Tag Archives: Glass-Steagall Act

THE OCC IS NOT YOUR FRIEND!

(BREAKING NEWS – OP-ED) — The author of this post shares this vital information with the intent that it be acted upon by all homeowners immediately!  The information being shared is the “breaking news” and the author’s comments about it reflect the op-ed portion … all for your educational purview and not legal advice! This should raise alarms to all who have a mortgage or deed of trust on their property anywhere in the United States … it is pertinent information that could be “dangerous to your wallet” AND your future! 

TALK ABOUT THE BIG BU-FU ON ALL MORTGAGORS/TRUSTORS!  OMG! 

(WASHINGTON, D.C.) — It’s bureaucratic creep at its finest folks!  The Office of the Comptroller of the Currency is using the COVID-19 and the civil unrest and political infighting to sneak in a proposed rule … wait’ll you see it in detail (HERE): nr-occ-2020-97a 

PLEASE SAVE THE FOREGOING TO YOUR DESKTOP AND READ ITS 20 PAGES CAREFULLY! 

Here’s the synopsis of what it says …

Hat tip to Living Lies Blog for the info!

This is one more reason to avoid entering into MERS-originated mortgages and deeds of trust! 

Using the “true lender” crap that the OCC is trying to promulgate, this is just another way to play “cloak and dagger” with the named “Lender” on any originating loan paperwork (mortgage or deed of trust).  It’s bad enough that when securitization started (after Slick Willie signed off on the Gramm-Leach-Bliley Act) post-1999, the Glass-Steagall Act was repealed, which allowed banks to play around in the secondary securities and mortgage markets … it’s quite another that NOW, the federal agency that oversees the banks is opting to change the meaning of “Lender” to anyone who wants to draft up a bogus assignment (which has been going on now for over two decades) and record it in the land records and take a homeowner to court, legally get away with lying to a judge that it’s the Real McCoy (as to where the money that funded the borrower’s loan came from) and steal more American homes “hook or by crook”.

FORCED RE-FINANCING! 

If this definition becomes the law of the land, it will force borrowers to re-finance their properties to get away from these securitized portfolios.  But it doesn’t stop there.

How do you know that the securitized trust or any “true lender” named in any legal document is the real party in interest with the right to enforce a note that may have been lost or stolen.  Any “true lender” can dig up MERS-originated loans floating around in the MERS System® that haven’t been acted upon and foreclose on them (because no one else is doing it) and get away with it before anyone is the wiser!

One shred of opportunity exists here, especially if you’ve been able to keep making your payments on your home(s) … and the author posits this with caveats (as to what this author would do in the event he were to find himself in your predicament):

  1. Go to a credit union or bank that is NOT a member or subscriber of the MERS System® and refinance the existing mortgage and get it away from and out of the securitization process.
  2. Once the “satisfaction” or “deed of reconveyance” has been recorded in the courthouse, get one office copy and one certified copy and challenge it through a C & E action (cancellation and expungement action); and
  3. Take the certified copy to the nearest law enforcement agency and get a case number to put into the pleadings of the C & E, identifying the fact that a felony has been committed in the land records and you want it investigated and prosecuted.

If a judge has become aware that a criminal complaint has been filed with local law enforcement, how then can he or she act to cancel and expunge the document without granting discovery to determine if a false statement was recorded in the land records, which in turn screwed up your chain of title?

How can a judge aid and abet a felony without themselves being the target of 18 USC 4?

How do you know your identity wasn’t stolen as part of the assignment of your current mortgage loan?

If a “true lender” orders the mortgage loan servicer to “create” (manufacture) an assignment out of thin air and causes it to be recorded in the public record, what method will you use to challenge false and misrepresentative statements contained within that document?

NO MORE GOING INTO COURT AND WAVING THE DAMNED ASSIGNMENT AROUND, CALLING IT A FRAUDULENT DOCUMENT! 

You need proof that the statements contained within the document were false!  Being named within the assignment as the “true lender” doesn’t change the fact that the information may still be false and misrepresentative, which constitutes a felony in damned near all 50 states.  No judge will listen to you unless you have your facts straight and take the emotion out of your argument!   Here’s where you have to either: (a.) put your thinking cap on; or (b.) move out of your home and live in a tent city.

This author is sure most of you reading this blog are of the mindset to fight. See another option below.

This is another reason why Al West further developed the Cancellation and Expungement Action as a means of squaring up with the Lender.  Now imagine having a mortgage loan servicer’s employees have to answer discovery (or even better yet, a deposition) as to what authority that they possessed at the time they executed a release of the lien on the previously-securitized loan, when in fact, they don’t really represent “the true lender”?   If the OCC gets away with this rule change, any lender will come into court, claim they are the “true lender”, with no further proof needed.  The only way you’re possibly going to be able to get a legal conclusion is to attack the phony paperwork recorded in the public record.

The powers-that-be will inevitably come up with some reasoning (probably this fall, 2020) for you to refinance your loan.  Mortgage loan officers will be lining up to make those commissions so if you’re going to do this the right way, why allow them to securitize your paper?

ANOTHER OPTION

OPTION #1: If you do not have the money to do a C & E action, the next concern would be what to do in the alternative:

  1. Call your congressperson and complain about this proposed rule and tell them to squash it like a bug!
  2. Tell your congressperson you know about the true cause and effects of the repeal of the Glass-Steagall Act and tell them you want them to reinstate it!

OPTION #2: If you have any kind of equity in your home, sizable enough to downsize, THIS is the time to do it!

  1. Like the Steve Miller Band song goes, “Take the money and run!”   Get away from the major cities and move to safer, kindler more gentler communities where gun-toting, 2nd Amendment advocates live that believe in the Constitutional freedoms we all know and love … because
  2. In November, an uncertain political climate may overtake America, rife with voter fraud, claims of voter fraud, demands for recounts and more violence (if your guy doesn’t get elected).

