Friday, August 14, 2009
No Chance (7-1-09)
I have seen the comments of hopelessness on the blog. Do not count me in on this. I can appreciate the waning fortitude in the wake of a very long delay. I hope the truth from the gospel would shore up your faith. I can’t use legal jargon to encourage you because my enemies have nearly every advantage. I am honest with you about my dire circumstance. I can appreciate Judge Alsup’s confidence in his plan and system. He is a formidable enemy. He does not have to obey his own laws. All he has to do is control the evidence, trial, outcome and the prison system will beat on the man while the appellant court looks to every possible angle to affirm. I have been sharing my dialog with the appeals lawyer with a few of you in hopes you can share in this blog that I am diligent, competent, and persistent at doing all possible to prevail. I hate this corrupt legal system and the foolish society that embraces it but I am not allowing my feelings to dictate my actions. I read constantly their bullshit opinions and reason with the best legal minds. I can say that God has faithfully supplied me timely with what I need. This is one of my best indicators my faith is steering me correctly. Seeing others talk of failure is positive for me also. Only those seasoned in faith battles will understand this logic. I want everyone to know I still see a path to victory. There is still a gauntlet to traverse but I trust God’s guidance. As soon as I truly believe our ship is sunk I am honest enough to say so. Being realistic these men could use mere tactic to keep me behind bars easily another 4 years. I have a word from the Lord I trust more than my pessimism. The evil appeals court could grant us remedy and we have great grounds for relief but what if they are political hacks like Alsup? Only God can defend one against evil. I rely heavily on this confidence. That is the importance of all my spiritual blogging. If there is no truth to Christ I’m in a mere crap shoot with more crap on my side of the table and the wrong end of a barrel staring me in the face. Hopelessness is easy. Reason can make rational calculations to justify it. Faith is difficult because one has to trust in an unseen God who is unreasonable to us. Children live like this but we have become too wise for our own good. Many of you are wise to say Dorean is hopeless but in my faith I rebuke your wisdom as a senseless lie. May God be proven true and every man a liar. I’m taking no chances and you’re claiming no chances. Let’s see how this all pans out.
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16 comments:
“I pledge allegiance to Goldman Sachs, and to the conspiracy for which it stands, one racket protected under the US Government, unimpeachable and indivisible, with slavery, debt, and poverty for all.”
Wall Street and Washington form the largest criminal cartel ever seen by humanity.Credibility is capital that slowly is frittering away among US bankers and USGovt financial leaders. Absolute nonsense, better described as flailing, is being recognized slowly. The world is mocking the US financial helm, a worse situation than lost trust, even as they prepare to isolate the United States. Even phony accounting rule changes cannot fix the problem, since dead banks will not lend, easily aware of their deep insolvency. The Harry Markopolis testimony on securities regulatory bodies is the height of sunshine directed as extreme criticism against the Wall Street syndicate. As former regulator, he testified in strong stark powerful terms before the USCongress. The compromised fools in the Congress tried to scold the compromised thieves on the Securities & Exchange Commission. Their discussion of lax SEC regulators and their huge failure is telling, but only the tip of the iceberg. The collusion is enormous. The entire ponzi system is phony as the inside of Billy's court room.
WASHINGTON (Reuters) – Wall Street's top cop has a lot to prove and its been taking no prisoners.Now the agency, which was under the threat of extinction early in January after the Madoff scandal emerged, will get new power under a White House plan to reform financial services regulation. Lawmakers from both political parties are effusive with praise for Schapiro and Congress is eager to give the agency more money to pursue crooks on Wall Street.
hahahahaha Bullshit at it's best.
If you're Mr. Alsup i wonder how you sleep at night. Then again, maybe his concscience is not letting him sleep at all. If thats the case then he's in his own little prison cell, isnt he? I think he's the real prisoner and Kurt is the free man.
Hey Bill, are those sleeping pills working? No? Why dont you try confessing it to the RIGHTEOUS JUDGE...HE is waiting with a merciful sentence for you. There's rest for your weary soul.
If you are sleeping well then thats a worse symptom....eternally speaking.
Some one who made an enormous difference and made this journey through life so pleasurable,thank you and God bless Mr Les Paul.Rock on.
And just for good measure, so that it cant be said that its "pure speculation", then from the other world banking capital, Zurich based, "world renown" international financial analyst Harry Schultz:
ALERT: Harry Schultz Newsletter Conclusion:
Stand by for a possible bank run & bank holiday on Aug 26th, after the news breaks on the 25th. (FDIC 2nd Qtr. Report) This is in line with the HSL prediction of a US bank holiday in Aug/Sept. If you live in the US, get 3-6 months of household expense money out of banks now.
