Mortgage Servicing Fraud
occurs post loan origination when mortgage servicers use false statements and book-keeping entries, fabricated assignments, forged signatures and utter counterfeit intangible Notes to take a homeowner's property and equity.
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I keep toying with this abstract idea that there could be a way to change
the way "business" in general, is conducted. Now, keeping this simple:
Start with "Banking".
Working people use various accounts into which they deposit thier earnings.
Banks pool these deposits and use the money in various ways one of which as
loans to other people. This helps the "economy" by adding new
businesses, new homes, better life styles....
Banks make a profit on these loans by collecting interest.
The more depositors a bank has the more it can lend and the more profit
it makes.
OK. That's pretty simple, right?
"Well...I can't for the life of me, remember when it was that I gave any
Bank the OK to use my money in any other way than to hold on to it so that
I have it to take care of my daily needs."
WOW...that's a very outlandish statement considering that is what actually
happens. I deposit $100 and am able to use $100 to pay bills or whatever.
Why use a bank at all? Guess because I get paid in the form of a check and
need the resources of a bank to get "money"(credit) from my works' bank for
my use. Suppose I start a "savings" account. A means to build up "wealth".
The bank evens offers to pay me "interest" to help it grow. And that's how
it goes from day to day, week after week,...but every once and a while
there's this thought that something is missing.
    Lots of working people putting deposits in banks.
    Lots of deposit "money" for banks to lend.
    Lots of interest being made from loans by banks. HOLD IT!!!!
THAT"S IT!!! INTEREST...BANK PROFIT.....Shouldn't that be the depositors?
Whose money was used to made these loans anyway????.
I know there's more to it than that but just keeping it simple.

Let's revisit that outlandish statement. Deal just with a savings account.
Suppose, banks can no longer do as they wish with depositors money.
A person decides to open a savings account and in the process one gets to
choose if they would like the bank to offer them ways to make their savings
grow. Banks would offer various types of Funds or Investment opportunities.
If agreed upon, perhaps once a month, the depositor would receive info from
the bank about various ventures that are looking for capital. If interested
and agreed to, a loan is made by the bank. Here's the cool part... the
depositors receive all the loan monies (principal) back WITH the interest,
well maybe let the bank keep 5% of interest cause they did the paper work
and whatnot.
Yes, this would be a major change in the way "business" is conducted.
Darn near inconceivable.
Could it happen? Seems like if every person using a bank told them not to
use their money without approval, that would do it immediately.
Yeah, right!!!
There would be an immediate change for the good.
The economy goes from DEBT based to SAVINGS based.
People become a tangible part in daily life. 
Not to mention that Banks are no longer a "Business" unto themselves.
Such a simple change when ya think about it. People having one more choice.
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Here's a couple links with discussion of interest and how it fits in with our system and Biblical and Islamic ethics.

1. Usury or charging of interest (riba) is forbidden)
According to Sharia, money is not a commodity, that can be traded, nor does it have a value over time if left unused. Therefore interest earned is an unjust income.

2. Risk should be shared
As income can not be derived from interest payments, investors should share in profits or losses of an investment in proportion to the amount that the put into the transaction, and thus the level of risk they undertook.

3. Uncertainty (gharar) in a contract is prohibited
Both parties must undertake a contract with full knowledge of all the terms. This means that the amount of capital or goods should be agreed in advance and stipulated in the contract.

4. Competence
As is the case in most legal jurisdictions, the law also specifies that the parties in a contract must possess the legal capacity to understand and assume the obligations of the contract.

5. Consent
The parties to a contract should enter into it of their own free will and should not be subject to coercion or duress.

The big problem I see with combining interest and debt based system is it allows a handful of people usually granted a government monopoly, or special privileges to use our personal, business and perhaps worst of all public/taxpayer funds as theirs.

With credit default swaps and securitization the emphasis was on "loosing" as much money as possible to create money and destroy or confuse the money trail. The leveraged fractional reserve system rewarded theft, high risks with other peoples money, transferring assets to other countries and offshore accounts. Basically the whole system gave government protection to a financial Mafia and a tailor made system for looting the country.

Supposedly Sharia law is incompatible with western economy and we'll all turn into a bunch of terrorists if we even think about anything Islamic but it does clearly define the methods of stealing or taking advantage of through usury.  Obviously at least some of the principles are valid legal concepts, and usury is unbiblical as well.

Certainly we need a more self correcting financial system based on savings rather than debt. The use of our money should be voluntary if permitted at all and and we should all be educated and understand the terms and risks involved. Our country got in trouble because the mortgages were converted into securities and placed in pools backed by credit default swaps so there was incentive to create as many loans as possible and even more to create loans designed to fail, and manufacture defaults for profit.

Credit default swaps should be made illegal they created great harm to the fabric of the lending investing system and influenced bankruptcies of companies and corporations such as G.M.  The arguments and decisions are not just academic they have  very real and very serious implications for our day to day lives and perhaps even the survival of our country, of course economic problems translate in to civil unrest and wars

If we had a low or no tax savings based system especially one based on hard money the incentive with or without interest would be a mutually beneficial system,
where good ethics and business practices were rewarded as well as personal and small business habits and practices.

We would still need laws and rules because there is always a way to cheat and charging interest provides one more avenue to gain ill gotten or unearned rewards, but if the incentive was to earn and save rather than to use other peoples money and steal it would be far easier to keep a handle on financial crime and the boom bust war cycle.

The free market has been destroyed by government sponsored monopolism, special privileged and lack of transparency especially with half the loans sponsored by the GSE's Fannie and Freddie and the taxpayers backing the Fed/fractional reserve system with monetary policy set in secret by private banking interests. Capitalism means you keep what you earn rich or poor and it's protected by the rule of law the progressive tax rate is fundamentally incompatible with capitalism and clearly the legal-justice system has not protected our property rights.

The Constitution is probably the best and most workable guide for sound money practices and law, it defines sound money and contract law and yet provides great latitude for business, banking and investing.

No matter what the system is clearly broken and needs to be fixed.
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4 Justice Now

Once again you are absolutely right. The fact that Credit default swaps have yet to be outlawed is quite telling in deed. And until they are, we can only be certain of one thing... the very same criminals who planned and executed the largest financial fraud in history are still out there pulling strings in Washington. The very same strings that should be (have been) used to hang the traitors. 


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