Fannie and Freddie
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(WARNING: THIS POST IS LOADED WITH ABSURD CLAIMS AND OUTLANDISH REPRESENTATIONS THAT ARE MADE NOT TO SUGGEST, IMPLY AND CERTAINLY NOT GUARANTEE THAT I CAN ACCOMPLISH ANYTHING, BUT TO ILLUSTRATE THE ABSURDITY OF CLAIMS MADE BY OTHERS….PROCEED WITH GREAT CAUTION….DO NOT BE MISLED.)
Everyday I hear from consumers who are taken in by scams, con artists, crooks and criminals who make bold promises about how they can SAVE A CONSUMER’S HOME!
Most recently, those representations come as part of a pitch to buy a loan audit or some kind of securitization garbage or deeding the property into a trust or claiming copyright over your name or some exotic form of admiralty law.
The most recent scam features companies BOLDLY PROCLAIMING THAT QUIET TITLE SUITS ARE THE KEY TO SAVE YOUR HOME!
TO GET YOUR HOME FREE AND CLEAR!
(For a very hefty fee, of course…and no promises….)
The fact of the matter is, VIRTUALLY ALL OF THOSE REPRESENTATIONS ARE SCAMS, CONS, MISREPRESENTATIONS, LIES, UNFAIR AND DECEPTIVE TRADE PRACTICES, VIOLATIONS OF FLORIDA’S RESCUE FRAUD PREVENTION ACT!
Now I have always told all my clients and every prospective client…..THERE IS NO SUCH THING AS A FREE HOUSE AND YOU’RE NOT GETTING A PRINCIPAL REDUCTION!
The fact of the matter WAS that there were so few cases that this happened, I was unwilling to ever even mention the words principal reduction to my clients or potential clients.
BUT ALL OF THAT HAS CHANGED~IN THE LAST TWO WEEKS, I’VE GOTTEN FOUR 75% PRINCIPAL REDUCTIONS FOR MY CLIENTS!
That’s right, using my patented, trademarked, copyrighted and COMPLETELY 100% GUARANTEED TO WORK SYSTEM, I AM NOW ABLE TO OFFER 75% PRINCIPAL REDUCTIONS TO HOMEOWNERS IN FORECLOSURE!
Now just so we’re clear, this is not at all a truthful or accurate statement, but it’s an example of exactly the kind of statement made all the time that consumers fall victim to.
The truth of the matter is, I believe the 75% principal reductions have nothing to do with the work that me and have everything to do with the 49 State Attorney General Settlement Agreement. One of the primary impediments to short sales, modifications, deeds in lieu was the fact that the banks don’t own the loans, and are merely acting as thuggish debt collectors for the real owners of the loans, private investment trusts, Fannie Mae, Freddie Mac, USDA, VA, etc. In most cases, the banks cannot settle, cannot negotiate in good faith, cannot offer reasonable solutions….WITHOUT SUBJECTING THEMSELVES TO LIABILITY FROM THE WIZARD BEHIND THE CURTAIN!
Well, a key provision of the 49 State AG settlement was the so called “Fascist State Cramdown”….the AGs, working on behalf of their masters the banks, in an unprecedented show of force, assumed the power to break private contracts and force private investors to eat losses.
But wait, it gets better…while they can apparently force private parties to eat losses…it might be that Fannie and Freddie may not be part of the cramdown….
So, who will be getting the 75% principal reductions from my patented, trademarked, copyrighted, 100% Guaranteed System? Well, from what I can tell so far (which ain’t far at all), I think the offers are going to go out based on nothing at all to do with the homeowner, and probably nothing to do with any objective facts….I suspect the offers are going out based entirely on subjective characteristics known only to the servicers…..
Just to show how bizarre and Alice in Wonderland this world is becoming, Mitt Romney went off his talking points and gave credit to Pam Bondi for something she is absolutely not doing….going after the banks…..
“Where there has been fraud, where people who entered into a mortgage arrangement were mislead by institutions or by individuals — why, there should be an effort to go after those institutions and prosecute them,” he said. “That’s something that Pam Bondi is doing here — the attorney general of Florida — (ummm, no sorry Mitt, she’s not doing a damn thing….except letting them skate away…..) and is hopefully being done in other states as well. Secondly, the banks ought to show greater flexibility in being able to renegotiate with those people who have circumstances that would justify that renegotiation. The banks seem to be paralyzed — I talk to bankers, community bankers and ask why are you not able to work through some of these problems? They say, in part, they’re frightened about what’s happening with Dodd-Frank, and taking actions that may put them in peril.”
This is a story that I want everyone of you to share far and wide….more of Americans need to understand that the real villains and the dark forces behind all this incompetence and abuse of homeowners is….THE FEDERAL GOVERNMENT, through their extension, Fannie and Freddie…..
PLEASE WATCH THIS VIDEO, THEN FORWARD ALONG TO EVERYONE IN YOUR LIST….
A few weeks ago, a few dozen people in America were upset when someone figured out that Fannie and Freddie were taking bajillions of dollars from taxpayers then were turning around and shoving millions of dollars in their own pockets.
But that was a few weeks ago and people have moved on. No one apparently cares that Fannie and Freddie are bleeding bajillions and we’re all still shoving millions of dollars.
