Consumer complaint received 2020-12-15
Company: PENNYMAC LOAN SERVICES, LLC.
State: MI
Product: Debt collection
Sub-product: Mortgage debt
Issue: Attempts to collect debt not owed
Sub-issue: Debt was result of identity theft

Complaint:
Dear CFPB, I want to follow up on my complaints against self-proclaimed Servocers XXXX XXXX XXXX, XXXX and PennyMac ( collectively XXXX XXXX , XXXX ) who continue relentlessly lie to CFPB and homeowners like myself about some sales and servicing of my loan. 

Neither XXXX or PennyMac can not provide me ANY evidence WHOM they actually servicing and who sold my obligation ( IF exists ) to PennyMac who is purportedly an issuer of some mysterious securities which are purportedly guaranteed by XXXX XXXX who since XX/XX/2020 massively SELL ( lie ) their Mortgage Backed Securities ( never existed ) to Federal Reserve who purportedly assign them to its owners - Big Investment Banks like XXXX XXXX, XXXX XXXX, ect. 

All XXXX and PennyMacs statements about their servicing and sales of anyones mortgage is a LIE promoted by Bit Investment Banks. 

Neither XXXX or PennyMac ( as well as XXXX XXXX ) or fictitious smaller actors for hire like XXXX XXXX never lent ANY money to anyone, much less sold or securitized anything. The whole affair is a scam facilitated by XXXX XXXX XXXX XXXX  who operate a massive fraud selling borrowers IDENTITIES to Investors which are not backed by any collateral. 

PennyMac and XXXX were called back to action by fictitious default debt buyers XXXX XXXX ( XXXX ) and XXXX ( PennyMac ). 

Most recently PennyMac was accrued by XXXX XXXX ( where Mr. XXXX XXXX, XXXX/PennyMac CEO worked for a while. 

PennyMac LIES to authorities as instructed by XXXX XXXX Investment Banks. 

There was a faulty and totally erroneous assumption ( in most cases ) that there was ANYTHING ) aka mortgages ) to buy or sell. 
XXXX XXXX XXXX have successfully relied upon complexity to force everyone else to rely on a single source for explanation of the falsely proclaimed securitization process. That single source is XXXX XXXX. As long as people are only getting our information from the perpetrators of this financial terrorism, they are paralyzed. 

No sales ever happened with residential loans. No investor ever purchased a share of any loan. No XXXX XXXX  securities brokerage firm ( aka investment bank ) ever established, maintained or sold any homeowner obligation. But the XXXX XXXX firms did pretend to sell the note and mortgage, albeit without any conveyance of the alleged underlying obligation. 

A paper transfer of an asset is evidence of transfer, but it is not the actual transfer. None of it present in my situation. PennyMac is unable to present ANY evidence of any sales - including the name of the Seller. But Mr. XXXX XXXX continues to lie to me and hundreds of thousands of others about PennyMacs never existed ownership because this is how he makes his living - helps Big Investment Banks to defraud Americans. 

I repeatedly ask XXXX and PennyMac for proof of payment of value for the underlying obligation ( see Article 9 203 UCC ) to prove the SALE - as well as the name of the Seller. XXXX and PennyMacs employees lie relentlessly or avoid any answers. A transfer of a mortgage without transfer of the underlying obligation is a legal nullity in all 50 states, as it should be. 

And unless XXXX XXXX wants to tell us that such transfers were GIFTS, then those purchases were never completed because there was no payment of value one exchange for a conveyance of ownership of the alleged underlying obligation. This is one of the finer points that XXXX XXXX is exploiting. They may point to the movement of money or value but that movement did not result in a transaction in which an owner of the obligation ( i.e.e someone who paid for it ) was paid value for the obligation and executed a transfer document for value received. 

Of course, the underlying obligation had been extinguished contemporaneously with the origination or acquisition of the obligation because nobody wanted to be left holding the bag. Any entry on the accounting ledger of any entity that established the obligation as an asset purchased for value would make that entity liable for violations of lending laws. And nobody wanted to suffer a real loss if the homeowner failed to make scheduled payments to pay off a nonexistent debt. 

So nobody wanted to own any debt from homeowners. And they didnt need to own anything. The securities scheme was not securitization of any homeowner debt. It was a much larger scheme that used homeowner transactions only as an outside reference point for data reporting in the sole discretion of XX/XX/XXXX firms who were the bookrunners in each scheme. 

The securities were bets not evidence of ownership of anything. The sale and trading of such securities, combined with insurance and hedge contracts produced so much money that the homeowner transaction became irrelevant excepts as a reference point for data. So everyone got paid in full and then some. Nobody needed to own any homeowner obligation and the fact that they didnt own the obligation would not stop them from pursuing enforcement despite the lack of ownership. 

