Shell Game in Full Swing: Loans in Motion

Feeling the heat as an increasing number of judges and regulators piece together the gigantic puzzle called “securitization,” the “sales” of “loans” and bonds continues in jumbo fashion. The numbers are staggering with purported “sales” of hundreds of billions of dollars of loans. So who is foreclosing, who is getting the proceeds of sales, who is getting the money, the title, the insurance, and the rest of the third party payments?

The problem is that the new trusts are not any better in form or substance than the old REMIC trusts, from which most of the loans are coming. They violated property laws, tax laws and probably criminal laws and now they are being given the opportunity to cover it up so that the whole system doesn’t collapse. So the homeowner has been thrown under the bus to pay for the horrendous, negligent and mean spirited acts of Wall Street.

There are reports of giant pools of loans being sold for pennies on the dollar; this gives credence to the position taken by investors, insurers, government agencies, guarantors and others who paid money into the pit called Wall Street. They claimed the acts were fraud, pure and simple, and they claimed the money had been mismanaged. They got their settlements while the homeowners were hung out to dry. They had paid for losses that never happened to the insured bank — who had pirated the ownership of the bonds away from the pension funds and other investors buying “residential mortgage backed securities.” Yet the banks got to keep the money and were given even more money.

According to the 1998 laws passed by Republicans and Democrats these are not securities in the sense that they cannot be subject to SEC regulation. So they are not securities. in fact not one letter of the acronym RMBS reflects the truth about the trusts or the loans.

Their connection to real estate is tenuous and mostly unfounded at best.

As to being mortgage backed, there doesn’t seem to be an enforceable mortgage in the pools that are being repackaged to create yet another layer that investors and homeowners must penetrate in order to show the loan balance is zero and the debt was never secured.

As for residential, the only thing true is that most are eventually destined for the dust heap, as the former residences of people who were fooled into signing papers that locked them into deals in which they were sure to lose or abandon their homestead.

As the outrage dims, Wall Street broker dealers are emboldened to cover up their lies with yet more lies, layers and “laddering.” So many loan pools have been terminated, according to reports I have received from Wall Street, that there are few left, if any. Between Federal Reserve purchases and the repackaging of the pools with or without the knowledge of investors, there is virtually nothing left of the “creditor” for whom foreclosure sales are allegedly being conducted.

And yet judges continue to assume that the borrower is the bad guy instead of realizing that the judiciary is being used as the final nail in the financial coffin of pensioners whose money was advanced for loans that were professionally managed but never given the documentary protection they were promised and who are now facing shortfalls in the near future when pensions become due and payable. Or maybe judges know the borrower is not the bad guy and simply feel that someone must pay for all this and it might just as well be the middle class.

http://www.housingwire.com/articles/29867-credit-suisse-brings-another-jumbo-rmbs-to-market

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