Consumer complaint received 2024-01-28
Company: UNITED SERVICES AUTOMOBILE ASSOCIATION
State: OH
Product: Mortgage
Sub-product: VA mortgage
Issue: Trouble during payment process
Sub-issue: Paying off the loan

Complaint:
OFFICE OF THE USAA FEDERAL SAVINGS BANK INDENTURE TRUSTEE OFFICER XXXX XXXX XXXX XXXX XXXX XXXX XXXX Certified Mailing # XXXX XXXX XXXX XXXX XXXX To : CFO/CEO USAA FEDERAL SAVINGS BANK. 
RE : Wrongful Transfer of Security ( Promissory Note ) ORC 1308.30 UCC 8-315. USAA FEDERAL Savings Bank-agent stamped pay to the order of : on Instrument.

See Picture of File uploaded.

On the Original promissory Note. The original promissory Note was indorsed Pay to the Order of : USAA FEDERAL SAVINGS BANK. In which the note was deposited, and credits of FEDERAL RESERVE NOTES were issued to USAA FEDERAL SAVINGS BANK. This was done in accordance with GAAP. Which must show the deposit as an asset on the books ( ledgering ) Title 12 USC 1813 ( l ) Deposits. Which the consumer/account owner never received the funds or Credits to balance the account.

I mailed a copy of Note and uploaded a picture of the endorsement By USAA FEDERAL SAVINGS BANK agent as proof the note was deposited to USAA FEDERAL SAVINGS bank account in which the borrower never received a receipt for the deposit. Also, I have requested IRS TAX FORM 1099-A and 1099-OID that lists the borrower and Lender on the Original Issue Discount of the debt security Instrument. I never received a copy of the 1099-A or 1099-OID in which is needed to be in compliance and to report to the IRS.

The original Note is the obligation of the United States Treasury Title 18 USC 8 and the note was issued for value and endorsed by borrower for collateral and funding.

UCC 3-104 : An Instrument is a note if it is a promise and is a draft if it is an order. If an Instrument falls within the definition of both note and draft, a person entitled to enforce the instrument may treat it as either.

Also see Federal Reserve Act Section 16 " notes ) Paragraph 1-4. also, under Title 12 USC 412. Application of Notes.

Ohio Revised Code Section 1308.30 | Wrongful transfer of security. UCC 8-315 ( A ) Any person against whom the transfer of a security is wrongful for any reason, including his incapacity, as against anyone except a bona fide purchaser, may : ( 1 ) Reclaim possession of the certificated security wrongfully transferred ; ( 2 ) Obtain possession of any new certificated security representing all or part of the same rights ; ( 3 ) Compel the origination of an instruction to transfer to him or a person designated by him an uncertificated security constituting all or part of the same rights ; or ( 4 ) Have damages. ( B ) If the transfer is wrongful because of an unauthorized indorsement of a certificated security, the owner may also reclaim or obtain possession of the security or a new certificated security even from a bona fide purchaser if the ineffectiveness of the purported indorsement can be asserted against him under the provisions of section 1308.26 of the Revised Code on unauthorized indorsements. ( C ) The right to obtain or reclaim possession of a certificated security or to compel the origination of a transfer instruction may be specifically enforced and the transfer of a certificated or uncertificated security enjoined and a certificated security impounded pending the litigation.

UCC 3-103 definitions of order and Promise : ( 8 ) Order means a written instruction to pay money signed by the person giving the instruction. The instruction may be addressed to any person, including the person giving the instruction, or to one or more persons jointly or in the alternative but not in succession. An authorization to pay is not an order unless the person authorized to pay is also instructed to pay.

( 12 ) Promise means a written undertaking to pay money signed by the person undertaking to pay. An acknowledgement of an obligation by the obligor is not a promise unless the obligor also undertakes to pay the obligation.

UCC 3-311 Accord and satisfaction by use of instrument. ( a ) If a person against whom a claim is asserted proves that ( i ) that person in good faith tendered an instrument to the claimant as full satisfaction of the claim, ( ii ) the amount of the claim was unliquidated or subject to a bona fide dispute, and ( iii ) the claimant obtained payment of the instrument. The obligation is satisfied by the tender of the promissory note and there is discharged UCC 3-603 and 3-604.

Security Interest is the exchange of Collateral Securities by the Security Exchange Commission via Federal Reserve Banks to be deposit with the Secretary of Treasury in trust. The law for the exchange enacted on XX/XX/XXXX : Emergency Banking Act, 73rd Congress, session I, Chapter 1, Title IV Sec. 401.

Sec. 401. The Sixth paragraph of Section 18 of the Federal Reserve Act ( 1913 ) is amended to read as follows : " Upon the deposit with the Treasurer of the United States, ( a ) of any direct obligations of the United States or ( b ) on any notes, drafts, bills of exchange, or bankers ' acceptances acquired under the provisions of the Act, any Federal reserve bank making such deposit in the manner prescribed by the Secretary of the Treasury shall be entitled to receive from the Comptroller of the Currency circulating notes in blank, duly registered and countersigned. When such circulating notes are issued against the security of obligations of the United States, the amount of such circulating notes shall be equal to the face value of the direct obligations of the Unites States so deposited as security ; and, when issued against the security of notes, drafts, bills of exchange and bankers ' acceptances acquired under the provisions of this Act, the amount thereof shall be equal to not more than 90 per cent of the estimated value of such notes, drafts, bills of exchange and bankers ' acceptances so deposited as security. '' Penalties for not filing Redeeming Notes on Demand and Notice : a. Statutes at Large, Volume 13 pages 113, Sec 46 thru 50- fail to redeem circulating notes upon demand notice, & Comptroller of the Currency penalties.

b. 18 USC 1621 Perjury generally To : CEO/CFO Indentured trustee : Second Notice/Non-Response/Dishonor and Default.