Remind me again Kurt, which prison it is you're in this week?
Oh right, the same one you've been in since they convicted you, except when they are hauling your sorry ass to another hearing to knock another of your bits of nonsense down. Have they finished expunging all the nonsense you filed in CA yet? All your little magic liens right out the window, just like all your other promises.
What happened to your great sure fire appeal that was going to overturn everything? Still out there in real soon land like your web site and everything else?
And just think, your good buddy Dougy has all the money that you managed to get out of the country, and you're never going to see a dime of it again. He'll have it all spent before you ever get out of prison, if he doesn't already.
Really clever con man to talk yourself into a long prison sentence, and then willingly let yourself be conned into handing your ill gotten funds over to an even bigger and crookeder con man. It really takes talent to do that to yourself. On the other hand, you'll have a lot of time to meditate on your cleverness and sins, so I guess it all works out to the good.
Bankruptcies are inherently unfair since everyone involved is going to lose something. However, in prior years, at least the bankruptcy judge was supposed to follow fairly strict predetermined guidelines about who gets priority and who doesn't. Now, even those guidelines, based in actual law, are being discarded so that the judge can arbitrarily pick winners and losers. Heretofore, the courts have always condemned any judicial action that was not governed by written standards, applicable to all. Now all that is gone.US bankruptcy courts have long had a reputation of corruption. In California, several bankruptcy judges went to prison after it was discovered in the late 80s that they were getting kickbacks on companies they forced into Chapter 7 bankruptcy which were capable of restructuring under Chapter 11. They would then allow crooked lawyers to dispose of the assets at a discount to colluding buyers--and split up the gains. Judge Gonzalez, who has destroyed what was left of the rule of law in these bankruptcy cases, is, I believe, government stooge inside the bankruptcy court system. It is no accident that he also oversaw the two other largest bankruptcies (Enron and WorldCom) that favored insiders and shafted innocent investors. So it is no surprise, as Reuters noted, that "Gonzales, in his nearly 14 years on the bench, rejected nearly every argument objectors to the deal offered up in a three-day hearing last week. He also questioned some of the objectors' legal rights to make such arguments. Objectors to the deal had included a group of Indiana pension funds holding secured debt, some of the 789 dealerships Chrysler plans to reject, and consumer groups. They had argued that Chrysler was moving too quickly, that the sale violated bankruptcy principals and that the company was needlessly closing hundreds of its dealerships.
Genuine spiritual faith (true moral consciousness) is revealed in that it:
1. Causes ethics and morals to progress despite inherent and adverse ani malistic tendencies.
2. Produces a sublime trust in the goodness of God even in the face of bitter disappointment and crushing defeat.
3. Generates profound courage and confidence despite natural adversity and physical calamity.
4. Exhibits inexplicable poise and sustaining tranquillity notwithstanding baffling diseases and even acute physical suffering.
5. Maintains a mysterious poise and composure of personality in the face of maltreatment and the rankest injustice.
6. Maintains a divine trust in ultimate victory in spite of the cruelties of seemingly blind fate and the apparent utter indifference of natural forces to human welfare.
7. Persists in the unswerving belief in God despite all contrary demonstrations of logic and successfully withstands all other
intellectual sophistries.
8. Continues to exhibit undaunted faith in the soul’s survival regardless of the deceptive teachings of false science and the
persuasive delusions of unsound philosophy.
9. Lives and triumphs irrespective of the crushing overload of the complex and partial civilizations of modern times.
10. Contributes to the continued survival of altruism in spite of human selfishness, social antagonisms, industrial greeds, and
political maladjustments.
11. Steadfastly adheres to a sublime belief in universe unity and divine guidance regardless of the perplexing presence of evil and
sin.
12. Goes right on worshiping God in spite of anything and everything. Dares to declare, “Even though he slay me, yet will I serve him.”
We know, then, by three phenomena, that man has a divine spirit or spirits dwelling within him: first, by personal experience—
religious faith; second, by revelation—personal and racial; and third, by the amazing exhibition of such extraordinary and unnatural reactions to his material environment as are illustrated by the foregoing recital of twelve spiritlike performances in the presence of
the actual and trying situations of real human existence. And there are still others.
And it is just such a vital and vigorous performance of faith in the domain of religion that entitles mortal man to affirm the
personal possession and spiritual reality of that crowning endowment of human nature, religious experience.
