Consumer complaint received 2020-11-12 00:00:00
Product: Debt collection — Mortgage debt
Issue: Attempts to collect debt not owed — Debt was result of identity theft
Company: PENNYMAC LOAN SERVICES, LLC.
State: MI

Complaint narrative:
Dear CFPB, Please find my supplemental complaint against PennyMac Loan Services , LLC ( renamed XXXX XXXX XXXX ) which was brought back to business in XXXX by XXXX XXXX XXXX XXXX XXXX XXXX XXXX  XXXX XXXX ) to pose as a sham conduit for Federal Reserve members XXXX XXXX , XXXX  XXXX XXXX, XXXX XXXX, XXXX XXXX each of whom operate a massive Ponzi Scheme with unregulated securities ( derivatives ) which are issued by Federal Reserve member, XXXX XXXX XXXX, self-regualted member of Federal Reserve, and its XXXX XXXX XXXX XXXX who is a sole beneficiary of ALL so-called " securities '' issued on XXXX Name and sold to Investors in form of a virtual certificates. 

XXXX relentlessly lie to Federal Autorities and all Courts about their " ownership '' of some " loans '' - while none of it exists. 

The Elephant in the Room is Federal Reserve ( aka Big Investment Banks who own Federal Reserve as their common operating pool ) ; XXXX XXXX XXXX ( DTC ), a self-regulated member of Federal Reserve who issue all securities XXXX XXXX Name ; XXXX XXXX Co, which consists of certain employees of DTC the sole beneficiary for these securities who sell Investors some beneficial rights ; and XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX and a bundle of Title Insurance companies ) and XXXX XXXX XXXX, partner with XXXX, XXXX and owner of XXXX XXXX XXXX. 

This is it. And a bundle of Pension Funds and Investors to pay for thin-air information about some certificates which none of these investors are not even allowed to have, see XXXX XXXX XXXX below. 

Here is how it works. 

A potential home buyer approach a purported independent Lender ( non-existing in totally monopolized housing market by Federal Reserve owners ). 

The Lender collects borrowers personal information and pass it via web Empower ( XXXX XXXX  ) or some similar platform with XXXX, to Big Banks EACH of whom operate a separate scheme with the same borrowers identity. 

Big Banks who have common operating pool ( which based on all evidence handled by Federal Reserve ) pass borrowers a one-time payment for their secretive participation in securitization scheme which is not disclosed in any documents ( Mortgages contain a standard provision that Notes or part of Notes can be sold but they are never SOLD to anyone ). Real Partiers are not disclosed either. 

Big Banks and XXXX  who cover for this fraud usually issue a Prospectus based on forward-looking statements we WILL create a Trust which WILL purchase mortgages which SHALL be pooled into the Trust which WILL issue securities and other empty bla-blas. 

The one thing in common ALL securities will be issued via DTC in book-entry form. 

Investors pay trillions of Pensions money to by forward-looking promises of Investment After Borrower ( aka Initial Issuer of Security called Promissory Note perform their part of the Contract thinking that they borrowed someones money and that an independent Lender will sell their mortgage to someone to generate more money ( which is a lie ) their personal DATA and information about loan is scanned and placed in form of images with XXXX XXXX  MSP and or XXXX XXXX  who are the actual Servicers who coordinate collection of money from homeowners via lockbox agreements with XXXX/XXXX, which are processed by Federal Reserve for a benefit for its Members. 

All collections, foreclosures and coordinations of trades are done by XXXX XXXX and XXXX whose other branches defraud homeowners with fictitious Title Insurances via sham conduits who pose as issuers. 

Self-proclaimed Servicers such as XXXX, PennyMac, XXXX, ect have nothing to do with any servicing or collection activities their duties are merely to pretend to be the actual parties who own someones obligation and help XXXX XXXX and XXXX  to push people into defaults by any possible means junk insurances ; bogis fees non-existing deficiencies, ect. 

In the meanwhile, IMAGES with INFORMATION about perfomance of someones loan are traded by multiply parties at the same time, and EACH of them receive a windfall of profits by selling thin-air backed virtual certificates which do not even physically exist, to investors Homeowner, in the meanwhile, are convinved that they repay someone some debt, return their only compensation for services to Federal Reserve Banks with interest, which I consider as a most cynical type of slavery ever existed on the XXXX. 