I have submitted a 1099-A, 1099-B and 1099-C to the Treasury. As USAA FEDERAL RESERVE BANK has not provided the requested tax forms or provided the accounting, I have issued the forms to the best of my knowledge.

As the Trustee/fiduciary you are to fill out a 1099-OID and transfer the funds to the account of XXXX XXXX XXXX XXXX to balance the accounting and to return all Federal Reserve Notes that have unearned interest applied to the account. As this is an order in accordance with Title 15 U.S. Code 1615 - Prohibition on use of Rule of 78s in connection with mortgage refinancings and other consumer loans.

Title 31 CFR Part 357 Subpart A-General Information. 357.0 Book entry systems ( 1 ). Commercial book-entry system. The commercial book-entry system is the book-entry system in which Treasury securities are held in a tiered system through securities intermediaries such as financial institutions or brokerage firms. A Treasury security is maintained in the commercial book entry system if it is credited by a Federal Reserve Bank to a Participant 's Securities Account. The regulations governing the commercial book-entry system are found at subpart B of this part, and are referred to as Treasury/Reserve Automated Debt Entry System ( TRADES ) a. The promissory note security for borrower/consumer/beneficiary was issued to USAA FEDERAL SAVINGS BANK and USAA FEDERAL SAVINGS BANK allonge the note Pay to the Order negotiated/deposited the Security funds into what account and who did it benefit?

3. Title 31 CFR Part 357.2 Definitions- Adverse claim-Means a claim that a claimant has a property interest in a security and that it is a violation of the rights of the claimant for another person to hold, transfer, or deal with the security.

Book entry security-means a Treasury security maintained as a computer record in the commercial book entry system.

Security- Means bill, NOTE as defined in this section.

4. Office of Inspector General U.S Department of Commerce.

Single Audit reports- A single audit is a financial and compliance audit of recipients of Federal funds, such as States, local governments, universities, and non-profit organizations. A single audit is generally conducted by an independent certified public accountant or State auditor and is intended to assess whether the recipient spends Federal funds properly. The Department is required to assess the quality of recipients ' single audit reports, issue management decisions on single audit recommendations, and ensure that grantees take appropriate and timely corrective actions.

DOC OIG conducts quality control reviews of selected single audit reports that are conducted by non-Federal auditors ( generally, independent certified public accountants ) to determine whether ( 1 ) audits comply with Federal requirements ( such as the Single Audit Act, as amended, and the Uniform Grant Guidance ) and ( 2 ) if there are quality deficiencies in the non-Federal auditors ' work that require correction and/or affect the reliability of audit results. Non-Federal auditors can receive a rating of pass, pass with deficiency ( ies ), or fail.

a. A security audit of the borrowers/consumer account is hereby requested and shall be done in compliance with a CPA of all funds transferred by USAA FEDERAL SAVINGS BANK and XXXX XXXX XXXX XXXX XXXX XXXX XXXX 
5. Federal Reserve Operating Circular 10 Appendix 3 : This Circular further defines the conditions for the borrower application, including the packet application requirement and the role of the local federal reserve agent in processing these applications.

a. As this implied covenant of good faith and fair dealing, every contract including promissory notes, obligates the parties to act and refrain from any action that could undermine the borrower which constitutes a breach of duty and malfeasance. In such a scenario, the borrower has the right to call the security, as the issuance of federal reserve notes is a prerequisite for the validity of the promissory note. I call the security to settle and close the accounting book ledger of the borrower.

I shall require the contract that is signed by both parties that I knowingly/un-knowingly granted Power of Attorney to you, to make any transactions in my Rights, Titles and Interests?

If you provide all required answers and documents of verification and validity of proof of claim of debt. To include an autograph under penalty of perjury that you are the holder in due course of the unaltered promissory note. That the promissory note shall be returned to the borrower, or the value of the note return upon the satisfaction of the loan. Upon you accepting this, I will also accept these conditions to settle and close the accounting.

I submit this notice under title 28 USC 1746. Penalty of Perjury for you to rebut this notice as The Consumer Financial Protection Bureau Agents of this public notice is bound to protect and enforce as Public Trustees.

Upon receipt of this correspondence, you have 15 days to satisfy the asking, provide proof of Money loaned, return all promissory Notes and Federal Reserve Notes of Unearned interest, submit 1099-OID to return all Rights, Titles and interest, or cease and desist all further actions, turn over any and all held warehouse Notes belonging to me and forward to me a Satisfaction of Mortgage receipt.

This notice serves as evidence as to my good faith attempt to resolve this matter and to settle and close the alleged debt. As no consideration or lawful Money was loaned to the borrower. As there was no loan to the borrower and the promissory note was issued/deposit which satisfies the agreement and deed of trust that was created under false pretension and without disclosure.

The is your opportunity to cure your dishonor and default of non-response and provide the requested 1099s and an audit of the accounting under 28 USC 1746/UCC 9-210.

If you dishonor my Security instruments again, I will be filing the following forms 3949-A-Information Referral, 14039- Identity Theft Affidavit and 211- Application for award for Original Information.

Authorizing Registered Agent, Done in good faith, without Recourse.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation