Huge Pay & Bonuses for Fannie & Freddie Executives! Cover-up attempted by using Holiday eviction delays

Huge Pay & Bonuses for Fannie & Freddie Executives! Cover-up attempted by using Holiday eviction delays

In an attempt to “cover-up” the insidious and outrageous bonuses they had planned to award themselves, a Fannie Mae insider was told to leak word that a “goodwill announcement” (press release) is imminent. This Holiday Goodwill is purported to be a two week (Dec 19th – Jan 2nd) “temporary suspension” of scheduled foreclosure evictions. It’s intended to show the companies compassion, for homeowners, during the 2011 December Holiday season.   REALLY?…Compassion? Homeowners – expect the below 2011 Holiday Greeting Card.

The timing of this hollow & bogus gesture coming from the collapsed and failed Fannie Mae should cause OUTRAGE to all homeowners. It will surely be followed, by a similar announcement, from the other step-child, also in government foster care – Freddie Mac. The planned Holiday Announcement (yet to be made) was originally scheduled to be announced 2 weeks ago and was supposed to give an additional 3-day eviction reprieve and to encompass the Thanksgiving Holiday period of Wednesday Nov. 23rd – Friday Nov. 25th.
I can only imagine the excitement that would have been expressed by many homeowners. Something like…”Wow…your kidding…a whole 3-days…what a life-saver!”

However, after their outrageous pay and bonuses were made public, it was decided to temporarily delay the phony announcement good news about the 3-day Turkey eviction reprieves. Instead the top 2 executives heading the seized housing fiance giants were dragged “up the hill” (to Washington) and forced to explain, to members of a Congressional committee, why they deserved a combined $12 MILLION in salary and bonuses for 2011. Yes, you read it right, theses two axxholes (below) want a mere…. $12 million for 2011.

Check out the rest here…


15 Responses to “Huge Pay & Bonuses for Fannie & Freddie Executives! Cover-up attempted by using Holiday eviction delays”
  1. Nora says:

    What they found out about banks in the depression was that banks constantly increase the money supply through fractional reserve banking, and don’t lend any real money–they lend credit–and they expect you to labor for thirty years to pay interest on a non-existent “principle” that they created to take advantage of your lack of financial sophistication. Read the affadavit of Walker F. Todd, expert witness for Defendants Harshavardhan and Pratima Dave, case No. 03-047448-CZ, Oakland County Michigan; Todd is an attorney, economist, reserch writer, and teacher with over twenty years of experience working in the legal departments of the Federal Reserve Banks of New York and Cleveland. In his expert testimony he explains exactly how the banks endorse and deposit your Note, and forge your name on an account they create for you using your credit file and I.O.U. (your Note) This economic advantage they have allows them to change the nature of the money from money of exchange to money of account. They exchange “credit”, which is what they lent you, to real money in dollars and cents that you pay your payments to them in, and you pay three times the price of your home in “interest” over the life of the loan. This is a helluva scam, and they have been getting away with it for almost a century. You can find Todd’s affadavit by doing a google search for it, or you can find it here: This is exactly why your dad distrusted the banks, and was too smart to fall into their trap. We have let these carpetbagging criminals entrench themselves to the point that America is no longer a sovereign, she is a corporation under their control. It’s time to mob their offices and throw the bankers into the streets.

    • lvent says:

      Right on Nora, they use our signature to create credit for themselves off of our backs..but what they did this time was create $600 trillion in mortgage derivatives debt out of thin air..with no collateral backing that up…ZERO…COLLATERAL…On paper, they are bankrupt…and all need to be shut down and put into receivership…instead the U.S. GOVERNMENT is allowing them to bankrupt all of us….that is treason…..Time to shut them down….We should have never bailed them out in the first place..!