We cannot live in uncertainty.  Uncertainty doesn’t pay the bills.  Living high on the hog when you can plainly see that your options may be dwindling would not be frugal.  Using your equity to “get out of the rat race” created by the “oppressed” who will become the “oppressors” is the only way to secure a safe future for you and your family (unless in the alternative, you like firefights).

The real estate market in many communities is demonstrating that it’s a “sellers’ market”.  THIS is the time to cash out on your equity and downsize to more affordable housing.  In the area this author is in, the average listing sells in less than 60 days (if your home is priced right and market conditions dictate you can actually take equity out as a means of re-inventing yourself).

OPTION #3: PLAN B

Do you have one?

Here’s another thought … if you aren’t sick … why go to a COVID-19 testing center and have them stick a foreign antibody from a test kit up your nose?

This is another excuse to drive the scare into the public to blame someone for the virus.  Blame the Chinese Communist Party.  They did a great job in covering up the spread of something they themselves had a hand in creating.  Further, blame the National Institutes of Health and the Obama Administration for giving the Wuhan Lab 3.7-million dollars to “create” a virus out of existing viruses that contain HIV (the key component in AIDS) and malaria.  See the following post:

Nobel Laureate Calls COVID-19 Manmade

Don’t say we didn’t warn you that the “science” of this whole thing was going to come back to bite certain advocates of the vaccine in the ass.

Share this with your friends and tell them to reach out to Congress to STOP this madness by the OCC! 

Leave a comment

Filed under BREAKING NEWS, OP-ED, Securitization Issues

WHEN THE NEXT “CRASH” HAPPENS …

(BREAKING NEWS – OP-ED) — The author of this post is republishing a video done by Greg Hunter with Ellen Brown (an attorney and an advocate for public banking) who I have been on the air with.

Take away from this video as you wish, but one of my readers who alerted me to it got the chills when she saw it because Brown’s comments align with several other sources who are confirming the same thing.  Watch the video (22:21) and do the math:

ELLEN BROWN

MY THOUGHT PROCESS … IT’S NOT “DOOM AND GLOOM” … YET!

There is no doubt that this current “crisis” we’re in has us all in a state of confusion as to what to expect for a final outcome.  This is why I spend a lot of time doing research and talking to people about likely scenarios in the event of a cyclical crash. The last major one was in 2008 and between 2009 and the beginning of 2015, there was a huge collateral grab of over 10-million homes in America.

Everything that has happened since 1999 (when the Glass-Steagall Act was repealed) has led up to this mess (where we are now).  Even if we recovered from the 2008 debacle, there is more to come because all of Congress (the folks you put your faith in that keep making promises that your future will be better) has done is “kick the can down the road”.  Congress keeps spending money … and spending money … and spending money … money it doesn’t have.  They borrow it … and borrow it … and borrow it … and the merry-go-round has to stop sometime.

Congress allowed the banks back into the securities markets and Bill Clinton signed off on it.  So the next time you put your faith in your elected leaders, let’s bring this “home to mama”.  Brown makes a statement after being asked to predict when the next crash would happen and made reference to 2015 and her interviewer mentions Barack Obama, which means this video could be a prediction of at least our worst fears of things to come (as it was recorded some time before 2015).

This is a big gamble for over half of U.S. consumers.  There is no argument that we have a fractionalized banking system that gambles with virtual, fiat money on ratios that are (IMHO) way too far outside of what I’d consider smart banking. The FDIC, a corporation which insures every depositor’s account up to $250,000, does not have the reserves to cover all of the depositors’ money, which basically implies that we could be facing what happened in the Great Depression and in Cyprus in 2012.

Every time there’s a crisis (and you can’t argue with me here), everyone demands that our government “do something” to “fix it”.

Fix what?  

We have been conditioned to believe that in order to “fix” things, we just throw money at whatever crisis comes our way and make it stop.  Unfortunately, with the undisciplined behavior continuing to plague America (more than just essential travelers that continue to migrate about for non-essential behaviors), this current “crisis” (based in more than just a common cold thanks to China) is several months from being “over” enough to safely come out of our homes and there’s still no guarantee that it won’t fester up again (into another pandemic). We will still have to think “social distancing” when we’re out and about and most of us will have learned to make our own hand sanitizer and face masks by then.  For at least the next year, plan on making those two things or getting a supply of them at the ready.  One of the conditions we will face is limiting our travel and public exposure.

Congress passed the stimulus package ($2-trillion) and loaded it up with pork (and we let them get away with it).  

If the average person on the street asked where the money was going to come from, they’d have no idea because most of America does not understand finance and derivatives.  They may teach this stuff to MBA’s in college, but the average “Joe” has to learn by experience.  In the last “crash”, over 10-million families were displaced.  Investors were displaced. The economy was upset to the point where tens of billions of taxpayer dollars were “thrown at” THAT crisis in order to make it go away.

This corona-crisis was not of our own doing. However, the same results occurred.  Many of you think this is another “stab” at population control.  But most of you wanted the government to do something. right?  That’s the “conditioning” I’m talking about here. You point fingers and assess blame at everyone and everything, no matter what.  This is where our two-party system has failed us.

After 9-11, another crisis which many think was manufactured as a “false flag” by our own government, we all bleated that we wanted to be more “secure” and the government gave us the USA Patriot Act (without reading it before they passed it).  When a crisis occurs, people think Congress can fix whatever ails the country.  As you will learn in this lifetime (I believe), this Congress cannot fix a Cypriot-style bank raid.

Running to your banks right now and draining all of your money out of it (bank runs) will only precipitate more panic. Having one-month’s worth of funds in your account in M2 (checking) to pay your bills (as Ellen Brown recommends in the video) is only smart because we live in a system we allowed to be created by Congress.  Congress repealed the Glass-Steagall Act and made our futures even more riskier than it was before the Great Depression because we didn’t have the size of population then that we have now.  If and when a panic of this magnitude should occur, it is likely that people will be blowing up Congress’ phone lines demanding an immediate emergency resolution from the very banks that cleaned out our life savings.  However, Congress is the entity that passed the Federal Reserve Act in 1913 and allowed private banking entities to control our economy using a fractionalized, fiat system of “legal tender”.  Ever since then, this country has been plagued by cyclical crashes.

