HOW TO APPLY THE DEFINITION OF A COMMON LAW TRUST

It’s always best to start at the beginning. All REMIC Trusts appear to be written up as common law trusts permitted under the laws of the State of New York or the State of Delaware. The problem with the REMIC Trusts is that they are not common law trusts nor trusts of any kind.

Consider the definitions available. Based upon a modicum of research all definitions of common law trusts can be summed up as the following:

A trust is created by a settlor, who transfers title to some or all of his or her property to a trustee, who then holds title to that property in trust for the benefit of the beneficiaries. … Trusts have existed since Roman times and have become one of the most important innovations in property law.

So a common law trust must be created by a settlor.

The settlor is the party who transfer title to property or money to a trustee.

The trustee holds the property or money for the benefit of the beneficiaries.

And here is the simplest answer to the many questions I have received:

The REMIC Trusts do not actually identify a settlor, nor do they identify money or property transferred to the Trustee; and the Trustee does not appear to be doing anything for the benefit of beneficiaries much less holding any property or money from the Settlor.

That is why no REMIC Trust ever claims to be a holder in due course. That would mean they are the owner of the debt. Instead they claim the status of holder, which only means they hold, possess and maybe even own “the paper”; but the paper is worthless because it does not memorialize any monetary transaction in the real world between the borrower and the Payee on the note.

The REMIC paperwork is very similar to the loan closings. Lots of words and paper instruments. Very thin on any actual financial transaction.

So the REMIC Trusts are “sold” to the public as having some substance (i.e., assets) somewhere in there, but you really cannot identify where. The origination documents for a loan, like the so-called REMIC Trusts, consist of lots of paper in which the public is led to assume that there is some financial transaction “in there.” We do have the borrower receiving funds but we don’t have an actual Payor/Lender in any conventional sense.

CONCLUSION: The REMIC Trusts do not exist. The promissory note signed by borrowers is a sham, and the mortgage or deed of trust is void. See 2007-2018 articles in this blog.

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