  2. lies is all they tell says:

    Yes we all know its war but each of us individually can not do anything no one is going to save my house but me & I maybe unable to seems with the bad economy the only way to survive is BK seems their plan is working

  3. foreclosureweary says:

    FREDDIE MAC RECEIVES STOLEN GOODS–when Recontrust (who isn’t registered in any state)//BOA steals a home in a non-judicial state, they immediately reconvey the house to FreddieMac– Freddie Mac is then the recipient of stolen property–a felony in all states–instead of a Christmas bonus they should have their asses hauled off to jail and that “bonusmoney” distributed to the homeowneowners they’ve stolen from–that would give me a Merry Christmas

  4. Wow far this has to go until the America people throw these executives in the streets the same way they are trowing homeowners in to the streets? Please America Wake Up !

  5. Wow ha far this hows to go until the America people throw these people in the streets the same way they trowing homeowners in to the streets? Please America Wake Up !

  6. lvent says:

    Just watch, the dirty bastards will get the bonuses too, they will get it ALL one way or another…because the country is being held hostage by the Fourth Reich and they are using traitors from within….!!! And the American people keep voting for the fasicsts…!

  7. Steven Baxter says:

    The question no one is asking, is why is Fannie Mae/Treasury department torturing Americans? I don’t use the word “torture” in jest. People have lost everything, kill themselves, depressed, devasted, are tossed out of homes and into the street.
    The .01% is crushing people because they own the whole game. When they break the law, it’s just a clerical error. If we were to do the same, we’d be locked up quickly.
    Call it class war, call it terrorism, or just call it war, because that’s what this is.

    • Nora says:

      It’s all about control. The ogliarchs think if we’re all homeless we’ll be more tractable–easier to manage–and we’ll go along with their plan to rule the world through crony capitalism and a police state. They think we’re incapable of managing our own lives! JP Morgan had this to say about their plans in 1913;

      “Capital must protect itself in every way…Debtsmust be collected and loans and mortgages foreclosed
      as soon as possible. When through a process of law the common people have lost their homes, they will be more tractable and more easily governed by the strong arm of the law applied by the central power of leading fananciers. People without homes will not quarrel with their leaders. This is well known among our principle men now engaged in forming an imperialism of capitalism to govern the world. By dividing the people we can get them to expend their energies in fighting over questions of no importance to us except as teachers of the common heard.”

      See the whole agenda now? The first step is to end the Federal Reserve’s reign of economic terror.

      • lvent says:

        Yes, Nora, they know that a nation divided will not stand…We The People have to stand indivisibly and demand they restore the U.S. CONSTITUTION, the greatest document ever written by men, back to its original form…issue our own currency…abolish the FED..restore Glass-Steagal and the Uptick Rule, .add a couple amendments to restrain the luciferians from taking America over without ever firing a shot…We need to remove ourselves from the U.N./NEW WORLD ORDER..SMOM/VATICAN/JESUIT TYRANNY…that has hijacked America..No more rule by secrecy…No more CFR and secret society members in Government, limit the terms of Congress members to one term..No more lobbying politicians, no more Corporate heads can be appointed to any position of Government……We need a real american patriot as president in 2012.No more electoral college, paper ballots only…WE THE PEOPLE count the more outsourcing vote tallies to Israel..No more Israeli dual citizenships for Politicians…..and we need to end the wars, jail the banksters and their cronies.,Open State banks…lend tax payer money to small business…Tax the rich..Legalize all drugs….we are not children….Offer an affordable Government healthcare plan that is affordable for all to drive down the cost of healthcare… hold the Politicians who are traitors accountable…make Wall Street pay the American people back everything they stole…the wealth, the homes…and stop the fraudclosures, clear title goes back to the homeowners…..the property taxes and maintenance are enough..Take down all of the surveillance and redlight cameras…that is Orwellian crap and does not deter crime.Abolish the Patriot Act…Investigate 9/11…..Time to send the NWO packing….We The People have alot of work to do..

  8. lies is all they tell says:

    I was watching when they were on cspan. They were they were lieing through their teeth a lot of.the congressman know what’s going on why they are not doing anything is beyond my compression. 60 minutes last was on the money. I need food stamps because my husband is unemployed but because I have enough money left so we won’t be homeless we can’t qualify that’s stupid there not enough jobs in florida I am trying to prevent homelessness in incredible

  9. see says:

    In Dec 2009 the auction of my home was postponed until Jan 2010. If that sheriff’s auction took place then we would have to be out of the house Christmas Eve. From what I could tell all other auctions were postponed until after the holidays. And I believe they did the same thing in Dec 2010. You see Fannie/ Freddie wanted it to look like they had a heart. We all know that it was all for show. What a bunch of sorry a$$ crap.

