For years, the vanguards in the foreclosure defense fight have been screaming what the rest of the world is now conclusively realizing….Wall Street and the whole securitiziation scheme is a fraudulent Ponzi scheme.
Big shot insitutional investors paid billions of dollars for securities, backed by mortgages…MORTGAGE BACKED SECURITIES. When the big shot teacher’s retirement funds or fireman’s pension fund wrote a hundred million dollar check to buy their right to an 8% return on their money, they were secured because they had good, stable solid mortgages to secure that purchase…..Right?
Well, no. Sorry, the trust that you just wrote a hundred million dollar check to is not in fact backed by the mortgages that you thought were in it. They may not have been transferred in properly and in some cases, they may not have been transferred in at all. In the extreme example outright fraud occurred and one loan was pledged into multiple trusts…..you have no security, you have no asset, THE EMPEROR HAS NO CLOTHES!
But what does the world of big shot Wall Street Finance have to do with my foreclosure cases in little ‘ole St. Petersburg Florida? Well, when Plaintiff US Bank as Trustee for the XYZ trust sues my client alleging that they own the mortgage and note and they they claim they’ve got the right to throw my client into the street, I have a good faith basis not just to demand that they prove those allegations (as we’ve been doing for years). Now more than ever given the widespread evidence of Nothing Backed Securities, I have a good faith basis to allege that THEY DO NOT HAVE THE RIGHT TO FORECLOSE.
Mr. Plaintiff, I’m glad you have the original note. But that’s not enough. Now show the court how you got that note, and what your authority is to pursue this lawsuit on the note…this is a discussion which begins on the very first line of the lawsuit, it’s called CAPACITY, CAPACITY, CAPACITY.
None of this is news to the people who have been fighting this for years, but now this is NEWS in the most credible and authoritative news sources in our country…..
FORTUNE — Are Countrywide mortgage-backed securities really mortgage-backed?
Do banks even have the legal right to foreclose on certain homes?
These are just a few of the questions raised since the foreclosure crisis revealed shoddy mortgage servicing practices at many of the big banks ““ practices that have led to countless investigations and lawsuits. Court testimony by a former Countrywide employee added to the intrigue last fall, because she confessed that many loans there weren’t properly handled, bringing into doubt the validity of Countrywide’s securitization process. Bank of America, which owns Countrywide, quickly silenced the discussion with firm denials.