Plus give up their home when XXXX XXXX and XXXX push them in non-existing defautls I want to share XXXX XXXX XXXX as well as Federal Reserve " purchases '' of XXXX  ' notes. In fact, XXXX dropped their names on DTC/Black Knight system and turned the switch on Federal Reserve ( aka Big Banks ) who purportedly " assigned '' {$2.00} XXXX worth of non-MBS notes to XXXX XXXX. 

Based on ALL evidence money for funding so-called mortgages are coming from the Common Pool operated by several banks ( aka Federal Reserve ) and securitization schemes with borrowers DATA about the SAME mortgage is traded by several players who have membership with DTC at the same time. This is how Ponzi Scheme with derivatives went well above {$1.00} XXXX SAME data about SAME loan is traded hundreds of times by different players. 

According to XXXX XXXX prospectus, this fraud is ALWAYS operated all the same parties, Federal Reserve Banks. 

XXXX XXXX will guarantee the timely payment of principal and interest on the Securities. 

The Trust and its Assets The Trust will own a XXXX XXXX Platinum Certificate The Securities will be issued in book-entry form through the book entry system of the U.S. Federal Reserve Banks The Mortgage Loans underlying the Trust Asset will have, on a weighted average basis, the characteristics Each Class of Securities will be issued and maintained, and may be transferred only on the XXXX Book-Entry System. Beneficial Owners of Book-Entry Securities will ordinarily hold these Securities through one or more financial intermediaries, such as banks, brokerage firms and S-8 securities clearing organizations that are eligible to maintain book-entry accounts on the XXXX Book-Entry System. 

Distribution Amount will be distributed to the Holders of record as of the close of business on the last Business Day of the calendar month immediately preceding the month in which the Distribution Date occurs. Beneficial Owners of Book-Entry Securities will receive distributions through credits to accounts maintained for their benefit on the books and records of the appropriate financial intermediaries. 

So, INVESTORS do NOT hold ANY securities. Not mortgage backed or non-mortgage backed. 

NONE. It all held by financial intermediaries who have absolutely no relationship to any loans.

This is why INVESTORS legal cases are usually tossed by the Courts, maybe with some minor settlements. 

Investors actually knew that they are buying nothing but hopes to be paid even though their hopes were based on may will and ifs. Investors do not even have standing to sue since they do not own their securities. Financial intermediaries do. 

Sponsor : XXXX XXXX XXXX XXXX XXXX. 
Co-Managers : XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX  XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Trustee : XXXX XXXX XXXX XXXX XXXX XXXX : The Trustee Closing Date : XX/XX/XXXX https : XXXX I demand PennyMac to show me THE LEDGER. NO, NOT THE ONE FROM THE SELF PROCLAIMED SERVICER PENNY MC. 

SHOW ME THE ONE FROM THE COMPANY CLAIMING THEY PAID VALUE FOR THE DEBT. 

I have been beating around the bush too long. In my opinion, allowing illegal collections by non-relevant parties like XXXX who appear in Courts and lie to Judges to process foreclosure to securitization players which results in a windfall payment to those players without any corresponding reduction of any loan account receivable is illegal and unmoral. 

When I sent a QWR to PennyMac, they have no relation to my loan, thus allowing the other players - Federal Reserve Banks ( aka " Lenders '' and XXXX XXXX/XXXX/ XXXX  FAF ) to claim plausible deniability for all the lies I am about to be told. The response is gibberish and in total is the equivalent of because we said so. 

NONE of PennyMac 's responses contain ANY proof that they purchased my loan and have rights to collect.

And PennyMac does not say it because nobody does. And nobody says it because there is no person or business entity that has any confirmable entry on its ledgers showing payment of value in exchange for a conveyance of ownership of the underlying obligation. 

This is not a technical objection. It is completely and utterly substantive. Without payment for the obligation, nobody can claim a loss. They cant claim a loss because there is no loss. Without a loss there can be no remedy. 

