"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.