Tag Archives: MERS System

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started (after Slick Willie signed off on the Gramm-Leach-Bliley Act) post-1999, the Glass-Steagall Act was repealed, which allowed banks to play around in the secondary securities and mortgage markets … it’s quite another that NOW, the federal agency that oversees the banks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! 

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Filed under BREAKING NEWS, OP-ED, Securitization Issues

AMERICAN FORECLOSURES … DIVIDED WE FALL

(OP-ED) — The author of this post puts forward this information for the purposes of education and enlightenment and not for the purposes of rendering legal advice. 

THE MORATORIUMS ARE GOING AWAY SOON

If you’re a homeowner who has been affected by the coronavirus to the point of losing a paycheck and not being able to make your mortgage payments, you’ve probably been living off your credit cards during this “lockdown”.  The anticipation that you’re going to start hearing from your mortgage loan servicers (if you haven’t already) is growing to the point of panic and anxiety knowing that you’ve been given a reprieve for so long but that point in time is coming to an end and you’re going to have to face the music.

I for one do not believe that the 2-month lockdown warrants the same type of foreclosure activity that took place between 2009-2014 as a result of the 2008 financial crisis, despite the fact that the nation’s economy has suffered a serious upset by the pandemic.  The difference between what happened in March and what happened in 2008 was that the secondary markets were quietly imploding and didn’t hit us until the actual collapse of Bear-Stearns and Lehman Brothers started a tidal wave of Chapter 11 filings in the subprime lending markets.  We saw this one developing and began to prepare (for some, like me, you saw it coming in February and started accumulating whatever cash and supplies you needed), which included but was not limited to, hoarding toilet paper and hand sanitizer.  The fact the pandemic was hidden from most Americans for better than two weeks only shortened our preparation time.

Many Americans ignored the warnings of the viral component’s ability to spread … hence, Spring Break.  This was only one of the catalysts.  Two separate cruise ships on both coasts (San Francisco and Miami) were already affecting dozens of passengers, one of which I knew from a non-profit organization that she and I were both a part of.  She was dead upon arrival into the Port of Miami.  When it’s someone you know, it hits home rather quickly, sometimes too close to home.  But at least we knew the ships (full of sick and dying) were headed straight at us.  We at least had time to prepare and mobilize our resources.  This isn’t something that was intended to cripple our morality.  The virus seemed intentionally let loose to cripple our economy and thus, our modes of survival.

POLITICS ASIDE?  NOT!

This entire crisis has been manipulated by the medical community, including but not limited to, the National Institutes of Health (NIH), the Centers for Disease Control (CDC) and Dr. Anthony Fauci, the President’s adviser.  Be mindful of the fact that Dr. Fauci (who I equate to Dr. Josef Mengele of Nazi fame) has served previous administrations, both Republican and Democrat (before you start raring up your emotions at little old Libertarian me for daring to question what’s really going on here).

Both the Republican and Democrats have taken advantage of this crisis.  Both sides of the aisle debated and passed legislation to benefit their own constituents.  Both sides of the aisle debated and passed legislation to benefit Wall Street.  Both sides of the aisle debated and passed legislation that gave most of us (but not all) some sort of stipend (dole) as a means of attempting to support those who the government considers “law-abiding taxpayers”.  Both sides of the aisle used the pandemic as a means of either gaining political control or upending the other side’s political control.  Don’t you just hate it when that happens?  And over 100,000 people are dead in America just so both sides can point fingers at each other with accusatory tones.  But also remember, Fauci has told this President (as well as past Presidents) what might happen with the pandemic and what protocols should be followed, whether the protocols (or the informational data used to formulate those protocols) was accurate or not.

Both sides of the aisle have not come up with a remedy (other than a moratorium on government-backed GSE foreclosures) to stop the tsunami of foreclosures that we could have faced if the moratoriums were not extended by the State’s governors to include all mortgage loans, which included evictions.  Now we’re faced with our own set of politics … a national network of mortgage loan servicers, collectively using “the system” to play out unfortunate scenarios against afflicted Americans who still haven’t formulated a PLAN B as to how they intend on dealing with the aftermath of this “planned economic strike” against America.  Everyone of course is pointing a finger at the Chinese Communist Party (CCP) and blaming that entity for our troubles when in fact, the troubles were seriously exacerbated by our very own government in the way it doled out the money.  Again, the trickle down effect impressed not one taxpayer to the point that they thought someone did them a serious favor.

In other words, how long did that $1,200 check last each person already financially affected by the loss of employment.  When the moratorium gets lifted, those who are still struggling could become the first casualties of the second foreclosure epidemic.  I don’t consider any of this at all funny.  In fact, it’s disgusting that America has allowed itself to become embroiled in public debate over police brutality vis a vis the media, who hates Trump and wants your country to be turned into a socialistic state. The media has become so left-liberal it’s sickening.  You can’t turn on any channel and get the truth because politics has (and is) playing itself out at every turn of events.

DEFUNDING POLICE DEPARTMENTS?  DOES YOUR PERSONAL SAFETY MATTER?

Both George Floyd and Rayshard Brooks had much in common.  Both were black.  Both were convicted felons.  Both served time in prison.  Both were in the wrong place at the wrong time.  Both allegedly were involved in the commission of a crime (Floyd for passing a counterfeit $20 and Brooks for being intoxicated at the wheel of a running motor vehicle) for which they were placed under arrest.  Both died at the hands of police officers who were white.  Both were exemplified as poster children by the left and the media.  Both gave anarchists impetus to riot and commit destructive acts.

