Source: https://deadlyclear.wordpress.com/2013/06/07/remic-armageddon-on-the-horizon/
Timestamp: 2019-04-23 22:46:43+00:00

Document:
If this case holds up on appeal, it will have a massive impact on many purported REMICs which had sloppy practices for transferring mortgages to the trusts. That is a big “if,” as the case relies upon Erobobo for its take on the relevant NY law. Erobobo, a NY trial court opinion, itself reached a controversial result and is hardly the last word on NY trust law. The Court also acknowledges that additional evidence may be proffered relating to a subsequent ratification of the conveyance of the mortgage, but for the purposes of a motion to dismiss, the homeowners have met their burden.
“The Notice of Default indicates that the original creditor is Deutsche Bank, as Trustee for Long Beach Mortgage Loan Trust 2004-6. The Trust is a New York common law trust created through a Pooling and Servicing Agreement (the “PSA”). Under the PSA, loans were purportedly pooled into a trust and converted into mortgage-backed securities. The PSA provides a closing date for the Trust of October 25, 2004. As set forth below, this was the date on which all assets were required to be deposited into the Trust. The PSA provides that New York law governs the acquisition of mortgage assets for the Trust.
A trust’s ability to transact is restricted to the actions authorized by its trust documents. The Saldivars allege that here, the Trust documents permit only one specific method of transfer to the Trust, set forth in § 2.01 of the PSA. Section 2.01 requires the Depositor to provide the Trustee with the original Mortgage Note, endorsed in blank or endorsed with the following: “Pay to the order of Deutsche Bank, as Trustee under the applicable agreement, without recourse.” All prior and intervening endorsements must show a complete chain of endorsement from the originator to the Trustee.
Under New York Estates Powers and Trusts Law § 7-2.1(c), property must be registered in the name of the trustee for a particular trust in order for transfer to the trustee to be effective. Trust property cannot be held with incomplete endorsements and assignments that do not indicate that the property is held in trust by a trustee for a specific beneficiary trust.
The Saldivars allege that the Note was not transferred to the Trust until 2011, resulting in an invalid assignment of the Note to the Trust. The Saldivars allege that this defect means that Deutsche Bank and Chase are not valid Note Holders.
It takes a great deal of intellect and patience to opine a securitization opinion as it relates to the challenges of home-ownership and title protection. It appears Judge Isgur and his clerks took the time to research and understand the intricacies of the new paradigm shift in mortgage lending. At the turn of the century 13+ years ago, banks intentionally changed the mortgage loan methodology and intent, unbeknownst to the borrowers.
While securitization had been in play for nearly 30 years until the repeal of the Glass-Steagall Act, the banks had been under somewhat control. With Glass-Steagall protection eliminated during the Clinton era and Republican Congress regime – the banks went off the deep end and have yet to be reeled back in by Washington.
As a threshold matter, the Court must first address Chase and Deutsche Bank’s assertion that the Saldivars lack standing to challenge the validity of the assignment of their mortgage to the Trust.
A. Under New York Trust Law, is an ultra vires act void or merely voidable?
American Nat’l Assoc. v. Bassman FBT, L.L.C., et al. 981 N.E.2d 1, 7 (Ill. App. Ct. 2012). A borrower may however raise a defense to an assignment, if that defense renders the assignment void. Id.
Nearly EVERY trust related case is based on New York trust law and will be specifically defined in the trust Pooling and Servicing Agreements (PSA). As found in the Hawaii case Deutsche Bank v. Williams, Defendants may challenge the assignment of mortgage in order to defend the title. Courts are now confronted with facing the fact that these mortgage loans did NOT get assigned to the trusts and documents have been fabricated to hide the fact that the trusts are actually empty.
Borrowers were sucked in and induced by rigged LIBOR rates to buy or refinance mortgages that never intended to pay off principal. As the years passed the patents progressed and the scheme of control to the elite becomes quite apparent…much like the takeover – “overthrow” of the Hawaiian Kingdom and the failed aspect of leasehold. Only now it is focused on America and these banks have gotten us in so financially deep in debt with their unregulated derivatives schemes that properties have become their new gold standard… apparently necessary for Wall Street to back up the banks.
“Based on the Erobobo decision and the plain language of N.Y. Est. Powers & Trusts Law § 7-2.4, the Court finds that under New York law, assignment of the Saldivars’ Note after the start up day is void ab initio.
Does this give the investors (who were provided numerous warnings of the risk in the Prospectus) another bite of the apple – or will their lack of due diligence to inspect the trust documents, assignments and recordations (that it appears were never processed) cause a spotlight to shine on their finance directors, CEOs and agents? Did they know these loans were NEVER intended to be assigned?
Certainly, pension fund investments needed liquidity in order to make these risky certificate purchases. Was there a promise that the shadow banking and derivative sales would assist in keeping the cash flow certain?
