“Put It All Back” Gains Mainstream Credence
From Randall Wray @ Bengiza (also writing at Huffington Post)….
It is time to push the reset button. All foreclosures should be stopped immediately. The REMIC trustees should be audited to see if they have properly followed the requirements of the PSAs and laws applying to REMICs. If they do not have the notes, the securities should be put back to the banks. If the banks cannot absorb the losses, they must be closed and resolved. The FDIC in turn will end up with the mortgage backed securities and underlying mortgages. Working with Freddie and Fannie, all of these should be modified, into new fixed rate mortgages—with a “clawback” to reset principle to current market value of the homes, and with new notes. Investors are going to take losses so there will be fall-out that government will have to address. There will be hundreds of billions of dollars of losses. Congress must find a way to mitigate effects on the economy as well as on investors in MBSs and other assets related to real estate. This is a big problem, but it is not insurmountable.
Yep.
It is time to take this edifice and throw it in the trashcan, after forcing its members to fix all the titles they have damaged – at their expense – and record true and correct assignment information.
Oh wait – that’s a problem isn’t it….. what if the assignments never actually happened, and the REMICs hold an empty box? Why that could get messy….. Hmmmm….
And before, in May of this year, I said:
I recently spoke with an attorney who is aggressively pursing these issues when his clients are faced with foreclosure, with some (and likely growing) success. He related to me that he spoke with the FCIC and was asked “Well, what is your solution? Are you asking that we nationalize all the (large) banks?”
If that’s not an admission that FCIC knows the large banks were and are complicit in this and if forced to admit the truth in their financial statements would be rendered insolvent I don’t know what is.
Note that the FCIC studiously avoided talking about this “wee problem” in their reports thus far, and now they’re “done.” Uh huh. That’s yet more willful blindness folks.
What did I say at the time?
Now we’re faced with having structuralized a $1.5 trillion annual budget deficit into the indefinite future while those who were “helped” by HAMP and similar programs are facing re-default a few months to a couple of years down the road. DTIs over 60% virtually guarantee that outcome. At the same time the holders of these notes were sold a bill of goods and eventually some of them will wise up to the fact that the so-called “bankruptcy remote trusts” that allegedly hold the paper (and thus immunize the banks that created them) are legally defective. Those holders, when (not if) they suffer actual principal and coupon loss, can be reasonably expected to pursue their remedies at law with the aim of voiding the trust and opening the assets of the creating financial institution to attack.
If this line of inquiry is pursued it is entirely possible that these trusts would in fact be voided, and the resulting exposure landing on the major financial institution balance sheets would render them insolvent.
You heard it here first.
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Welcome to a Facebook Page about mine,I’ve learned a lot from your blog here,Keep on going,my friend,I will keep an eye on it,One more thing,thanks for your post!.
Wait a minute, the banks should get a do over? No one assigned a mortgage to my deed in 18 years! Sorry, the banks screwed up badly but, the statute of limitations has run out on them about 8 years ago to assign a note or mortgage to my deed. (I was told this by my county recorders office) As far as I am concerned the banks or whoever did not do their due dilligence here can eat the UNSECURED DEBT THEY CREATED. The Government allowed the banks to run wild as well. Not to mention the INTENTIONAL FINANCIAL COLLAPSE BY WALL STREET that cause all of this havoc to occur in the first place. The bank had their chance when I was none the wiser and they told me I was approved for a loan mod. and after making all of the loan mod. payments on time they said I was denied the loan mod. at the last minute by the U.S. TREASURY and that I might have to liquidate my home. They almost gave me a heart attack and a nervous breakdown to say the least. If they want any more money from me now that I know THE TRUTH. they will have to sue me and then I will countersue them for all of their fraudulent activity in my name which I have DOCUMENTED PROOF OF. The bank sent me the note and it is nothing but a FORGED copy of a piece of garbage filled with typo’s and OBVIOUS FRAUD. I on the other hand have the original deed recorded and stamped paid in full at origination. I also have the original note and mortgage recorded and stamped paid in full. There was never an assignment of note or mortgage made to my deed. In other words no SECURITIZATION of the mortgage note or deed was ever made. Thank You Very Much and God Bless America.
I just wanted to add a footnote to my comment regarding the INTENTIONAL FINANCIAL COLLAPSE. These CRIMINALS, the TOP3%,(The Banks and Wall Street) STOLE ALL OF OUR WEALTH AND TOOK IT OUT OF OUR COUNTRY. NOW THEY ARE TRYING TO LEAVE US HOLDING THE FILTHY BAG OF UNSECURED DEBT. This Country has become no more than an Oligarchy run by dictators and a Kleptocracy as well.THEY want to turn WE THE PEOPLE into a country of DEBTOR SLAVES. I expect a tax revolt to be the next shoe to drop. I do think the American People are now wise to what has occured here and know they are now going to try to tax us all out of homes and businesses if they can not fraudclose.The whole country needs to go Bankrupt and start over with a clean slate and a complete restructuring of our financial system. Making the people who are already struggling pay for this financial disaster will be another disasterous outcome.This Government needs to stop trying to ignore and excuse these CRIMINALS and start PROSECUTING THEM.The Government needs to stop treating WE THE PEOPLE like the criminals and put the blame where it belongs. The Banks and Wall Street caused this disaster of epic proportions now they need to be made to account for it and all of the missing money and be punished to the fullest extent of the law for it.
OK, nobody else seems to want to say it so I will….
Remember Gandhi’s words?
1st they laugh at you
then they ignore you…
then you win… remember?
I wanta see a perp walk! I want prosecutions on a massive level. They throw some poor down and out in jail for 25 years when he robs a Speedway or a Starvin Marvins of a couple of hundred bucks and these folks stole BILLIONS!!! We’ve seen “probably deniability” (oh the Banks couldn’t do that… they’re the Banks!) it was BS… we’re seeing foot dragging now… more BS. Where’s the Perp Walk! Where’s the Pecora style investigations? Where’s the LAW? And I do mean the LETTER OF THE LAW! Does anybody out there remember the concept of equality? I do hope so because I have another I want to lay on ya… Time is of the essence! All this foot dragging is accomplishing is keeping Bubba from his new cellmate bitch. And quite frankly, I prefer Bubba over the bitch!
So, to all those who think they’ve gotten away or are getting away with it now…. laugh at me! Let’s get on past that so you can ignore me. In the end I wanna see you in jail and for some reason, I don’t think I’m alone.