Now that you see the facts, do the cops need sensitivity training or does the public need sensitivity training?  After all, a young, white woman was captured on video burning down the Atlanta Wendy’s restaurant where Brooks was fatally shot during the riots that followed.  While it is relatively easy for white people to all of a sudden think a black person set fire to the restaurant, the video shows otherwise.  The video shows that there are people with no morals living among us that are out to prove a point … that anarchy is acceptable as a means of protest … even if it involves arson, which is a felony.  The other part of the problem, which my wife was quick to point out over coffee this morning, was that folks stood by videoing the act with their cameras so they could post it on social media because everyone is into sensationalism now.  So, does committing a crime for the purposes of sensationalism make it okay?  Why didn’t the people doing the video taping with their cameras stop the woman from burning down the Wendy’s?   Where did our morals go?   And the left want to defund police departments over the acts of bad actors?  I think not.

The U.S. Constitution and the Bill of Rights provide for the general welfare and safety of ALL Americans, not just the Black Lives Matter folks.  The First Amendment to the U.S. Constitution grants ALL of us a certain number of freedoms (self-expression and the right to assemble peaceably).  However, your liberty and freedoms ends where another person’s liberty and freedom begins.  When you violate the Constitution by committing a crime outside of the boundaries of what the Amendments are designed to protect, then the system has measures in place to deal with the offender.  The system did not afford those protections to Floyd and Brooks because of the actions of a few white officers.  Whether they will be granted immunity is anyone’s guess.  According to a friend of mine in Texas (who is a police officer), there are some who you cannot give a gun and a badge to because they’re more dangerous than those they were sworn to protect.

Many police departments are not funded well enough.  As my co-host on City Spotlight – Special Edition (on kdwradio.com), R. J. Malloy stated, “This isn’t Andy of Mayberry.”  There isn’t an issue over the fact Deputy Barney Fife only had one bullet in his gun, other than for his own well-being in not shooting himself in the foot. The issue is what protection Sheriff Andy or Barney Fife could (or would) do in the event the citizens of Mayberry’s personal protections were in jeopardy.  What police departments don’t need is tanks and military style Humvees.  What police departments do need is officers who are equipped with the means to protect and serve those citizens they were hired to protect and serve.  Anything short of that would represent a disservice to their respective communities, sensitivity training or not.

And here I thought the parental saying (from way back when) of, “Two wrongs don’t make a right” still applied to today’s community standards.  When the police can’t respond, or refuse to respond (as what is happening in Atlanta right now), sometimes referred to as the “Blue Flu” (officers calling in sick as a means of protest), then the level of personal protections afforded under the Constitution are eroded.  This gives way to those without moral scruples to commit further acts of violence.  I sometimes believe these people do these heinous things because they have a bone to pick with authority.  I think it would be best that police would be stripped of their qualified immunity from prosecution if they went “past the point of no return” once the person arrested was restrained or incapacitated, armed or not.  In Brooks’ case, the cop was videotaped kicking Brooks after putting two slugs in his back and was quoted as saying, “I got him!”   What’s that’s supposed to mean coming from a white cop with a bald head (skinhead)?

Despite the fact we can all agree that prejudice has no place in a decent, moral society, it still exists and is being driven deeper and deeper into the hearts and minds of those who feel they are being oppressed.  That includes those who feel that they’re being deprived of their Constitutional guarantees to safety and security.  Police officers should be held to a higher standard, especially when it comes to those they swore an oath to protect and serve, despite the color of their skin.  The bigger problem here is that with society melding into multiculturalism, it will soon devolve.  I predict there will be another spate of White Flight as American society continues to devolve.

UPHOLDING RIGHTS INCLUDES THOSE FACING FORECLOSURE

When it comes to foreclosure, we all have to have a game plan.  In 2008, when the financial markets collapsed under the weight of the failing securities debacle, it set the stage for multiple infractions against homeowners.  The biggest divisive scheme was the creation of notes out of thin air (the notes that had been shredded after they were uploaded as originals into the MERS System®).  It is common knowledge, as well as arguendo amongst those in the mortgage world, that the notes, along with their accompanying mortgages and deeds of trust, were shredded because paper proof of a contract was replaced by an electronic system of record keeping.  Many believe the originals were archived, yet there is no finite evidentiary proof of that.  What shows up in courts across the country in foreclosure cases I’ve reviewed are “copies” of original mortgages and deeds of trust that were pulled down off of the MERS System®, as well as the notes that the mortgage loan servicers now claim to be “originals”.

What we are seeing (and I talking about the collective group of investigative analysts looking into this documentation) is copies of notes being manufactured from copies pulled from the MERS System® and doctored up to look like originals.  The banks and their servicers and document manufacturing plants have gotten very good at reproducing notes to look like originals.  This is why certain individuals, knowing their notes might be shredded, filled in the “o’s” with ink on their promissory nOtes. Anyone reproducing a copy of a note trying to make it look like an original would have missed the filling in of the “O” in “nOte” which would be a dead giveaway of document manufacturing.  However, 99.9% of borrowers did NOT do that at the closing table.  The gullible are always the first to fall.  The gullible wanted the keys to the house, no matter what eventual price they would pay later.  The gullible constituted some 97-98% of  those who vacated their homes as soon as they were served with foreclosure documents because they had no Plan B and were never prepared to have to deal with foreclosure.

