Category: CDO

WELCOME TO LIVINGLIES — Since 2007

January 28, 2022

KEEP YOUR HOME!!! – Over 17,000,000 Visitors Most of the claims that use “securitization” as a foundation are FALSE!! That means they have no right to administer, collect or enforce any debt, note, mortgage or deed of trust. And THAT means you can successfully challenge foreclosures AND pursue damages against those who make false claims. SUBMIT FREE REGISTRATION STATEMENT WITHOUT OBLIGATION ************************** Listen to The Neil Garfield Show or prior episodes ******************************* About Living lies Contact Information: Phone: 844.478.6774 Email: lance@livinglies.me PRO BONO SERVICES include online chats, comments, and suggestions on the registration form, The Neil Garfield Show, PAID

It's time to reassess the role of investment banks, originators, servicers and other players claiming "securitization" before the next foreclosure tidal wave.

July 10, 2020

Since foreclosures are about to start another meteoric rise, this would be a good time to write a new article on what went wrong the last time, what is going on now, and what is still likely to go wrong this time. * I know that some of the rantings on the internet seem like the spillage of conspiracy theorists and some of them are just that. But overall they are right. * The bottom line is that back in 1993, investment banks latched onto a scheme that had been partially developed by Michael Milken, who went to prison. The new

Banks Fighting Subpoenas From FHFA Over Access to Loan Files

January 31, 2017

Whilst researching something else I ran across the following article first published in 2010. Upon reading it, it bears repeating. Get a consult! 202-838-6345 https://www.vcita.com/v/lendinglies to schedule CONSULT, leave message or make payments. THIS ARTICLE IS NOT A LEGAL OPINION UPON WHICH YOU CAN RELY IN ANY INDIVIDUAL CASE. HIRE A LAWYER. —————- WHAT IF THE LOANS WERE NOT ACTUALLY SECURITIZED? In a nutshell this is it. The Banks are fighting the subpoenas because if there is actually an audit of the “content” of the pools, they are screwed across the board. My analysis of dozens of pools has led

Who Are the Creditors?

October 6, 2014

For litigation support (to attorneys only) and expert witness consultation, referrals to attorneys please call 954-495-9867 or 520 405-1688. Since the distributions are made to the alleged trust beneficiaries by the alleged servicers, it is clear that both the conduct and the documents establish the investors as the creditors. The payments are not made into a trust account and the Trustee is neither the payor of the distributions nor is the Trustee in any way authorized or accountable for the distributions. The trust is merely a temporary conduit with no business purpose other than the purchase or origination of loans.

Levitin and Yves Smith – TRUST=EMPTY PAPER BAG

September 26, 2014

Living Lies Narrative Corroborated by Increasing Number of Respected Economists It has taken over 7 years, but finally my description of the securitization process has taken hold. Levitin calls it “securitization fail.” Yves Smith agrees. Bottom line: there was no securitization, the trusts were merely empty sham nominees for the investment banks and the “assignments,” transfers, and endorsements of the fabricated paper from illegal closings were worthless, fraudulent and caused incomprehensible damage to everyone except the perpetrators of the crime. They call it “infinite rehypothecation” on Wall Street. That makes it seem infinitely complex. Call it what you want, it

Securitization for Lawyers: Conflicts between reality, the documents and the concept.

September 10, 2014

For more information on foreclosure offense, expert witness consultations and foreclosure defense please call 954-495-9867 or 520-405-1688. We offer litigation support in all 50 states to attorneys. We refer new clients without a referral fee or co-counsel fee unless we are retained for litigation support. Bankruptcy lawyers take note: Don’t be too quick admit the loan exists nor that a default occurred and especially don’t admit the loan is secured. FREE INFORMATION, ARTICLES AND FORMS CAN BE FOUND ON LEFT SIDE OF THE BLOG. Consultations available by appointment in person, by Skype and by phone. ———————————— Editor’s Note: The solution

Securitization for Lawyers: How it was Written by Wall Street Banks

September 3, 2014

Who REALLY Owns the Loan ?