There is not enough “cash” (M1) in circulation to cover this nation’s debt.  M1 (currency) is issued by the U.S. Treasury in the form of a “Federal Reserve Note”.  What is a note?  (a promise to pay)

Pay when? 

When the American consumer loses faith in the banking system in this country and loses faith in the dollar, everyone will realize what “they’re on the hook for”.  American consumers who have money in banks are at risk.  They always have been.  Did you read the checking account rules when you opened your account?  All deposits become the property of the bank.  That means if the bank closes, you lose what you have on deposit. This is why we should never keep more than one month’s worth of debt obligations in our checking accounts at any given moment.  Those who are living hand to mouth will not feel a “cash drain” as much as those who have large amounts of money stashed in multiple accounts in the banking system.

If you’ve read the FDIC’s rules, it may insure up to $250,000 of each deposit account, but it doesn’t have to reimburse you every penny you lost right away.  In fact, with the hordes of consumers demanding their money, it’s likely you’ll be getting checks for $1 a month until you die or your deposits get reimbursed, whichever comes first. Some system of things we’ve allowed Congress to create for us, huh?

Many of us utilize M3 (credit cards) because banks can create credit card funding by securitizing all of the credit card accounts into derivatives. Those of us who maintain high credit card balances will naturally have a lower credit score because they put those derivatives at risk.  Those who use their credit cards responsibly have higher credit scores because they put the derivatives at less risk, especially when they pay more than the minimum payment every month.  Going all out in M3 when a crash occurs doesn’t hurt you directly because the derivatives are going to take the hit.  The investment markets will take the hit instead.  The insurance companies who have to bail them out when you don’t pay your credit card debts (because you’ve got no money to pay them with after the banks close) will also go broke because, like the 2008 crash, the insurance companies got caught in a derivatives “squeeze play”.

Bottom line here … those who are living on M3 right now are actually in a better financial position to survive this crisis because of fractionalized banking working in reverse.  We can always recover from credit extensions because we have bankruptcy courts that can deal with our “excesses”.  We can’t recover if all of our cash reserves are suddenly “seized” by the banks in order to “prop themselves up” during a crash.

Do we know WHEN the next crash will occur?   Nope.  But we know that crashes are cyclical and that another “crash” in coming, largely in part due to this current “crisis”.

What does China have to gain by “poisoning” America?

I can already anticipate a serious trade deficit if not a full embargo from the U.S. government.  Why would we continue to trade with the enemy?  Wouldn’t that violate a whole host of U.S. criminal codes?

I think most everyone agrees that China unleashed a “controlled viral scenario” on its people (as a test of what it could do to the rest of the world) … and contained them (to contain the spread to its own populations) while sending asymptomatic travelers packing to all points throughout the world, where they spread the virus, without informing the world of the harm it would be soon facing, in time enough for the rest of the world to shut it down effectively.  Imagine what would have happened had we had no warning at all?  The warning we got was two weeks late! Thank God it wasn’t two months late!

The problem we have with this “crisis” is that Americans refuse to let a “cold” interfere with their daily ritualistic “tasks” they are so accustomed to performing.  We are conditioned to the point where once that “comfort zone” is upset, we “lose our shit”.  We are not conditioned to “stay put” for long periods of time.  There is not enough law enforcement to control the flow of travelers who might be asymptomatic. Most of the public knows this.  There are not enough jails and concentration camps to hold all of the violators.  Thus, the government has to enlist our cooperation by being “good Americans” and staying home and tolerating this crisis.

There comes a point in time in everyone’s life when serious rationale has to kick in …

Call it Darwinism (survival of the fittest) … call it a “life change” … call it whatever you want. The state of affairs in this crisis is worsening because we are not doing enough to “contain it”.  We keep demanding of government and not of ourselves.  Our forefathers had to demand of themselves, otherwise, they wouldn’t have survived long enough to pro-create … and this is where we are today.

With this latest “crisis”, it appears that the bond markets in America have been “nationalized” by the Fed.  This too is a reality check because the Fed bought up municipal bonds, junk bonds and corporate bonds and treasury certificates.  It’s kind of like collateral to “cover the spread” of the amount of debt it just had to create (virtual debt rooted in M3) “out of thin air” (on paper) by an Act of Congress.

People where I live (in Florida) are now preparing for hurricane season.  So we’re in for a double whammy if a major storms hits us.  We would have-not only a corona-crisis but add to that a severe storm crisis, which could potentially displace a lot more than just the virally sick being cared for in hospitals.  Anything the likes of Hurricane Katrina anywhere in the U.S. could put an entire segment of the population (think of what happened in New Orleans’s 9th Ward) through a major catastrophe to the point where civil unrest is all but certain because people will be too distraught to sanely rationalize anything else but survival even if it means killing someone else for food, water or shelter.

Spend time looking at the entire scenario surrounding Hurricane Katrina.  Like this crisis, the government took too long to respond. With the lack of timely response, everyone is now pointing fingers again, starting with the media who is “creating controversy” and “fake news” to polarize America far worse than what the attempted “impeachment” crisis did.

The amount of casualties surpassed 9-11.  A lot of New Orleans law enforcement “bugged out” with their families (i.e., “Screw this! I’m not sticking around here and getting killed by this storm!”) and left the city with lack of safety support.  The Superdome turned into a rape center of feces and corruption.  Mercenaries had to be brought in to quell civil unrest.  People were shot to death.  Deal with that in your neighborhood.

If this worst-case scenario were to play out … the banks close … you lose all your money … you have no real “reserves” at home to pay for immediate needs with … your food supplies run out and the grocery store shelves are empty (toilet paper will be the least of your concerns) … your utilities get shut off … you start getting default notices from your bank on your mortgage … your insurance company denies your damage claim from a storm and you’re displaced all because you couldn’t pay your premium … are you prepared to deal with that?

Over 60% of Americans are not!