It would appear that if the investors allowed the Trustee the ability to cure its “ultra vires act” that it could appear it was acting in concert with the trust perpetrating frauds upon the mortgagors, not to mention the IRS. The failure to assign the mortgage loans [and specifically the note which could be construed as materially altered under the ramification of securitization] to the trust would appear to have been intentional.
This opens up Pandora’s Box for both the lenders and investors because as the scheme unfolds – and it will… remember the patents (as well as human beings), the potential for conspiracy begins to surface – not only in the context of defrauding the homeowner (rigged LIBOR, etc.), but also who instructed and approved the use of these risky investments and why – will become a focal point. Investor money was pouring into the investment banks – and then it stopped dead in its tracks. There were trickling investments after January 2007 which are suspect at best. So, teaming up with the Trustees who had to know the mortgage loans were not assigned (because pursuant to the PSA it was the trustees’ job to inspect the loan documents) would become a nightmare for the individuals involved in these investment transactions.
It would be much wiser for the investors to sue the depositors and the trustees for the tax liabilities based on failure to assign the mortgage loans to the trusts. Because the peasants are sharpening their skills and wise to the land grab scheme. Maybe it’s time for the pension funds to reconstruct mortgage loans with the homeowners at reduced principals and reasonable interest rate for the damage this has caused – at least they might be able to replenish their pension funds from the monthly mortgage payments… which is more than they’ll ever see from the banks.
BTW – Don’t close down Guantanamo just yet – there may need to be a bit of interrogation of these pension trust fund financial managers, agents and CEOs first.
Special thanks to Deontos, Deb, Shelley, and the core defense teams for their research.
This entry was posted in Uncategorized and tagged "void ab initio", "Wall Street", 26 U.S.C. § 860G(d)(1), American Nat’l Assoc. v. Bassman FBT, assignment of mortgage, Brad Borden, Chase, Clinton, David Reiss, Deutsche Bank, Deutsche Bank v. Williams, economy, Erobobo, et al., Fraud, Glass Steagall, Guantanamo, Hawaii, Hawaiian Kingdom, Internal Revenue Code, INVENTION, IRC, IRS, Judge Isgur, L.L.C., leasehold, LIBOR, Long Beach Mortgage Loan Trust 2004-6, Mark Twain, MBS, New York Estates Powers and Trusts Law § 7-2.1(c), New York law, Notice of Default, Pandora's Box, patent, pension fund investments, Pooling and Servicing Agreement, PSA, REFinBlog, REMIC, Republican Congress, rigged LIBOR rates, Saldivar, standing, ultra vires, USTPO, Washington by Deadly Clear. Bookmark the permalink.
YES! OH HAPPY DAYS I HOPE!
yup, its about flipping time!! so what does this mean to all the mortgages with failed securitizations? the notes are void!!!
Judge Kay identified important issues which remained unresolved such as those concerning the underlying validity of the MERS mortgage instrument-in particular, whether its failure to transfer beneficial interest renders it a nullity under real property law, whether violates the prohibition against separating the note from the mortgage, and whether MERS has standing to foreclose on a mortgage. . . (MERSCORP, Inc. v. Romaine. supra at p 102 nl).
1. The IRS knows about this. The Govies aren’t going to do a damn thing about imposing taxes on failed REMICs. The Fed is papering the entire Milky Way galaxy to keep the financial system afloat. Do you really think they are now going to implode the financial system over this stuff? Wise up…the banks own the govies.
2. Cases holding up on appeal. So what bank in its right mind is going to appeal these decisions? Get real, folks. Better to lose a $100K on a failed foreclosure than risk an appellate loss that would jeopardize the entire program.
Wells Fargo Bank was the bank that filed the most foreclosure actions in five South Florida counties in October, 2010….. The majority of these cases were filed by Wells Fargo as Trustee for mortgage backed trusts. In every case involving a trust, the original mortgage assignment to the trust was missing. Wells Fargo used Assignments prepared years later – most often within a few months of the foreclosure – and often prepared AFTER the foreclosure was filed. In many cases, JP Morgan Chase transferred non-performing loans originated by Washington Mutual Bank into these trusts. Wells Fargo’s top choice for law firms was The Law Offices of David Stern. To supply “replacement” assignments showing the trusts had acquired the mortgages, Wells Fargo used its subsidiary, America’s Servicing Company in Ft. Mills, SC. The mortgage servicing company most often used by JP Morgan Chase to get its bad loans into trusts was Lender Processing Services in Dakota County, MN.
Atos is the company appointed by the government in order to cut benefits for sick and disabled.
This was before we found Rehypothecation in the securities scheme. Add that to the mix and the banks’ intent to permanently destroy homeownership becomes crystal clear. As long as we allow Congress to get away with ignoring the necessity of regulation – we are acknowledging and accepting the destruction of an integral part of the American life and human rights.

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