  10. read this! Fannie and Freddie are stealing your homes.
    U.S. Foreclosure Fraud in a Nutshell, How Average Joe’s Home Was Stolen
    Politics / US Housing
    Nov 28, 2011 – 02:11 AM

    By: LewRockwell

    Bill Butler writes: The untold story in the foreclosure crisis unfolding across America is that, following a foreclosure perpetrated by one of the October 2008 Bailout Banks (e.g. Bank of America, Citibank, JPMorgan, Wells Fargo) Fannie Mae or Freddie Mac suddenly appear as the record owner of Average Joe’s home. These federal government sponsored entities then go into local housing court and get a court order authorizing them to evict Joe. If Joe resists, these supposedly charitable institutions obtain a writ ordering the local sheriff to forcibly remove Joe from his home.

    Newt Gingrich recently admitted to accepting $1.8 million from Freddie Mac ($25,0000 to $30,000 a month during one span of time) for advising this proto-fascist entity. Gingrich claims that he supports Fannie and Freddie because he believes the federal government “should have programs to help low income people acquire the ability to buy homes.” But Fannie and Freddie don’t do this and never have. When government “helps” someone by subsidizing the purchase of something (through easy credit or lower-than-market rates), it makes that something more expensive. Helping someone buy something that is overpriced because of your help is not help. Fannie/Freddie subsidies not only hurt the low income people they intend to help, they hurt everyone by subsidizing, and therefore distorting, the entire housing market. Fannie/Freddie’s charity has now taken a dark turn. Like their Depression-era New Deal predecessor the Regional Agricultural Credit Corp., Fannie/Freddie are now repossessing homes at an increasing and alarming rate.

    Mr. Gingrich either does not understand economics – government subsidies make things more expensive, not less expensive, and therefore hurt their intended beneficiaries – or he is a vain, selfish, and cynical man with no interest in actually helping his neighbor.

    You decide.


    The facts indicate that the Federal Reserve “printed” at least 16 trillion dollars as part of the 2008 bailouts. The bigger questions, however, who got it, why and what did the Fed get in return? The Fed doesn’t just print money. It prints money to buy stuff. Most often this is U.S. Treasuries. That changed in October of 2008. In and after October 2008 the Fed printed new money to buy mortgage-backed securities (MBS) that were defaulting at a rapid rate. Want proof? Here is a link to the Federal Reserve balance sheet which shows that the Fed is holding over a trillion dollars in mortgage backed securities that it began acquiring in 2008.

    Why is the Federal Reserve holding all these MBS? Because when “the market” collapsed in September of 2008, what really collapsed is the Fannie/Freddie/Wall Street mortgage “daisy chain” securitization scheme. As increasing numbers of MBS went into default, the purchasers of derivatives (naked insurance contracts betting on MBS default) began filing claims against the insurance writers (e.g. AIG) demanding payment. This started in February 2007 when HSBC Bank announced billions in MBS losses, gained momentum in June of 2007 when Bear Stearns announced $3.8 billion in MBS exposure in just one Bear Stearns fund, and further momentum with the actual collapse of Bear Stears in July and August of 2007. By September of 2008, the Bear Stearns collapse proved to be the canary in the coal mine as the claims on off-balance sheet derivatives became the cascading cross defaults that Alan Greenspan warned could collapse the entire Western financial system.

