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2018 DOJ Lawsuit Reveals Securitization Equivalent to “Leprosy” According to Wall Street Insiders

livinglies.me | August 13, 2019

by Neil Garfield

see US v UBS Re: Countrywide, WAMU, Fremont, Am Home Mtge, And IndyMac (OneWest)

Although the US Department of Justice has never filed criminal charges against anyone, they clearly wanted to do so. Having been limited by some sort of executive direction, they have been filing civil complaints. Such cases often bear the name of an entity not publicly known as a player in securitization scheme that started 20 years ago.

If you read the complaint you will see how it was widely known and accepted that loans were being sold to consumers under circumstances where repayment would most likely never occur and where the value of the collateral was far less than the ultimate value of the loan. In my opinion, this demonstrates the fact that the original loan contract was not representative of the entire transaction. Nobody makes a loan knowing that it won’t be repaid. In fact if they do something like that, it can’t be considered actually a loan. It is either a gift or it is part of a larger transaction.

No reasonable person could conclude that the intent of Wall Street was to give a gift to every one of the homeowners who received money as a result of their scheme. That leaves only one possible conclusion, to wit: that the loan origination was only one part of a much larger undisclosed scheme, the existence of which was intentionally obscured and withheld from the borrower, whose name, signature reputation and home were not just material, but absolutely essential requirements for the success of the scheme.

The intent was clearly not to receive repayment of a loan. In fact all evidence currently available suggests that any money that has been received as a result of the “loans” to consumers was actually revenue disguised as principal, interest, or the proceeds of property sales – voluntary or involuntary. The current evidence strongly suggests that there was a complete conversion of the loan receivable from the category of “asset” to “income.”

All attributes of the debt and all revenue streams or profits from treating indirectly on the debt were sold for profit in which the participants in that revenue stream received at least 11 times the amount of the purported “loan.”

As part of the cover-up most of the revenue stream was reported as return of capital, implying that the conversion to income had never occurred. This enabled avoidance of substantial income taxes on regular trading income. The taxes lost to State and Federal Government were far in excess of the cost of various packages that were used to stimulate the economy after the crash caused by the very same investment bankers who had cheated the government out of the receipt of tax revenues, cheated homeowners, and cheated investors.

In order to maintain the illusion, which required concealment of the conversion of the apparent loan receivable from asset to income, it was necessary to bring foreclosure actions on those consumers who had stopped making payments. This was true even though the parties to whom they were making payments, were not collecting on behalf of any party who owned the debt by virtue of having paid money for ownership of the debt and the rights to enforce it.

But since the loan receivable had been converted from asset to income they had to create the appearance that the conversion had never occurred. And that is why we saw widespread fabrication, forgery and Robo signing of backdated documents that referred to nonexistent transactions. In reality it is simply not possible that anyone in the chain of title could have paid any money for ownership of the debt and the rights to enforce it; this was simply because none of those parties had ever funded the origination or acquisition of the debt.

As I stated in 2008 the process of securitization as it was being practiced by Wall Street, was roughly the equivalent of placing a variety of fruits into a food processor and blending the fruits into a fruit smoothy. The process of fabricating documents for foreclosures was the equivalent of taking this fruit smoothy and extracting the original fruits.

Somehow investment bankers convinced people who had controls over the levers of power in our government that the pain of the scheme should be borne entirely by homeowners and investors whose only role was that they were victims of the scheme and continue to be deprived of any participation in the revenue stream that could never have been produced but for investment bankers successfully deceiving both the investors and the homeowner’s into signing on to agreements that were essentially irrelevant to the actual scheme in play.

As you will see from reading the complaint filed by the Department of Justice against UBS, the insiders who were trading digitized certificates and contracts deriving value from an index that referred to a group of loans that were not owned by any of the participants, referred to the “pooling” and the derivatives as a bag of shit whose value was something less then leprosy.

And that is what is being enforced in foreclosure courts across the country. And somehow most homeowners continue to experience feelings of shame and regret for not giving even more revenue to players who will already profited in pornographic proportions to any money that was loaned. Those homeowners think that they are either paying a debt if they are making monthly payments, or they are giving up their house to pay a debt. If that was true, that none of the fabrication of documents, forgery or Robo signing would have been necessary.

 
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