In order to really sell an asset, you must own it. In order to own it you must pay for it. In order to transfer ownership of the asset, you must transfer the actual asset not just a piece of paper that talks about the asset. In residential transactions with homeowners, it is mostly NOT possible that any underlying obligation was transferred ( even if it appears to have been sold ). 

XXXX sales of non-perfuming loans and repurchase agreements for bad loans were and still are in fact a misnomer and perpetuated the myth that securitization of residential loans actually occurred. Litigation over rights that do not exist is a farce promoted by Courts and covered by the Government. 

And this financial terrorism by XXXX XXXX XXXX and their sham conduits like XXXX and PennyMac continues because XXXX and so-called Consumer Protection agencies are a PART of this FRAUD and instructed to cover for it by all possible means. It is very obvious from bogus settlements with so-called Servicers like XXXX XXXX in XX/XX/2020. 

XXXX XXXX, just like XXXX ( now XXXX/PennyMac ) lied and cheated their way into multiple foreclosures. The answer we are told is not to do anything about the illegal foreclosures and illegal collections ( neither CFPB or DIF never took ANY steps to conduct any investigation to my simple question - WHO SOLD my loan to PennyMac and merely repeated lies from XXXX XXXX XXXX scrips ) Because PennyMac and XXXX .are confident that all their crimes will be covered, as usual ;. They will pay ( from stolen from homeowners money provided to them by Investment Banks ) a few cents on each dollar for the extensive damages caused by wrongful, illegal fabricated foreclosures. 
But the main rationalization for such actions that only compound the wrongs is the continuing erroneous belief that these loans exist, that there are unpaid debts, that here are deficiencies and default. 

XXXX XXXX XXXX use sham conduits likeXX/XX/XXXX and PennyMac to get the money back that they paid to homeowners in exchange for starting a series of transactions in which unregulated securities were sold, on an infinite basis, to investors who were betting on future announcements of data performance by the issuer doing business under the name of a legally nonexistent trust because nothing had actually been entrusted to the named trustee of the named trust. 

So these settlements for pennies on the dollar or part of a massive cover-up. They reinforce the myth that the debts exist and that there is a creditor who owns the debt. In fact, the process referred to as securitization is a process of liquidating any entry on the ledger of any company on which a receivable had appeared. 

Thus the assertion of authority is false as to the servicer, the trust and the trustee. It is also false as to the bank names used in litigation or notices of sale. XXXX XXXX, just like XXXX and PennyMac in my opinion, are guilty of criminal fraud and racket. The CFPB is guilty of grandstanding instead of helping people like myself of investigate and prosecute XXXX XXXX XXXX and their mobs like PennyMac, XXXX and other impersonators and order them to return stolen money - plus at least treble damages. 

What is obvious is false but only investment bankers know it. 
Without knowing it, I am actually doing business with a XX/XX/XXXX securities brokerage firm calling itself an investment bank. 

I didnt know because they were never disclosed. And the money they paid to me was not a loan at least not for them it wasnt. They didnt treat it that way on their own records and I do not treat is as a loan too. That means they are attempting to collect back the money they paid to ME even though it wasnt a loan. 

So what did they pay me for? When I issued the promissory note what were I buying? 

I asked for and thought I received a loan. After all, I did get the money. When I applied for a loan, you thought I had identified the lender, XXXX XXXX, with whom I was doing business. And this Lender is interested in the outcome of my loan and my payments. It was absolutely wrong. 

I was dealing with totally DIFFERENT parties those only interest was to put hate from me my signature on Promissory Note and put me in default by any possible means - because this is how XXXX XXXX XXXX can make more money and launder a fatally damaged Titles in the Court. 

My so-called loan was originated by XXXX XXXX who started to scam me from the beginning with bogus Flood Insurance which was provided to them by XXXX, XXXX who operates Flood Zone Determination maps - without FEMAs involvement. FEMA covers for it because they get free and easy money from defrauded by XXXX XXXX/XXXX homeowners. 

Here is what I didnt know and that is actively concealed from me by XXXX XXXX XXXX and their sham conduits. 

1. Yes, I asked for a loan, but the application I submitted was not to a lender. The Lender - XXXX - was merely a collector of my data which they entered into XXXX XXXX system or passed to XXXX - who entered it on XXXX XXXX system. 
2. Contrary to the laws governing loan transactions many things were not disclosed to me. 
3. The intake for the application for a loan is performed by a loan broker ( XXXX ), who doesnt care what the transaction is called as long as he/she gets the commission. 
4. The loan broker then forwards the information on the loan application to an IT platform owned and controlled by XXXX XXXX and XXXX who in turn are acting for a securities firm preparing to issue and sell securities to investors. As far as theyre concerned they would prefer to pay me {$1.00} rather than {$130000.00}. But then how could they get me to sign a note for {$130000.00}? 
5. The securities that are issued and sold are not a conveyance of any interest in my transaction. They are bets based upon reports issued by the securities firm. The prices of those securities are unrelated to the total amount of my transaction or any part of my transaction. So they can sell these securities indefinitely until the market is saturated ( no more demand ). 

