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…..
IMPORTANT FANNIE MAE WEBSITE INFORMATION
Ponzi schemes, like fungus, always thrive in darkness. There is ZERO transparency for what Fannie and brother Freddie have (allegedly) been doing with mortgage loans and/or associated payment streams.
Consider the implications in foreclosure defense of this Fannie Mae admission, top secret and often asserted as undiscoverable, found on page 19 of the cited prospectus:
“We face the risk that one or more of our institutional counterparties may fail to fulfill their contractual obligations to us. Unfavorable market conditions since 2008 have adversely affected the liquidity and financial condition of our institutional counterparties. Our primary exposures to institutional counterparty risk are with mortgage seller/servicers that service the mortgage loans that we hold in our mortgage portfolio or that back our Fannie Mae mortgage-related securities, including mortgage seller/servicers that are obligated to repurchase loans from us or reimburse us for losses in certain circumstances; third-party providers of credit enhancement on the mortgage assets that we hold in our mortgage portfolio or that back our Fannie Mae mortgage-backed securities, including mortgage insurers, lenders with risk-sharing arrangements, and financial guarantors; issuers of other securities, including issuers of private label mortgage-related securities and derivatives counterparties.”
“We may have multiple exposures to one counterparty as many of our counterparties provide several types of services to us. For example, our lender customers or their affiliates also act as derivatives counterparties, mortgage servicers, custodial depository institutions or document custodians. Some may also issue private-label mortgage-related securities or other securities that we own. As a result, if one of these counterparties were to become insolvent or otherwise default on its obligations to us, it could harm our business and financial results in a variety of ways.”
“An institutional counterparty may default in its obligations to us for a number of reasons, such as changes in financial condition that affect its credit rating, a reduction in liquidity, operational failures or insolvency. A number of our institutional counterparties are currently experiencing financial difficulties
that may negatively affect the ability of these counterparties to meet their obligations to us and the amount or quality of the products or services they provide to us. Counterparty defaults or limitations on their ability to do business with us could result in significant financial losses or hamper our ability to do
business, which would adversely affect our business, results of operations, financial condition, liquidity and net worth.”
My first questions have to be what loans have been repackaged into these newly created trusts? Are these loans which are already in other trusts and being foreclosed by servicers or the trustees of the other trusts? Then, I have to wonder if this was the planned endgame of MERS and the “endorsed in blank” notes–to have the government purchase the mortgages and resell them again?
I agree. Its all crap! Especially this part…
“In no event shall the trusts created hereby continue beyond the
earlier of (i) the expiration of 21 years from the death of the last survivor of the descendants of Joseph P. Kennedy, the late Ambassador of the United States to the Court of St. James’s, living on the date hereof and (ii) the Latest Possible Maturity Date.”
What’s that about?