Matt Weidner | SMOKING GUN (sort of) Banker’s Association Admits – Notes Are Not Negotiable…

SMOKING GUN (sort of) Banker’s Association Admits- Notes Are Not Negotiable….

Hat tip to a reader who forwarded this document to me that was submitted by the Illinois Banker’s Association. Read the whole thing carefully…what they’re saying is that if the Fannie/Freddie notes are not negotiable, they’re in a world of hurt:

A case in point would be arguments asserting that many if not most mortgage notes which conform to the fixed requirements of Fannie Mae and Freddie Mac are not negotiable instruments because they contain undertakings and conditions that disqualify them from the definition of “negotiable” in Article 3 of the Uniform Commercial Code.

and then I love this… it’s the

“Uh, Oh, we totally screwed this up and if we’re forced to follow the law, we’re in big, big trouble”…

Advocates of this result apparently are not concerned with its implications beyond the context of a given lawsuit or class of lawsuits, but the rest of us should be, for obvious reasons. Fannie Mae and Freddie Mac together hold over $5.3 trillion in home mortgages, nearly half the entire residential mortgage market in the United States. Viewed on a prospective basis, Fannie and Freddie presently are issuing more than 95% of all mortgage-backed securities in the country.

And so, if you don’t relieve us of our Class A, major screw up, we’re in a world of manure……

You can read the letter here…

For more info on Matt his website is


2 Responses to “Matt Weidner | SMOKING GUN (sort of) Banker’s Association Admits – Notes Are Not Negotiable…”
  1. Hell No - No More Bleeping Bankster Bailouts says:

    @ Equity Free,

    You’ve got that right. In these days of defunct original lenders, that regulation change would allow hordes of loans to be claimed by banksters who have no right to them. As long as no one else also filed, they’d get away with it. People are paying on loans to servicers that were never connected to the original lender. As long as they keep paying, everything appears fine. The minute they stop paying, the servicer steps in and forecloses

    This is already what is happening. The change of law would just make it easier to do.

  2. Equity Free says:

    Ya gotta love their request for proof of ownership of the note, the only time that’s needed is when 2 or more
    lenders or agents for lenders are claiming ownership of the same note .
    And the crime plays on .

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