I was just speaking with an investor this morning who told me that the average homeowner or attorney could keep a foreclosure at bay for at least two years and keep either the homeowner in the home or rental income flowing for two more years.  So how’s that possible?  I discussed that in my video post on the Clouded Titles YouTube Channel.

In the physical realm, you have certain rights to life, liberty and property.  When you enter into a contract with a mortgage lender, you give up some of those rights in exchange for having a lien placed against your property by and through a security instrument, which is either in the form of a mortgage or deed of trust (Security Deed in Georgia; Installment Contract in Montana).  Most people do not realize that the balance of those rights allow you to examine and litigate certain inequities that may exist as the result of the foreclosure; however, most Americans are just too quick to give up and run away, rather than stand and fight. This is what happened after the 2008 financial collapse.  In today’s times however, abandoning your property puts you at higher risk because of the potential of coming into contact with the dreaded “virus” and succumbing to it.  If I told you that you could stay in your home for two more years just by taking a stand against the mortgage loan servicer, wouldn’t you be the least bit interested?

This is why I’m doing an online Foreclosure Defense 101 Workshop at the end of July.  It may be my last “due diligence” effort at attempting to help those afflicted by foreclosure.  I have made numerous attempts in the past to consult with attorneys behind the scenes and at trial, some successfully; however, the number of folks who wish to take what I have to say seriously aren’t listening.  So, you might ask yourself … why is Krieger even bothering to help these people save themselves from financial ruin?

I take the attitude that “might does not necessarily make right” … and just because you’re a well-funded mortgage loan servicer, that does not take away the homeowner’s right to protest against the foreclosure, both in and out of court.  I’m going to use this opportunity to bring attorneys into the mix to discuss Rules of Evidence and Rules of Civil Procedure.  These two areas are where homeowners are easily defeated.  It is in these two areas that homeowners can stay in their homes for 2 years or longer.

Your rights to litigate are not restricted by the contract you signed at the closing table.  You have every right to initiate a suit and defend a suit (depending on which state you live in and depending on which process you’re engaging in … judicial or non-judicial).  By taking simple, inexpensive steps, you can create a Plan B for yourselves by taking the initiative to respond or act.  It is your decision to learn the tactics or not learn the tactics.  My suggestions in this online workshop are based on research, but I’m going to let a couple of legal professionals share some of these strategies with you in the 4-hour block we’re devoting to educating you on foreclosure defense.  We will be recording this session for purchase and playback on the Clouded Titles website; however, the difference between attending the online live event and downloading a recorded event is that you don’t get to ask questions and get answers right away.  You have every opportunity to fight back and the financial risk to you attending this event online is low compared to the information you are given.  I told you in my blog post about the two-year window that attorneys can carve out for you so you can make alternative plans. As part of the webinar, I’m going to share written details with you in PDF format that will help guide you through your educational “learning curve” about how attorneys can drag a foreclosure case on for more than two years!

Again, you are known by the paths you take and the choices you make whether a homeowner or an investor.  Stay tuned for more posts on this.

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Filed under OP-ED, Securitization Issues

AMERICA BRACES FOR MASS FORECLOSURES AS ECONOMY RE-OPENS!

(UPDATE: SEE ADDENDUM TO THIS POST AT THE BOTTOM!)

(BREAKING NEWS — OP-ED) — The author of this post has spent the last 12 years researching securitization, foreclosure issues and other consumer-related, debt collection topics.  The opinions offered here are the authors and should not be construed as legal advice. 

FOR MANY BORROWERS, THE SHIT WILL HIT THE FAN! 

As expected, I’m getting backchannel feeds on the serious uptick in foreclosures, especially in the GSE-related foreclosure arena.  So here’s the immediate concerns, based on my current research:

  1. The government (through Congress) issued a moratorium on foreclosures due to the corona-crisis.  You can anticipate that it’s the calm before the storm because when the moratorium is lifted, the mortgage loan servicers for Fannie Mae, Freddie Mac, Ginnie Mae and conventional lenders have already made plans to ramp up on those lulled into a false sense of security. Congress will not interfere with the “pulse of the economic backlash” when it comes to the government’s own interests, FHFA or not.
  2. The mortgage loan servicers have been paying advances to the GSE’s REMICs (Real Estate Mortgage Investment Conduits) since Congress imposed the moratorium. Under their contracts, the servicers and/or subservicers  are required to pay investors the principal and interest on every loan alleged to be in “default” under the terms of the mortgages and deeds of trust these mortgage loan servicers are collecting payments from borrowers on that are allegedly contained within the REMICs.
  3. The longer an extended moratorium lasts, the more “in the soup” the servicers become because their surplus funds accounts they use to pay the advances with are being further depleted and they would logically be forced to “borrow” from everyone’s escrow accounts (“rob Peter to pay Paul”) to make good on their contracts, knowing full well that when (not IF) the moratorium is lifted, they will force the shit to hit the fan in order to foreclose, sell and reimburse themselves for all their losses.
  4. Those who have been able to make their mortgage payments every month despite the moratorium might want to check their escrow accounts to make sure they are solid and accurate and haven’t been “borrowed from” (the “robbing Peter” side of the equation). The servicers will emphatically deny they’ve raped every account they could grab money from; however, if notations aren’t made of the alleged “robbery”, how would the servicer actually know WHICH ACCOUNT they borrowed from, meaning the innocent borrowers who’ve made their payments every month will see a shortfall in their escrows, which could inadvertently put their accounts in default, which in turn could force borrowers to have to make up the shortfalls (through no fault of their own) to make up the difference to bring their accounts current.  This may be one of the reasons that Ocwen Loan Servicing and its parent issued $600-billion in securities to shore up their “advance” payments.
  5. Because the moratorium is set for 60 days out, whatever delinquencies occurred during that time will be calendared for default on that magic date I’ve talked about before … DAY 91!  Expect a rash of threatening letters from the mortgage loan servicers to borrowers in trouble as they push their collection activities forward another 30 days past the moratorium to hit that magic date!

