A large number of mortgage notes were securitized during the housing run-up. Borrowers simply believed they were taking on a mortgage but in essence they were issuing a (non-negotiable) securities instrument which caused massive harm to investors all over the world, sent the US economy into a tailspin, and ushered out the era and the idea of "free market" capitalism. Mortgage companies originating securitized loans (and their assigns) earned
undisclosed compensation well above their normal remuneration by way of swap, trade, cross-collateralizing, cross-insuring, bailout funds and other such spoils.
These notes were the get-away vehicle being used to commit financial fraud on third party
investors under the guise of A rated securities. During the process, mortgage notes were bundled and diced up into tranches. This means that underneath a thin layer of quality notes based on quality appraisals lies a pool of toxic junk based on hyper-inflated appraisals. A ticking financial time bomb ready to implode.
Imagine putting an
apple, orange and banana in a blender, then after mixing them up trying
to pull out the whole apple, it just doesn’t happen. This is the reason why when it comes to pursuing foreclosure actions they
(most mortgage servicers) cannot produce the original note. More than likely the notes were lost or destroyed in an attempt to avoid implication & liability in greater frauds as they relate to RESPA, TILA, UCC Code, SEC & RICO violations. In order to have legal standing the party seeking foreclosure must prove that they are the "holder in due course". If you do not identify the proper parties entitled to claim a lien on the property, there stands a great chance for future claim of lien and thus a title defect is created which penalizes the homeowner a great deal.
There may be other legal title issues at stake as well. MERS is a prime example of how corporate entities would bypass the process of properly transferring and recording liens in public record. MERS allowed lenders to swap
and trade notes without paying the appropriate assignment and transfer taxes which cheated local and state agencies out of hundreds of millions of
dollars I’m quite sure. In addition, Real Estate Appraisers have been lining up to
tell their stories about pressure to "hit the number" on appraisals or fear
losing work. A lot of honest appraisers left or were driven from their
industry by pressure from their customers, AMC’s (Appraisal Management Companies) and AVM’s (Automated
Valuation Models). It amounts to usury on the consumer.
We rescinded our loan under the Federal Truth In Lending provision. The TILA
statute of limitation time clock does not start ticking until the homeowner
is aware of the full scope of the violation. A great many of the newer
loans were securitized and legal/title issues apply to a majority of
them. I have worked as a title examiner for Lawyers Title and am
very familiar with the technical details on the chain of title,
mortgage liens, assignments and discharges.
MILLIONS of Americans have walked away from their homes without
knowing who owns their note (the holder in due course). This is an
absolute must have – they must produce it, and it must be an original,
not a photocopy. There have been situations where consumers have paid
their mortgage servicer (in full) and a separate party comes forward
claiming to be the owner of the note and demanding payment. It happens! A great resource to learn more about the topic can be found
here; http://www.livinglies.wordpress.com Neil Garfield is one of the leading
speakers on the the legal ramifications of these securitized loans. Also check out http://www.mariokenny.wordpress.com.
The true identity of the lender has
been hidden from the borrower and the borrower cannot deal in good
faith when dealing with their mortgage servicer who has no legal standing and is not the holder in due course. Servicers have no
vested interest in helping the consumer (homeowners) and have the
intent of pushing people out of their homes, as evidenced by the the
story above. So why to this day are foreclosures being rammed through
the legal system without first seeking to protect the rights of US Citizens
to due process as written in the 14th Amendment;
"No State shall make or enforce any
law which shall abridge the privileges or immunities of citizens of the
United States; nor shall any State deprive any person of life, liberty,
or property, without due process of law; nor deny to any person within
its jurisdiction the equal protection of the laws".