed in federal court, where the homeowner and his attorney have minimal control over the foreclosure, especially where any form of “MERS” is brought up.  You also have to look at “the times” (the period in our history of litigating against any MERS entity) … that things have come about in a different way, which has resulted in virtual conflict among the States of the Union as to whether any MERS entity has any right to claim itself as anything, when Restatement of Agency (Third) was clearly brought into the equation.  I bring you the screen shot from the case to discuss the importance of understanding WHY I’m talking about what constitutes an “Expert Witness” and proper discovery to bring about the desired results within “the system of things”, even if it comes to an unfolding scenario in federal court (an obvious ongoing fight for what appears to be over 4 years):

NO EVIDENCE … NO RULING IN YOUR FAVOR! 

If you’ll notice in the foregoing screen shot WHAT the Court said is that there is NO SUPPORT FOR THE EVIDENCE SUBMITTED!  Further, the Court pointed out that NONE of Mr. Lamm’s documents were authenticated.  That, my friends, is sloppy lawyering.  This was typical for what was going on in the courts around this country (and probably still does occur) at the time because people still haven’t gotten past the emotional state of running into court and screaming “FRAUD!”, expecting to get results in their favor, with no discovery, no depositions and no live testimony from a proper expert witness.  What “personal knowledge” could be gleaned from Mr. Lamm, as all he did was examine documents he had nothing to do with creating.  Where were the depositions here?  I don’t see any mention of them anywhere within the 4-page Order of the lower court in 2014, do you?   What the hell were these litigants thinking?   The same thing many homeowners think when they see what they believe is a “suspect” document.  They hire some self-proclaimed “chieftain” to analyze their document and tell them what they want to hear, with no evidentiary support to back it up … and definitely … no personal knowledge of anything.  This pattern has followed many a homeowner through unsuccessful foreclosure processes all over the U.S.   I guess people have not awakened to the principles of the Rules of Evidence yet.

IN SOME STATES, GOING AFTER ANY FORM OF MERS IS A BIG WASTE OF TIME AND MONEY! 

Unless money grows on trees and you have such a tree growing in your yard, or you live in Tennessee (where the Ditto decision gutted MERS like a chicken), whatever State you happen to be in (in this case, Houston, Texas), the courts are split on what MERS is … and what MERS isn’t.  It isn’t just in the federal circuits … it’s in the state courts too.  A lot depends on what legislation was promulgated (and by whom) to get “nominees” into the mix within the county land records, which in turn decimated the county’s earnings directly because of HOW the MERS® System works.

The only way I see this coming to a finite end is to “gut the underbelly of the beast”, where the beast least expects it.  This case serves as an underlying reason why “the system of things” has to work the way it was designed to work, NOT the way you think it should.

This is done by going after the attorneys for the banks and their servicers and holding them liable for felony perjury on the court (which BTW can be exerted in either state or federal; however, there is no “money flow” from the federal side, only from the counties that are heavily insured or self-insured) by directly attacking the document(s) involved, which means you have to focus on those creating (manufacturing) them.  If you want to win, there is no getting around this.  If you want to take down MERS, you have to take them down in principle by going after the “users” of the MERS® System and NOT MERS DIRECTLY!  You see, the “users” are all trained liars!

For the rest of the story, see the upcoming post … GUTTING THE UNDERBELLY OF THE BEAST – PART 7.  In that segment, you can learn and differentiate when judges “do the right thing” versus when they don’t.  When they don’t do the right thing … is when the system of things kicks in!

 

 

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GUTTING THE UNDERBELLY OF THE BEAST – PART 4

(OP-ED, first posted: September 4, 2018) —

The writer of this post is a paralegal and consultant to attorneys on matters involving chain of title, foreclosures and document manufacturing.  The opinions expressed herein are that of the writer’s only and do not constitute legal or financial advice.  Any use of the theories or ideas suggested in this post is entirely at your discretion and will probably result in disaster without the proper legal help.  By the end of this “series” of posts, you should understand what RISK is! 

WHY INSURANCE COMPANIES ARE “RISK AVERSE”

Like most of us who take the time to analyze the “odds” (remember the Hunger Games … “may the odds be ever in your favor”?), insurance companies make money betting on sure things.  They don’t like paying out claims.  They won’t insure individuals who may have a propensity to do “crazy shit” (like skydive, bungee jump, etc.) that might result in a serious accident or death.  They won’t insure companies that have a higher risk than normal for being sued (for committing fraud, etc.).  They also make exceptions to items within “the system of things” concerning real property, which is where this part of the evisceration of “the system of things” takes place.

