The Truth About Your Mortgage - Secrets the Banks Don't Want You to Know

I I welcome this opportunity to chat with everybody and thank you for taking time out of your evening and giving the old man your ear here is really what what is transpired you know if you look back when you bought a home you went to the bank and you filled out some paperwork and one of the pieces of paper that you signed was your mortgage and it was notarized and it was recorded with peat birth deeds as Register of Deeds or clerk of County Clerk or whatever okay and the other piece of paper that you set filled out and signed was a promise and let's say you borrowed $400,000 well you signed a piece of paper will you promise to pay that man across the table or his representative four hundred thousand dollars over a period of 30 years or 20 years or whatever the term was but you signed that piece of paper and it was not notarized but it was like signing a blank cheque but it was a promise of pay which made it a negotiable instrument now when you press when you gave sign that paper you thought that the bank was going to give you $400,000 that's what you thought well when you sign that piece of paper what did they give you they give you anything yet you just signed the document and that piece of paper became an asset for that Bank it was now an asset that they owned you no longer owned it yours was a promise to pay so that asset was now $400,000 of bears and here's what they did with it they didn't give you any money yet but they took that asset and they created a bond just like you would bail your nephew out of jail they created a bond and that bond went they took it to the Federal Reserve and the Federal Reserve gave them approximately ten times the amount of your promise to pay now let's say you promised to pay with four hundred thousand the Federal Reserve create or gave them a credit of about four million bucks now how much money have they put up they have put up absolutely zero they leveraged leveraged and the technical word for it is monetized but they leveraged your promise to pay to create four million bucks and they still had your promise to pay they kept it they just created a bond they then took your promise to pay to another party and we'll call that party a wholesaler and that wholesaler took it to what we call an aggregator or trustee and it was then sold to a trust and 95 percent of the Trust's are in New York so with sold on Wall Street well where did the money come from for this note where did it come from well the trust filed before you even applied for that note the trust filed what we call an 8k filing with the Securities and Exchange Commission and we'll call it the Rosato trust and they told the Securities and Exchange Commission that they were going to sell investment certificates and they were what we call mortgage-backed securities or they were called CDOs collateralized collateralized debt obligations whatever fancy to and they called it that note was that was the security for these folks to induce certificate holders or investors let's just say the folks that are listening to this phone call let's say they represent the school teachers in their area so the school teachers pension plan invested ten million dollars each into this trust that was backed by your promise to pay so they were they were given let's say 6% return on their investment but you were paying maybe 7% so the trust was earning money okay now those certificates okay that were purchased by the investors okay that money went back to the bank that you signed that promise to pay with and that's where the funds came from for you to buy your house Wow Wow listen to this for a minute that piece of paper that was never notarized traveled all around the world gathering a lot a lot of money it created four million dollars for the bank and credit on your signature it also induced a lot of school teachers pension plans or firefighters pension plans to invest into that trust they got an investment certificate and the funds came backwards to the bank and the bank then threw the title company they provided the four hundred thousand dollars to purchase the house good deal very good deal for who for the bank they got four million in credits and did a nickel out now the trustee for this trust he is provided what we call a pooling and services agreement that's his management book as his rules that's what he has to follow to comply with the SEC rules so in a pooling and services agreement there's a clause in there that says if you failed to pay your mortgage they they entered into an insurance contract so if that mortgage wasn't paid the insurance company would pay it but the money wouldn't go to you it would go to the trust only we call that a credit default swap and the insurance company is listen to this a PI G now when you got in trouble and you know you lost your job or your overtime or for whatever reason you tried to contact the bank and you got the runaround you ended up talking to this person that person submit these papers oh we lost them submit them again and all that practicals with it but you were told we can't help you until you're 90 days late everybody's heard that well guess what happened on day 91 on day 91 the insurance policy that the trustee entered into with AIG triggered a payoff and the trust received the full amount of the note regardless of how much you paid on your mortgage they got the full amount of the note so the note was insurer for 400,000 to trust got 400,000 but here's a mystery here and I'll explain it as easy as I can the Federal Reserve allowed the trust to leverage that $400,000 note 30 times so they created 30 different levels now your four thousand dollar note is purchased by other lenders along we go now let's go back to the default the AIG paid off the note when it was 91 days late so at this point who has lost any money nobody except AIG or insurers like that Sol Smith Salomon Barnum Brothers and all that stuff now someone attempts to foreclose let's say the lender that you've got know from they're going to foreclose on you or the trust is going to foreclose on you or let's say it's Wells Fargo acting as trustee for Bear Stearns trust well they're trying to steal the house because nobody has any skin in the game they've all been paid commissions and there they've been very successful in stealing houses what happened here well I sat in the fort minor's courtroom many times and I watched folks average folks lose their house in five minutes because they didn't have an idea of what to do didn't know where to go for an answer and didn't have any money now in this foreclosure arena call it a football field in this field of litigation the only players are the consumers who have enough money