By the METHOD of pooling and tranching, they converted from negotiable to non-negotiable instrument. (Article VIII UCC).
That means that upon transfer the recipient of the payment is satisfied in full and a new obligation arises between the seller and buyer separate and apart from the borrower. Further, the method calls for the proceeds of payment from one note to be used as collateral (cross collateralization) for another. This breaches the terms of the note which states that payments by borrower will be applied to what the borrower owes.
So the investor receives the “benefit” of multiple obligors plus insurance and credit default swaps and an investment grade rating that was obtained under false pretenses. But what the investor is holding is not the original note. He/she/it is holding a stream of revenue with multiple conditions. A conditional promise to pay is not a negotiable instrument.
The only party on record as mortgagee or beneficiary under a deed of trust has been paid in full as to principal, paid in full as to disclosed fees, and has received undisclosed fees as well because they were standing in for the real lender whose identity and existence was withheld from the borrower — all TILA violations.
The purpose of the disclosure requirements is to crate enough transparency that both the funding source and the borrower can readily perceive the risks of the transaction. In this case the pattern of conduct was to make sure the investor and borrower could never get together to compare notes. This prevented the borrower from assessing whether better terms were available (instead of huge fees going to intermediaries) and it prevented the investor from assessing the risk and rate of return on investment (because only a portion of the invested dollars was going to fund mortgages — the rest going to fees spread around like a whiskey bottle at a frat party (Mike Stuckey’s phrase, MCNBC.com).
MORTGAGE FRAUD SEMINAR
SECURITIZATION:
THE BIG PICTURE
TEXAS OFFICE OF THE ATTORNEY GENERAL
JUNE 15, 2009
AUSTIN, TEXAS
G. Tommy Bastian
Barrett Daffin Frappier
Turner & Engel, L.L.P
15000 Surveyor Blvd., Ste. 100
Addison, Texas 75001
Phone: 972.340.7939
Facsimile: 972.341.0734
E-mail: tommyb@bbwcdf.comSECURITIZATION: THE BIG PICTURE CHAPTER
2
SECURITIZATION: THE BIG PICTURE
INTRODUCTION
Since the last Texas banking crisis in the 1980s,
securitization has radically transformed traditional
lending practices. Just as vacuum tubes were replaced
by transistors, transistors replaced by integrated
circuits, and integrated circuits by nanotechnology, in
the last 30 years securitization of credit obligations
has displaced much of the fundamentals of classic
banking.
The traditional banking model in the 1980s was the
local bank or savings and loan association making a
loan to a borrower for the lender’s own portfolio and
servicing the loan for the borrower on a personal
basis. In the traditional lending arrangement, the
lender had a thorough understanding of the borrower
and the borrower’s circumstances, and analyzed the
loan transaction according to five Cs – capacity,
capital, collateral, credit and character – to determine
whether the loan was sound. Even more important,
since the loan was in the lender’s own portfolio, the
lender had physical possession of the borrower’s note
and had some measure of control over the collateral as
the mortgagee of record and the beneficiary of the
security agreement encumbering the collateral.
Securitization changed the classic banking model.
Lending was no longer a relationship, but financial
engineering or financial wizardry. No longer were the
five Cs important – only whether the loan could be
securitized in accordance with a checklist provide by a
wholesale lender, the secondary market, or Wall
Street. With securitization, the collateral did not drive
the transaction, but rather whether the prospective
income stream from the borrower’s loan payments,
when pooled with hundreds of other loans, would
satisfy investors’ cravings for a dependable income
stream.
To provide assurances of investment quality for
potential investors, since the prospective cash flow of
a pool of loans, was always a guesstimate, rating
agencies, which were proficient in rating bonds, began
rating loan pools secured by all kinds of real estate,
credit card receivables, car loan and leases, and even
the income stream from a rock star’s song portfolio.
Tragically, rating agencies’ assumptions were wrong.
When sub-prime loans imploded and mortgagors
walked away with no computation, it was clear that
historical data indicating mortgagors almost always
paid their mortgages was wrong.
cont'd below
With securitization, the local bank or savings and loan
no longer had control over the borrower or the
collateral as the beneficiary of the security agreement.
Instead, all the lender had was an electronic, book
entry notation in the records of the Depositary Trust
Company representing a beneficial interest in the
income stream of a pool of loans that had no identity
except loan numbers.
