Consumer complaint received 2020-08-03 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 complaint against PennyMac Loan Servicing LLC ( PennyMac ) a fictitious Servicer ; XXXX XXXX XXXX XXXX XXXX ( another self-proclaimed Servicer ) XXXX XXXX XXXX ( an actual Lender who pass money to XXXX XXXX XXXX XXXX from their table funding pool ) and XXXX XXXX, XXXX. ( former Lenders Processing Services/XXXX  ) the actual Servicer who pass money to borrowers for the closing acting under glimpse of fictitious Lenders like XXXX XXXX XXXX XXXX who never funded or sold any loans. 

I many times contacted PennyMac to obtain a very basic information the name of the Seller who sold my loan to PennyMac ; proof of payment of value for my debt as required by UCC Art. 9-203 and MI Conveyance of Real Property Sec. 565 ; the name of the Trust which holds my loan ( XXXX XXXX has no records of XXXX XXXX Pooled Security XXXX, see attached ). 
PennyMacs representative XXXX XXXX lies relentlessly while fail to respond any of my my direct questions, particularly who is the Seller. Every respond is an absurd and contracting with each other lie. Because here are no Seller who can sell my loan to PennyMac.  They merely stole my information from XXXX XXXX XXXX XXXX where is was codified as defaulted loan to use it for its own illegite scheme with default debt securities ( the same junk as XXXX ) Any sale requires the Seller who has a right to sell a merchandise ( here- my loan ) and a Buyer who paid value for this merchandise ( here : self-proclaimed owner/investor/purchaser of my loan PennyMac. ) But under Stockbrokers Ponzi Scheme nobody sells any loans because the banks have been securitizing data about loans ( aka Identity theft ) not debt. It is a handful of bankers who are lying to us about securitization. There is a factual and legal difference between securitization of loans and securitization of information about loans. 

XXXX XXXX has been fraudulently presenting securitization of data as though they were securitizing loans and debts. That never happened, which is why all of the documents from XXXX transactions are false, fabricated, forged and backdated. 

If they had securitized my loan, the language included in the note and mortgage would be sufficient, to wit : I would have consented to the resale of my loan and that the successor who purchased it would have the same rights to administer, collect and enforce as the original lender. That is what I signed up for. 

But they didnt securitize my loan or anyone else loan because from their end there was no loan. From their end they made sure I received money and that money was used an incentive to issue the note and mortgage which incentive I have to return with interest to the Stockbroker who instantly made 3-4 times of profits selling data about my debt in all possible forms including defaulted debt- and placed bids against the same loans while cover it with insurance contracts. 

But nobody purchased any notes and mortgages. In my situation nobody ever purchased it even at origination. Although they told me the name of a party who was defined as XXXX XXXX XXXX , XXXX - that party had no money, no access to money nor any right to any money flowing into or out of my transaction. In fact, XXXX merely collected my data to pass it to a secretive from me parties XXXX XXXX XXXX XXXX and Stockbrokers ( XXXX and other untouchable gang of bankers ) That is why the notes, including mine, were destroyed probably 95 % of them because Stockbrokers plan required them to keep all revenue generated by their scheme not just some of it. So they needed to substitute data for documents. Every scanned image is data. And those images can be copied indefinitely. But I can only have one signed original note. The banks are tired of being restricted to selling my loan once, so they developed a plan to sell the data from my loan dozens of times but creating a database in XXXX XXXX, XXXX where my data for broken into millions of pieces and sold as unsecured Certificates ( not loans ) by XXXX XXXX. 

The analogy is the atom. In the legal world you can only sell the atom once. But XXXX XXXX figured out a way around that. They sell information about ( i.e., data ) the protons, electrons and nucleus along with a variety of other behavioral characteristics of those physical elements but they never say they are selling the atom even though their collective sales of information about the everything composing the atom is equal to dozens of times the price of the atom. By using this fictional strategy they can say they never sold or bought the atom and therefore any liability arising from purchasing or selling the atom doesnt attach to them. Again, XXXX  securitized data not debt. 

That means that neither mine of anyone else loan, like that atom, has never moved and was not in fact a loan and there is no loan agreement because nobody agreed to become my lender. 

So far the investment banks have been pretending to be lenders when they are not and they would fight to the death if I sue them as lenders. This is why XXXX  XXXX XXXX repeatedly lies that they are merely banking institution for XXXX and PennyMac. Their defense would be that they are not lenders and as proof they would swear they have no interest in my loan. And they would be right. Because no single Company has my loan as their asset as required by GAAP, UCC Art 9-203 ; and MI Chapter 565. 