SCHEDULE “B”

If you’ve ever looked at a “Schedule B” in an Homeowner’s Indemnity Policy, you will see that things that aren’t recorded in the public records as part of a chain of title are exempt from coverage. Heck, if you’ve looked at a number of the exceptions on that portion of the policy, virtually everything that you could imagine, from encroachments against a registered legal description, riparian right or legal description changes due to accretion or avulsion, virtually every obvious thing that could be insured, isn’t.  Then what is the policy worth spending extra money on?   Because the insurance companies are willing to bet you won’t ever file a claim on anything having to do with title.  That’s a sure moneymaker to them.  Anything that has alleged “coverage” on it (or so you thought) is probably exempt thanks to “Schedule B”.  Get your title policy out and look at Schedule B and you can easily spot what I’m talking about here.  This is how insurance companies make most of their money.  They exempt issues and activities that could result in them having to pay out claims.  The insurance companies really didn’t understand the “risks” that were played on them in the securitization game either, which is why they filed lawsuits against many of the REMICs’ sponsor-sellers when they realized the “game was rigged” in favor of the banks. They were paying out too many claims on the seller’s title policies because the chain of title was all screwed up.  As history has shown us, the sponsor-sellers of these REMIC trusts made off (Madoff) like bandits!

“BEAN COUNTERS”

This is why actuarial tables are developed by the “bean counters”.  Based on past performances of certain professions or activities, insurance companies know whether or not a certain profession is susceptible to risk; thus, the insurer having to pay out a claim to an injured party at some point.  The insurance companies have had years of experience in paying (or not paying) out claims to know which professions and activities present the most risk; thus, they become “risk averse”, meaning, they run away from risk.  It’s like the little guy who has a chance to walk away from a fist fight with a big guy twice his size.  Not every scenario presents us with a David versus Goliath option … and that’s the battle homeowners have been fighting.

AGENCY, NEXUS AND CIVIL CONSPIRACY

Now we come to the part in the “story” where you are dealing with a foreclosure.  Since I started doing research into “clouded titles” and discovered that part of the equation included the recording of certain documents, which make up a property owner’s chain of title, many of these documents appeared to have presented a certain “risk” of being challenged as to their validity.  I don’t have to spend time (here) wasting the effort to explain the 2008 financial collapse and the resulting “cause and effect” of what was finally unveiled to Main Street … securitization … and the sloppy paperwork (or the lack thereof) that eventually crept its way into every county’s land records throughout the entire United States.  Anyone that understands “robosigning” or “document manufacturing” or has read Clouded Titles knows what I’m talking about here.

As was revealed in both the Williamson County Real Property Records Audit and Osceola County Forensic Examination that my firm conducted, despite the fact that the mortgage loan servicers all agreed NOT to produce phony documents and record them in the land records in an attempt to “create standing” to foreclose, they’re still doing it anyway to this very day!

Each one of the parties involved in any Assignment or Mortgage or Deed of Trust had to establish a contractual relationship with one another.  By signing agreements to provide certain provisions for each assignment, a “nexus” (or connection) was created that could tie all of the participating individuals or entities together.  Each individual working within a company acts as an “agent” (or representative, whether an employee or independent contractor) of the principal.  Agency is thus established by the party granting the status (the “grantor” of anything) within “the system of things” … NOT the Grantee (the agent).  The agent however, in tandem with other agents from other nexuses created by outside party contracts, can be held liable for misrepresentation on a document and so can the principals themselves.  If you sign an insurance policy and claim that you do not engage in activities that are “risk averse” and you go out and commit suicide (for example) within a 2-year period, the insurance company will not pay because they learned quickly (ab initio) that people who find themselves destitute (such as in the crash of 1929), take out a life insurance policy with whatever money they have left and then kill themselves (by jumping out a window) believing that their heirs will get money from the insurer, quickly got the attention of the insurance companies, who quickly developed a 2-year waiver of indemnity for killing yourself and conveniently called it a “suicide clause”.

When two or more actors are involved in the creation and execution of a document, each party becomes suspect (NOT GUILTY UNTIL PROVEN GUILTY) as to taking part in what could be alleged to be a civil conspiracy.  I think many attorneys doing foreclosure defense have missed that part of the equation because they don’t bother to depose EVERY AVAILABLE PARTY that is represented within any given document being used as evidence against their clients.  Why?  Because depositions start at somewhere around $3,000 apiece and most homeowners don’t want to spend that kind of money.  The “other side” will bring their attorney into the mix, who will object to virtually every question asked that is posited to prove that a contractual relationship existed somewhere, with the intention of thwarting anything discoverable that can be used to defeat the foreclosure or to seek damages.  I also believe that many (not all) foreclosure defense attorneys are inherently lazy and would rather do the business model of “the taking of people’s money” [not necessarily at this firm (below), for which I find their name symbolic] and eventually watching them lose their homes anyway:

Not every state actually has a “cause of action” for civil conspiracy; however, every state has a cause of action for …