to pay an attorney and what is he doing he's delaying decline so that you maybe save a couple of months of rent or mortgage payments but at the end of the game end of the day when you pull the shade down journalize up he wins a dismissal without prejudice which means the bank that is foreclosing who doesn't have any skin in the game will come back again in a month and try to pork try to foreclose him murrs are technically is Mortgage Electronic Registration system they were formed by the banks and the met banks became members and MERS at the closing table is named as the nominee lender they take they take possession of the mortgage electronically not the hard copy but electronically MERS their theory is and was that by they being the nominee lender and having possession of the mortgage electronically they believe that the note followed the mortgage and there are some judges who don't understand this who agreed with that however the US Supreme Court in 1872 said if the note and the mortgage are separated because one secures the other if they're separated they're both null and void and to simplify it if you were going to buy my car you're not going to give me the check until I give you the title the keys to the car are one thing but the title is another thing now MERS took possession of the mortgage but they could not take possession of the note because the Kansas Supreme Court ruled that they are not a lender with that being said your loan was bifurcated that's a legal word bifurcated right at the closing but you didn't know that now that means you're tied chain of title was broken so fast forwarding ahead we simply said and this workbook that I created and I'm the only layman that I know of and I've been told us that's ever been approved by the Florida Bar to teach attorneys about this subject as subsequent we've been approved by the Georgia bar the Wisconsin bars and Nevada bar and other states to follow so that's quite an accomplishment for a little white hair old man to be able to be certified to teach attorneys what you need is a securitisation audit which follows the paper trail from the time you closed until it enters into the trust and a Bloomberg financial report that pulls out all of the financial information about the trust when you have that information and it's accompanied with an affidavit sworn under the penalty of perjury you know evidence you now have admissible evidence to the court that the note was paid off when the insurance or credit default swap was triggered well if the note was paid off who is damaged who is damaged nobody the only logical people with a claim to that house only logical people would be the insurance company that paid out the claim but now here's it is the end of my story tonight and then now open it up for questions if you have your vehicle insured by let's say Geico and you total it the Geico will write you a check for the value of the vehicle but who owns the salvage rights think about that for a minute write your question down think about it the salvage rights are owned by Geico they then part it out sell it whatever so they can minimize their losses well in the foreclosure arena the insurance company is Geico and if they paid off the certificate holders then they would have a claim to the house logical except except they insured unsecured notes remember at the closing table MERS became the nominee lender it separated the note from the mortgage the US Supreme Court says that they're separated they're both null and void well Geico insured unsecured notes because the notes that were not accompanied by the mortgage or vice versa therefore they had no claim on the wreck or the house who now so it's actually the dog dripping or a versa double dipping and triple dependent absolutely and today Geico has a big-time lawsuit against Bank of America because Geico kinda guy called my god when you get my age you can invent Wars AIG has a major lawsuit against Bank of America because Bank of America defrauded them on the quality of the loans the loans were rated triple-a by sub Standard & Poor's or Moody's or whatever when in fact they slid into that pile of loans they slid the slid in some toxic lonesome some marginal loans and Geico ended up paying based on misrepresentation Wow what a harness nest you here's what you do and I did this with Regions Bank I walked into the bank and I said to the girl I want to talk to the president the bank has dirty diapers and they really smell while he's in conference I said there's no problem I'll just drop the diapers right here in less than 30 seconds he comes out of his office and he said I overheard the conversation what's the problem I see you've got dirty diapers there's fraud in this in these loans now what do you want to do you want to litigate or you want to negotiate as they called his legal department and I said here's the proof you people have already been paid what do you want to do and it stopped all the activity in court because you had proof and that's the value of the securitisation audit and the bloomberg financial report so if I were a real estate investor I would not rely on any modification because you're dealing with someone who doesn't own the note remember remember earlier in the conversation a lawyer here in Cape Coral and the real estate broker they were partners they paid the bank one hundred and fifty six thousand dollars and Randy I think you saw the article and the bank didn't hold it so if I'm an investor how the hell do I know who owns the owns the note so the only way I can find out who owns the note so I can sit across the table and cut a deal is to flush them out of the woodwork and how do you flush them out you sue them Wow this will make a lot of enthusiasm okay the ability to walk into the bank and say to the bat to the president of Bank you have dirty diapers do you want to litigate or you do you want to negotiate and they always would rather negotiate and then it's a question of how much money they will take based on today's value so if a home had a mortgage of 400,000 is worth two hundred thousand today banks are negotiating today's value now can the individual homeowner negotiate no no because of the banks of alleged pay me in the first place

Channel: Michelle Cruz Rosado

Views: 576,043

Rating: 4.8722305 out of 5

Keywords: RICO, huntington bank, associated bank, peoples bank, us bank, regions bank, racketeering, uniform commercial code, bloomberg live securitization audits, bloomberg download, bank of the west, first national bank, regions online banking, us bank login, first convenience bank, mortgage securitization audits, special warranty deed, deed in lieu, commerce bank

Id: YD2EZxI54p8

Length: 20min 58sec (1258 seconds)

Published: Mon May 07 2012