To The Media: Stop LYING About Foreclosuregate

I’m getting tired of this, so I’m going to trot out the proof and stick it under everyone’s nose.

We keep hearing that these “lost document” affidavits and similar are just “sloppiness.”

They are not.  They are hard evidence of fraud, with the only decision left to be made being one on exactly where the fraud happened.

I’m going to show you a document – a Pooling and Servicing Agreement – from one MBS Trust.  There are literally thousands just like this.  I’ve read dozens.  Those that were sold to the public are all filed on the SEC’s web page, and can be found either on EDGAR or SECINFO.  Every single one that I’ve read contains a certification that is, in form and substance, identical to that below.

This specific example is one that others have picked on and happens to be right from the top of the bubble around 2006 – and it also happens to be from our favorite Vampire Squid, Goldman Sachs.

It is GSAMP Trust 2006-FM1

Here is the CERTIFICATION form that the Trustee, post-closing, covenants and represents he will execute for the benefit of the buyers of these MBS (that is, your pension fund, your insurance company that is funding your annuity, your retirement account’s bond fund, etc):

Re:  Trust Agreement, dated as of April 1, 2006, between GS Mortgage Securities Corp. and Deutsche Bank National Trust Company

Ladies and Gentlemen:

In accordance with Section 2.02 of the above-captioned Trust Agreement (the Trust Agreement), the undersigned, as Trustee, hereby certifies that as to each Mortgage Loan listed in the Mortgage Loan Schedule (other than any Mortgage Loan paid in full or listed on the attached Document Exception Report) it has received:

(A) The original Mortgage Note, endorsed in the form provided in Section 2.01 of the Trust Agreement, with all intervening endorsements showing a complete chain of endorsement from the originator to the last endorsee.

(B) The original recorded Mortgage or a certified copy thereof.

(C) Except with respect to each MERS Designated Mortgage Loan, an executed Assignment of Mortgage endorsed in blank in the form provided in Section 2.01 of the Trust Agreement; or, if the Trustee has actual knowledge that the related Mortgage has not been returned from the applicable recording office, a copy of the Assignment of Mortgage (excluding information to be provided by the recording office).

(D) Except with respect to each MERS Designated Mortgage Loan, the original or duplicate original recorded assignment or assignments of the Mortgage endorsed in blank showing a complete chain of assignment from the originator to the last endorsee.

(E) The original or duplicate original or certified copy lender’s title policy and all riders thereto or, any one of an original title binder, an original preliminary title report or an original title commitment, or a copy thereof certified by the title company.

Now why are we filing “lost note” affidavits?

There are no “lost notes” ladies and gentlemen.


  • The Trustee never got the notes, in which case he filed this certification and in doing so committed fraud upon the MBS investors,  


  • The Trustee has the notes and doesn’t want to produce them because there is something in there that could lead to the foreclosure being dismissed (E.g. TILA violations) or the Trustee being sued (e.g. he took the note even though it violated their representations and warranties relating to loan quality), in which case the fraud is upon the court in the instant case.

Pick one, but either way someone has been defrauded.

It is literally impossible for it to be otherwise.

When will the damn media and prosecutors start STOMPING on this crap?

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