    Part of what happened in October 2008 is that the Federal Reserve paid AIG’s and others’ derivative obligations to the insureds (pension funds, hedge funds, major banks, foreign banks) who held the naked insurance contracts guaranteeing Average Joe’s payments. To understand this, imagine that a cataclysmic event occurred in the U.S. that destroyed nearly every car in the U.S. and further that Allstate insured all of these cars. That is what happened to AIG. When the housing market collapsed and borrowers began defaulting on their securitized loans, AIG’s derivative obligations exceeded its ability (or willingness) to pay. So the Fed stepped in as the insurer of last resort and bailed out AIG (and probably others). When an insurer pays on a personal property claim, it has “subrogation” rights. This means when it pays it has the right to demand possession of the personal property it insured or seek recovery from those responsible for the loss. In Allstate’s case this is wrecked cars. In the case of AIG and the Fed, it is MBS. That is what the trillions of MBS on the Fed’s balance sheet represent: wrecked cars that Fannie and Freddie are now liquidating for scrap value.

    Thank you Mr. Gingrich. Great advice.


    To understand how it came to be that the Fed has paid Average Joe’s original actual lender (the MBS purchaser) and now Fannie and Freddie are trying to take Joe’s home, you first have to understand some mortgage law and securitization basics.

    The Difference Between Notes and Mortgages

    When you close on the purchase of your home, you sign two important documents. You sign a promissory note that represents your legal obligation to pay. You sign ONE promissory note. You sign ONE promissory note because it is a negotiable instrument, payable “to the order of” the “lender” identified in the promissory note. If you signed two promissory notes on a $300,000 loan from Countrywide, you could end up paying Countrywide (or one of its successors) $600,000.

    At closing you also sign a Mortgage (or a Deed of Trust in Deed of Trust States). You may sign more than one Mortgage. You may sign more than one Mortgage because it does not represent a legal obligation to pay anything. You could sign 50 Mortgages relating to your $300,000 Countrywide loan and it would not change your obligation. A Mortgage is a security instrument. It is security and security only. Without a promissory note, a mortgage is nothing. Nothing.

    You “give” or “grant” a mortgage to your original lender as security for the promise to pay as represented by the promissory note. In real estate law parlance, you “give/grant” the “mortgage” to the “holder” of your “promissory note.”

    If you question my bona fides in commenting on the important distinction between notes and mortgages, I know what I am talking about. I tried and won perhaps the first securitized mortgage lawsuit ever in the country in First National Bank of Elk River v. Independent Mortgage Services, 1996 WL 229236 (Minn. Ct. App. No. DX-95-1919).

    In FNBER v. IMS a mortgage assignee (IMS) claimed the ownership of two mortgages relating to loans (promissory notes) held by my client, the First National Bank of Elk River (FNBER). After a three-day trial where IMS was capably represented by a former partner of the international law firm Dorsey & Whitney, my client prevailed and the Court voided the recorded mortgage assignments to IMS. My client prevailed not because of my great skill but because it had actual, physical custody of the original promissory notes (payable to the order of my client) and had been “servicing” (receiving payments on) the loans for years notwithstanding the recorded assignment of mortgage. The facts at trial showed that IMS rejected the loans because they did not conform to their securitization parameters. In short, IMS, as the “record owner” of the mortgages without any provable connection to the underlying notes, had nothing. FNBER, on the other hand, had promissory notes payable to the order of FNBER but did not have “record title” to the mortgages. FNBER was the winner because its possession of and entitlement to enforce the notes made it the “legal owner” of the mortgages.

    The lesson: if you have record title to a mortgage but cannot show that you have possession of and/or entitlement to enforce the promissory notes that the mortgage secures, you lose.

    This is true for 62 million securitized loans.

    Securitization – The Car That Doesn’t Go In Reverse

    There is nothing per se illegitimate about securitization. The law has for a long time recognized the rights of a noteholder to sell off pro-rata interests in the note. So long as the noteholder remains the noteholder he has the right to exercise rights in a mortgage (take the house) when there is a default on the note. Securitization does not run afoul of traditional real estate and foreclosure law when the mortgage holder can prove his connection to the noteholder.

    But modern securitization doesn’t work this way.

    The “securitization” of a “mortgage loan” today involves multiple parties but the most important parties and documents necessary for evaluating whether a bank has a right to foreclose on a mortgage are:

    (1) the Borrower (Average Joe);

    (2) the Original Lender (Mike’s Baitshop and Mortgages or Bailey Savings & Loan – whoever is across the closing table from Joe);

    (3) the Original Mortgagee (could be Mike’s B&M, but could be anyone, including Fannie’s Creature From the Black Lagoon, the mortgagee “nominee” MERS);

    (4) the “Servicer” of the loan as identified in the PSA (usually a Bank or anyone with “servicer” in its name, the entity to whom Joe makes his payments);

    (5) the mortgage loan “pooling and servicing agreement” (PSA) and the PSA Trust created by the PSA;

    (6) the “PSA Trust” is the “special purpose entity” created by the PSA. The PSA Trust is the heart of the PSA. It holds all securitized notes and mortgages and also sells MBS securities to investors; and

    (7) the “Trustee” of the PSA Trust is the entity responsible for safekeeping of Joe’s promissory note and mortgage and the issuer of MBS.

    The PSA Servicer is essentially the Chief Operating Officer and driver of the PSA. Without the Servicer, the securitization car does not go. The Servicer is the entity to which Joe pays his “mortgage” (really his note, but you get it) every month. When Joe’s loan gets “sold” multiple times, the loan is not actually being sold, the servicing rights are. The Servicer has no right, title or interest in either the promissory note or the mortgage. Any right that the Servicer has to receive money is derived from the PSA. The PSA, not Joe’s Note or Joe’s Mortgage, gives the Servicer the right to take droplets of cash out of Joe’s monthly payments before distributing the remainder to MBS purchasers.

    The PSA Trustee and the sanctity of the PSA Trust are vitally important to the validity of the PSA. The PSA promoters (the usual suspects, Goldman Sachs, Lehman Bros., Merrill, Deutchebank, Barclays, etc.) persuaded MBS purchasers to part with trillions of dollars based on the idea that they would ensure that Joe’s Note would be properly endorsed by every person or entity that touched it after Joe signed it, that they would place Joe’s Note and Joe’s Mortgage in the vault-like PSA Trust and the note and mortgage would remain in the PSA Trust with a green-eyeshade, PSA Trustee diligently safekeeping them for 30 years. Further, the PSA promoters hired law firms to persuade the MBS purchasers that the PSA Trust, which is more than100 percent funded (that is, oversold) by the MBS purchasers, was the real owner of Joe’s Note and Joe’s Mortgage and that the PSA Trust, using other people’s money, had purchased or soon would purchase thousands of similar notes and mortgages in a “true sale” in accordance with FASB 140.

    The PSA does not distribute pool proceeds that can be tracked pro rata to identifiable loans. In this respect, in the wrong hands (e.g. Countrywide’s Angelo Mozilo) PSAs have the potential to operate like a modern “daisy chain” fraud whereby the PSA oversells the loans in the PSA Trust, thus defrauding the MBS investors. The PSA organizers also do not inform Joe at the other end of the chain that they have sold his $300,000 loan for $600,000 and that the payout to the MBS purchasers (and other derivative side-bettors) when Joe defaults is potentially multiples of $300,000.

    The PSA organizers can cover the PSA’s obligations to MBS purchasers through derivatives. Derivatives are like homeowners’ fire insurance that anyone can buy. If everyone in the world can bet that Joe’s home is going to burn down and has no interest in preventing it, odds are that Joe’s home will burn down. This is part of the reason Warren Buffet called derivatives a “financial weapon of mass destruction.” They are an off-balance sheet fiat money multiplier (the Fed stopped reporting the explosive expansion of M3 in 2006 most likely because of derivatives and mortgage loan securitization fraud), and create incentive for fraud. On the other end of the chain, Joe has no idea that the “Lender” across the table from him has no skin in the game and is more than likely receiving a commission for dragging Joe to the table.

    A serious problem with modern securitization is that it destroys “privity.” Privity of contract is the traditional notion that there are two parties to a contract and that only a party to the contract can enforce or renegotiate that contract. Put simply, if A and B have a contract, C cannot enforce B’s rights against A (unless A expressly agrees or C otherwise shows a lawful agency relationship with B). The frustration for Joe is that he cannot find the other party to his transaction. When Joe talks to his “bank” (really his Servicer) and tries to renegotiate his loan, his bank tells him that a mysterious “investor” will not approve. He can’t do this because they don’t exist, have been paid or don’t have the authority to negotiate Joe’s loan.

