Behind the Securitization Curtain – 21st Century Mortgage Casino

The turn of the century mortgage lending fiasco was built like a 21st Century casino.
The entire scheme started with the homeowner who wanted to buy a home or refinance at unbelievable interest rates… too good to be true… and they were!

It all started with a loan application called a “1003.”  EVERY lender in the scheme used the same loan application software.  In fact, Fannie Mae patented the sucker. Inside this specific patent are numerous patents related to and referenced that make up the beloved 1003 loan application. These patents are listed on line in the USPTO.

One of the reference patents is a gem called the “Online system for fulfiling loan applications from loan originators” and it describes how technological methodology is integrated into the mortgage lending process.  

For example, it states:

“This integration serves to streamline
the loan submission process and provides seamless connectivity to lenders and settlement service vendors over the network…. 

BACKGROUND OF THE INVENTION

“The World Wide Web (“web”) has evolved from first generation web systems that simply provided information to client computers over the Internet through a web browser program to second generation systems using application servers that provide dynamic, personalized information and powerful back-end transaction processing.”

That “powerful back-end transaction processing” is the gateway to the MBS casino.  Your personal loan information is apparently seamlessly automated from the inception to the birth of your loan… all at the same time you picked up the phone or sat down with the loan officer while the loan officer filled out the 1003 application and you provided your personal data and social security number.

The “Online system” patent continues:

“A great number of commercial applications become adapted to on-line systems, thus establishing a base of many different types of electronic commerce or “e-commerce” transactions. Among the various adaptations of classical commercial transactions that have become adapted to online implementations is the area of financial loans. The loan application process is often a complicated and confusing process for average borrowers. There are a great many different types of loans available depending upon the type of loan required, such as personal loans, home mortgages, business lines of credit, and so on. There are also many different variables or negotiable terms associated with each loan, such as interest rate, loan period, processing fees, and the like. In most cases, a detailed profile of the borrower is required because factors such as age, employment, financial history, credit rating and so on, can have a great deal of impact on the cost and ability to qualify for a loan. Moreover, loans are available from many different sources, such as traditional banks to private and commercial money lenders.”

We realize by now the lenders acted as a gang… a cartel, all for one and one for all. These patents show that they shared and had access to the same loan information. They say a picture is worth a 1000 words:

It’s no wonder that they dinged your credit if you filled out more than one loan application. That could throw a wrench into their roulette table. It’s as if you are sitting in a perfectly quiet lobby providing personal information for your loan and the data is being sent to the scoreboard at Churchill Downs on Derby Day. The lenders can start bidding on you immediately because – get this… your loan number is assigned during the application process… REALLY! You haven’t agreed to the loan yet, but there are lenders looking over your personal information as if they were going to buy a race horse … or a debt slave.

The loan number is your identity and it is assigned during the application process… remember… seamless… automated technology…

Bought and sold before you sign on the line.

Quote from patent 20030233316:

“For example, if the interface between a lender and the broker is web-based, such as the Freddie Mac Loan Prospector system, the information is populated directly into the lender web forms. This automated input and distribution system eliminates the need to fill out individual disparate loan application forms, and transmit the forms to the various broker and lender sites.”

Are you feeling a bit vulnerable now?  You should be – where is the privacy? Moreover, where is the fair trade protection?

There’s more to learn – share the knowledge and stay tuned.

Advertisements

17 thoughts on “Behind the Securitization Curtain – 21st Century Mortgage Casino

  1. Pingback: DOERS ALERT: U.S. BANK NATIONAL USES FRAUD AND DECEIT TO EVICT A HAWAII FAMILY – WHILE MAUI, HAWAII COURTS FAIL TO ACT | Deadly Clear

  2. Pingback: Obama Grinch – What the Republicans Grasp that the Democrats Ignore | Deadly Clear

  3. Pingback: Eliot Spitzer: ‘Every person whose interest rate depended on Libor is a victim’ | Deadly Clear

  4. Pingback: How Far From the Truth Will They Venture to Go?! | Deadly Clear

  5. Pingback: “Fraud Was … the F-Bomb” | Deadly Clear

  6. Pingback: Dear Lanny – The “Intent” is at the Top …and in the Patents. | Deadly Clear

  7. Pingback: Securitization is NOT a “Traditional Mortgage Loan” Operation | Deadly Clear

  8. Pingback: MERS MONOPOLY & PATENTED SECURITIZATION? | TIERRA LIMPIA by Charles Lincoln

  9. Pingback: Montgomery County, Pennsylvania, Recorder of Deeds, Nancy J. Becker is GRANTED Class Certification to Pursue Mortgage Electronic Registration Systems, Inc. and MERSCORP Holdings, Inc. | Deadly Clear

  10. Pingback: CONFISCATE THE PATENTS! | Deadly Clear

  11. Pingback: Identity Theft By the Banks: A New Cause of Action? | Deadly Clear

  12. So classic . . . Deadly Clear has always been one of the first behind issues – so glad GP is not asleep behind the wheels of motion in this mess – most sites wouldn’t have had material for which to research or write on had they not been first introduced by Deadly Clear!!

    Lova ya!!

  13. Pingback: REHYPOTHECATION IS YOUR WEAPON TO ESTABLISH THERE WAS NEVER A MORTGAGE LOAN – THESE WERE ALWAYS SECURITIES! | Deadly Clear

  14. Pingback: Countless Consumers Are Paying Off Someone Else’s Debt Because Of Default Judgments | Deadly Clear

  15. Pingback: In Defense of “Free Houses” – Yale Law Journal | Deadly Clear

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s