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Transactions with Homeowners Are Part of Securitization Scheme

Why don’t homeowners and their lawyers use this fact?

By Neil Garfield

So the “RMBS” industry is pushing for “economic relief” in the Pandemic. If they get it, it will be another windfall for Wall Street and investment bankers will go from laughing to convulsing in the privacy of their board rooms.

The Wall Street Journal published an article yesterday on how the mortgage market is not behaving “as expected.” With interest rates down so low there should be a flood of refinancing. And there is plenty demand to do just that. But, as the article points out, there might be demand but there is no supply. There is no supply because investors are not buying certificates issued as RMBS (Real Estate Mortgage Backed Securities).

The reason they are not buying RMBS is simple. They don’t trust the economy and all of the investors have growing doubts about the valuation and risk assessment associated with RMBS. Investors see mortgage default risks as being associated with safety of their investment because the certificates state that one of the discretionary reasons why investment banks don’t need to pay them is if there are declared defaults on certain specified loans — whether or not they are owned by the investment bank or anyone else.

And since securitization is in essence a Ponzi scheme, the more difficult it is to sell new certificates, the more difficult it is to pay investors. That part admittedly is counterintuitive but nonetheless true. While homeowner’s payments actually do cover the liability of the investment bank to investors, the reality is that the investment bank continues ot make payments to investors regardless fo receipt of money from homeowners IF they are continuing to make sales of new certificates.

The practical effect of all this for homeowners is to realize that if they sign on any dotted line they are pulling the trigger on a securitization scheme, of which their receipt of money is a tiny fraction. At the end of the day there is no person, company, business entity or trust that maintains any books and records showing the homeowner’s promise to pay as an asset on their balance sheet. In plain words, the role fo the creditor has been eliminated to avoid lender and servicer liability imposed by federal and state laws.

This fact — the absence of a creditor — has been the topic of discussion for two decades. And it is has never been addressed because the investment banks, who have the greatest amount of influence over politicians, don’t want it addressed. They don’t want it addressed because if it was addressed then the role of investment banks AS LENDERS would be revealed along with their gargantuan profits from “securitization” in which the obligations of homeowners are NOT sold to anyone, much less securitized.

In practice this means that homeowners can and probably should dispute their obligation to make payments before, during and after any false declaration of default. A declaration of default is a legal nullity if it isn’t declared by or on behalf of a creditor. If there is no creditor then there can be no default. Yes it is that simple.

So that is why I have been a broken record. Criminal lawyers tell their clients to keep their mouths shut because 80% of all criminal convictions are the direct result of what comes from the mouth of the defendants. That’s why I tell professionals with grievances filed against them the same thing.

And that is why I tell homeowners the same thing —- admit NOTHING. The reason is simple — your opposition is an investment bank regardless of who is named as claimant or plaintiff. If you admit any part of what they are saying they will argue that you admitted all of it. And they may be right under current rules.

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‘Mafia’ Michael Bloomberg, The Bailout Billionaire

The Chief Investment Officer for Motley Fool Asset Management described presidential candidate Michael Bloomberg’s stranglehold over the financial industry as “the closest thing to a mafia power that exists in finance”.


By Raheem Kassam

Then-CIO Bill Mann appeared on a Motley Fool financial podcast in 2016, discussing the Bloomberg Terminal apparatus that accounts for a vast majority of Mayor Michael Bloomberg’s immense wealth – much of it from clients funded by the Bush/Obama-era bailouts.

The Bloomberg Terminal – effectively a custom keyboard and dual monitors paired with proprietary “Bloomberg Professional” software –  has become a mainstay of corporate elites since the 1980s.

“…I don’t just mean New York City, I mean San Francisco, Tokyo, Kazakhstan, whatever, whoever’s in finance,” Mann added.

While some major firms have made noises about moving away from the kit designed by Michael Bloomberg, the reach is still expanding, with around 330,000 Terminals allowing real time access to market data, shipping information, and corporate insider info in use today.

“I’m trying to use a word other than ‘mafia’, but I’m going to fail at it,” said Mann. “I think Bloomberg is the closest thing to a mafia power that exists in finance, because it is such a default, and they have been able, for years, to come in and say, ‘Well, this is our pricing. Discount? No. There’s no discount. This is our pricing.’”


Bloomberg’s client list also includes you, the tax payer, with cities such as Oceanside, California operating Bloomberg Terminals at market rates. The extent to which Bloomberg LP provides to the public sector is unclear, and Michael Bloomberg still controls 88 percent of the private company, which is notoriously secretive about its arrangements.


In the industry, the Terminal was viewed as a game-changer.

Bloomberg was let go from his job at the New York investment bank, Salomon Brothers, in 1981. He received $10m in severance and immediately set out to create his Terminal, with swift success.

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Video: Catherine Austin Fitts - Government Taking Massive Amounts of Money Dark

Financial expert Catherine Austin Fitts says, “I don’t know why the government is shifting massive amounts of money out of the U.S. government and out of the U.S. economy and taking it dark.”

Fitts says, “Right now, we are choking on secrecy as a society. If you look at all the people who got it wrong about the collapse, the reason they got it wrong is because all the information they needed to determine whether or not it was going to collapse was being kept secret even though they, as taxpayers, were financing it. . . . If we had transparency and we stopped with the secrecy, we could turn the red button green. . . . The cost of secrecy is enormous . . . . The cost of tyranny, the cost of oppression, the cost of Americans having lousy education and all this control, it destroys so much wealth.” You cannot have a successful civilization with this kind of secrecy.”