Just look at the current crisis and see how you’re holding up.  Now factor in the variables I just talked about in the last paragraph and re-evaluate your scenario.

We as Americans can no longer afford to “kick the can down the road”.  This will come back to bite us … and it will hurt. Take whatever precautions you can and be “the responsible one”.

The life you save may be your own.

BTW … HAPPY EASTER!

 

 

1 Comment

Filed under BREAKING NEWS, OP-ED, Securitization Issues

RISK MANAGEMENT TAKES SO MANY FORMS

(OP-ED) — The author of this post is a consultant to attorneys on matters involving chain of title, foreclosure matters and matters involving in “the system of things”.  None of  what you’re reading here is anything but common sense, not legal or financial advice … and a matter of fact explanation about how one manages risk!

PROFESSIONAL LIABILITY IN A LITIGIOUS SOCIETY

If “the system of things” teaches us anything, it would be what the legal costs would be for having to defend a professional negligence suit … anywhere from $66,000 to $250,000.  If you have to retain an expert witness to testify on your behalf, fees could run has high as $10,000 … all this over about a two-year period.  That’s two years of hell for anyone.

A lot of these attorneys representing the banks think just because their firm has E&O insurance, they have nothing to worry about.”   That’s what they think.

Again, we think of professional liability carriers and wonder what exactly is covered under such an event as described above.  Professional liability insurance places the law firm under a microscope.  Insurance companies are by nature risk averse and so they’d be reluctant to insure anyone with a propensity to commit statutory or ethical behavior on an ongoing basis for which the insurance carrier would have to pay a damage claim for harm caused by the attorney.

Remember in previous posts, I mentioned how insurance companies became so filthy, stinking rich?   They avoid paying claims on cases at all costs.  They invest in things that will bring them a maximum rate of return and shelter their profits inside of real estate and other wealth-building mechanisms.  But they will look to shave off dollars paid out in damage claims by settling for a lesser amount to keep more of what they make.  I don’t mean to irritate you with more “facts”, but that’s the nature of the beast.  This is why I wrote the ten-part series on “Gutting the Underbelly of the Beast”.   Professional liability insurance, of which errors and omissions falls under, is there to help manage risk.

IT’S TOO BAD HOMEOWNERS IN THE NEW MILLENNIA WEREN’T RISK AVERSE 

If homeowners (as borrowers) would have taken that to heart long ago, we wouldn’t be in such a mess nationally.  The rate of foreclosures wouldn’t have been so damned high.

It’s sad that we’ve been so conditioned to want everything “sooner than later” and “more of it than less of it”.  We’ve been programmed to have feelings of “entitlement” … to reward ourselves handsomely for a job well done.  Hell, even Presidents of the United States have gone on TV and told us that we deserve the American Dream at a time when credit was plentiful and anyone could virtually buy the home of their dreams.  With the Glass-Steagall Act being repealed, the banks became sponsor-sellers, the MERS® System took root and the end result was bad banking behavior which fueled the 2008 crash.   It fascinates me that Wall Street would assume so much risk without first figuring out how to manage it.  I’m talking about mortgage loans, student loans, car loans, payday loans, installment loans to buy appliances … and we’re not even touching credit card debt yet. Much of this debt has been securitized.

Student loan debt has now replaced mortgage debt as the number one crisis in America!   Student loan debt collectors have become more unscrupulous in dealing with consumers.  Baby boomers over 60 years of age are financially liable for $66.7-billion worth of student loan debt (whether co-signed or originally taken out to finance their own education).

I used to clean up people’s credit for a living.  My success rate was 85% in removing negative trade line items from people’s credit reports.  I decided to write a book about it: The Credit Restoration Primer.  It was the first of many books that explained how the credit system works and how credit bureaus are governed by law to make sure your credit reports are accurate.

WHAT WE LEARNED IN PRINCIPAL ISN’T PRACTICAL

Mom and Dad always told me that if you want something bad enough, you save up and pay cash for it.  Right?  Radio talk show host Dave Ramsey promotes debt-free living.

But wait!  The world won’t wait for me to save up for a house!  Right?

By the time I save up enough money to pay cash for a house, prices would be so inflated I couldn’t afford to pay cash.  Plus, I’ll be a retiring. (the afterthought)

Once health issues set in, it will be too late to take care of a home. It wouldn’t be advantageous to pay cash for a house in the future while I’m throwing away money on rent (paying someone else’s mortgage) while trying to save on my own terms just because mom and dad told me to avoid debt whenever possible. (just looking at semi-rational scenarios)

But wait!  Mom and Dad worked like slaves to put food on the table and seemed to be doing okay.  Or did they?   Look at their outcomes.  Work for the Company Man.  Get a gold watch. Get a kick in the ass (out the door, to old to work when we can find younger people to replace you at less cost) and then retire, get sick and die.   The “get sick” part is where the family again struggles to make ends meet while coping with huge medical bills because of lack of health insurance or high deductibles.

We’ve taken from what we’ve learned and decided that based on current data, we’d be better off in debt.  How crazy is that?  The banks and credit card companies would just love it if you got yourself in head over heels in debt.  They’re rich and you’re broke.  Yes, you may have “stuff”, but you’re broke!

BECOMING RISK AVERSE IN A SOCIETY THAT PROMOTES DEBT

Whether you like it or not, the Age of Entitlement is upon us.  We have nice things because we want them, no matter the risk in obtaining them.  We cannot become financially successful without a plan.  Then again, there are some that are just happy being able to make ends meet.  But it’s never enough, is it?  You always want what your parents had and then some.

The media is guilty of putting ideas in your head.  Ideas that promote debt. We allow it to permeate our thought processes because it expands our comfort zones and makes us feel better.  We have become programmed to make bad decisions because we “want it now, not later”.  Lacking legal and financial education seems to have been a deliberate thing, despite the fact the government keeps telling us it’s budgeted money to educate us in certain financial matters (like the money appropriated for “education” under the new Fair Credit Amendments Act in 2003). Where was that “education”?  I sure didn’t see any of it.