Consequently, when a loan soured there was no
advance warning of trouble that might have been
mitigated with hands-on attention because the lender
no longer serviced the borrower’s loan and there was
no personal accountability or interaction with the
borrower.
II. PURPOSE
The purpose of this presentation is to describe in very
general terms the securitization process with Power
Point slides. The focus of this presentation is NOT on
sophisticated legal issues related to the securitization
process and collateral regulatory matters, which are
the purview of the elite law firms and their Wall Street
clients, but rather from the perspective of a prosecutor
or investigator who needs to know how to “ask the
right questions of the right person to get the right
answer”.
III. A PICTURE IS WORTH
A THOUSAND WORDS
(See Power Point)
IV. SERVICER
If a loan has been securitized, there is only one entity
that has any loan level information about a particular
loan and that is the servicer to whom the borrower
makes loan payments. A person investigating a loan
file is wasting time and energy trying to get
information from anyone other than the servicer who
collects the borrower’s loan payments.
In a typical securitization, there is a master servicer
who is usually affiliated with the originator or sponsor
of the securitization, but the master servicer role is
more like a general contractor who hires all the
entities that manage the myriad functions related to a
securitization. In general, the only information a
cont'd below
master servicer will have about a particular borrower’s
loan is a spreadsheet identifying the loan by a number
and maybe some of the financial variables related to
the loan like loan balance, principal and interest
payment, and maturity date. The closest the master
servicer comes to the borrower’s loan is the master
servicer distributes to the investors the principle and
interest received from the borrower’s loan payment
that was remitted by the “direct” servicer or “sub-
servicer” who collected the payment from the
borrower.
The entity that receives the borrower’s regular loan
payment is the entity that holds the original note, the
loan origination and collateral file with loan
application and closing documents, and the borrower’s
loan history. In some cases, if the loan goes into
default, a “special servicer” or “scratch and dent”
servicer may be retained by the master servicer to
handle the default. Almost without exception, all
records related to the borrower’s loan payment history
or “loan history”; taxes and insurance – if the loan is
escrowed; and a log of all communications between
the borrower and the servicer or “comments” are kept
by the servicer who collects the loan payments.
The importance of the servicer’s role is now
recognized by the financial sector. Servicers are now
rated by the rating agencies – Standard & Poor’s,
Fitches, and Moody’s – because how a servicer
services a pool of loans could mean a 25 to 75 basis
point swing in the value of a loan pool.
In addition, Regulation AB (“Reg AB”) which
codifies twenty years of SEC ad hoc guidance on
asset-backed securities, made servicing an integral
subject of the new regulations. 17 C.F.R. §§ 229.1100
– 229.1123 and specifically 17 C.F.R. § 229.1108.
Effective January 1, 2006, the offering documents of
all asset-backed security transaction must contain a
clear description of the roles, responsibilities and
oversight requirements of all persons involved in the
servicing process to include each master servicer, each
affiliate servicer, and each unaffiliated servicer that
services at least ten percent (10%) or more of the pool
assets. This includes any servicer responsible for
calculating or making distributions to investors,
persons performing workouts or foreclosures, or other
activities related to servicing of the pool of assets.
The offering documents must also provide basic
information about the servicer’s experience and its
servicing practices, the agreement between the various
parties controlling the securitization, and, if a servicer
defaults, the backup for servicing. In addition, there
must be a general discussion of the servicer’s
experience in servicing the type of assets included in
he current ABS transaction. Other information that
might be included is whether other prior
securitizations of the same type of assets involved in
the transaction defaulted or failed to comply with
servicing criteria in other securitizations. [NOTE:
The final Federal Register notice for comments for
Reg AB, Vol. 70, No. 5/Friday, January 7, 2005,
which can be found at the Federal Register website at
www.gpoaccess.gov under “Simple Search” and
“Federal Register, Volume 70” and “page 1505” is an
excellent tutorial on every aspect of an asset-backed
security.]
V. PROSPECTUS AND POOLING AND
SERVICING AGREEMENT
Just as identifying the servicer is one of the most
important questions that must be determined in a
lawsuit involving a loan that has been securitized, the
other is obtaining the prospectus for the securitization
and the pooling and servicing agreement (“PSA”).