    Joe’s ultimate “investor” is the Fed, as evidenced by the trillion of MBSs on its balance sheet. Although Fannie/Freddie purportedly now “own” 80 percent of all U.S. “mortgage loans,” Fannie/Freddie are really just the Fed’s repo agents. Joe has no privity relationship with Fannie/Freddie. Fannie, Freddie and the Fed know this. So they are using the Bailout Banks to frontrun the process – the Bailout Bank (who also have no cognizable connection to the note and therefore no privity relationship with Joe) conducts a fraudulent foreclosure by creating a “record title” right to foreclose and, when the fraudulent process is over, hands the bag of stolen loot (Joe’s home) to Fannie and Freddie.

    Record Title and Legal Title

    Virtually all 62 million securitized notes define the “Noteholder” as “anyone who takes this Note by transfer and who is entitled to receive payment under this Note…” Very few of the holders of securitized mortgages can establish that they both hold (have physical possession of) the note AND are entitled to receive payments on the notes. For whatever reason, if a Bailout Bank has possession of an original note, it is usually endorsed payable to the order of some other (often bankrupt) entity.

    If you are a Bailout Bank and you have physical possession of an original securitized note, proving that you are “entitled to receive payment” on the note is nearly impossible. First, you have to explain how you obtained the note when it should be in the hands of a PSA Trustee and it is not endorsed by the PSA Trustee. Second, even if you can show how you obtained the note, explaining why you are entitled to receive payments when you paid nothing for it and when the Fed may have satisfied your original creditors is a very difficult proposition. Third, because a mortgage is security for payments due to the noteholder and only the noteholder, if you cannot establish legal right to receive payments on the note but have a recorded mortgage all you have is “record” title to the mortgage. You have the “power” to foreclose (because courts trust recorded documents) but not necessarily the legal “right” to foreclose. Think FNBER v. IMS.

    The “robosigner” controversy, reported by 60 Minutes months ago, is a symptom of the banks’ problem with “legal title” versus “record title.” The 60 Minutes reports shows that Bailout Banks are hiring 16 year old, independent contractors from Backwater, Georgia to pose as vice presidents and sign mortgage assignments which they “record” with local county recorders. This is effective in establishing the Bailout Banks’ “record title” to the “mortgage.” Unlike real bank vice presidents subject to Sarbanes-Oxley, Backwater 16-year olds have no reason to ask: “Where is the note?”; “Is my bank the noteholder?”; or “Is my Bank entitled to receive payments on the note?”

    The Federal Office of the Comptroller of the Currency and the Office of Thrift Supervision agree with this analysis. In April of 2011 the OCC and OTS reprimanded the Bailout Banks for fraudulently foreclosing on millions of Average Joe’s:

    …without always ensuring that the either the promissory note or the mortgage document were properly endorsed or assigned and, if necessary, in the possession of the appropriate party at the appropriate time…

    The OCC and OTS further found that the Bailout Banks “failed to sufficiently oversee outside counsel and other third-party providers handling foreclosure-related services.”

    Finally, Bailout Banks consented to the OCC and OTS spanking by admitting that they have engaged in “unsafe and unsound banking practices.”

    In these “Order and Consent Decrees,” the OCC and the OTS reprimanded all of the usual suspects: Bank of America, Citibank, HSBC, JPMorgan Chase, MetLife, MERSCorp, PNC Bank, US Bank, Wells Fargo, Aurora Bank, Everbank, OneWest Bank, IMB HoldCo LLC, and Sovereign Bank.

    Although the OCC and OTS Orders are essentially wrist slaps for what is a massive fraud, these orders at least expose some truth. In response to the OCC Order, the Fannie/Freddie-created Mortgage Electronic Registration Systems (MERS), changed its rules (see Rule 8) to demand that foreclosing lawyers identify the “noteowner” prior to initiating foreclosure proceedings.