Why didn’t they teach “Checkbook 101”, “Mortgage 101” or “Student Loan 101” in high school?   I personally didn’t learn too much in civics class.   Maybe my teacher really didn’t give a shit whether I learned anything or not.  In high school, it’s all about the annual test scores and nothing else.

In the land of plenty, why are so many people starving?  Why are there still homeless people?  Have our principles simply been ignored?

Being homeless or without food presents a personal safety risk.  Thus, the government steps in and has the answer: Welfare, Section 8  housing, homeless shelters and food stamps!

But wait!  You have to fill out a form, giving Uncle Sam all of whatever personal information you can give, so the government can build a database with you in it.

The ideas that run through your head when it comes to food, water and shelter involve risk management (believe it or not).  If you can’t plan for a rainy day, why take the risk?  There’s always welfare.  Someone has to pay for it.  Let’s all have a pity party while we figure out who.

We have a government that writes checks its body can’t cash.  Our national debt is into the trillions.  Every time a new budget gets passed, a huge chunk of it is “pork”, so politicians will keep getting re-elected to keep the special interest groups that got the “pork” benefits happy.  This is the Congress that is bought and paid for by lobbyists, like those who work for Fannie Mae and Freddie Mac.

Our government has set such a wonderful example for us, hasn’t it?  Congress can’t balance its own budget, so why should we?

Spending makes us feel better. People get all emotional over colors, floor plans and styles, they forget practicality and price. To top that off, many buy over budget because they think they can afford it.  Prior to the 2008 crash, people took out risky loans, most of whom could never repay them. Many folks allowed the lenders to inflate their earnings so they could buy more home, which was a great disservice.  I’m not saying it’s all the homeowner’s fault.  The lenders played right into the game, offering predatory loans which were risky in an already unstable, credit-saturated market.  The teaser rate was merely a game played by unscrupulous lenders on uninformed borrowers who wanted their piece of the American Dream, only to find themselves on the street years later.  Our government promoted all of this and America bought into it.  Congress repealed Glass-Steagall through the Gramm-Leach-Bliley Act. It was a bipartisan effort.  No one but the banks knew how they were going to use securitization to “rig” the economy.  Notice how the government hasn’t put any of them in jail?  Our executive branch is supposed to enforce the laws that Congress makes.  Why did we forget that?  Why wasn’t that drummed into our heads in high school?

Do we chalk up our current system of behaviors due to lack of knowledge?  It’s no wonder insurance companies are rich.  They avoid risk.   Why aren’t we doing that?

CERTAIN WAYS TO AVOID RISK (MY PARTIAL LIST … TAKE IT FOR WHAT IT’S WORTH): 

(1) Research your planned purchases BEFORE you spend money!  See if you can get products that are either more durable or have a longer shelf life.  America has been so conditioned to mass produced products we’ve become a “throw away nation”.  We’re already seeing difficulty in America in disposing of trash.  Spending a little extra for something that has a longer warranty or shelf life is more prudent in the long run. If you have to use credit to buy that item, make sure it fits within your budget and have a time frame set in your mind (and on paper) on when you intend on paying it off.

(2) Investigate all insurance policies BEFORE you invest … and don’t over insure!  Compare policies.  The last policy I got didn’t cover that much in computer replacement in case of a lightning strike, so I upgraded my policy for $204 more to cover replacement of ALL my computers in my home.  Sometimes, not having ENOUGH insurance puts you at risk … and, in the alternative … sit down and total up all of your policies’ annual premiums.  If you’re paying more than 10% of your income on insurance, you’ve bought too much in policy benefits (or you bought a policy that doesn’t fit your current needs).  It’s like buying whole life insurance policy when pure term is cheaper and you can gage your financial position based on your age and what your current needs are and not get killed financially by changing face value amounts.  Having insurance is part of managing risk.  When homeowners default on their loans, hazard insurance is the first thing that gets cancelled for non-payment of premium.  This is why I pay annually.  It’s cheaper and you have a definitive date to plan for, so your risk is calculated.  General liability insurance on the average runs $350 a year!  If you’re going to protect yourself against high-risk situations, it’s a good thing to have.  I’m not a big fan of homeowners’ indemnity policies.  They essentially insure nothing and with MERS around, shit happens.  There’s nothing like buying a piece of real estate with a tainted MERS mortgage somewhere in the chain of title.  You never know what the future holds if your home’s fate is in the hands of some unknown REMIC.

(3) Avoid impulse spending!  I go shopping just to see how informed the clerks are.  I will rarely buy anything unless I absolutely need it.  This type of buying is especially true in grocery stores.  Why do you think they have food samples for you to try?  To get you to buy extra!  If you have a frustrating time buying groceries and stretching your family’s budget at the grocery store, you have no business going out to eat (because you’re frustrated with high grocery prices) and you’ve probably succumbed to the grocery chain’s slick marketing campaigns.  The stuff they WANT YOU to spend extra on is always in the middle of the aisle or on the end caps.  If you have to take your kids shopping with you, make them go into the check-out lane BEFORE YOU and make them watch the clerk load the cart to make sure nothing you bought was missed.  That way, you give them something responsible to do and they’re not basking at the candy racks at the checkout counter and bugging you with “I want! I want! I want!” overtures.  Hey!  They learned this conditioning on television.  It’s called cartoons (advertising targeted at children in between the cartoon segments).

(4) Plan your educational expenditures by properly planning your career move! Many folks went to college and majored in stuff that had no career future.  They went to school and took classes they liked and spent a fortune (in student loan money) over-educating themselves in foolish majors (like forestry or liberal arts, for example).  It’s one thing to double major in horticulture and business if you’re going to manage a food production facility (like a farm, poultry or egg production or similar skill set) or work for a Fortune 500 company with a guaranteed paycheck.  But wait!  There are risks there too!

First, there is no guarantee that you’re not replaceable!  The first time you make a sexist remark in the workplace, you’ll be labeled a target of some political movement that is responsible for polarizing America.  You’ll be shamed.  This is what you have to look forward to in the national workplace now.  Everyone’s got a political opinion. Everyone’s got Twitter.  Everyone’s got Facebook.  Everyone’s got Instagram. Ask Anthony Weiner (who’s getting out of jail soon) what the consequences are of putting sexually explicit pictures on your phone and sending them to someone.

