[ Revised 9 Nov. 2023 ]Mortgage Fraud: The Lies & The Laws
Every homeowner who holds a mortgage actually lives as a tenant in secret fear of foreclosure and eviction. None are prepared for that nightmare.
Avaricious bankers, attorneys, and realtors are to blame for a monstrous fraud that underlies the real estate industry, feeds the foreclosure process, and recycles stolen properties in a Ponzi scheme of fiat inflation, deflation, and bankruptcy that has condemned countless families to homeless poverty.
The bank practices studied concealment and incomplete disclosure of some fine print details in your mortgage loan application; otherwise you probably wouldn't be there, because it is not the bank's money to lend. Federal case law has repeatedly decided that banks cannot loan their own money; they merely act with your permission but without full disclosure to secure a loan from the Treasury Department in your name:
"A National Bank cannot lend its credit or become the guarantor of the of the obligation of another unless it owns or has an interest in the obligation guaranteed especially where it receives no benefits therefrom." Citizens Nat Bank of Cameron v. Good Roads Gravel Co., Tex Civ App 1921, 236 SW 153; and, "National Banks have no power to negotiate loans for others." Pollock v. Lumbermen's Nat Bank of Portland, Or. 1917,168 R. 616, 86 Or. 324, etc.
Instead, during the 3-day rescission period after you apply for a loan, the bank uses your signature and Social Security number to borrow from the Treasury, hypothecates the money manyfold into other investment accounts, refunds the Treasury, balances the books, and profits obscenely while you wait for approval to go into debt with them, then to be billed monthly for decades, and foreclosed upon if you miss a payment. Banks don't risk a penny, but do rob you with a pen. They also immediately pool your Note with thousands of others to form derivative trusts and securities in which there is no trust or security, but buttloads of money. Even if you go bankrupt, they lose nothing because mortgages are insured. The banks are double-dipping several times over.
Yet they never have true Title to your Property, and the physical Note gets lost in the shuffle during subsequent unlawful transactions. The contract is incomplete, written in fictitious language, and it is falsely certified as authentic through MERS, the Mortgage Electronic Registration System.
MERS is used to avoid payment of filing fees due to local governments, and it serves to convey forged notes without authorization, that despite the fact that their website www.mersinc.org states that "the MERS system is not a vehicle for creating and transferring beneficial ownership in mortgage loans, nor does it have beneficial interest in mortgage notes... It has no rights whatsoever for creating or transferring benefic interest in the mortgage loans." MERS is the Mortgagee of record for its members, but the original lender or subsequent party who purchases the note is obliged to retain physical possession of the note.
Note too that some states, e.g., Nevada, are "Title States" where the Title and Note must remain whole. Securitization splits them. If claimants cannot produce the original "wet ink signature" document during litigation, they are failing to mediate in good faith, and do not have equitable standing. See Pasillas v. HSBC Bank USA, 255 P.3d 1281 (2011). And because a mortgage is a security instrument that follows the underlying note, a mortgage assignment cannot be valid unless the physical note is attached. The case of Carpenter v. Longan, 83 US 271, 274 (1872) determined that "[T]he note and mortgage are inseparable... the assignment of the note carries the mortgage with it, while an assignment of the latter alone is a nullity."
Furthermore: under 3 UCC (the Unified Commercial Code), a surrogate signed stamp is not valid as a signature endorsement that permits the exercise of any rights -- including the right to foreclose -- to subsequent holders of the Note. Nor was there a presentment of original documents, required by 3 UCC §202(2). The decision in Vance v. Fields, 172 So. 2d 613 (1965) applies here: "Recordation of an invalid instrument affords no protection to claimants thereunder."
Banks routinely ignore the rules and rulings as they abuse MERS with their corporate shell games, such as for example REMIC (Real Estate Mortgage Investment Conduit) "MANA Series 2007-82", which was run by HSBC Bank USA and Merryl Lynch Investors, Inc.. The Substitution of Trustee was "robo-signed" by David Perez, "Assistant Vice-President of MERS", followed by a Notice of Default robo-signed by Yvonne S. Belcher. Then Greenpoint Mortgage Funding, Inc. converted and altered the Note without authorization, despite which it was endorsed by another robo-signer, "Assistant Vice-President" Larry R. Kern. Fake addresses also were used, such as 2300 Lakeview Parkway, Alpharetta GA; the Google Maps street view shows only trees there. In reality, the senior homeowners were evicted without warning in September 2023.
