The foreclosure crisis and the economic meltdown were not caused by unsophisticated homeowners who borrowed more than they can afford and who want to live in a home for free….this crisis was far to grand for that.
The crisis was a direct result of devious financial gamesmanship and outright fraud being committed by the highest levels of national and international finance. The Wall Street Fat Cats caused the collapse then they got bailed out with our money. The lies continue as they accept payments to “review” loans for modifications that they rarely give (although they do get paid for reviewing them).
The lies continue as the same brokers of fraud and deceit pursue foreclosures that they have no right to prosecute, maybe or maybe not making payments to the certificate holders. The lies continue as the servicers conceal the identity of the real parties in interest, making it all the more likely that the lies and fraud will continue….and yet with all this lying going on, we’re still treated to phrases like this:
In connection with the Trustee’s preparation of this Statement to Certificateholders, the Trustee is conclusively relying upon, and has not independently verified, information provided to it by various third parties, including the Servicer, Master Servicer, Special Servicer and other parties to the transaction. The Trustee makes no representations as to the completeness, reliability, accuracy or suitability for any purpose of the information provided to it by such third parties.
Most of the times parties perpetrating lies go to some lengths to conceal the lies, but a statement like that ensures that the lying will be front and center. The statement comes from the attached trustees distribution report. The analysis below comes from a reader who provided the report to me….read it carefully and consider the impact of the statements:
Please check out page 2. Here you can see the different tranches or pools of mortgages from the most senior class A-1 to the lowest mezzanine level M-10. Each of these classes were active in the original distribution report with an original or starting principal balance from Jan 06. As you can see (2) of the senior classes A-2a and A-2b have been paid off in full and (4) of the lower mezzanine classes M-7, M-8, M-9, M-10 have no principle or interest balance remaining and have been folded out of the trust. I am unaware if these failed classes have been sold off to a vulture fund and/or resecuritized. I would venture to guess that the classes that were folded out or collapsed triggered a default swap or other type of reimbursement. On page 3 you can see the classes with their cusip numbers. One thing that I find very interesting is that all of the classes have been defrauded and the payments have been applied to other than where they were supposed to go according to the terms of the original mortgage and note. Every class, no matter where in the trust’s hierarchy receives interest payments while that class is active in the trust. The entirety of all of the principal payments are always applied to the higher classes first until that class’s principal is reduced to zero then the principal payment waterfalls to the next underlying class and the process begins again.