DAY 91 FACTORS INTO THE ACCOUNTING, MORATORIUM OR NOT! 

It matters not whether you were given a “grace period” with this moratorium, the mortgage loan servicers are in business to make money by foreclosing on properties they can’t resolve; thus, if you don’t have a windfall to bring your loan delinquencies current, it will trigger DAY 91.

Prior to “DAY 91”, you may see the following actions taken by the mortgage loan servicers:

  1. DSNews is already reporting intended aggressive pricing on foreclosed properties to sell to third-party investors as quickly as possible.
  2. Anticipate MERS-related documents, particularly REMIC transfers and indirect transfers to the servicers themselves, as a means of justifying the upcoming foreclosures, which means those assignments are going to hit the land records just prior to the start of the actual foreclosure process.
  3. The faster the servicer can sell the property to the third-party investor, the faster it can convert title to the GSE “after the fact” and “lose” that REO inventory to the new buyer (with transfer of title) before the homeowner even knows what hit them. The GSE will then do a direct title transfer (through the mortgage loan servicer) directly to the third-party investor who will assume all risk of acquisition of a property stained by title issues.

THE GSE’S HAVE REMICS TOO!

One thing most people don’t realize (and this can be verified) is that the government sponsored entities set up REMIC trusts to obtain investor money they use to back the loans they guarantee.  If you’ll go to irs.gov and type in Publication 938 for 2009 forward in the search engine, you’ll see the listings (by quarter) LOADED with GSE-backed REMICs!  Depending on what year you took out your loan is the year you’d search for on that website, plus subsequent years in case your loan was traded into another related REMIC until trading stopped within the MERS System®.  The securitization process is a virtual “shell game” until the foreclosure starts and the roulette wheel stops on the particular REMIC the servicer is paying.  The servicer will then move toward the final DAY 91 objective … to cash in on the credit default swap, default insurance, PMI, LMPI or whatever other cash cow it can get its hands on to reimburse itself for all of the advance payments it made during the absent of the borrower’s payments.

In the meantime, Fannie Mae and Freddie Mac are now going to buy home loans going into the government’s forebearance program just after they close, something neither had done before, in order to provide liquidity to the mortgage markets so originators can keep lending.

So as not to keep regurgitating a point, I put a news story in the top link so you can see where the forbearance programs are headed.  The CNBC article (above) affirms everything I’ve been saying … as noted in the following paragraph:

“The four-month servicer advance obligation limit for loans in forbearance provides stability and clarity to the $5 trillion Enterprise-backed housing finance market,” said FHFA Director Mark Calabria. “Mortgage servicers can now plan for exactly how long they will need to advance principal and interest payments on loans for which borrowers have not made their monthly payment.”

So you see, the servicers took a gamble on the advances and went into the hole doing it … and the government is in bed with this.

Some friend the government is, huh?  They claim to give you relief yet who’s really getting relief?  The banks and their minions.  The Fed claims to have loaded $2.3-trillion into the economy, yet where did that money go?   Not into our pockets I can assure you.

Know this … no matter what administration is running the United States, the end result is the same … protect the government at all costs … screw the dumb-ass taxpayer who doesn’t know any better (the way “they” think).  These Congresspeople think they know more than you do. Could they be right?  After all, who’s the smarter … the ones who got elected or those who elected them?  Based on what promises?  The existing Congress, a majority of whom have been serving for decades, have done their best to protect their power bases while kicking the can down the road … in the name of politics.

And we collectively let them do it.  We have collectively fallen for their bipartisan, two-party, political crap.

Congress made a deal with the banks … to protect the banks … it’s in 12 United States Code … Banks and Banking.  Congress has repeatedly let the banks screw us.  And we collectively keep letting them do it.  When is the merry-go-round of craziness going to stop?  When we have a civil war?  Or maybe a revolution?  At the polls?  Or in the streets?

And we should not worry about the mortgage loan servicer’s accounting practices, right?

IF YOU’RE NOT IN DEFAULT, HOW IS IT THEY’RE TRYING TO FORECLOSE ON YOU?

All the while the moratoriums have been in place, the servicers were stuck paying the advances on the mortgage loans, whether borrowers paid their monthly payments or not. Now the piper is coming to collect. If you didn’t (or couldn’t) work out a forbearance proposal or loan modification during the time you were a shut-in, the foreclosure process (unknown to you) was probably on the back burner and now things just got fired up again.

