- A guide to the process behind your Bank Loan and Mortgage
- By Regis Sauger
- Contributed by: Barry_J ( 1 article in 2018 )
The Banks Used Your Own Money-Credit to Give You a Mortgage!!!
Story in USA but most of the concepts appear to be relevant to westernised institutions today. However, the chain of title concept is replaced by the Torrens registry of titles system in Australia ensuring indefeasibility of title.
Don't shoot the messenger as we are all learning about the somewhat occult practices of the banking and legal industries. Any corrections or additions please add a comment so we can all learn.
Rough outline of above video to help people follow conversation:
Went to bank and filled out paperwork. One piece of paper was signing a mortgage (notarised) and the other was a Promise to Pay (not notarised) say $400k over a period of 30 years.
Customers sign a Promise to Pay (like a blank cheque) which made it a Negotiable Instrument.
When you signed that piece of paper you thought the bank was going to give you $400k.
They didn't give you anything, yet.
When you signed, that piece of signed paper became an asset for that bank.
It was now an asset they owned. You no longer owned it. Yours was a promise to pay.
So that $400k was an asset of theirs and here what they did with it.
They didn't give you any money yet.
They took that asset and created a bond. (like bailing your nephew out of jail)
They then took that Bond to Federal Reserve [a Central bank] and received approx 10 times the amount of your promise to pay.
Fed Reserve gave bank a credit of $4M and bank has put up $0, absolutely zero.
They used your Promise to Pay and leveraged/monetised it to create $4M, and they still had your promise to pay. They kept it, they just created a Bond. [look at what a Bond really is]
They then took your Promise to Pay to another party (wholesaler) and that wholesaler took it to an Agregator/Trustee and then it was then sold to a Trust, and 95% of Trusts are in New York, so it was sold on Wall St.
Where did the money for the Note come from?
The Trust filed a 8k filing with SEC and we'll call it the Risotto Trust.
They told SEC they were going to sell investment certificates.( Mortgage Backed Securities , CDOs etc)
That Note (your Promise to Pay) was used to induce Certificate Holders or Investors.
School Teachers Pension Plan invest $10M into trust that was backed by your Promise to Pay.
Trust was say earning 6% and you were paying 7% so the Trust was earning money.
[1% to bank for handling/administration fees]
The money from the certificates purchased by the Investors went back to the bank, backed by your promise to pay, and that's were the funds[loan] came from to buy your house.
That piece of paper [Promise to Pay] that was never notarised travelled all around the world gathering ALOT of money.
Your Promise to Pay:
a) created $4M in credit on your signature.
b) induced alot of school teacher, fire fighters and pension plans to invest into that Trust.
The Investors got an investment certificate and the funds came back to the bank and they provide the $400k to purchase the house.
Good deal.. Very good deal for who? The BANK.
Bank got $4M in credit and didn't put up a nickel.
Now the Trustee for this Trust, he provide a Pooling & Services Agreement, that's his management book, that's his Rules. That's what he has to follow to comply with the SEC rules.
Mow there's a clause in there that says if you fail to pay your mortgage, they entered into an Insurance Contract, so if that mortgage wasn't paid, the Insurance company would pay it. But the money wouldn't go to you, it would go to the trust.
We call that a Credit Default Swap and the insurance company is AIG.
Now when you get in trouble and lost your job, lost your overtime, or whatever reason,
you tried to contact the bank & you got the runaround, you ended up talking to this person and that person, submit these papers, oh we lost them, submit them again, all that crap that goes with it, but you were told we can't help you until your 90 days late. Everybodys heard that.
Guess what happened on Day 91?
The insurance contract entered into by Trustee with AIG triggered a payoff and the Trust received the full amount of the Note [promise to pay] regardless of how much you've paid on your mortgage, they get the FULL amount of the Note.
So if Note was insured for $400k, they get $400k. But there's a mystery here.
The Federal Reserve allowed the Trust to leverage that $400k Note 30 times, so they created 30 different levels. Now your $400k Note is purchased by other lenders and along we go.
Let's go back to the default. AIG payed off the Note when it was 91 days late.
So at this point who has lost any money? Nobody except AIG, or insurers like that.
Now someone attempts to foreclose. Say the lender who got the Note from you. Or the Trust is gonna foreclose on you. Lets say Wells Fargo acting as Trustee for a Barrister and his Trusts. Or they're trying to steal the house.
Because nobody has any skin in the game. They've all been paid commissions, and they've been very successful in stealing houses. Hmm.. what happened here?
Sat in court watching folks lose their house in 5 mins cos they had no clue about what to do, where to go for an answer, and didn't have any money.
In this foreclose arena, field of litigation, the only players are the consumers who have enough money to pay an attorney. And what is he doing? He's delay the time by a couple of months, save a few months rent or mortgage payments, but he wins a dismissal without prejudice. Which means the bank who is foreclosing, who doesn't have any skin in the game, will come back in a months time to try and foreclose again.
Quiet Title action [US]
Quiet Title action has nothing to do with your debt. "Tour honour I cannot sell my house because the chain of Title has been broken. And why was it broken? It was broken when you closed on the mortgage and MERS was involved. MERS took possession of the Mortgage electronically, and the bank sold the Note.
When you closed on the loan and MERS was involved, the loan the Mortgage became separated from the Note.
Once the Mortgage and Note are Separated the chain of Title is broken.
MERS = Mortgage Electronic Registration Systems formed by banks, and the banks became members. At the closing table MERS are the Nominee Lender. They take possession of the mortgage electronically (not the hard copy).
Supreme Court in 1872 said "If the Note and the Mortgage are separated, because one secures the other, if they're separated they're both NULL & VOID."
MERS took possession of the mortgage but they could not take possession of the Note because the Kansas Supreme Court ruled "they are not a lender".
Loan was Bifurcated right at the closing but you didn't know that. It means your chain of title was broken.
So you say "Your honour, the chain of title is broken, I cannot sell my house."
Example of how important the Chain of Title is:
At the closing table you say, I just signed a very important document, I need a receipt for my signature." She said "We can't do that."
What they gave me was a "Special Warranty Deed". That means the bank who said they owned the home was guaranteeing me a clean title, only from the time they owned the home to the time I bought it.
The mortgage and Note were never assigned to Fannie Mae.
In order to file a Quiet Title action you cannot go into court with hearsay evidence.
What is needed is a Securitisation audit which follows the paper trail from the time you closed until it enters into the Trust and a Bloomberg Financial Report that pulls out all the financial information about the Trust.
This information accompanied with an Affidavit sworn under the penalty of perjury, you now have admissible evidence through the court that the Note was PAID off when the Insurance or Credit Default Swap was triggered.
If the Note was paid off, who is DAMAGED? Nobody!
The only logical people with a claim to that house would be the Insurance company that paid out the claim.
Car crash example.
If the Insurance company pays of the Certificate Holders, then would they not have a claim to the house?
Logical except, they insured unsecured notes. Remember at the closing table, MERS became the Nominee Lender, and separated the Note from the Mortgage.
Insurance Co insured unsecured Notes because they were not accompanied by the Mortgage. Therefore they had no claim on the House.
Banks not only double dip, but several dippings.
Get out of Debtors Prison
Securitisation Audits $1260
Pre litigation report Dr Klaus $500. Identify Robo-signers, Notaries.
End game - pipe dream but it happens. Litigate or negotiate.
Is Bank the real Holder in Due Course? No - Bank is stealing.
Normally under Court of Equity & Tort, however Quiet Title is Contract Law.