    Those of us fighting the banks began to see a disturbing trend starting about a year ago. Fannie and Freddie began showing up claiming title and seeking to evict homeowners from their homes.

    The process works like this, using Bank of America as an example. Average Joe had a securitized loan with Countrywide. Countrywide, which might as well have been run by the Gambino family with expertise in “daisy chain” fraud, never followed the PSA, did not care for the original notes and almost never deposited the original notes in the PSA Trust. Countrywide goes belly up. Bank of America (BOA) takes over Countrywide in perhaps the worst deal in the history of corporate America, acquiring more liabilities than assets. Bank of America realizes that it has acquired a big bag of dung (no notes = no mortgages = big problem) and so sets up an entity called “BAC Home Loans LLP” whose general partner is another BOA entity.

    The purpose of these BOA entities is to execute the liquidation the Countrywide portfolio as quickly as possible and, at the same time, isolate the liability to two small BOA subsidiaries. BOA uses BAC Home Loans LLP to conduct the foreclosure on Joe’s home. BAC Home Loans LLP feeds local foreclosure lawyers phony, robosigned documents that establish an “of record” transfer of the Countrywide mortgage to BAC Home Loans LLP. BAC Home Loans LLP, “purchases” Joe’s home at a Sheriff’s sale by bidding Joe’s debt owed to Countrywide. BAC Home Loans LLP does not have and cannot prove any connection to Joe’s note so BAC Home Loans LLP quickly deeds Joe’s property to Fannie and Freddie.

    When it is time to kick Joe out of his home, Fannie Mae shows up in the eviction action. When compelled to show its cards, Fannie will claim title to Joe’s house via a “quit claim deed” or an assignment of the Sheriff’s Certificate of sale. Adding insult to injury, while Joe may have spent years trying to get BOA to “modify” his loan, and may have begged BOA for the right to pay BOA $1000 a month if only BOA will stop the foreclosure, Fannie now claims that BOA deeded Joe’s property to Fannie for nothing. That right, nothing. All county recorders require that a real estate purchaser claim how much they paid for the property to determine the tax value. Fannie claims on these recorded documents that it paid nothing for Joe’s home and, further, falsely claims that it is exempt because it is a US government agency. It isn’t. It is a government sponsored entity that is currently in conservatorship and run by the US government.

    Great advice Newt.


    It is apparent that the US government is so broke that it will do anything to pay its bills, including stealing Average Joe’s home.

    That’s change that both Barack Obama and Newt Gingrich can believe in.


    More and more courts are agreeing that the banks “inside” the PSA do not have legal standing (they have no skin in the game and so cannot show the necessary “injury in fact”), are not “real parties in interest” (they cannot show that they followed the terms of the PSA or are otherwise “entitled to enforce” the note) and that there are real questions of whether any securitized mortgage can ever be properly perfected.

    The banks’ weakness is exposed most often in bankruptcy courts because it is there that they have to show their cards and explain how they claim a legal right, rather than the “of record” right, to foreclose the mortgage. More and more courts are recognizing that, without proof of ownership of the underlying note, holding a mortgage means nothing.

    The most recent crack in the Banks’s position is evidenced by the federal Eight Circuit Court of Appeals’ decision in In Re Banks, No. 11-6025 (8th Cir., Sept. 13, 2011). In Banks, a bank attempted to execute a foreclosure within a bankruptcy case. The bank had a note payable to the order of another entity; that is, the foreclosing bank was “Bank C” but had a note payable to the order of “Bank B” and endorsed in blank by Bank B. The bank, Bank C, alleged that, because the note was endorsed in blank and “without recourse,” that it had the right to foreclose. The Court held that this was insufficient to show a sufficient chain of title to the note, reversed the lower court’s decision and remanded for findings regarding when and how Bank C acquired the note.