They made a ton of money selling information about my loan in the form of derivatives, hedge contracts, insurance contracts etc. On average they made {$12.00} from every {$1.00} they gave me. But they never paid me one penny for my role in their scheme of securitizing data. Which is unpaid servitude commonly known as slavery. A handful of bankers uses false appearance of debt information about which they sell in giant proportions to enslave the entire World who transfer their wealth thinking they repay a debt to a fictitious creditor while create a tax-free revenue for Investment Banks who is not shy to steal homes with forged documents by weaponizing US Court system. 

Whatever money I received from XXXX  XXXX XXXX and other Stockbrokers, they lured me into promising to pay it but little did I know that I would be paying companies with financial interest in my transaction which I mistakenly think is a loan. My LOAN HAS NOT BEEN SOLD BECAUSE THERE IS NO LOAN. 

XXXX  did this by converting from public records to digital private records which means that management of any given company can claim anything and nobody is the wiser unless someone does an audit and understands what theyre looking at. By directing everyones attention to images they are directing everyone to data instead of documents. This is why PenntyMac had NO documents about my loan except payment history which they can retrieve from XXXX XXXX, XXXXby using a very limited access and ligin The rest was emailed to PennyMac on XX/XX/XXXX as IMAGES via PDF file by XXXX XXXX XXXX XXXX. 

There is nothing legal about what the investment banks did to investors and nothing legal about what theyre doing to homeowners. But they have convinced most judges, regulators, lawyers and consumers that their practices are merely an accurate presentation of the truth and so the deficiencies occur without harm to the system or to investors or homeowners. Nothing could be further from the truth. Just look at public complaints against so-called Servicers and it is very clear that these Servicers create a mess with borrowers " loans '' because they do not service anything, just pretend. 

Investors are harmed because they unknowingly bought into some highly risky unsecured junk bonds and then signed away their right to do anything about it. 
Homeowners are harmed because instead of getting the protections of the truth in lending Act and other federal and state statutes I was left hanging in the wind, with a fake loan agreement in which the players on the other side had no stake or incentive to make the transaction successful. In fact the loan agreement failed to deliver a lender. 

Quite the opposite. XXXX XXXX knew the transaction was toxic and they bet on it and the worse the odds the more money they made. This is why they made it worse by internally defaulting performing loans ( this is how PennyMac was able to steal my information from XXXX XXXX XXXX XXXX my loan was placed in default as soon as I signed for it ) This is why PennyMac is unable to name the Seller who purportedly sold them my performing loan, which was not available for sale. Because here are no Sellers since here are no loans. All that PennyMac purchased ( read : stole from XXXX XXXX system ) was information about my loan which was declared as defaulted. 

Since Mr. XXXX XXXX lies relentlessly ; refuses to address my questions and insists that PennyMacs position did not changed, I demand a full and honest investigation into this matter, based on material evidence I provided many times. ( additional attached ) I respectfully demand Mr. XXXX and PennyMac to explain which particular position has PennyMac to lawfully collect from me a debt since PennyMacs positions are always different and contradict with each other. 