July 30, 2014

With stories like this, we know that there are settlements, but we don’t know the terms. Just like the confidential settlements with homeowners that occur every day, we never hear the terms of settlement. The issue is whether the banks are being forced to either pay for the losses they created by writing bad loans or if they will be required to re-purchase the whole thing because the loans are, in the words of the investors, unenforceable. If they are paying off the investors for the loss, and the loss is directly related to the bad underwriting on specific loans,

Miami Sues JPMorgan Over Discriminatory Lending Practices

July 28, 2014

As further corroboration of the articles on this site and an infinite number of mainstream and not-so-mainstream sites, the banks sold mortgage bonds to investors under the presumption that the risk of loss was nearly zero. If done properly, securitization works. It gives a greater opportunity to more people to get home loan and other kinds of credit financing. And we now know that the primary target of many campaigns was to get new “customers” to take a loan (even if the bank wouldn’t give them a bank account) and in a huge number of cases consisted of those people

Investors Are Starting to Understand How They Are Being Screwed — Just Like Borrowers

July 21, 2014

Hat Tip to Dan Edstrom in Northern California, our senior securitization analyst for finding this report. Investors Have Had Enough!! “If Citibank wants to settle with the Justice Department and [Attorney General] Eric Holder, that’s fine. Just please don’t settle with investors’ money. Because that’s whose money it is,” Fiorillo says. “It’s not Citibank’s money. I’ve said it 100 times and I will continue to say it. I am now leading a louder and louder chorus with people who have had enough of this.” See Links Below I know this stuff isn’t easy, but managers of pension funds and hedge

How the Banks Literally "Made" Money Out of Nothing

June 30, 2014

For the last few weeks I have been harping on the concepts of holder in due course, holder with rights of enforcement, and holder. They are all different. The challenge in court is to get them treated as different in Court as they are in the statutes. The Banks knew through their attorneys that the worst paper in the world could be turned into real value if they could dress up junk paper and sell it to an unsuspecting innocent third party. They did it with junk bonds, and then they did it again when they created a strategy of

Why Is the PSA Relevant?

June 18, 2014

Many judges in foreclosure actions continue to rule that the securitization documents are irrelevant. This would be a correct ruling in the event that there were no securitization documents. Otherwise, the securitization documents are nothing but relevant. There are three scenarios in which the securitization documents are relevant: The party claiming to be a trustee of a trust is claiming to have the rights of collection and foreclosure. The party claiming to be the servicer for a trust is claiming to have the rights of collection and foreclosure. The party claiming to be the holder with rights to enforce is

9th Circuit (Federal) Allows Quiet Title and Damages for Wrongful Filing of False Documents

June 13, 2014

Hat Tip to Beth Findsen who is a good friend and a great lawyer in Scottsdale, Az and who provided this case to me this morning. I always recommend her in Arizona because her writing is spectacular and her courtroom experience invaluable. This case needs to be analyzed further. Robert Hager (CONGRATULATIONS TO HAGER IN RENO, NV) et al has succeeded in getting at least a partial and significant victory over the MERS system, and voiding robosigned documents as being forged per se. I disagree that a note and mortgage, once split, can be reunified by mere execution of an

Why They Sue as Holder and Not as Holder in Due Course

May 13, 2014

Parties claiming a right to foreclose allege they are the “Holder” and do not allege they are the holder in due course (HDC) because they are ducking the issue of consideration required by both Article 3 and Article 9 of the UCC. So far their strategy of confusion is working. They are directly or impliedly claiming they are the holder of the NOTE. They cannot claim they are the holder of the MORTGAGE, because no such status exists — they either own the mortgage encumbrance because they paid for it or they didn’t. If they didn’t pay for it, they

Fatal Flaws in the Origination of Loans and Assignments

April 22, 2014

The secured party, the identified creditor, the payee on the note, the mortgagee on the mortgage, the beneficiary under the deed of trust should have been the investor(s) — not the originator, not the aggregator, not the servicer, not any REMIC Trust, not any Trustee of a REMIC Trust, and not any Trustee substituted by a false beneficiary on a deed of Trust, not the master servicer and not even the broker dealer. And certainly not whoever is pretending to be a legal party in interest who, without injury to themselves or anyone they represent, could or should force the

Wells Fargo Manual Serves as Basis for Deeper Discovery

April 21, 2014

Every lawyer defending Foreclosures has heard the same thing from the bench just before a ruling in favor of the pretender lender — the homeowner did not meet its burden of proof and therefore judgment is entered in favor of the “bank.” The fact that the pretender lender is a bank makes the judge more comfortable with his assumption that the loan is real, the default is real, the financial injury to the pretender lender is presumed, and that the family should be kicked out of their home me because they stopped paying on “the loan.” More and more Judges