Those in non-judicial states will be suffering more dramatically as they try to figure out how to cope with aggressive mortgage loan servicer activities in stopping courthouse step foreclosures by publication and sale.  These borrowers are in a definite time crunch as they don’t have the luxury of court hearings unless they create them through the filing of a lawsuit. That means money spent out of pocket in order to stay in the current “survival mode” we’re already experiencing as the economy starts to bounce back from quarantines and lockdowns.

Those borrowers residing in judicial states will ultimately “have their day in court”.  It will be a 90-120 day average by the time the case gets to trial.  Keep in mind that most courts will be closed until at least mid-July 2020, so the uptick in foreclosures will probably start after the 2nd quarter ends (in 2020).

But if the advance payments were being made … how is it you’re in default and the investors have been harmed?

That’s something the banks and their servicers say is not up to you to decide … as you don’t have a contract with the investors!

You have a contract with the originating lender, which in a securitized mortgage … is a corresponding lender!

And logically, you’re going to be searching the land records trying to find that pesky assignment, right?

But wait!  The servicer’s attorney’s are going to argue that you’re not a third-party beneficiary; thus, you don’t have a right to bring a claim against the assignment.  How is that relevant?  Your name is on the assignment, right?  The originating mortgage or deed of trust is referenced on the assignment, right?  Who said anything about being a third-party beneficiary?  You see … this is how the bank’s attorneys get the courts to agree with them, because your loan was securitized and you and the investor have no “nexus” or commercial connection to each other.

POTENTIAL SOLUTION … ATTACKING THE DOCUMENT ON DIFFERENT GROUNDS!

We are starting to see results in the use of the C & E (Cancellation & Expungement) Action as a viable way to throw a “monkey wrench” into the grind of the foreclosure machine.  The questions about this process vary but the crux is the same … what is it and how does it work?

In a brief step-by-step process …

  1. The borrower goes to the public record and obtains an office copy and one certified copy of the assignment(s) in question.  These are the suspect assignments, which may contain up to a dozen or so false statements and/or misrepresentations.
  2. The borrower then researches and procures evidence showing the statements contained within the assignment(s) are false and/or misrepresentative. You can bet that no right-minded cop or detective is going to investigate anything without being fully “briefed” on the subject matter showing why you believe the public record to be false and misrepresentative, constituting a felony recording under most state statutes.  Developing harder-to-find evidence may require the services of a private investigator.
  3. The borrower (still on title, generally) goes to the local police department and files a criminal complaint on the assignment(s). The complaint filing is designed to generate a police department case number.  The borrower can be expected to spend time with a detective or officer explaining the nature of the complaint, which is most likely going to be hand written on their complaint form. You can do this before or after you file (or respond to) a foreclosure action.  I generally prefer to do it BEFORE I file the action, that way, I can include the criminal complaint in my civil action for damages.
  4. I file a declaratory relief action against those responsible for the assignment(s). I would suggest following the criminal statute religiously and if applicable, couple it with the consumer protection act statute individually for the State (of the Union) I’m in, in a claim for damages.  I do NOT sue for wrongful foreclosure because the foreclosure hasn’t occurred yet.
  5. Make sure the other side’s lawyers get the criminal complaint included with the exhibits.  This not only lets the court know a crime may be connected with the foreclosure filing, but that the attorney for the servicer may be held as an accessory if they keep trying to insist the document is legal. No right-minded attorney, bank lawyer or not, isn’t going to risk being disbarred for going up against a criminal complaint.  If anything, it will certainly “shake them up”, possibly forcing a settlement.
  6. Make sure all parties (the party who prepared the document, the party who executed the document and the party who notarized the document) are served.  I find suing the servicer themselves is a moot issue if the foreclosure hasn’t occurred yet.  If the servicer sues and you find the assignment in question was prepared or ordered by the servicer or its law firm, then the law firm, if it prepared the assignment(s) are also named defendants because they knew or should have known that the information was false and/0r misrepresentative.  Include the law firm and the lawyer who prepared the document in the criminal complaint.
  7. If at all possible, keep the civil action and the criminal action going simultaneously.  Do not drop the civil complaint if the DA decides to prosecute the document and those responsible for creating it and recording it, in violation of the penal code.  By dropping the civil complaint, you’re sending a signal to the DA that you’re not serious about pursuing damages.  Two-pronged attacks are better than one.
  8. Prepare your deposition list.  You’d be surprised once you start moving for depositions of the parties involved they don’t come at you with a settlement, rather than risk a criminal complaint against them moving forward, thus reinforcing the civil action in the judge’s mind as being even more legitimate.  Do not hold back on the other side’s lawyer if the law firm prepared the document(s) that are suspect.
  9. Follow the court docket religiously.  That means twice a day for the entire duration of the lawsuit. Once in the morning and once in the late afternoon, before the court closes.  The other side will wait until the last minute to file stuff to screw with you, especially on Friday afternoon, when they can buy time over the weekend to screw with your calendar (your time off relaxing) and your ability to respond to their motion or brief.
  10. Be prepared for oral argument.  You never know when you’re going to get called into a hearing to determine the validity of your lawsuit. The judge may also query law enforcement to see what they’re doing about your criminal complaint.  In one instance we’re aware of, the local police department forwarded the complaints to the DA … AND the State Attorney General’s office for follow-up!  Also, make sure you have expert witnesses lined up that can validate both your criminal and civil complaint information.

