Hi Charles,

I’ve wondered about that too. One of the things that I have learned in researching this is there is often more than one “how” and when you had them together a pattern starts to emerge. Even without the luxury of the necessary discovery to prove this, one is often left with no other reasonable conclusion than multiple pools securitized by the same loans.

Here are some thoughts:

1.) They never loaned all of the money so they could cover a shortfall on revenue for a couple of years. Sometimes called a service release premium or par gap it is a spread created between interest paid and interest received. I borrow $5 and offer a safe 25 cent return. Then, I convince a borrower to pay me 32 cents for three dollars. The difference between paying 5% and lending out at 8%. That money buys time and because they know its designed to default, it’s only a matter of time and they stop paying on not just the non performing loans but all loans in the pool and keep the performing revenue stream and collect on credit default swaps. In some case the investors were also insured.

2.) Some loans went bad without a single payment ever being made. Who does that? Rarely someone with a real interest in the property. THere never were any payments because of double funding through two different warehouse lenders, each of whom recieves an identical loan file. One of those won’t be getting a payment from the borrower.

3.) I am told by an insider that loan docs were digitized and the paper destroyed.

4.) Two original notes in Florida? If there are two notes, one or both fraudulent. Remeber the mantra of biased documentary makers as they edit out unfavorable footage, “They’ll never know what they didn’t see.”

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You know what? I am in foreclosure proceeding: I stop to pay because I discovered that my Apraisal fraudulent: Bank of America took Fees for this “service” & gave me old Apraisal – it included two lots but I have only one. It was hard to get even copy of Apraisal Report (I got it in two years!). Then I tried to communicate with Bank but with no result (they ‘re always right!). Moreover they set for me Hazard Insurance which covers nothing but extremely expensive. I NEVER had the Policy as well. So, I contacted the Balboa Insurance Group directly and they DID NOT FIND such customer like me, no Policy Number, no nothing! I just get mad! And stopped to pay anything ….for two years! “Plaintiff” in my Foreclosure is not BOA but WELLS FARGO BANK. Lawyers tried to push quickly, but it doesn’t work – one Law Firm withdrawn immediately and I filed the Motion to disqualify the Judge, who pretended that he does not understand my accent and dismissed every my Motion. He is gone! I moved for Production of ORIGINAL documents (transfer, assignments and so on), Request for Admission, and Written Interrogatories and they produce “ZERO”! So, I went to the OFFICE of BOA and found that I STILL CUSTOMER OF BANK OF AMERICA. They NEVER transfer my loan to anyone! Then I went across the street to the Wells Fargo Office. i gave my ID, number of Loan, SS# and system of this Bank cannot find me! So, be carefull! Do not trust banks – verify, verify, verify! Learn how to sue them for big $$$-s at: http://www.jurisdictionary.com/index.asp?refercode=CM0010. Good luck!

NP What I really want to know is this. When the “originating” bank sells the promissory note to another party or into an MBS or whatever, how is that reported to the IRS? There is account the funds that pay the seller come from. The banks aren’t paying the seller off out of their own assets. So where does the new money come from? How is that reported on taxes if the note is simply monetizes at the discount window? They would basically be getting the note for free., monetizing it to fund the seller and then selling it off to a third party. Some of these notes were sold in hours, before the right to cancel (the seller or buyers) even expired.

There is no way around it , someone in the chain gets something for free.

indio007…Very well stated…Thank-you!

But given the mounting “investor suits” to examine pool’s makes this pretty clear. SEC 15 B filings on MBS pools also makes this pretty clear… when all public disclosure is erased. Suddenly various pools where loans existed are now “private”….