Join Greg Hunter as he goes One-on-One with Catherine Austin Fitts, Publisher of “The Solari Report.”




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Ford CEO Frankly Admits That The Car of the Future Is A Surveillance Device You Pay To Spy On You



The era of finance capitalism is marked by a curious shift in the desire of the business world: to get out of the business of making things people use, and into the business of getting money for owning, extracting and/or liquidating things.

The thing is, this isn't a good strategy. Not only did the drive to build up financial institutions themselves precipitate the financial crisis (tanking Lehman Brothers in the process, and bringing the rest to the brink of extinction, forced to beg for government handouts), but all the real-economy businesses that tried to become financial institutions also collapsed in the crisis: GM converted its making-cars business to a issuing loans business and nearly croaked as a result; ditto GE.

Since then, the extractive model has shown itself to be a loser for businesses do things that people value: Toys R Us was looted into bankruptcy; so was Sears.

But the dream of extractive rentierism still haunts the managerial classes.

Take Ford CEO Jim Hackett, whose recent Freakonomics Radio appearance celebrated his company's shift from a car business to a debt-issuance business, with Ford Credit now accounting for a third of the company's profits. Hackett vowed to increase that share by using the leverage he could exert over his debtors to force them to let him spy on them (for example, by doubling down on GM's car radio surveillance), and then cross-referencing this data on the data borrowers are forced to supply in order to buy their cars, and with data-sets from corporate acquisitions like the scooter company Spin.

It's funny how these real-economy naifs keep getting taken for rides by finance svengalis, who convince them to convert their making-things-people-need businesses to extracting-value-at-loan-point businesses. Every single time, they end up like the bottom tier of a pyramid scheme, emptying their pockets to benefit the con-artists who kicked the whole business off.

For the CEO of Ford to announce that he will goose his company's debt business with a surveillance business at the exact moment that the world's biggest debt issuers and surveillance businesses are coming under tight scrutiny and fretting about massive regulation as they head into another 2008-grade crisis is pretty perfect rustbelt timing. Welcome to the bottom of the pyramid, Ford. Your financial betters will be along shortly to get rich off of your touching enthusiasm and trust.

“We have 100 million people in vehicles today that are sitting in Ford blue-oval vehicles. That’s the case for monetizing opportunity versus an upstart who maybe has, I don’t know, what, they got 120, or 200,000 vehicles in place now. And so just compare the two stacks: Which one would you like to have the data from?” Hackett said, according to the podcast transcript.

“The issue in the vehicle, see, is: We already know and have data on our customers. By the way, we protect this securely; they trust us,” Hackett said. “We know what people make. How do we know that? It’s because they borrow money from us. And when you ask somebody what they make, we know where they work, you know. We know if they’re married. We know how long they’ve lived in their house because these are all on the credit applications. We’ve never ever been challenged on how we use that. And that’s the leverage we got here with the data.”

Data could be what Ford sells next as it looks for new revenue [Phoebe Wall Howard/Detroit Free Press]

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Video: Monopoly Men - The Federal Reserve Fraud

The Federal Reserve, or the Fed as it is lovingly called, may be one of the most mysterious entities in modern American government.  Created during Wilson's presidency to protect the economy in times of financial turmoil, its real business remains to be discovered. During the Wilson presidency, the U.S. government sanctions the creation of the Federal Reserve. Thought by many to be a government organization maintained to provide financial accountability in the event of a domestic depression, the actual business of the Fed is shrouded in secrecy.

Many Americans will be shocked to discover that the principle business of the Fed is to print money from nothing, lend it to the U.S. government and charge interest on these loans. Who keeps the interest? Good question. Find out as the connective tissue between this and other top-secret international organizations is explored and exposed.


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Video: Money, Banking and the Federal Reserve

This 41 minute film is a great introduction into how the banking system really works.  This information should be taught to every single American in the public schools, yet is not, simply because if everyone knew the criminal nature or what bankers are getting away with, nobody would put up with it.  After watching this film, I highly recommend you take the time to watch the 3.5 hour Money Masters, for a complete history that will blow your mind! 


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Video: Fiat Empire

This Telly Award-winning documentary, which features presidential candidate RON PAUL, was inspired by the book, "The Creature From Jekyll  Island" by well-known author, G. EDWARD GRIFFIN.

Find out why some feel the Federal Reserve's practices are a violation of the U.S. Constitution and others feel it's simply "a bunch of organized crooks." Discover why experts agree the Fed is a banking cartel that benefits mainly bankers and their corporate clients as well as a Congress that would rather increase the National Debt to $9 trillion than raise taxes. Find out how the corporate media facilitates the partnership between the Fed and Congress and why it fails to disclose what's going on. Lastly, find out how the Federal Reserve member banks are owned and controlled by an elite group of insiders.


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Video: The Capitalists Conspiracy

This is a fairly old presentation that details exactly who the people are in control of all the most powerful institutions on this planet and who control virtually all major world events because of it.   It also reveals the simple steps we can all take to put an end to their reign, all of which this project endorses whole-heartedly.  We have to eliminate their power base, control of government and control of our currency and credit.   Once we doe that, they fall.

It's amazing how relevant and accurate this presentation is today.  Everything is accurate except the fact that "communism" is no longer our biggest, baddest enemy.


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Video: The Secret History of the Credit Card

The average American family today carries 10 credit cards. Credit card debt and personal bankruptcies are now at an all time high. With no  legal limit on the amount of interest or fees that can be charged, credit cards have become the most profitable sector of the American banking industry: more than $30 billion in profits last year alone. FRONTLINE examines how the credit card industry became so pervasive, so lucrative, and so powerful.


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