Second, if you’re nearing retirement age, but have great experience factored into your work history, you can bet the company will be looking for someone younger with much less experience that they can pay less of a salary to.  This posits a risk in this day and age.

Third, there are unplanned illnesses.  You know your body better than your doctor does.  If you have health issues, get them fixed FIRST before embarking down the path to a new career.

(5) If you have to retrain to get out of being unemployed or underemployed just to stay afloat … research self-employment FIRST … then the skilled trades! 

Anything involving food, water, shelter and personal welfare (medicine, nursing assistant, dental assistant) are the BEST career moves NOW.  I know for a fact that my kids are not like me.  They do not have the discipline to be self-employed like I am. I always told my kids to work off the “trade side” and go to a short-term facility that offers grants more than student loans.  In the alternative, attempt to get a job in a trade that is willing to train you while you work (OJT).  True, it doesn’t pay much but the gains from improving your learning curve far outweigh the temporary disadvantages. If you’re going to have to take out a student loan, put a limit on what you’re willing to borrow.  The average student loan debt in America at present is $30,000!  That means, if you can stay at the lower end of that curve, say, $10-15,000, you’ll pay it off in less time.  But you’d better have a job lined up (or at least research enough to know there will be a job in that career path for you) when you graduate.   Paralegal certificates are easier to get these days and there are certain parts of the legal field where jobs are plentiful for lower-echelon workers.

Again, I like self-employment better.  I can work from home and be a consultant when I want.  I can do seminars when I want … or not.  I can work as much as I want or as little as I want.  Every day however, I’m up by 6 a.m. doing research for an hour or so!  Old habits die hard.

I had fun as a mobile DJ.  I made good money too and didn’t have to spend a fortune on equipment.  I rented someone else’s gear first.  When I got enough to buy my own gear, I continued to rent the gear for another DJ to use and over time, I was able to put 28 DJ’s to work and make damned near a six-figure income! That was in 1983.  Imagine what self-employment could do for you and research all of the possibilities.  In some trades or skills, you can rent what you need before you have to make a commitment to purchase stuff.

Avoid franchises!  I know … they look attractive, but there’s a hefty price tag and a huge commitment to follow their schools of thought, whether they work or not.  This is why they put ads in entrepreneurial magazines, to snag the ignorant who are attracted by their teasers.  If you don’t have a couple of million bucks lying around, you’re not going to be able to get into a McDonald’s franchise or a Hooters franchise or any other franchise you think is sexy or at best attractive.  A lot of people like to compete with Starbucks and open coffee shops or coffee carts.  Not a bad living.  Any kind of food cart is a cheap date, but you’ll face local licensing issues and potential consumer issues (conflicts on the street, hold-ups, shoplifters, etc.).

My mom had her own news stand inside the Rochester Gas & Electric building for a number of years before she passed.  It was a safe environment (there was a security guard in the lobby near where her stand was set up, inside a rented nook in the lobby) and she made a modest living and did well despite renting a studio apartment (unfortunately, she never had the opportunity to own a home).  She never got a college degree.  Back then, you just applied yourself.  But the work ethic has changed and so has the marketplace we live and work in. People seemingly care less about the end result (doing a good business) so long as they get a benefit from it (a paycheck with no commitments).

Self-employment is the “new shit”!  Set up an LLC or a full C-Corp. I don’t know if you knew this or not, but the IRS audits full corporations and LLCs less than self-employed sole proprietors.  LLC’s (I’m told by several credible CPAs) get up to 75 deductions a year, while sole proprietorships only get 35 deductions annually.  Full C-Corps get up to 350 deductions per year!  Put your personal property and your homestead into separate trusts as part of asset protection to guard your investments.  Being a consultant or an investor is NOT a bad thing, especially with the right training.  I spend a ton of time researching other people’s careers to determine their longevity.  I can look at a credit report and tell a lot about the consumer (how leveraged they are).  They may have a great cash flow and credit that sucks.  That tells a lot about how they manage risk (0r don’t).  When you can get to the point of investing in other people’s projects (with them doing all the work), then you’re really on top of your game!

(6) Learn to construct a financial statement!  There are FREE classes both online and offered by community colleges and libraries that will teach you how!  Once you know HOW to build a financial statement, you can then figure out what kind of a budget makes you more attractive to expand your horizons. It takes less than a day out of your schedule to learn how.

(7) Do NOT buy vacant land unless you intend on a pre-planned build job! There’s nothing worse than buying a vacant lot (and overpaying for it) only to find that you’re about to get hit with high sewer assessments or increased property taxes due to an unforeseen annexation.  Don’t buy land in flood plains!  I don’t care how glamorous the lot is.  If you’re going to buy, buy in secure areas with a home-building plan.   I actually acquired a 3/4-acre tract and put a used mobile home on it from a lot I bought through the Texas Veterans Land Board for $75 down and made payments on both until the timing was right to sell the 12-acre parcel.  I ended up with a $222 a month land payment and a paid off mobile home, which I fixed up and later made a $27,000 profit selling it.  In the process of selling the 12-acre lot, which was soon to be adjacent to a major toll road, I paid off $35,000 worth of debt!  Being mortgage free is wonderful.  I wish everyone in America could experience it.

Land purchases are great if you have a definite plan to build.  Getting suckered into development purchases is penny-wise and pound-foolish!  Avoid HOAs!  Research chain of title to make sure there’s no restrictions on the lot you’re going to buy and that the title is clean.  If you can buy 5+ acres, owner financed, even better.  You can put a used mobile home on it and build as you go.  A lot of people are doing that these days.  I would do it again if I had to (in a heartbeat)!  You can put in a garden, a well and eventually solar panels … and live off the grid.