I know we haven’t taught HOW to set up the criminal complaints in our regular C & E classes; however, this new injection of the police report does add a certain flavor of suspicion in our civil claim, don’t you think?  Imagine the consequences:

  1. The attorney handling the foreclosure matter attempts to interfere with the criminal investigation of the matter and ends up making the matter worse, potentially putting himself in a position of obstruction of justice.  The attorney for the bank cannot attempt to persuade authorities from looking into your complaint without lending suspicion of them being involved.
  2. The law firm or the attorney preparing the document ends up being indicted by a grand jury as part of the grander scheme of things.
  3. The judge handling the civil matter is found to be “side dealing” and interfering with the criminal case in order to further the civil case along to help the bank out, either through direct interference in the criminal investigation or by pushing the civil case forward in favor or the bank knowing a criminal prosecution is likely, which would make him an accessory to a felony … enough to remove him from the bench and potentially put him in prison!

There is also a potential chance that the criminal investigation will go nowhere because the investigators: (a.) weren’t provided with enough evidence or information by you to establish probable cause; or (b.) didn’t understand the nature of the complaint because of the way it was presented.

I have 18 sets of the C & E class (8 DVD-video set and the book, The C & E on Steroids!) available online on the Clouded Titles website.  Once these are gone, they will take time to re-order, more time than you might have. I don’t have to tell you that following this moratorium’s end, those in trouble … their days are numbered.

Remember, when you get the kit, I give you an hour of consulting on your specific case, which may include a call to a criminal attorney who can give me ideas as to how to posture your criminal complaint based on what evidence you have! 

UPDATE ADDENDUM:  As I mentioned on City Spotlight – Special Edition on WKDW-FM, which will repeat this coming Monday, May 4th at 2:00 pm. Eastern Time, CLICK HERE TO LISTEN, attorneys now have a duty to inquire whether the client is using their case to commit fraud or some other crime upon the defendant in a suit.  The American Bar Association’s Standing Committee on Professional Responsibility has issued Formal Opinion 491, to clarify this requirement in the wake of increased reporting of individuals using legal services for money laundering and terrorist financing.  But it goes beyond that definition, especially if the attorney(s) or their law firm participated in the drafting of the bogus assignment and then had it sent back to them once it was executed and recorded.  This is a way to: (a.) name the law firm in the suit; (b.) name the attorney in the suit; and (c.) force the attorney to inquire as to whether he knew before submitting the document to be executed that it contained misrepresentative statements, which could warrant criminal legal action against him and/or his firm.  This is where things get dicey for the other side because depositions and discovery can now target counsel who participated in any way in the drafting, execution and recording of a document that could be construed to be a third-degree felony in many states!

Here’s the formal opinion: aba-formal-opinion-491

 

 

 

 

 

 

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FANNIE, FREDDIE AND MERS: RECIPE FOR COLLUSION TO SCREW AMERICA!

(OP-ED) — The author of this post is a consultant to trial attorneys and author of Clouded Titles – Mayday Edition, which exposed the corruption in banking in tandem with darker forces within the U.S. Government to fuel the largest housing grab America has ever seen.  The opinions expressed here are his own and do not constitute legal advice or seek to draw and conclusions of law. 

There has been a recent unveiling of sorts that discusses the conflict between the two GSE’s (government-sponsored entities) and MERS, which clearly shows who in fact spearheaded the push to turn the secondary residential mortgage market into a lying, conniving, deceiving bunch of thieves that have promulgated the use of electronic promissory notes (“eNotes”), which are uploaded into an electronic database called Mortgage Electronic Registration Systems, Inc. (hereinafter “MERS”), which, at its conception, was owned by MERSCORP, Inc.   Both of these entities were Delaware corporations based in Reston, Virginia.  But no longer.

After being merged into MERSCORP Holdings, Inc. in February of 2012, nearly seven years into the eRegistry (the database itself, which operates electronically to store information on the mortgage loans; e.g. the note and the security instrument), MERSCORP Holdings, Inc. was acquired by Intercontinental Exchange, Inc. (hereinafter “ICE”), which also owns the New York Stock Exchange.  All of MERSCORP’s Reston, Virginia operations were moved to ICE’s data centers in Mahwah, New Jersey, where they exist today.

Collectively, MERS members pay $7.95 every time they enter a transfer of the eNote and its accompanying paperwork in the MERS® System.  Herein lies the rub.  The banking industry, in at least one letter to a judge (in 2009, in Florida), has admitted that once the paper “notes” are uploaded into the MERS® System and become “eNotes”, they don’t need the paper notes anymore and thus, they brag about shredding them.  On another note, there are “archives” all over the country that the megabanks claim hold the originals of the notes and mortgages, available within a reasonable time frame (to be retrieved) as a mortgage foreclosure case develops and the documents are called for.  But is that really the case?  What if these documents were actually “downloaded” from the MERS® System, printed out, and claimed to be (by the lender’s/servicer’s) the originals?

eNotes versus the Uniform Commercial Code (the “U.C.C.”), UETA and e-Sign

This recent article, authored by lawyers within the law firm of Dorsey & Whitney LLP, unveiled an eAlert which seeks to address potential issues which I thought might be useful for you and your attorney to know, or should they?  Due to the nature of the banks and their attorneys to play games with us and misdirect us at every turn with their propaganda … this article, whose link can be found here …

Potential Issues for Warehouse Providers with Electronic Mortgage Notes | Dorsey & Whitney LLP – JDSupra

… could be one major misdirect, according to our UCC guru Bob Janes, author of SHELLGAME MERS, Contrived Confusion, which can be found on the Clouded Titles website!

