Banks Want You to Commit Crimes With Them
By Jason Werner
You just found a store that sells the product you have desired for so long, and it is going to cost much less than you anticipated, making it much more affordable.
This store is literally blowing away everybody with their prices, even WalMart. WalMart, because they do such high volume, can negotiate prices for better bargains than smaller stores.
You drive by the store where your purchased the product six months later to find the lights are off. Then, the next day you read an article in the newspaper that the store filed bankruptcy. And three months later, you hear a report through your television that the store owed manufacturers and wholesalers millions of dollars; it seems they were not getting paid. It was also learned the regulators of the product you purchased ignored the notion of actually enforcing their rules and actually investigating the store where you purchased the product you bought and now use.
Many stores works on a “pay-as-you-go” partnership type of plan or a consignment program – if you will – in their agreements with wholesalers, distributors, and manufacturers. In other words, the product will literally sit on the shelf of the retailer for free, whereas the manufacturer or whomever has the relationship with the retailer store will not get paid until the product sells, sometimes the agreement goes past even warranty expirations or other things.
Would you have purchased that product from that store or even done business with them in any way if you knew the store’s investors, wholesalers, and manufacturers were not getting paid, and likely being defrauded.
Most FDIC-member banks, especially the very large ones, work through trusts known as Pooling and Servicing Agreements (PSA). Loans are created by originators (banks or mortgage brokerages) oftentimes by a loan officers who misrepresents, either verbally or materially, certain terms of the transaction. Regardless, the loan may be consummated, meaning that some kind of transaction occurred. The originator then sells the note and all agreements therewith to a different entity, subsequently the loan is pooled with thousands of other loans. Another bank has been delegated as Trustee to oversee this PSA that has been created, whereby this Trustee has a fiduciary duty to protect the interests of the Trust.
Due to absolute greed, much fraud causes losses in this Trust. The losses get pushed mainly onto the investors who ponied up much of their life savings to make a few dollars interest. True, the borrower of the loan gets defrauded, but the investor takes a nasty hit.
The servicer of said loan sees an opportunity to make more money: Their money comes from the generation of fees.
They use terms like “late fee, force-placed insurance” and other things.
Finally, the fraud causes the investments to be considered non-performing for whatever reason, mostly because entities defaulted in their contracts. They defaulted in their initial contracts to borrowers and investors. So the servicers scramble trying to appease everyone, even the media (the groups they sponsor).
These servicers, who oftentimes have the right in due course to negotiate with the borrowers, try to cover up their fraud.
They use terms like “Modify,” “settle,” “we will not sue you if you pay us,” “we will stop calling your friends and neighbors,” all a part of slander and obvious coercion.
The original dollar amount that was owed of course is increased with numbers they completely make up (although they do have a system of how they come up with them) to push their so-called settlement or modification while their investors take the loss. All this time, the manufacturer, wholesaler, or distributor – the investor – is kept in the dark about all the fraud that was committed by the Master Servicer, the Trustee of the PSA, and the Originator of the loan and security instrument.
Most banks in the 21st century are breaking every white-collar law in the books. They are violating the very essence of law. They are stealing from their investors, the government, taxpayers, and even their colleagues; and they want your help. They want you to modify while they lie to their investors about the real problems.
Foreclosure has hit America hard in the 21st century, mostly caused by the regulators of course, but the banks are capitalizing on their negligence and immorality. Banks are trying to get out of the mess they wanted by pushing unnecessary losses onto investors and of course the government that has failed to enforce the people’s laws.
(For the record, this process is the same on the investment side, whereby banks or stock brokerage houses originate investment portfolios for their clients. The investment portfolios are filled with mutual funds, individual stocks, individual bonds, annuities, and other things. So-called financial advisors typically lie to clients to invest their money in the various investment vehicles, whereas the companies that actually manage the money (money managers, mutual fund companies, life insurance companies) do not usually care about suitability or the marketing tactics of the originator.)
Go to your local pawn shop. What are you going to find there: probably many hot items. Go to your local auction, you’ll find the same things. Go to an auction for houses, cars, boats, anything that involved a bank, you’ll find more stolen items: You might even find products you saw at the store where you bought the product you previously so desired to have for a cheap price.
And how do we know they are defrauding the investors? Simply review what the banks are reporting to each other in the sales of their loans and their tax reporting: Nothing matches.
Are you sure you want to buy that product, knowing now that it is essentially stolen goods?
Most jurisdictions consider a person who is “of knowledge” to be complicit and just as guilty.
About Jason Werner
Jason Werner is a whistleblower. He has worked at lower levels of banks throughout college (graduated Cleveland State University, 2003) and following, with operations on both the lending and investment sides. He has been involved in lawsuits with banks. He is also a former candidate for Congress.