LivingLies: “The simple answer is that the investors were the only ones who paid value but they never got title to the debt, note, or mortgage. This created a vacuum in which the investment bank pretended to own the debt and then act through surrogates to claim foreclosure without turning over the proceeds of foreclosure to the investors. It was a plain fraudulent revenue scheme.
The Florida legislature [and several other states] has now made it far easier for the banks to continue making money on actions that are simply labelled as foreclosures. This act enables the foreclosure mills and document fabricators to not only speed up the notarization process but also create a gap in accountability for errors, omissions and fraudulent content. It’s all happening online.”
Source: While We Were Sleeping: Remote Online Notarization is Becoming a Reality in Florida effective 1/1/2020
Thank you Neil!
Living Lies: “The normal loan agreement is based upon certain accepted and presumed elements. The borrower desires to borrow money, he/she gets a loan of money and signs documents in favor of the lender setting forth the terms of repayment. The lender, who is responsible under TILA for the viability of the loan, makes the loan with…
Since the law of contract starts with the intent of the parties it may fairly be said that there was no meeting of the minds because the true nature of the loan transaction was illegally concealed from the consumer/borrower. It is obvious that the borrower was directly intending to enter into one contract while the investment bank, acting indirectly through conduits was entering into another contract that entirely altered the scheme of interest, principal and cash flow.”
Source: Dorian Grey: Loan Agreements have changed without detection by the courts
How Do Court Reporters Keep Straight Faces? These are from a book called Disorder in the Courts and are things people actually said in court, word for word, taken down and published by court reporters that had the torment of staying calm while the exchanges were taking place.
ATTORNEY: She had three children, right?
ATTORNEY: How many were boys?
ATTORNEY: Were there any girls?
WITNESS: Your Honor, I think I need a different attorney. Can I get a new attorney?
Source: A little humor is a good thing
LivingLies: “While the banks never allege that they are a holder in due course because they know that the plaintiff has never paid for the debt, they often seek treatment as though they were a holder in due course and many courts do exactly that.
* By focusing on the promissory note, you are focusing the Court’s attention on Article 3 of The Uniform Commercial Code instead of Article 9. Under Article 3 there are numerous instances in which a promissory note can be negotiated. sold and enforced by parties who do not own the debt. In such instances it is generally presumed that the possession of the promissory note was delivered along with rights to enforce it on behalf of the owner of the debt. It is in effect treated as though it were the title to the debt. This is the law and it is not subject to philosophical discussion as to whether or not it should be the law.”
Source: Who is the Plaintiff? US Bank or the Trust?
LivingLies: “Investment bankers may not be going to jail but they are about to be taken to the cleaners for creating illegal securitization schemes that were directly intended to violate basic laws and doctrines that have existed for centuries. And this time the appetite is there to prosecute such claims.”
Source: Extension of Martin Act in New York Threatens Securitization Players
LivingLies: “So over half of all mortgage loans claimed to be “owned” by Fannie either in its own portfolio or as Master trustee of a private label REMIC trust are registered with MERS. And Fannie admits that virtually all of those loans have been transferred multiple times but disclosed and recorded much less than the number of transfers. Hmmm.
That is why fabricated, forged, backdated and robosigned documents became so ubiquitous. Lots of paper transfers of the loan took place without anyone buying the debt. And we all know that a transfer of the mortgage without the debt is no transfer at all.
So you might think “No harm no foul,” right? Right except for the fact that the last party on that paper train is the party who brings the foreclosure action and who (a) has not purchased the debt for value and (b) is relying upon unrecorded transfer documents pursuant to transactions (“for value received”) that never occurred.”
Source: Fannie Mae Admits Mortgage Transfers Without recording — Sees Substantial Liability
LivingLies: “The appellate court does not review for purposes of figuring out whether an alternative decision would have been better. They review strictly for the purpose of deciding whether there was any legal basis supporting the judge’s decision. If the answer is yes the decision is affirmed. If the answer is no, then the decision is reversed.”
Source: Appellate Judges Do Not Redo the Case
LivingLies: “For all of these reasons the judges in tax cases have determined that the holders of REMIC certificates or “bonds” are not the holders of any secured obligation. The fact that the words “mortgage-backed” are used does not make the certificates backed by mortgages. They are not. But simply asserting that they are and naming them as such is sufficient to raise questions of fact that must be determined by courts.
* This is particularly important in foreclosure cases where the case is asserted to be on behalf of the holders of the certificates. Since the holders have no right to foreclose it is obvious that anyone representing the holders would have no more power than the actual holders of the certificates.”
Source: Why “REMIC” Certificates Are Not Mortgage Backed
LivingLies: “Judges can’t seem to get past their bias that the foreclosure means that even if improperly done it will result in payment of the debt. If there is no creditor you can be sure that there is no payment of the debt that results from foreclosure. So what is that money when the property is sold? It is REVENUE.”
Source: Law Firm Admits Absence of Creditor
LivingLies: “Foreclosure of a mortgage must be for payment of the debt, not just the liability on the note. All states have case law that says that transfer of mortgage without the debt are a nullity. This executing and receiving an assignment of mortgage and even recording it is a legal nullity unless the recipient paid money for the debt and the transferor was conveying ownership of the debt because the transferor had paid money for the debt.
If those conditions are not met the executed and recorded assignment of mortgage is a legal nullity and the title record must be viewed by the court as lacking an assignment of mortgage. * The judiciary has not caught up with these discrepancies in most instances. Hence a judge will ordinarily presume that the delivery and endorsement of the note and the assignment of the mortgage was equivalent to the transfer of title to the debt, with payment being presumed for the debt. So while the law requires ownership of the debt by reason having paid for it, the courts presume that the debt was transferred along with the paper, subject to rebuttal by the maker and borrower.”
Source: How to Distinguish Between Ownership of the Debt, Ownership of the Note and Ownership of the Mortgage (or Deed of Trust)