Here’s what Bob has to say about this article:

This paper shows an ignorance of negotiable instrument law and its interaction with Art 9 of the UCC. It appears to be a continuation of the effort to give appearance (operative word) of merit to the MERS system and the mortgage finance industries desire to profit by ignoring existing law and creating an sham appearance that might be able to help take people’s homes in future foreclosures without adherence to applicable law.

Secured interests under Art 9 are trumped (or is that a dirty word now?) by Art 3.  Only the person entitled to enforce the negotiable instrument has a right in the collateral (mtg or dot).  Whether the name of that person is in the chain of title for the mtg/dot is not important. 200 yr old common law, now codification by 9-203(g) are in unison: the collateral pledged to secure payment of the debt under a negotiable instrument always belongs the person entitled to enforce the debt pursuant to Art 3 of the UCC.  This paper does not address nor even encourage that the new e system design compile factual information necessary to determinations of enforcement right under the negotiable instrument law of Art 3.  The paper’s discussion of ‘perfection’ and ‘controller’ are irrelevant to determination of enforcement right under Art 3.  The paper shows no understanding of the importance of ‘possession’ of the note under negotiable law nor how and when possession is connected to the right to enforce the note.

The paper’s discussion of ‘holder in due course’ (“HDC”) also reflects the author’s ignorance or desire to misstate law.  The many elements of status as holder in due course are not addressed, nor is the system of maintaining eNote or eVault  requisite information/proof of the legal elements necessary to the right to enforce the note.   HDC is a subset of holders under the UCC.  Any person entitled to enforce the note pursuant to 3-301 (holder, nonholder in possession with rights of a holder, a person not in possession but with overwhelming evidence of having been the holder or nonholder entitled to enforce when the note was lost, stolen or destroyed) has priority rights in the mtg/dot regardless paperwork ‘perfection’ under Art 9.

The paper does not address the subservient role of Art 9 to negotiable instrument law and enforcement rights of Art 3.  This paper neither discusses the article 3 requirements for a person to be a holder in due course, nor does it demonstrate that information gathered and retained by the e-system will be useful in determining who has a right to enforce the note, and thereby, to enforce the mtg/dot.

Whether or not the enote/evault system becomes a reality, the homeowner defense against negligent or fraudulent foreclosure remains unchanged as long as the UCC remains as currently in the statutes of every state.  Merit requires discussion of the Art 3 detail necessary to establish enforcement rights in the note, and this paper is without demonstrated knowledge or effort to address the Art 3 requirements, policies, etc.

What do I think of this paper?  Not much.

The Continued Screw Job! 

So you see, Fannie and Freddie continue to peddle their toxic paper into our economy, further screwing with chains of title all across the country with every property their servicers stole on the back end of the foreclosure, which ended up getting transferred to Fannie Mae and Freddie Mac. You only see these two hoodlums on the back end of foreclosures, as they certainly wouldn’t rear their ugly head in the middle of one for fear of giving the government a black eye … and we wouldn’t want that now, would we?

It’s bad enough we have politicians polarizing America and screwing up everything they touch!  They don’t have the decency to quit interfering with the housing market by continuing to allow Fannie and Freddie to exist.

What’s worse, judges don’t really care about the UCC and are quick to misapply it.  Those who aren’t smart about what the UCC says (and turn their lamebrain lawyers loose in the courts repeating this bank’s diatribe) are sure to lose.  Yet we keep going to banks that don’t portfolio their own loans and keep doing business with them.  That’s on us!

 

 

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THE C&E, ASSIGNMENTS … AND YOUR RIGHT TO CHALLENGE THEM (PART 2) …

(OP-ED) — The author of this post challenges you to seriously think about this process, because it is virtually available to everyone in the United States who has ever had their mortgage loan securitized … even if Fannie Mae and Freddie Mac (the “aunt” and “uncle” the U.S. Government doesn’t like to talk about) are involved … 

Scenario … “The Punch Line”

In part 1 of this blog post, we talked about how homeowners were duped by table-funded mortgage brokers and DBA’s (fictitious entities) who claimed they were New York corporations when in fact, they were “storefronts” for the major lenders who made the “storefronts” the actual borrowers in your loan transactions, potentially rehypothecating those loans over and over again using your personal identifying information to sell pieces of your loans into bundles of pools of loans on Wall Street.

Party A runs “the smoke screen”.

Party B fronts the “investor funds” using non-compliant prospectuses that were signed under Sarbanes-Oxley that don’t matter to them anyway.

Party C plays completely outside of the MERS® System and really has nothing to do but sit back and collect residual income being a go-between prior to your loan allegedly going into a REMIC that’s been empty all along.

Party D plays the Trustee for the REMIC … and just sits back and collects his fees from what the servicer gets and turns a blind eye to your loan default.

Party E (empty promises) is the servicer who is robbing Peter to pay Paul’s debts and this is why entities like Ocwen have to go out and securitize $600-million in new paper just to fund Advances to keep paying the certificate holders of these REMICs so we don’t have another crash (like 2008).