Thus, XXXX and PennyMac statements about sales of my Note are blatant lies. My DATA was securitized by XXXX XXXX  and sold to investors - without my knowledge and consent, no need to say, without sharing any profits or reducing any debt 1. On average, the dollar volume of revenue generated by the securities firm selling the securities is {$12.00} ( XXXX ) to {$180.00} ( XXXX XXXX ) for each {$1.00} of my transaction. In other words, XXXX XXXX XXXX who collects my payments for the Cartel made over {>= $1,000,000} profits by selling BETS based on my identity, while my data is sold as performing and defaulted at the same time, 2. The amount they paid ME was, therefore, on average, around 8.5 % of the total revenue. It was a commission, not a loan. But I didnt know that. 
3. I received a payment that was dressed up as a loan. I never thought to bargain for reasonable compensation for entering into a transaction that was the keystone of all the sales of all of the securities. And I never thought about whether I wanted to be part of a business venture whose purpose was to sell betting rights based upon reports about my transaction and whether I was making scheduled payments. 
4. Collection and enforcement of the obligation I created when I executed the promissory note is the act of taking back the commission they paid to me, plus stealing all my escrow money.And because they want all of it back plus interestthat leaves me with negative compensation for initiating a huge business venture and allowing the use of my name and reputation- without my knowledge or consent. ( They get all the benefits, I get the shaft plus terror from one of most dangerous racketeering group who call themselves Servicers XXXX and PennyMac, former XXXX XXXX ). 
5. And even at the point of collection and enforcement I still dont know ( until now ) that I am actually dealing with a securities firm that has no financial interest in your transaction. I didnt know because nobody is telling me that. They insist on calling it a loan and since it looks like a loan, everyone ( including the borrower ) thinks it is a loan. 
6. When they get money from me, they have no place to put it.They cant debit an account receivable that reflects ownership of my obligation because there is no account receivable on the ledger of any company.My payments constitute a return of the commission they paid to me an amount that they deemed reasonable. That means that their payment is evidence of the amount of commission to the homeowner that the securities firm deemed reasonable.Ask any lawyer what that could mean. 
7. In court, they seek to increase their profits by forcing the sale of peoples houses. But that can only be done legally if the forced sale is granted by a court because the action is a foreclosure. But it isnt a foreclosure if the claimant is not the owner of homeowners obligation. Andthey cant be the owner of anyones obligation unless they paid value for it which is why there would be an entry on the accounting ledgers of some company if anyone paid for my obligation and received a conveyance of ownership of my obligation. 
8. In every loan, there is the lender and a borrower. I intended to be a borrower but I never made the journey. That is because my counterpart was not a lender, had no means or intention of being a lender, and was seeking to avoid being called a lenderat all costs because they didnt want to be held responsible for violations of the Federal Truth in Lending Act and other federal and state law governing lending, collections, and enforcement.

9. I have every legal right and legal expectation that the party representing itself as a lender is doing the underwriting of a loan with due diligence. That means they have a stake in the outcome of the transaction. It if its a loan, their revenue, profit, and assets are dependent upon repayment of the loan. 
10. But my transaction was conducted by the securities firm acting through sham conduit intermediaries. The sole purpose was to start the sale of securities. Some of those securities were bets against the performance data of your loan.

11. So they had an incentive and a vested interest in seeing my obligation fail. That is why they inflated appraisals, sold bogus insurances ; fabricated deficiencies, that were guaranteed to push me in default. The securities brokerage firm was betting on a sure thing.

12. In addition, the riskier the loan the higher the interest they could charge. Thats because everyone ( except the XX/XX/XXXXt firm ) thought it was a loan. And the higher the interest the less they had to pay out from the fund of capital generated by selling securities to investors. So if you had a {$130000.00} transaction where the securities brokerage firm set a price of 10 % interest, they were receiving around {$270000.00} from investors to cover that loan ( which was actually a commission ). That is why there is no loan account receivable on the books of anyone not even the securities brokerage firm that funded it out of investor capital. 
13. Everyone on the securitization team got paid with one exception - borrower who signed the Promissory Note to initiate a windfall to XXXX XXXX XXXX mistakenly thinking that they borrowed these money. There is no debt. 


But in fact it was a XXXX XXXX investment banks who steal back money that was earned by me and other homeowners. 

I demand CFPB to conduct a FULL investigation, identify the SELLER of my loan ( if any ) to PennyMac ; provide me PROOF of ALL sales ( if any ) starting from XXXX ; compensate me for damages for fraud in treble amount ( XXXX x 3 ) pay me 20 % commission from ALL trades based on my data ( I expressly PROHIBIT any trades until the FULL commission owed to me byXX/XX/XXXX Brokerage Firm is paid ; and other compensation for other damages including severe emotional distress.

Company response to consumer: Closed with explanation