Is asset backed securitization the transformation of a single note into multiple pieces? Do these pieces act like a waterfall of cash flow? Are they then distributed as investments, structured finances, accruals, accretions and cash flows set forth into many classes of offerings?
If you take a dollar bill and slice it up and distribute it piece by piece, then ask the receivers to go cash in their piece what would happen?
Doesn’t the US Treasury only accept greater than 51% of any legal tender to make the payer honor the bill?
How about this… That bill you cut up… What if it was a promissory note that went bad?
Perhaps that note that was given to the “lender” (depositor), the “lender” (depositor) did own. But perhaps the “lender” (depositor) sliced it up and sold it to many investors.
Maybe, those investors, the holders in due course, are the losers as the certificates they hold are only valuable as a whole, not the pieces?
Is the note now worthless?
If you’re a (JPM) stock holder and lose on the stock you purchased, would you get far attacking JPMorgan? Can you seize the company assets? Yes? No? The assets are still JPM assets and you lose right?
Ah, JPM still owns the assets!
So the lender (JPM) owns the note that is secured by the mortgage after all and they can foreclose… Correct?
Can they? Were these registrants offered pass through certificates?
Were they portioned out and “passed through” from the “lenders” beneficial interest to the investors?
Maybe, the (investors) have an abundance of insurance they can attack related to the security instead? (allot of money here) Maybe that is the only thing they can attack?
Remember that note you cut up that went bad? Is the investor really going to foreclosure on a 5.4% share of a home?
So, did the “lender” (depositor) tear the LEGAL “TENDER” into pieces which in turn caused the note to be lost forever to the securitization that they created?
Is the note really gone, meaning that they cannot evidence the note?
But what if the The “lender” came to court with the note?
How could they?
Didnt they book the transaction as a sale under FAS 140-3 instead of debt on their balance sheet?
Isn’t that what we call securities fraud, even under FAS revisions 140-3 and for servicing arrangements under FAS115?
Is it FRAUD?
You tell me..
Definition of Fraud from one common online resource:
Fraud is generally defined in the law as an intentional misrepresentation of material existing fact made by one person to another with knowledge of its falsity and for the purpose of inducing the other person to act, and upon which the other person relies with resulting injury or damage. Fraud may also be made by an omission or purposeful failure to state material facts, which nondisclosure makes other statements misleading.
Impostor, Realtor, Recovery Firm, Banker, Mortgage Broker, Modification Company, Attorney, National Bank, Foreclosure Mill, et al…
Whoever it is, are they trying to steal your property???