Coinciding with the discoveries in Florida, on the other side of the continental US in Oregon, was an even deeper intellectual find. Obsessed with his own loan misrepresentation, architect Ken Dost dug down into the foundation of the scheme and discovered the USPTO patents for the software systems, trademark assignments and virtually built out the system with the banksters own paperwork. As if to make the “new” securitization process legal – the banks patented every single move from solicitation to REO and beyond. Ken could easily see the “intent” to defraud from the structure of the patents. No one else had the time or inclination to read 20 years of patent works, but Ken diligently hammered away linking every source and every step. He could see when the software systems were “relaxed” to enable “no doc” loans. Ken could also see that fraud detection was built in early-on into the patented systems but rarely used by the banks – moreover, it was [intentionally] ignored. Ken’s rabbit hole is more complex but it is essential to the overall system of fraud.
New Republic contributor David Dayen’s book Chain of Title focuses on three individuals in South Florida—cancer nurse Lisa Epstein, car dealership worker Michael Redman, and Lynn Szymoniak, a lawyer specializing in insurance fraud—who stumbled upon the biggest consumer fraud in American history. They did so after they fell into foreclosure, and realized that all the documents they were sent by their mortgage companies—the evidence being used to kick them out of their homes—were fake. It turned out that the industry broke the chain of title—the chain of ownership, really—on millions of securitized mortgages, and were using false documents to cover it up.
As they researched this, they discovered that they were not alone. In fact, perhaps the first person to identify, fight, and broadcast his struggle against the mortgage industry and…
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