Confidence Game – The Film Unraveling Mortgage Fraud
There were bells and whistles going off,” said Nick, “in advance of the firm’s eventual collapse.” Listen to excerpt clip here. The money was flowing in to fund the trusts/bonds and mortgages were being written as fast as they could to fill the orders. This is starting to confirm what has truly been suspected for several months, that the investors’ funds had already funded the monies to purchase certificates and their funds, the “Use of Proceeds,” were flowing directly to the borrower. But… in order to invest pension and retirement funds there must have been a vehicle already created. No doubt it sounds like the Trust documents went to the printer long before the borrowers, for the most part, signed the loan documents. Inside those trust documents (in most cases) was a list of identified loans or a Mortgage Loan Schedule that the investor was supposedto have reviewed… due diligence.
Think of it this way. The application for a loan turns into unsigned or hypothetical loan documents that are identified inside the Trust to attract investors’ approval to fund the Trust – i.e., pay for the loans. The Trust is or was already created. The promissory
noteis identified on paper printed in the trust documents. Once the note is in the Trust, it becomes a security. The investors funds are applied and the loan documents (mortgage and promissory notesecurity) are then provided for the borrower to sign and whisked away (God, only knows where). The mortgage got recorded and the note – well… the note does not appear again, if then – until default and foreclosure.
Read the rest with interview of Blue Chip Films Producer/Director Nick Verbitsky here…