AVOID buying second or vacation homes! I know this goes against the grain of you overachievers out there that think you deserve everything. Part of the problem is, second homes or vacation homes is nothing but an equity builder and equity is “fake” until realized.  Many people rent out their second homes but with this creativity comes more legal restrictions. I just don’t like tying up money you could use to really build wealth owning a business.  If you’re going to plan your career, look at self-employment and design your home purchase in an area as your principal residence that doesn’t have to support your business in order for it to survive.  Truck farming is another creative way to stay “under the radar”, eat well and have plenty of fresh, healthy fruits and vegetables left over for bartering.  Farm organic (but don’t advertise it … it raises an FDA red flag and subjects you to scrutiny). I’ll write another book about “being invisible” at some point.

From the investor’s perspective, forget the idea of a second home or a vacation home.  Build a rental income portfolio by investing in distressed properties that you can rent out and make a decent return, while making the bank payments.  There are people with money that have crappy credit, so option payment financing puts instant cash in your pocket you can use to buy another property or fix up your own place or pay down debt!

I know a couple that started out with a mobile home on 8 acres. They originally purchased a mobile home.  They put up a garage and pens and she got her veterinary assistant’s certificate (short term skill training) and got a business license to open up a kennel.  They eventually managed to build their mortgage-free home from scratch.  Yes, it took time, but the rewards were realized in the profits they made from their home-based business!  Ah, the peace and quiet of country living along with the security of knowing you’ll have lots of barking dogs to warn you of unwanted intruders!  I know that a lot of you aren’t cut out for that kind of work, so I posit this as a creative example of “putting your mind to something” to have a working investment.  Credit card companies are throwing credit card applications at these folks because they have cash flow.  They are credit resistant though, because they’ve budgeted and saved for a rainy day, mixing old school principals in today’s modern times.

(8) Say “NO!” to MERS mortgages!  Getting a loan that you know is going to be securitized is crazy because with the digital age, you’re putting your whole future at risk.  Your chain of title is going to ride on someone else’s say-so! You don’t want an electronic database involved in your life any more than you’d want your mother-in-law calling every other minute to query where you’re spending your next dime!

(9) Bank with public banks and credit unions!  Only go with banks that portfolio their loans (meaning they hold the loan in their own vault) and don’t sell them to any entity outside of their own bank!  If the bank is a member/subscriber of MERS, go somewhere else.  You don’t need to support these mega corporations any longer!  Generally, the credit unions give you savings accounts and additional protections that the mega-banks take for granted (when they’re taking YOU for granted).  AND … DO keep cash on hand.  I recommend at least $500 for every person in your household.

(10) Consolidate and pay down on credit cards!   Close the ones you hardly use, have high interest rates or hit you with annual fees.  Unless there’s a real purpose for having a department store credit card … those cards should be the FIRST cards you get rid of!  All your other plastic will work in those stores.  I take issue with these low-dollar credit campaigns like Macy’s and JCPenney’s do as a means to get customers. It’s not worth the hassle of applying for a $300 credit limit just to get a deal on buying one item or saving money on your initial purchase.  You’ll have an inquiry on your credit report, which could bring down your overall credit score.  It’s too easy to forget paying on cards with really low balances, which could jack up your credit score when you least expect it. I find keeping a credit card available for travel or emergencies is the most prudent, don’t you?

TEN WAYS TO “CLOCK” YOUR OPPONENTS UP SIDE THE HEAD! 

Read the 10-part series on this blog: “Gutting the Underbelly of the Beast”!

That way, you’ll learn how “the other side” manages risk.

Listen to this author (Dave Krieger) on City Spotlight-Special Edition, every Friday night at 6:00 p.m. Eastern Time on WKDW-FM!  Get the latest financial news and education!

Leave a comment

Filed under OP-ED

STRIKE TWO AGAINST OCWEN’S “QUALIFIED WITNESS”; SAY ALOHA OCWEN!

BREAKING NEWS, OP-ED … 

(Honolulu, HI) — For those of you looking for ammunition against Real Estate Mortgage Investment Conduits (REMICs) and the servicers and subservicers who screw homeowners on their behalf, a new case out of Hawaii has surfaced that should put more securitization and civil procedure into greater detail, courtesy of foreclosure defense attorney Gary Victor Dubin.  You can download the .pdf of the Hawaii Supreme Court ruling here:

US Bank NA v Mattos, Sup Ct HI No SCWC-14-0001134 (Jun 6, 2017)

For those of you battling against U.S. Bank, NA as a Trustee of a REMIC, you should know that U.S. Bank has admitted in a 4-page brochure that they do NOT know when a Borrower is in default:

US Bank Brochure – Role of the Corporate Trustee

Further, U. S. Bank (in the same brochure) admits that the Borrower is in fact a part of the securitization chain!

The Office of the Comptroller of the Currency, long before the Glass-Stegall Act was repealed in 1999, issued a Comptroller’s Handbook on Asset Securitization that also stated the Borrower was a party to the securitization chain (see Page 8 of 92), contemplating in advance of how the chain actually was supposed to work:

OCC Asset Securitization Handbook

Ocwen, as you may recall, admitted to the United States Government (via 6 different federal agencies) in writing that when Borrowers don’t make their payments (to the REMIC), Ocwen, as servicer through the Sales and Servicing Agreement, makes their payment for them, in an article I just posted, see page 2 (bottom) and 3 (top) of  EXHIBIT 29

The Hawaii Supreme Court reversed an appellate court ruling, which upheld the district court’s ruling that U.S. Bank, as Trustee of a REMIC, had the right to foreclose on a property belonging to a Hawaii property owner, which other courts across the land have dared to lightly tread upon these same similar issues. Sadly, borrowers seldom ever follow through on getting to the nation’s highest courts (the state Supreme Courts) to achieve finality.

I beg of you to read Gary Dubin’s case, because part of the equation in securitization failure has been examined and ruled upon by a state Supreme Court (Hawaii).  I am singularly surprised that other state’s haven’t made the same glaring rulings finitely (Florida’s 4th DCA is close, but NOT THIS CIGAR!).

