Tuesday, June 28, 2005

"Fraud" nobody wants to hear

Yesterday I had the opportunity to talk with a Martin Abad and investigator from Freddie Mac (818-710-3008) about why his organization (A Government Service Enterprise "GSE") had two mortgages on the same property. He was familiar with our process but couldn't understand why a second mortgage was taken out. I explained his confusion was that the prior mortgage company was paid off and that they defrauded you of your investment. I offered to explained to his superiors how the entire industry in one giant securities fraud. They didn't want to hear the truth. How is there securities fraud at the center of the American Mortgage Industry I can hear you ask. I will explain and hope you pay close attention. An Investor is entitled to full disclosure of all the material facts and risk associated with their transaction. The GSE's collect investment based on the idea that their bonds (securities) are mortgage back. The assumption is that this is a secure investment because it has collateral attached to it, i.e. a home with sufficient equity. The bankers via a huge network of agents (brokers, lenders, credit unions) create the mortgage without ever obtaining attachment. In order to obtain attachment to the collateral one must purchase an interest from the person with entitlement rights. The modern lender does not meet the minimum test within the Uniform Commercial Code UCC, to arrive at attachment. They do rise to an agency status for the alleged borrower but that is it. Agents have a duty to do what is best for the principal. This is where all the fraud begins. The Lender, (Principal's Agent) does not represent the principal but rather enriches themselves by a conversion of the asset and then enters into the secondary investment market brokering a security back by a stolen asset, misrepresented as to attachment and entitlement rights, and failed to mention its unilateral nature. All of these material facts are relevant to the relative security of the investment. Anyone investing in the Fannie Mae, Freddie Mac, Ginnie Mae are all being set up for a grand fall. Once the truth of the matter is surfaced those bonds will be toilet paper. Again in my profile I mention I went to jail for securities fraud. I learned the hard way what it is and how to spot it. Funny the two faces of government on a single issue.


Jonathan Israel said...

Are you saying that when a homeowner gives the bank a mortgage, that mortgage is not "attached" to the property but the bank is merely an agent of the homeowner, notwitstanding the exchange of money for that mortgage? Please explain.

whistleblower said...


I am saying that the bank/lender is not a lender and money has not changed hands as you suppose. They take your promisory note and treat it as a deposit. This deposit becomes their resource to fund your alleged loan. They are prohibited by statute from funding the loan as you would individually. You will deplete your cash reservse to lend someone money they do not. Therefore they can only function as an agent without the purchase of your rights. We will have a disclosure webpage up soon with a legal video that explains it well. Look for the link soon.

firefighter said...

Can somebody please help me?? I entered the Dorean process approximately one years ago. To this date, I have been issued my re-conveyance, but unable to get re-financed. Due to circumstances surrounding my job, I need to sale my house immediately. However, I am unable to locate the appropriate party to convey the property back to me from "The Trust". Dorean has been no help in this matter. I have contacted on numerous occasions Tela and Becki Holtzer, with no resolution. According to my contact, a injunction has been issued against Dorean's process forbidding them to issue my Quit Claim Deed. In summary, my life, my job and my entire future hinge on the quick resolution of this matter. If anyone can help, please contact me @ firefighter07@tds.net