NEGLIGENCE

… and this is where “the system of things” starts to get interesting.  When the same group or groups of individuals misbehave and participate in document manufacturing scams that deprive homeowners of their rights, they draw unwanted attention to themselves.  Take Bryan Bly, Crystal Moore and Dhurata Doko for instance.  They have all been deposed (more than once as I understand it from watching their deposition videos) and were asked questions about their “risky behaviors” in creating assignments of mortgage and deeds of trust.  At the time these three were deposed, they were all employed by Nationwide Title Clearing, Inc. of Palm Harbor, Florida.  By virtue of the name used, one should be able to assimilate what they mean by “title clearing”.   In fact, this company boasts (online) that it has been involved in the recording of over 16,000,000 documents since its inception.  It’s kind of like the McDonald’s of document mills (over 16-million served).  In my book, that’s not something to brag about just to get clients. In fact, one of Core Logic’s attorneys (in a webinar I was privy to) declared that companies making up documents to “clear title” or “assign or transfer” mortgage loans or notes had better be careful in what they create and attest to for fear of retribution under the laws covering the Unauthorized Practice of Law (UPL), which is a felony in every state that has such a statute covering this “risky behavior”.   Thus, one who KNEW OR SHOULD HAVE KNOWN that the behavior they’ve engaged in constituted a felony, could be deemed negligent.  This also goes for attorneys working for the banks that are “suspect” for participating in the “process” (after recording, return to the ABC Law Firm). The law firm’s apparent involvement in creating (or directing the creation of) an assignment in order to foreclose becomes a party to the civil conspiracy.

Every attorney is bound by a state bar association’s Rules of Professional Conduct, each of which is drafted (in whole or in part) according to the national substantive rules promulgated by the American Bar Association.  There’s a section on “Misconduct”, which can be used to punish attorneys who come into court and commit certain misdeeds, like relying on or making false and misrepresentative statements (in the court record or in open court).  These attorneys are held to a higher standard, where they KNEW OR SHOULD HAVE KNOWN that what they were attesting to in writing or orally in open court, could be held against them personally and they could be held liable for their negligent behavior.

ENTITY REPRESENTATION

In “cutting to the chase”, banks and mortgage loan servicers (and title companies or document manufacturing companies who are working with them in creating documents to “clear title” or “create standing”) HAVE TO have a law firm representing them in court; otherwise, they can’t appear.  If we use “the system of things” to “hold the attorney and his law firm’s “feet to the fire”, they would naturally be discouraged from appearing in court to represent their “entity”, which may have used false and misrepresentative statements in a document contained in their foreclosure arsenal.  In other words, you wonder why law firms are “substituted out” right in the middle of a case?  Look at the case and seek out what the firm being substituted out might have done that created a liability for itself that it is trying to distance itself from.  The firms appear to be working in tandem to thwart any appearance of misbehavior that could be exposed for which they could, individually or as a firm, be held liable.  Which is why law firms have E & O insurance (errors and omissions).

It’s all about the insurance … and what’s not covered … that they’re worried about!   More details about insurance and bonding and the court’s responsibilities to NOT indulge felony behavior and the potential resulting liabilities for their actions coming soon to this blog post  … stay tuned!

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WELLS FARGO GETS POUNDED BY U.S. GOVT FOR $2.09-BILLION … WITH A “B” … FINE!

(BREAKING NEWS / OP-ED) — 

Why are we not surprised?

Wells Fargo Bank, N.A. has agreed to pay the United States $2.09-billion for purposefully misrepresenting the quality of loans it sold to 118 individual REMIC trusts.

See the Settlement Agreement here: Wells Fargo RMBS Settlement Agreement (August 1, 2018)

We caution you that when checking into your particular REMIC, if in fact one of these named entities shows up in your chain of title, to have any related assignments reviewed by competent counsel (we have one if you don’t) who can testify as to the false and misleading statements contained within said assignment in court, should you be facing foreclosure.  Any bank attorney making oral misrepresentations and false statements in court regarding any one of the named REMIC’s (given the fact we don’t yet know if the actual investors are being reimbursed out of these settlement funds and to what extent) risks disciplinary action before their particular state bar.

As with the Bank of America Settlement Agreement, where 530+ REMICs were involved, put back has to be verified.  If investors received settlement money in exchange for dropping their claims, then WHO is attempting foreclosure in their name?   How were investors harmed if they settled?  This goes back to our intimation that the mortgage loan servicers are the actual parties foreclosing behind the scenes and that they should be taken to task for their misrepresentations, especially if assignments to REMICs are involved and MERS is involved.

Again, despite the intense discovery that would have to take place in order to prove such, limited discovery into the documents to demonstrate falsity or misrepresentation is a statutory offense in all 50 states.  Many states even offer civil conspiracy causes of action involving the creation of the assignments, including title companies and law firms whose names appear on the documents!  I don’t make these statements lightly.  However, given the nature of the last two workshops we conducted, you can bet the law firms for the banks should take a second look at what they’re pontificating in court, because things are about to get dicey!

For an explanation of the foregoing, please tune into City Spotlight-Special Edition on kdwradio.com this Friday night at 6:00 p.m. EDT to hear Dave Krieger and R.J. Malloy cover this scenario.  Click LISTEN NOW and wait for the program to start.  You might be either pleasantly surprised at what you hear … or in the alternative … totally shocked!

 

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