If the loan in question was securitized in a Fannie Mae
or Freddie Mac pool, the website of each of these
government sponsored entities (“GSEs”) provides
typical examples of their standard securitization
documents. Under the “Mortgage-Backed Securities”
section on the Fannie Mae website at
www.fanniemae.com specific disclosure documents
for a particular securitization can be obtained if the
security’s CUSIP number, pool number or trust
number is available. Likewise, on the Freddie Mac
website at www.freddiemac.com under “Mortgage
Securities”, the disclosure documents for specific
Freddie Mac security can be obtained if the “Series
Number” of the securitization is searched. [Note:
Neither Freddie Mac nor Fannie Mae is regulated by
the SEC, but rather the Federal Housing Finance
Agency; therefore, GSE disclosure documents are not
filed with the SEC.]
If the securitization is one that must be filed with the
Securities and Exchange Commission, the SEC
website at www.sec.gov under “Search Company
Filings” and the name the originator of the security
will reveal all the securities filed by that entity with
the SEC. For example, to locate the disclosure
documents filed for an Ameriquest securitization,
search “Ameriquest” under “Company Name” and
highlight “AMERIQUEST MORT SEC INC ASSET
BACKED PAS THR CERTS 03 8 SIC: 6189”.
Generally, the first securitization document filed with
the SEC will be the prospectus. In the example above,
the 139 page supplement prospectus for the
Ameriquest Asset-backed Security Series 2003-8 can
answer in detail almost any general question an
attorney might have about the nature of the collateral
in an asset-backed security and the names and roles of
each of the players or parties who manage or
administer the security.
The prospectus also contains one of the important
documents found in any investigation related to the
duties and obligations of the servicer to the borrower –
the pooling and servicing agreement (“PSA”). In the
example above, the Table of the Comments of the
Prospectus Supplement indicates that the “Pooling and
Servicing Agreement is located on page S-100 – S-
108. The PSA is the road map for all servicing related
issues and is the written agreement referred to in Tex.
Prop. Code § 51.0025, that allows a mortgage servicer
to administer the foreclosure process if certain notices
are given.
In the A PICTURE IS WORTH A THOUSAND
WORDS section of this presentation is a slide titled
“Innards of a Security” that contains screen shots of
the website pages described above.
VI. CONCLUSION
Does history repeat itself? In THE PANIC OF 1907:
LESSONS LEARNED FROM THE MARKET’S PERFECT
STORM, Robert F. Bruner and Sean D. Carr
investigated past financial crisis and found that each
crisis was created by:
• System-like architecture
• Bad management
• Growth buoyed by speculation
• Economic shock
• Failure of collective action
• Inadequate safety buffers or regulations
Query: Has history repeated itself in 2009?
E.O.S. END OF STORY
Remind me again, Notarial dissent, how much you believe that everyone in prison is guilty & that innocent men are never convicted.
Remind me again how you believe every appeal issue there is, has been heard and ruled upon.
Notarial Dissent, you're hung up on a few million dollars when there is more at stake than that paltry amount.
None of your points are significant as usual.
With Judge Bean recently posting & now you, after many months of being away from the blog, I feel something is brewing for all the clients good, otherwise, why the renewed interest in a dead issue?
I realize you can't answer that question, so don't bother.
and Moogy blithered on
...how much you believe that everyone in prison...
Moogs, I’m neither concerned nor interested, as you put it, about “everyone in prison” or their guilt or innocence, not my problem or concern. I do believe, and am convinced, beyond any doubt, reasonable or otherwise, that Kurt, and Scott for that matter, are guilty as charged, and let’s not forget convicted criminals, as well as being liars, frauds, cheats, and generally the scum of the earth blasphemes pustules. Is that simple and clear enough for you.
more Moogey blather
Remind me again how you believe every appeal issue there is, has been heard and ruled upon.
Never said I did, I said that the lying pustule and nothing new to offer, and in fact had nothing original or even remotely applicable to the matter at hand.
yet more Moogey drivel
Notarial Dissent, you're hung up on a few million dollars when there is more at stake than that paltry amount.
Again you inability to actually read and form coherent thought evidences itself. I asked Kurt the great con man how he felt about having been done by one of his own? Beyond that I said nothing.
Moogey trying to think again
I feel something is brewing for all the clients good, otherwise, why the renewed interest in a dead issue?
Is that in any way related to your “thinking” that Kurt would never come to trial or would be instantly exonerated? More likely gas, or just more of your hot air coming out, they do make medication for that now I understand, you might want to lay in a good supply as Kurt is going to be in prison for a very very long time.
one final Moogey whine
I realize you can't answer that question, so don't bother.
No bother, there comes a point where the universe can no longer stand any more Kurtian BS, so it is my pleasure to remind him of his current status, and his place of residence for the next twenty years or so.
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