Party F (meaning the ones who actually get f**ked) are the investors that actually bought into this crap.  They have so much money they don’t know what to do with it.  I sometimes don’t feel bad about them getting raped.  They deserve it.

So why is it that when we’re in court the judge ignores your comeback when you attack an assignment of mortgage or deed of trust for containing false and misrepresentative information?   The judge is waiting for the bank’s attorney to allege that you’re not a third-party beneficiary and that you can’t attack the assignment.  Aaahhhh …. but that’s the bigger lie!

You see … the title documents in the land records represent your chain of title.  If your chain of title is jacked up, you couldn’t sell your property if you wanted to in order to mitigate the lender’s losses, even if the lender could prove they’re entitled to the proceeds of the sale of your home.  This has been the bigger problem with challenging foreclosures, because the banks (via a vis their servicers) use the chain of title (through the MERS® System) to lie their way through the courts and the judges play along with it because … well … “we can’t hurt the banks”.

If a chain of title is unmarketable, what reasonable buyer would want to purchase it?

If a chain of title is unmarketable, it violates every state’s law that guarantees marketability of title!

If a chain of title is unmarketable, it’s because it’s vendibility is impaired (you can’t sell it).  No one wants to buy someone else’s problems … especially if the title is slandered (Hello?  …  Can you say “damages’?)

If the chain of title is unmarketable because it’s title is screwed up … title companies won’t insure it.

If it’s uninsurable, no one is going to sell it.  How could they?   If title companies do insure these properties, they’ll exclude coverage for the applicable errors!  You won’t get a dime on a title claim, while the title companies make off with your premium payment at closing!

If you’re in states where only the lien interest is sold (like in California), the banks get to kick the can down the road, and investors are stuck with nothing but screwed-up chains of title and they can’t do anything but rent the properties out because there’s no way to quiet the title without exposing the truth … and no one can afford to expose the truth because American Jurisprudence is tainted.

The reason I bring it up?

The Assignment has your name and your property’s references within it. 

Every state has a set of statutes that allow consumers to challenge the assignments, releases, and any other document in their chain of title that is “suspect” for false and misrepresentative information.   If you let the bank’s attorney get away with stating that you’re not a third-party beneficiary, then you have to ask yourself …

WHAT THE HELL DOES THAT HAVE TO DO WITH THE BOGUS INFORMATION IN THE LAND RECORDS?

This is why statutes were formulated to combat erroneous (many times deliberate) behavior in the creation of these phony assignments and releases.  The problem is … 99% of the attorneys don’t like doing declaratory judgment actions … half the time because they don’t know how!   This is why Al West and I did a deep dive into the assignments and Al West came up with the notion that cancelling and expunging the phony document would force the court to have to quiet the title. If you’re attacking the property’s title because it violates statute, how then could the lender foreclose?

You can’t break one law to enforce another law! 

This is why Appendix 11 of The C&E on Steroids! has all of those statutes in it!  If the document affects your chain of title, you have an “in” to attack it through declaratory relief.  All American homeowners are entitled to have a property that has marketable title and this is why these remedies were created.  American property owners need to wake up and realize what they’re up against here, because it’s not really that expensive a proposition to attack these assignments.  There’s always quiet title too … which is why we included that in the latest book, which includes an 8-DVD training video kit!

You want your attorney to know the truth?  Share this information with him (or her).  If attorneys knew the simplicity of doing a declaratory relief action, they’d have a whole new way to make a living without stressing themselves out over it. Did you hear that lawyers?   That’s why Al West (who is an attorney that uses the C&E  a lot in his practice) has graciously supplied a ton of exhibits for you to look at and glean from … it’s the best educational tool of the decade.

If there are over 500-million phony assignments and other bogus documents in the land records, why aren’t we doing something about it?

Frankly, if you can understand that when the crash hit and everyone found themselves upside down in their mortgage loans, 95% of them cut and ran … that’s why.  Someone has to carry the ball and pay it forward.  This may be your calling.

I assisted a Florida attorney in doing a C&E in a Release of Mortgage, which convoluted the title even further, designed to create a statutory violation while challenging the lender (3 cans down the road) to prove how the first lender paid off the original loan with refi money.  That too is in the book (pleadings and all)!

 

The training kit is here in limited supply.  I have 33 kits left in stock.  I do not know when we’ll reorder.  If you want to fight the good fight, then force the courts to make your property marketable again.  Until the courts deal with these title issues, you the homeowner are just helping the banks “kick the can down the road” … soon, we’ll end up as a nation of renters for sure, because only investors will own all the homes (at least that’s what they think).  They get stuck with the crappy titles and you get stuck being a renter!

Is that really what you want?

… AND HERE’S AN ADDED BONUS!

The folks who order this DVD training kit will get the new Robert Janes compilation of SHELLGAME MERS, the 2009 RULES and his latest white paper on defeating California foreclosures!  Included absolutely FREE!   

PLUS … I’ll throw in a copy of THE FDCPA, DEBT COLLECTION AND FORECLOSURES work as well … for use in fighting unscrupulous debt collectors.

That’s an extra $80 worth of useful tools to add to your arsenal

This offer will expire June 30, 2019 … so get your C&E training kit NOW!  

CLICK HERE TO ORDER!

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