Watch the video very carefully. Just look how passive and non-plussed this whole discussion is. There doesn’t even seem to be much anxiety, much less fear on behalf of the executives who are sitting in front of Congress, inquiring about obscene bonuses. No shaking. No sweat on the brow, not even a glean, much less any drops of sweat.
Just a whole lot of arrogance staring back at a whole lot of empty seats and one or two of our elected representatives asking a few hard questions….and billions of taxpayer dollars just sloshing around the globe.
The whole thing is just ugly, insulting and frankly infuriating to the point that Americans should be out in the streets in numbers far greater than the mere tens of thousands that we see from Occupy Wall Street.
If you can’t stand listening to the whole thing, just listen to this exchange by United States Congressman Elija Cummings:
Cummings: Robosigning is not normal, it’s not supposed to be normal. Have we taken any efforts to punish these folks?
I’m not aware of any action that’s been taken.
The Huffington Post has picked up the story of a fantastic Order (first written about here) that was brought to the world by one of the true pioneers in foreclosure defense, Max Gardner.
Here’s my post which includes a copy of the Order. It really is one of my favorite of all time and I really want to recognize the good judge that spun the tale with good old fashioned judicial smarts….very Oliver Wendall Holmesesque, huh? (Holmes was an Associate Justice of the United States Supreme Court who developed a real reputation for shooting real straight and telling the real truth even in really big, big cases.)
And that’s the thing about the Phillips v. US Bank Order…it’s just honest, simple truth. The American people bailed out the failed banks to the tune of hundreds of billions of dollars…and what did we get? Well, Geitherner and Paulson and all the Fat Cats claim they saved us from Economic Armageddon…but we’re still just kicking that can down the road…Fannie and Freddie are still standing with their hands out asking for billions so they can turn around and give hundreds of millions to their executives….and what did we get? What did Otis Phillips get? Otis got, and we’re all continuing to get….totally shafted by all this.
I stood there in court just yesterday and I frankly felt sorry for the Robo Perjurers that the banks were trotting up as witnesses in their “trials”. Now granted, there were no defense attorneys cross examining these witnesses, but these minimum wage “Vice Presidents” and “Litigation Specialists” had better think real hard when they start testifying about what they know under penalties of perjury when they’re subject to cross examination.
Which gets back to the Order and Alice’s Restaurant. Now if you’re not familiar with Alice’s Restaurant, that’s not really the name of a restaurant, it’s just the name of the song. Click here for a post I did on the song a long time ago and keep the song turned on while you think about the song and how it applies to where we are today…..
You see Alice’s Restaurant became a very popular protest song during the Vietnam era. It describes the maddening absurdity this country suffered during the international tragedy that was the Vietnam War….and I again suggest that it’s time to resurrect Alice’s Restaurant as our theme song…..
The good judge Dennis Blackmon recognizes the Order and I celebrate this good judge for his Order!
Now what would happen if judges all across this country started writing orders like this?
Telling the truth.
Saying what you and I feel.
Now what if we all began every foreclosure trial or hearing by quietly saying,
“You can get anything you want, at Alice’s Restaurant”
GOD BLESS JUDGE BLACKMON.
I’ve read thousands of Pooling and Servicing Agreements. Okay, truthfully I’ve read the same one over and over. That’s right, the same Pooling and Servicing Agreement applies to virtually every securitized loan….it’s just a 384 page word processed document that the banksters just swerve the words around on you. The content is the same….and it’s all crap.
Even if you do get a hold of the Pooling and Servicing Agreement that governs your loan, the bank will argue that you aren’t a party to it and have no right to understand what’s in it. But the PSA governs what happens to every single mortgage payment you make and what happens to the parties who are invested in your mortgage payments. It’s especially relevant in foreclosure because the PSA specifies how your loan is supposed to travel from one party to another and defines who can foreclose, among other things…..but who cares right…I mean you haven’t made a payment.
So the next step in all this is the fact that Fannie and Freddie are asking you the taxpayer to give them billions of dollars so they can pay their non-performing executives hundreds of millions of dollars in bonuses. (Apparently you need bonuses to help executives crash the plane into the ground)
Each homeowner’s loan is a part of a larger and more devious financial ponzi scheme. And every time another company or executive comes to the party more of the homeowner’s loan payments (and the investors investment payment) are diluted. It’s pure economic cannibalism….the homeowner only makes one mortgage payment, but every step in the daisy chain sucks more and more life from that homeowner’s mortgage payment
The next broken link in the daisy chain is when the investors buy interests in the government backed interests in the loan pools….and that’s where today’s story picks up, these links provide the information that is provided to investors before they swoop in to pick apart the homeowner loan’s flesh.
The words are just mind-numbing and I really wonder whether anyone has ever read any of this stuff. Knowing the intellectual horsepower and attention spans of the traders and investors that fueled the crash that is the current worldwide economic meltdown, I’m guessing they never got passed the first page. (Maybe they should use cartoons and pictures to describe all the big concepts and words.)
If you’ve got the attention span and the intellectual horsepower, I encourage you to pick a prospectus and read it…..then let me know how you feel afterwords…..