    See also, In Re Aagard, No. 810-77338-reg (Bankr. E.D.N.Y., Feb. 10, 2011) (Judge Grossman slams MERS as lacking standing, working as both principal and agent in same transaction, and exposes MERS’ alleged principal US Bank as unable to produce or provide evidence that it is in fact the holder of the note); In Re Vargas, No. 08-17036SB (Bankr. C.D. Cal., Sept. 30, 2008) (Judge Bufford correctly applied rules of evidence and held that MERS could not establish right to possession of the 83-year old Mr. Vargas’ home through the testimony of a low-level employee who had no foundation to testify about the legal title to the original note); In Re Walker, Bankr. E.D. Cal. No. 10-21656-E-11 (May 20, 2010) (holding that neither MERS nor its alleged principal could show that they were “real parties in interest” because neither could provide any evidence of the whereabouts of, much less legal title to, the original note); Landmark v.Kesler, 216 P.2d 158 (Kan. 2009) (in this case the Kansas Supreme Court provides the most cogent state court analysis of the problem created by securitization – the “splitting” of the note and the mortgage and the real party in interest and standing problems that the holder of the mortgage has when it cannot also show that it has clean and clear legal title to the note); U.S. Bank Nat’l Ass’n v. Ibanez, 941 NE 40 (Mass. 2011), (the Massachusetts Supreme Court denied two banks’ attempts to “quiet title” following foreclosure because the banks’ proffered evidence did not show ownership of the mortgages – or for that matter, the notes – prior to the Sheriff’s sale); and Jackson v. MERS, 770 N.W.2d 489 (Minn. 2009) (this federal-gun-to-the-head – certified question from federal court asking for state court blessing of its already decided ruling – to the Minnesota Supreme Court is most notable for the courageous dissent of NFL Hall of Fame player and only popularly elected Justice Alan Page who opined that MERS should pound sand and obey state recording standards).

    Bill Butler [send him mail] is a Minneapolis attorney and the owner of Butler Liberty Law.

  11. Can;t believe that ???????????? what is this 4 years later???????? remember when Hilary was running for President and she suggested a moritorium?? So now look at us, and homeowners are too get excited about a modification that puts all late fees at the back, at the current rate of current loan/ and maybe adjust it, and then it can go up again? so they can lock you out after you have upgraded and maintained the property, oh and if you were forced to rent it out, forget that, makes taking it back even easier. Illegal foreclosure, illegal lock outs, illegal cash for keys??? it is all about the homeowner/investors being the scapegoat for all discrepancy/s well go figure, you really didn;t believe them when they said they were going to help and or modify?? or Did you? faith in your federal government, in law enforcement to protect you, or even the city government?? Yeah, Right! can;’t wait to get out of here, hope to never have to deal with a bank ever again, funny thing , my father didn;t trust banks, he tried to pay mostly cash, worked for himself, they never even used a credit card or versa teller, taxes? when in doubt always favored the government, played by the rules and obeyed the laws, I have decided that they maybe had reasons not to trust the banks, just what did they learn during the depression that we failed to capture?? and now that I have invested all inheritance in this realestate market, losing it all to the banks, I am so glad he isn;t here to see my stupidy! Trust in the banks, you can not go wrong, after all they are policed aren;t they????

    • lies is all they tell says:

      ruth we were not stupid i am 48 yrs old i never saw real estate decrease. i have more equity in my cars then my home. now thats sick. i ivested in my home to. i didnt take out a home equity loan. i played by the rukes paid all my bills. asked for a mod sent all the paper work they requested. they kept losing the paper work i new there was a problem so research it. and found these web sites. i calle dthem again wells fargo last year when the bp oil spill caused a lower census at the hospital where i worked i was told by wells fargo not to pay my mortgage if i wanted to apply for a hamp loan. the again moved my file and lost paper work. now my husband is unemployed and we must do a BK. i dont want to lose my house i worked all my life for. so i am in for quite a fight. crazy though if i would have took out a home equity and used that to save my home in 2009 instead of my chase credit car you are able to strip the home equity in chap 13. where is that fair that slike giving a gift to people who borroed all their equity and spent it all. i used my credit card to save my home and i mayget scrood out of my home. oh boy this is terrible we must keep our chins up and keep posting aka venting tnak you everyone

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