Since I began my postings on CloudedTitlesBlog (way back when), I have always thought that my key objective (as a news junkie) was to get to the real truth of the matter.
I wrote several versions of Clouded Titles because the first edition (254 pp.), which I gave a copy of to a U.S. Magistrate when I met with him during a settlement conference in Kansas City in 2011, just wasn’t getting to the truth enough. Nope. The news would continue to unfold as time went on as to exactly how unscrupulous these banks and their mortgage loan servicers can be. Now, the Mayday Edition is 432 pages in length, full of about as much information as I could put into it to meet the criteria for the truth at a moment in time when it seemed all of the frauds that these entities could commit were actually illegal but being ignored by the U.S. government, who swore, through contract, to protect them.
Government-sponsored entities, or GSE’s (Fannie Mae, Freddie Mac, Ginnie Mae), carrying about 60% of the securitized paper debt load. Privately-securitized mortgages, typically funneled through the secondary markets on Wall Street, account for another 48%. The other 2% of mortgages operate as traditional mortgage loans, where, in the old days, you went to the bank, they knew who you were, they knew you had a job, they knew you had good credit and they knew you could repay the loan.
They also knew how much input you contributed to your community. They also held your loan in their bank vault. They did not sell your loan.
Even the 2% now admit that they “sell” some of their “paper”. Few banks in America actually admit they flat out don’t sell your notes and security instruments to “financial institutions” who securitize your loan, and bundle it up with other similarly-situated, graded loans. Once bundled, they convert them into bonds and sell them to investors on Wall Street. That’s the way the game has been played since the flood gates opened in 1999, thanks to the repeal of the Glass-Steagall Act (from 1934, which prevented banking institutions from playing in the securities markets). You can thank Bill Clinton for that.
I can tell you with a certainty that banks who securitized paper mismanaged their accounts and failed to comply with their securitization counterparts in drafting the necessary paperwork to accompany the accounts into securitization portals. This bungling left it up to the servicers, who later in the game, when the real squeeze-play hit the economy in late 2007 and exploded in 2008, started manufacturing documents using third-party document mills and in-house design teams.
All those mortgage loans that have a MIN (Mortgage Identification Number) on them were an indicator that the loans were securitized. Securitization gurus like New York attorney Charles Wallshein started writing about these bungled loans. I’m fascinated every time I read one of his articles and white papers.
ENTER THIRD-PARTY JUNK DEBT POOLS
And just when you thought things couldn’t get any worse, a new kind of “trust” has emerged, post-foreclosure debacle, in late 2015. The securitization pools started dumping their non-performing loans into pools and selling them off to private investors, who put them into junk debt pools and then began using their own in-house servicing units to “make shit up” and start putting homeowners out on the street in the name of some trust out there that they labeled an RMBS Trust. See the following link if you don’t believe me:
FANNIE MAE ANNOUNCES SALE OF NON-PERFORMING LOANS
RMBS: Residential Mortgage-Backed Securities
Post-2015, these pools are debt collectors that will lie to the courts and “make shit up” to foreclose on unsuspecting homeowners. They call themselves “trusts” and they get what appear to be legitimate “trustees” to act as “shell covers” for them to make them look legit.
I see a whole new book covering this behavior, however, I don’t see it as voluminous a work as Clouded Titles. But then again, look what happened when I wrote my first edition back in 2010 and the Mayday Edition in 2014 … IT … kept hitting the proverbial fan.
For those of you who are affected by all of these junk debt pools … I will keep feeding the info fire so you can at least know where you stand in all this.
When Fannie Mae sells off these loans (which started in 2018), there is no transfer of anything by assignment in the land records. The mortgage loan servicer’s “design team/third-party doc mills” crank out assignments deeding the property from the servicer directly to the named junk debt pool. Once recorded, if left unchallenged, these recorded documents can become the undisputed key to losing your house. This is why I suggest (because I can’t give legal advice; as a paralegal and researcher) that homeowner do 2 things:
- Go to sec.gov and type in the actual trust series of the post-2015 “trust” (i.e., one I’m currently working on a case for: RMAC Trust 2016-CTT) When you discover the search results yield nothing, the security that U.S. Bank claims they’re a trustee for, really isn’t a securitized trust, it’s a third-party junk debt pool of loans purchased from a GSE.
- Start drilling down on the assignment that the mortgage loan servicer (in this case, Nationstar) caused to be recorded in your local land records and start researching the parties who executed it.
Your first instinct will be to try to track these people down and haunt them with questions. DON’T!
Resist the temptation. MERS and other back-door entities have been known to “hide” these people. The only way you’re going to “get to” the creators and executors of these kinds of documents is to take the matter to court. People I know are doing declaratory relief actions to find out. This is why the book and training kit “The C&E on Steroids!” was put out by myself and California attorney Al West, who understands securitization better than 99% of the attorneys (except for Wallshein, who really gets it)! I have a very limited supply of these kits on the CloudedTitles website. The material was recorded in 2014 in Las Vegas at a hotel workshop we held and it’s still valid today!
The third-party debt pools are using banking entities like U.S. Bank as “shell covers” for their unregistered third-party bundle of loans they bought at a discount from Fannie Mae (and others) and attempting to collect at full face value. The late Neil Garfield wrote about this a long time ago, but it seems to now have come to full fruition the more we dig. Very few foreclosure defense attorneys know this stuff like Charlie Wallshein does. He uncovered the truth in 2021.
Now, I guess I’ll have to pen another research piece on it. Albeit late, but very necessary. This mortgage foreclosure war is far from over. I have another piece of interesting news nobody’s looking at … that I will cover in this new work.
MORE TRUTH: As of July 13, 2024 (the day IT went down in Butler County, PA), I was abruptly cancelled, via a 2-paragraph email, as the host of The Power Hour. I am setting up my own show network now. TheKriegerFiles.com will be one of the hosting sites. Be back in full swing soon!
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