GOV OWNS MORTGAGE BONDS, CONTROLS THE MORTGAGES: DO SOMETHING!

SUBMITTED BY DEB WYNN

EDITOR’S NOTE: Deutsch Bank, figuring prominently in the entire securitization scheme in more ways than we can count, is counted amongst the two top beneficiaries of the buying program from the Federal Reserve, the Lending program from the Federal reserve, and the Buying program from the US Treasury. And then you have the Fannie and Freddie who are said to control or own $10 trillion worth of mortgages, although the precise mechanism under which they supposedly have those mortgages, loans or receivables is as muddled as the rest of the transfers in securitized loans and the is subject to the origination defects as well.

So in one form or another, directly or indirectly, the United States Federal Government literally claims to own or control nearly all of the mortgages.

BUT so do Deutsch Bank or people who say they speak for Deutsch Bank and so do other “trustees,” “agents”, or other people who say that even though the money isn’t actually owed to them, they can collect it. AND they say that even though the money isn’t actually owed to them, they can cause a foreclosure to be filed. And they say that even though the money isn’t owed to them they can cause the sale of a home at auction over the homeowner’s objections. AND they say that even though the money isn’t really owed to them, THEY can submit a credit bid at the auction and take title to the house or DIRECT title to be issued to some designee.

AND the courts are stumbling along trying to do the right thing without the real parties in interest stepping forward. The investors are suing the investment banks saying the mortgages are either not valid, or that improper methods were used to originate them, or that the mortgages were never properly placed in the pools because the proper procedures were not followed. The Federal Government is standing back watching this disaster when it claims to be the actual owner or controller of these loans, receivables, notes, mortgages or however they are being described these days.

So if we know there is a problem with “ownership”, we know that title and chain of title is being thrown daily into deeper and deeper chaos, it seems to me that whether it wants to or not ONLY the Federal Reserve and the Federal Government MUST take a position — one way or the other. Either they own it or they don’t. If they do, then in order to be in court or on the courthouse steps, somebody must have authorization to represent the government. If they don’t, then we deserve an explanation for what it is they bought with trillions of dollars of taxpayers’ money.

They can’t have it both ways. The Feds can’t say they own these loans and then do nothing about it, leaving it to others who by definition DON’T own the loans to fight it out in courts.  Anyone smell gas?

Deutsche Bank And Credit Suisse: The Two Top Beneficiaries Of Fed Mortgage Buying (DB, CS)

Today, December 01, 2010, 10 hours ago | Katya Wachtel
Thanks to Zerohedge, we know that the banks which were the top beneficiaries of the Agency Mortgage-Backed Securities (MBS) Purchase Program were two foreign-based banks.

This probably confirms suspicions that US banks loaded up foreign banks with mortgage junk, but there’s no reason to jump to conclusions.

This is what we do know:

The Fed purchased $293 billion in MBS from Deutsche Bank, and $287 billion from Credit Suisse.

Rounding out the list’s top six, and with significantly less MBS bought by the Fed, was Morgan Stanley, then Citi, then Merrill Lynch, then Goldman Sachs.

Background: the MBS purchase program was announced in November 2008, with a notable expansion in its scope in early 2009. The Fed says $1.25 trillion in agency MBS were purchased between January 2009 and March 2010.

Posted in bubble, Corruption, Eviction, securities fraud |