1. On XX/XX/XXXX XXXX XXXX XXXX, XXXX ( former XXXX XXXX ) claimed to be owner of my Note. This is a lie. 
2. On XX/XX/XXXX PennyMac claimed to be owner/investor who purchased my debt from someone whom neither XXXX XXXX, XXXX or PennyMac can not identofy. This is a lie. Investors do not buy loans or Promissory Notes, they buy unsecured certificates backed by securitized borrowers data from Investment Banks. 
3. On XX/XX/XXXX XXXX said that owner/investor is XXXX XXXX. 
4. On XX/XX/XXXX PennyMac said that owner/investor is PennyMac and my loan is in XXXX XXXX Pooled Security XXXX. According to XXXX XXXX website, here are no Pooled Security XXXX. XXXX, a purported and unlawful mortgagee also has no records of such pooled security. XXXX, whom PennyMac appointed as a Trustee for non-existing Trust never responded to my inquiries to provide me a validation of standing of my loan. 
5. On XX/XX/XXXX PennyMac insisted that PennyMac purchased [ my ] loan and was now both creditor and servicer ( who apparently servicing something on behalf of investors, who is also PennyMac ). 
6. On XXXX XXXX Mr. XXXX insisted that PennyMac is  an Issuer of XXXX XXXX securities, which are pooled into Trust XXXX ( non-exist ) where XXXX XXXX XXXX XXXX, a purported Trustee ( who can not identify a Trustor of this Trust and tell who appointed XXXX as Trustee ) whom PennyMac transfer my payments to be remitted to Investors ( here : PennyMac ). In the same letter Mr. XXXX claimed that XXXX XXXX does not sell performing loans, only if they are several months delinquent. Yet, PennyMac was able to buy my loan form some secretive Seller while my loan was not availale for sale since it was never delinquent ; issue XXXX XXXX Securities backed by my loan ; pool them in some non-existing Trust three years too late under IRS Rule 840G ; and  collect my payments to pass them to Trustee XXXX just to get them back to investor PennyMac. 
7. On XX/XX/XXXX XXXX XXXX XXXX XXXX ( who is the actual Servicer and a representative to the real Lenders- Investment Banks filed a legal action against PennyMac claiming that PennyMac stole from them information about loans to use for their own system, where PennyMac uses performing loans data as delinquent loans to defraud investors. 
8. PennyMac filed their own legal action against XXXX XXXX XXXX XXXX where PennyMac insists that the owner of the loans is XXXX XXXX which contradicts with PennyMacs prior statements that the owner is PennyMac. 
9. On XX/XX/XXXX XXXX XXXX Vice President XXXX responded to XXXX XXXX and informed him that the Issuer of securities pooled in some mysterious Trust is XXXX XXXX XXXX. Which contradicts with PennyMacs statement about their issuers capacity. 
10. On XX/XX/XXXX PennyMac announced that it has completed an agreement for new servicing advance financing through PNMAC XXXX ISSUER TRUST ( the Trust ), an indirect, wholly owned subsidiary of XXXX. Under this agreement, the Trust has issued new XXXX Servicing Advance Notes. The structure enhancement, which has been in development since early XXXX, will provide XXXX enhanced liquidity to directly support its servicing advance obligations to XXXX XXXX and its security holders. 
Which completely contradicts with Mr. XXXX XXXX statements ( read : relentless lies ) that PennyMac is owner/investor/buyer of my ( or anyone else ) loans who issued some XXXX XXXX Mortgage Backed Securities which PennyMac obviously has no rights to do. 

In other words, ALL PennyMacs positions in relationship to my loan are unsupported, false and contradicting with each other lies ; and I demand PennyMac to provide me a proof, along with evidence of PennyMacs ownership of my debt and their rights to collect. 

First and foremost, I demand PennyMac to identify the Seller of my loan to PennyMac ; and this Sellers legal rights to sell my loan. According to the legend, the original Lender was XXXX, who passed ( read : never touched anything in my loan at all ) it to XXXX on XX/XX/XXXX, or my closing data. In fact, this entire transaction was handled by XXXX XXXX XXXX XXXX ServiceLink who passed me a one-time payment from XXXX XXXX XXXX and other Stockbrokers for my financial services such as issue of security called Promissory Note. 

The reason why my loan was never pooled with any XXXX XXXX XXXX is because Stockbrokers and XXXX XXXX declared it as a delinquent debt from the origination to issue Private Label unsecured trash Bonds ; purchased insurance contracts were payable not to the investors nor even for their benefit but rather for the profit of the investment bank who purchased it and place bets against the very same certificates by the same Stockbrokers claiming that the certificates would decline in value. The decline in value is based upon a contractual provision that gave Investment Banks the sole right in its sole discretion to declare the event. 

This is why Default Debt buyer PennyMac was able to steal my information from XXXX XXXX and now try to get a taxpayers bailout claiming Servicer Advances which are also a huge lie to cover for XXXX XXXX fraud. 

PennyMac did not make any advances. They never did and they never will. They said they did but they didnt. If you read the prospectus carefully you will see that the money from investors is divided into three parts. 

The first part is the purchase of a certificate that promises payments to the investor based upon a formula that is independent of any homeowner debt, note or mortgage. It does not commit the Investment Bank to using the funds in any particular way. But the payments are partially indexed on the performance of an arbitrarily chosen group of loans that are not owned by anyone. This group of loans are intentionally internally defaulted to make this even occur to get insurance payments for their bet against this group of loans. 

The second part is the establishment of a pool of funds controlled by the Investment Bank which also does not have any restrictions as to its use. The prospectus reveals that investors may be receiving payments out of the pool of funds, which obviously comes from their own money ( aka Ponzi Scheme ). 

This is the source of what is labeled as servicer advances. By labeling these payments as servicer advances, and by providing that servicer advances will be paid to the master servicer ( i.e., the Investment Bank ) the so-called securitization scheme creates another Profit Center. 

Investment Banks can claim return of servicer advances that they never advanced. By doing that they not only create the profit Center but they also able to claim that it was not Revenue for tax purposes. A lot of the bookkeeping, financial reporting and tax reporting is based on this strategy. 

In my opinion it is not legal. It is not legal from the perspective of me as a homeowner, who gets no credit for any payments or profits made in the scheme because nobody maintains an account in which the homeowners debt is claimed as an asset ; this results in literally no place to credit the homeowners debt for incoming payments and profits that actually offset any potential liability of the homeowner. 

