WHAT HAPPENED ON WALL STREET!
The storm clouds of doubt are still forming. So many of us Americans still don’t know why, when or who was responsible for this “nuclear financial bomb” that hit us. I have read many articles and opinions from just about every financial guru and lawyer about how this happened and who should shoulder the blame.
There are still many unanswered questions. Lets start simply by asking:
Who are these investors of these asset based securities?
Did the lenders know ahead of time that your mortgage note was going to end up with a foreign owner?
Why are these investors referred to as “book entries” into these trusts?
Why did both political parties agree to this debacle at the last minute?
Did AIG insure the performance of these investment trusts or was AIG also an investor?
Why have attorneys been instructed NOT to produce the note in foreclosure actions?
After reading many articles and talking to many attorneys, underwriters, mortgage brokers, realtor’s and investors, I have put my “twist” on what has happened. I have personally viewed a number of foreclosure law suits and within the complaint itself, the plaintiff tells the court that they are in possession of the mortgage note and later on in the complaint, the plaintiff asks the court to accept a “lost note” affidavit.
Now, to the average person, this seems like normal legalese and in most cases, they simply let it happen or because of lack of representation they don’t know what has happened. The truth is that because the original note is part of a trust that was assembled by the collection of these notes, it would be fraudulent for the note to be produced, when in fact the subsequent owner of that note is no where to be found. Crazy! Not if you start your mind thinking.
Who are the investors of these mortgage backed securities? OSCAR identifies these trusts and extensive investigation into the owners of these investments, reveals that the investors are all book entries. That means that someone living in a foreign country, that has accumulated a lot of cash (USD) and is looking for a way to bring it to the surface, just might invest into a number of these trusts. The appealing of these investments, were the fact that they were backed by US Mortgage notes, secured by real estate.
Now a few short years ago, American real estate was one of the best and most secure investments on the face of the earth. After all, it appeared that the subsequent owner of the mortgage note, had a security that was performing and possibly the performance was insured by AIG so, they had nothing to lose. As long as the real estate kept appreciating in value, the owner of the note could relax.
Now, enters the creative greed of Wall St. Lets take for example a $300,000 note at 8%. The annual interest is $24,000. This is the yield of that note. Lets keep it simple. But, what IF, the creative greedy scumbags, took that note and somehow they changed the asset to a $400,000 face amount yielding 6%. The yield was still $24,000 BUT the value of the trust was increased by 25%. Slick? Could it have happened? Who would be the one to answer that? Commissions were based on the value of the trust. So, some sharpies on Wall St, virtually stole additional commission of 25%.
Did this happen? I don’t know that answer, but put this into your pipe and smoke this one. WHY would both parties at the last minute agree unanimously that the “bailout” would be signed by all?Put your “Sherlock Holmes” thinking hat on. IF, the American public ever found out that the Wall St crowd was guilty of “fraud in the de-factum” and that they virtually lied to us and stole our money, there would have been chaos, riots and bombings on Wall St.
Why would the attorneys tell the courts that they did have possession of the notes, and in the same breath, petition the courts to accept the “lost note affidavits”? Don’t you realize that when the note was securitized, it was taken out of circulation. If, you borrowed your brother-in-law $25,000 and you made him sign a note. Don’t you think that the note would have to be witnessed and notarized?
You could not collect on that note in a court of law without proving that his signature was his legal signature. So, when you signed your mortgage note, the same thing happened. IT WAS Notarized. Now, here is the catch. When your note was transferred or sold to another investor, the original lender MUST endorse the back of the note to that investor and this transfer of ownership of the note MUST have been recorded in the courthouse with the Registrar of Deeds.
Many of these notes were never recorded once they began to be transferred into these trusts. Now, you tell me, how in the hell, anyone that was an investor into these trusts is going to prove which mortgage they owned. That is virtually an impossibility. Hence, no one knows who the investor is and no one wants to reveal who they are. A lot of greed surfaced and I don’t know if and when we, the American public will ever be told the truth. I personally believe that ALL politicians were aware of this and either kept their mouth shut or looked the other way.
Is any of this article true? I leave it up to you to do your own detective work, as this is my opinion and I have had many folks in the financial field, simply shake their heads and say, “Regis, you are right on track”.
Regis P Sauger
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