The securitization players offered securities to investors in VIRTUAL form issed by DTC ( not PennyMac or XXXX  ) on XXXX Name which MAY be pooled in some Trust - but never DONE. 

In most recent publication by XXXX XXXX about their XXXX XXXX XXXX, all of the securitization documents are forward statements meaning they are referencing a future event. And none of the securitization documents convey any ownership, equitable or legal interest in any debt, note, or mortgage. And the future event never occurs. Thats the point for the Wall Street bankers. 

The securitization of loans never happened. This means that all claims of rights or authority to administer, collect, or enforce any debt, note or mortgage are completely and utterly false if they are based upon securitization of the subject loan. 

But the Wall Street PR machine has convinced virtually everyone including borrowers that the loans were securitized. 

So, XXXX  who cover for this fraud for decades, in order to avoid indictments and civil liability for outright lying, they are now referring to loan portfolios as reference pools files Yes, there were securities created, issued, sold, and traded. And in fact, the indenture did indeed have references to groups of data derived from announcements by investment banks referring to the performance of those loans. But that is not securitization of loans. It is the securitization of proprietary data relating to the performance of the loans not the ownership of loans ( which is what is required to speak of securitization of loans ). 

Since they never retain any interest in any debt, note or mortgage they face no exposure to any risk of loss, and no liability for violations of federal and state statutes as issuers or lenders even though they are both. When they foreclose through various intermediaries ( usually a bank appearing solely as trustee of a nonexistent trust ) they still receive the net money proceeds but they have no loan account receivable to credit when they receive those sales proceeds. 

The proceeds of such sales going to the investment bank who in turn distributed the money to the other players including borrowers. Without those securities, there would have been no transaction. But as a result of issuing and selling those securities and then derivatives of those securities the revenue from the sale of securities was in excess of 12 times the amount of the homeowner transaction. Read OCC report, XXXX XXXX makes about XXXX times per {$1.00} paid to me for financial services. 

Nobody from XXXX XXXX wanted to be a lender who would then be accountable for violations of lending laws. So they made sure there was no lender. 

We are all going down the same rabbit hole when we refer to the homeowner transaction as a loan. It was a payment to get the homeowner to execute documents that were labeled as loan documents a payment that had to be returned, leaving the homeowner with no compensation for his/her role in generating so much revenue. 

In fact when you factor in payments labeled as interest the homeowner receives negative compensation. Viewed from that perspective the homeowner is paying for his own execution. 

Everyone is shying away from the elephant in the living room. 
If it was a loan, then there would be a lender with a risk of loss and who was accountable for compliance with lending laws particularly those requiring disclosure of compensation and revenue arising from the execution of the documents. 

If it was a loan, then there would be a lender who was a stakeholder i.e., someone who retained risk of loss and intent for the transaction to be performed and successful. 

Instead, homeowners got no lender and not even a clue as to who they did business with nor the true extent of revenue and profits generated from what was in reality, simply a securities scheme with no substantive characteristics of a loan. 

Instead, the homeowner was left with a non-lender who had no role in underwriting the viability of the loan contrary to the express requirements of TILA. In fact, and again contrary to the express requirements of TILA, the homeowner was left with nobody who had any stake in the viability or performance of any loan. 

To add insult to injury, the securitization players had substantial financial incentives to steer borrowers into nonviable loans against which the players bet would fail this producing even more profits. 
** So tell me again why this is a loan. And tell me why the compensation that the securitization players chose to give to the homeowner should not be retained by the homeowner. And while you are doing that, tell me why the consideration for drafting the homeowner into a concealed securitization scheme should not be expanded. 

But dont tell me PennyMac or any other self-proclaimed " servicer '' has any rights to collect or even can foreclose and evict a homeowner just to get back the only consideration he/she ever received from Big Banks. Thats not capitalism. It is a slavery theft and fraud. 
PennyMac is merely an empty shell for securitization players such as XXXX XXXX, XXXX XXXX, XXXX, XXXX, XXXX, XXXX - each of whom operates its own scheme. Just because they dont refer to securitization does not mean that they are holding a ledger showing their payment for the debt and maintenance of a current asset account against which they are claiming a loss. If you dont understand what that means, go talk to a CPA.

Company response to consumer: Closed with explanation