This case is a rarity that should be examined in more detail because the Pooling and Servicing Agreement (“PSA”) was included in the attack.  What’s worse, Ocwen’s “Contract” witness, who tendered an affidavit claiming he was a “know-it-all” about Ocwen’s business records (which 20 states and the District of Columbia are calling a sham), which did nothing for U.S. Bank because U.S. Bank’s attorneys couldn’t prove the relationship between Ocwen and U.S. Bank.

I was truly shocked about the part of robo-signing, which in fact was mentioned in the ruling.  No one has yet to challenge this act as part of a civil conspiracy (yet); however, this is to come.  I am not going to go into detail for you here, because I know many of you out there like to do your own research into the elements of civil conspiracy in your respective states, as in a Google search, “What constitutes the elements of civil conspiracy in _____ (insert your state here)____?” and see what pops up.  The burden of proof is much lower than RICO and easier to prove by attacking the signers, witnesses and notary involved in the assignment.

Oh, darn! This involves spending money doing depositions, huh? Shit!  And here you thought you were going to get a “free house”!  I don’t know where the bank’s attorneys get off making these snide remarks about homeowners wanting a free house, because they don’t even know what the homeowners are thinking.

The Trustee hasn’t paid a nickel to the investors that it can document; however, EXHIBIT 29 clearly identifies WHO pays the investors.  So, taking this to its logical conclusion: If the investors are getting paid, then how can the Trustee, on behalf of the investors, claim the investors have been harmed or prejudiced because the securitization chain failed?  I have no contract with the servicer, do I?  My contract is the Mortgage and Note. Those contracts are with the Lender.  When the Lender goes belly up, as history has shown us, the mortgage servicers use the MERS® System to “keep the lie going” by giving unproven authority to thousands of writer’s cramped individuals who execute assignments in its name, being told by third-party document mill executives that it’s perfectly legal to do what they’re doing.

This is why the entire banking underbelly is corrupt and illegal as hell.

The securitization chain failed because the parties to the trust DID NOT follow the REMIC’s own governing regulations, not because the investors weren’t getting their payments!  When push came to shove, Ocwen and other third-party butt plugs had to gum up the chain of title with what I consider falsified documents, Assignments of Mortgages and Assignments of Deeds of Trust.  That is my new term for document mill robo-signers who have no knowledge of the facts contained in an assignment they’re claiming they have knowledge of! To even proffer this … and then brag about it like NTC does (the McDonald’s of robo-signing, “over 16-million served”, referring to the number of documents this third-party document mill says it’s recorded as a means to “clear title”) … should have put this entity, its directors and employees, in prison.  However, since the banks have virtually paid off the state legislators and executive enforcement arms … no one has gone to prison, yet.

A Court Case Full of Surprises! 

I am glowing about the securitization/forensic analysis included as a mention in this Hawaii case as a means to educate a judge … and nothing more.  Most judges can’t wrap their heads around this kind of testimony because they are only thinking about their retirement accounts and how those accounts might be affected if they rule against the bank.  Unfortunately, what they DON’T GET … it that the entire 424(b)(5) prospectus is in play here, NOT just the PSA portion of it!  Let’s take a look, shall we?

SEC Info – Mortgage Asset Securitization Transactions Inc – ‘424B5_ on 1:14:05 re: Mastr Alternative

There are 357 pages in the Prospectus attached above.  Yes, the WHOLE enchilada!  Why just pick out the PSA?  That’s like eating the peas and leaving the steak! It doesn’t contain ALL of the information now, does it?  This is the Prospectus for the foregoing Hawaii case! 

Look at the portion of the Prospectus that talks about the PSA.  If you look under the TABLE OF CONTENTS, the Pooling and Servicing Agreement is found beginning at Page S-95.  However, the cut-off and closing dates that are related to the issues expressed within the Pooling and Servicing Agreement are found OUTSIDE OF the section on the PSA, at Page S-5, 90 pages away from the PSA!  The Prospectus of this REMIC (and any REMIC for that matter) is the entire “sales pitch” of the REMIC!  It’s the entire set of governing relations for the REMIC!  Why then are we just focusing on the PSA when the entire 424(b)(5) Prospectus has all the rest of the nuggets that make the PSA make sense?   Because judges are lazy and don’t want to read 357 pages of this stuff.  If judges figured this out, there wouldn’t be one retirement plan vested in RMBS’s and CMBS’s!

This is the end result of what the repeal of the Glass-Steagall Act has caused.  This is the lazy man’s excuse for not wanting to read (texting is more funner, sic).  This is why Sen. Elizabeth Warren’s reintroduction of the Act cannot go unsupported.  The people need relief here.

Text – S.881 – 115th Congress (2017-2018): 21st Century Glass-Steagall Act of 2017 | Congress.gov |

I have talked about securitization failure systematically on this blog prior to the mass deletion of what came before this set of recently-posted articles.  It would make no sense to educate a judge that thinks his retirement account will fail if he rules against a bank.  This is why I have always told consumers involved in foreclosure litigation to “background their judge” (hire a private investigator if you have to, to dig up the judge’s nasty little political secrets)!

What has happened since the Glass-Steagall Act was repealed has turned into an all-out war involving servicer fraud and this case is a clear example of it.  I seriously doubt that U.S. Bank was really involved in this case (more like Ocwen).  If the attorneys for the bank were actually forced to admit WHICH aggrieved party they were representing in this case, they probably couldn’t tell you.  My guess is, Ocwen retained them because Ocwen wants to steal your house to reimburse itself for all those pesky servicing fees it racked up paying the REMICs off!  This is how Ocwen wants to get rich off America … and it uses Altisource and REALServicing (more-than-arm’s-length devices) to pull it off!  Any time that you see “corporate layering”, you are going to have to dig deep like many of the readers of this blog do … and pull up the serious stuff that matters.

We have to be smarter than the banks if we want to win.  Unlike the banks, we have to expose the truth!

This is my truth: OSCEOLA COUNTY FORENSIC EXAMINATION

 

3 Comments

Filed under BREAKING NEWS, OP-ED