A FOIA request to the SEC by research specialist Charlotte Fulton in 2010 concerning "IMPAC CMB 2005-5 Trust" revealed another layer of fraud: it never existed! The financiers apparently applied for a REMIC Trust to Security Exchange Commission and were assigned a working CUSIP number, but they didn't complete the application process or pay fees; instead, the CUSIP was used to give the color of law to their business plans.
Attorneys routinely present fraudulent documents to convince courts that they have standing. By doing so, they prevent witnesses and evidence from bringing correctness to the court, and commit these crimes: Unjust Enrichment, 12 USC §5565; Willful Violations, 15 USC §78ff; Misprision of Felony, 18 USC §4; Counterfeiting and Forgery, 18 USC §25; Fraudulent Assignment, 18 USC §47; Deprivation under Color of Law 18 USC §242; False, fictitious, or fraudulent Claims, 18 USC §287; Circulation of Obligation of Expired Corporation, 18 USC §335; Falsifying Documents, 18 USC §472; Extortion, 18 USC §872; Fraud and Conspiracy, 18 USC §1001; False Statements, 18 USC §1014, 26 USC §26, and 31 USC §3729; Frauds and Swindles, 18 USC §1391; Perjury, 18 USC §1621; Constructive Mail & Wire Fraud, 18 USC §1341-1343; False Statements, 26 USC §26 and 31 USC §1729; Misrepresentation, 33 USC §931; and Deprivation of Evidence & Witnesses, 42 USC §1985. They also offend the Fair Debt Collection Protection Act (FDCPA), 15 USC §1692e; the Real Estate Settlement Procedures Act (RESPA), 12 USC §1692; the Truth In Lending Act (TILA), 15 USC §1641, and the False Claims Act (FCA), 31 USC §3729, and more.
In Nevada, where this writer lives, the banks, et al., violate NRS 205.105 by "Forgery of instrument purporting to have been issued by corporation or state..."; NRS 205.110, "Uttering forged instruments"; NRS 205.115, "True writing signed by wrongdoer's name or name of person not in existence", and NRS 104.3407, an illegal conversion and unauthorized alteration made to the Note. Such false conveyance of property is a category C felony. Most egregious is their violation of NRS 193.167, "Certain crimes committed against person 60 years of age or older or against vulnerable person", when handicapped elderly homeowners are evicted by such evil means, often to die heartbroken soon after.
The entire process is corrupt, yet little is done about it. Judges and attorneys are however very liable for their collusion under 42 USC §1986 and 18 USC §3: "When a person with authority and power to correct has knowledge of a crime, and when that person neglects, refuses, or fails to prevent, that person thereby aids the crime, and shall be liable to the injured party." 18 USC §1918 adds that Public Officers and Employees who violate their Oath of Office immediately forfeit their Office and their Authority.
These insufferable torts are fatal flaws in contracts that give legal Cause of Action to render the mortgage void, and entitle homeowners to legal remedy, including clear Title, renumeration for incurred expenses, and punitive fines determined by the Court, because "Fraud vitiates the most solemn contracts, documents, and even judgments." U.S. v. Throckmorton, 98 US 61, 65.
Until homeowners unite in class action lawsuits, vampire bankers and their minion lawyers will continue to act with arrogant impunity and apparent immunity as they prosecute many more millions of fraudulent foreclosures. The evicted victims, thus rendered helpless, suffer grievous loss of income, credit, equity, reputation, freedom, mental and physical health, and life itself. But seriously: it behooves every "homeowner" to have a bugout bag or grocery cart ready to go, or in safe storage elsewhere.
Beware, ye Bankers, Lawyers, and Realtors! The Eighth Circle of Inferno is reserved for Fraud!