In other words, an Investment Bank receives a windfall of profits by selling information about my loan while I have to work hard during 30 years to return the only compensation I received for MY services to Investment Banks issue a security called Promissory Note plus interest. In other words, XXXX XXXX  XXXX via XXXX XXXX passed me {$130000.00} for a property appraised at {$140000.00} ( means this is the amount in data sold to investors XXXX XXXX times as trash bonds ) while I get no singe cent from this profits, no reduction of my debt and repay my only compensation plus about $ XXXX on top of it. This is the worst slavery this World ever had. 

The third part exists by implication. The normal agreement ( prospectus ) would provide for a specific use of proceeds from the proceeds of an offering of any Securities or certificates for mortgage bonds. This is absent. 

The reason that it is absent is because the balance of the funds are pure profit to the Investment Bank. This is because of the second tier of a yield spread premium that is not widely understood in legal circles because in legal circles they mostly have no experience or knowledge of Finance. 

The investment bank has complete discretion as to what to do with the money that investors have paid them something that never exists in the offering of securities to investors but does exist in so-called securitization plans. This is the holy grail for investment banks issuing securities in the name of nonexistent entities. Instead of getting their normal fee of at most 15 % of the proceeds, they get it all. 100 %. 

They issue certificates in the name of a trust that does not exist. The actual Trust Agreement ( not the PSA which for my Trust does not exist ) corroborates this by stating that the trustee has only one function : to hold legal title to loan documents. The beneficiary is the Investment Bank. 

And of course the role of a trustor or settlor is completely absent because there is nobody who has paid value in exchange for receiving a convenience of ownership of the underlying debt of any homeowner. 

So the Investment Bank is promising to pay the investor at a rate which appears to the investor to be in excess of market rate but is far below the amount charged to homeowners. This strategy enables the Investment Bank to profit on several different levels. In addition, by placing themselves in the position of Master servicer, they were the ultimate recipient of payments received from homeowners which in many cases exceeded any planned payments to investors. 
THIS IS WHY SUBSERVICERS LIKE XXXX AND PENNYMAC REFUSE TO TELL ME WHERE MY PAYMENTS ARE SENT. FIRST THEY DONT ACTUALLY RECEIVE THE MONEY AND SECOND THE MONEY IS NOT BEING SENT TO THE TRUST OR TRUSTEE. 

Under current systems and processes that are generally accepted on XXXX XXXX, most Investments are held in street name. Investors do not receive any written document like a stock certificate or a bond when they buy it. Holding a security in street name means that for all practical purposes the Securities firm owns it for the benefit of an investor. THE ONLY EVIDENCE OF OWNERSHIP THE INVESTOR GETS IS A STATEMENT FROM THE SECURITIES FIRM IN WHOSE NAME THE SECURITY IS REGISTERED. 

And while it is true that the law says that an investor is the beneficiary of an arrangement wherein the securities firm holds title in trust for the investor, theres nothing to stop the Securities firm from trading on the existence of the certificate as if it were their own. This is how they are able to obtain insurance contracts and hedge contracts that are payable to the investment bank rather than the investors who put up the money. 

This sleight of hand maneuver lies at the center of what is falsely labelled as the securitization of residential mortgage debt. The designation of a competing bank to serve as trustee of a nonexistent trust gives the scheme an institutional appearance, which in turn causes lawyers and judges, who know nothing of finance, to assume that they are dealing with an institution versus a lowly homeowner. 

XXXX XXXX XXXX XXXX  is not a trustee, this is why they have no idea about the Trust which holds my loan ; or who is a Trustor or Issuer.  That is another label used to misdirect homeowners, lawyers and judges. A trustee is someone who actively manages the active affairs of trust property. There is no trust property. There is no trust business. And the party named as trustee doesnt even have the power to inquire as to any matter that might be called the business, assets, liabilities, income or expenses of the so-called trust. 

By naming XXXX as the legal title owner for the benefit of the investment bank they are saying nothing. XXXX did not receive legal title to anything. In order to get legal title it had to be the recipient of a conveyance. That is where the banks want us to stop. But the conveyance, under all current law going back centuries can ONLY be issued by one who possesses rights to the asset conveyed to the trustee to hold in trust for the beneficiary of the trust. 

Investors are not and never have been beneficiaries and that claims or arguments or implications that they are somehow, as creditors, represented by a nonexistent trust or nonexistent trustee are preposterous. 

This is why there is no claimants in the foreclosures mill since the named Plaintiff usually does not exist.

Company response to consumer: Closed with explanation