The Step Transaction and Single Transaction Doctrine

April 11, 2014

Jim Macklin and Dan Edstrom did a great job of packing a great deal of information into 28 minutes of talk time on the Neil Garfield Show last night. I am taking a couple of weeks off the show to do some common follow-up procedures to my heart surgery two years ago. Jim Macklin stepped in and did a great job of getting information into the hands of lawyers and other listeners in what turned out to be a mini-seminar on how to apply Federal tax law to the issue of ownership of the the loan. It should be heard

Foreclosures on Nonexistent Mortgages

April 7, 2014

I have frequently commented that one of the first things I learned on Wall Street was the maxim that the more complicated the “product” the more the buyer is forced to rely on the seller for information. Michael Lewis, in his new book, focuses on high frequency trading — a term that is not understood by most people, even if they work on Wall Street. The way it works is that the computers are able to sort out buy or sell orders, aggregate them and very accurately predict an uptick or down-tick in a stock or bond. Then the same

Glaski Court refuses to "depublish" decision, two judges recuse themselves.

February 27, 2014

Corroborating what I have been saying for years on this blog, the Supreme Court of the state of California is reasserting its position that if entity ABC wants to collect on a debt in California, then that particular entity must own the debt. This is basic common sense and simply follows article 9 of the Uniform Commercial Code. If a court were to adopt the position of the banks, then a new industry would be born, to wit: spying on people to determine whether or not they are behind on any payment to anyone and then beating the real creditor

MGIC Paid Off 2,400 Loans last month! Why Does the Borrower Still Need to Pay the Same Creditor?

February 14, 2014

Among the many insurance companies that paid off loans or assets based on loans, MGIC. Off 2400 loans a month of January alone, which appears to be virtually all residential mortgages. Press the reason that nobody is paying any attention to this is that normally the insurer acquires the claim through a legal process called subrogation. In the world of securitization the insurer waives subrogation. So we are left with a payment to a creditor. The creditor is identified as the lender for purposes of the insurance. There is no doubt in any venue that once a settlement is accepted

JP Morgan Corners Gold Market — where did they get the money?

February 3, 2014

Zerohedge.com notes that JP Morgan has cornered the market in gold derivatives. They ask how the CFTC, who supposedly regulates the commodities markets could have let this happen. I ask some deeper questions. If JPM has cornered the market on those derivatives, is this a reflection that they, perhaps in combination with others, have cornered the market on actual gold reserves? Zerohedge.com leaves this question open. I suggest that this position in derivatives (private contracts that circumvent the actual futures market) is merely a reflection of a much larger position — the actual ownership or right to own gold reserves

The Rush to Foreclosure: Wells Fargo Loses the Argument on Trial Modifications

January 29, 2014

As Danielle Kelley, Esq. (Tallahassee) has repeatedly predicted, the trial modification practices of the big banks are getting them into hot water. Scenarios vary. But one typical scenario is that the trial modification is “approved” (which under current law means that it has been through underwriting) and the borrower makes the trail payments. Then the bank says the “investor” (with whom they have most likely NOT been in contact) has denied the modification. After receiving the trial payments and assuring the borrowers that they were safe in their home, the bank then forecloses. Many homeowners, unaware that they in fact

World Savings Bank Loans Were Securitized Before Wachovia Merger

January 28, 2014

World Savings Bank was acquired by Wachovia Bank which in turn was acquired by Wells Fargo. We have previously reported here that we had no information regarding the actual securitization of loans had been originated by World Savings Bank. Now we have that information. And in a case of the right hand not aware of the left hand it turns out the source is our very own senior securitization analyst — Dan Edstrom, who operates DTC Systems (shown as watermark on documents shown below). The original opinion that I had written about was that virtually all of the loans originated

Mortgage Lenders Network and Wells Fargo Battled over Servicer Advances

January 22, 2014

It is this undisclosed yield spread premium that produces the pool from which I believe the servicer advances are actually being paid. Intense investigation and discovery will probably reveal the actual agreements that show exactly that. In the meanwhile I encourage attorneys to look carefully at the issue of “servicer advances” as a means to defeat the foreclosure in its entirety. As usual, the best decisions come from cases where the parties involved in “securitization” are fighting with each other. When a borrower brings up the same issues, the court is inclined to disregard the borrower’s defense as merely an