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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Markets, exchanges, and other assorted economic activities that deal with legal or paper claims on physical assets rather than the physical assets. The vast majority of activities for the paper economy take place through financial markets. The paper economy complements production and consumption activities of the real economy that involve product markets and resource markets.

The paper economy is that part of the economy that involves legal claims and financial markets. Legal claims represent ownership or control of physical assets. Financial markets are used to exchange legal claims.

Although the paper economy is not directly involved with production and consumption activities of the real economy, it provides critical complementary support. For example, the paper economy makes it possible for a business firm to acquire the funds used for capital investment and for a consumer to acquire the funds used to purchase durable goods. Without the paper economy such expenditures are difficult if not impossible.

Legal Claims

The paper economy exchanges legal claims through financial markets. Legal claims represent ownership or control of real or physical assets. Some examples of legal claims are corporate stocks, government bonds, money, bank statements, and mortgage contracts. Each gives the owner claim to real goods or resources. For example, the 10 shares of OmniConglomerate stock owned by Duncan Thurly gives him a claim to the productive assets of OmniConglomerate. If this company should go bankrupt, then Duncan can claim some of their assets.

Of course, given that OmniConglomerate has over 100 million shares of stock outstanding, Duncan's 10 shares gives him an exceedingly small claim, but a claim nonetheless.

Real or Paper?

The real (or physical) economy involves the goods and resources, the physical production used to satisfy wants and needs. The paper (or financial) economy is legal claims on these physical goods and resources. The term "paper economy" is used because these legal claims historically have been documented using pieces of paper.

However, in modern times the paper economy might be better termed the "electronic economy." The paper of the past has largely given way to electronic data storage. Many legal claims are recorded as entries in computerized accounting systems.

Financial Markets

The paper economy involves the exchange of legal claims through financial markets. Financial markets are one of three basic types of markets in the economy. The other two are product markets and resource markets. Product and resource markets exchange the goods, services, and resources making up the real side of the economy and which are directly involved with production and consumption activities.

In contrast, financial markets trade the legal claims that represent ownership of the goods, services, and resources exchanged in product and resource markets. Most notably, when legal claims are exchanged, income is diverted. Those buying legal claims give up income and those selling legal claims obtain income.

An important diversion facilitated by the exchange of legal claims is that from the household sector to the business and government sectors. The household sector buys legal claims as a means of saving income. The business and government sectors sell legal claims as a means of obtaining income used to finance investment expenditures and government purchases.

Suppose, for example, that Duncan Thurly deposits his $243 paycheck in OmniBank. He gives the bank $243 of income, and in exchange, the bank gives him a paper legal claim (the bank account statement). They owe him $243. In effect, by buying this $243 legal claim he has made a $243 loan to the bank. He has supplied $243 of his income to the financial markets.

On the other side of this financial market, the OmniBank has sold Duncan a $243 legal claim, and in so doing has taken possession of $243 worth of his income. They have borrowed his $243.

In all likelihood OmniBank combines this $243 with income obtained from other bank customers and engage in another legal claim exchange. The Wacky Willy Company comes in on one side of this second exchange, seeking a $1 million loan to construct a new Stuffed Amigo production plant. Wacky Willy sells OmniBank a legal claim, that is a loan agreement or promissory note, in exchange for the $1 million. OmniBank is then on the buying side as it gives The Wacky Willy Company $1 million in exchange for the legal claim.
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And what's even neater about this now is that the next phase of "Check 21" has been offically released. Duncan no longer has to even physically go to Ominbank to hand them his check. Thanks to GWB, all Duncan has to do now is scan the check into his computer and email it to Omnibank in order to have it deposited. I don't think they've figured out how to get actual bills to spit out of his tower's A drive yet though.

Thank god we've devised a plan to not only get rid of all of that pesky physical evidence but also make it that much easier to manipulate the replacement evidence by digitizing it. I'm already actually being penalized for paying certain bills in cash, by the way...

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That is why MERS came into the state statutes that required the registering of a change of ownership of a note could circumvent state law. MERS said recording of changes of ownership of a mortgage was now unnecessary since their computer system would do it for the county recorders.

Sworn deposition testimony by MERS' corporation counsel in our case indicated that MERS only knows what a member "posts" on MERS' database. MERS only knows what financing institution owns the note if the data was inputted into their system. This allowed members to collateralize a note several times to different investment trusts that ultimately sold the securitized debt to others like several European and Asian Banks. In this way they magically took several trillions of dollars in money in exchange for the legal claims to foreclose on the houses. The bet was that Americans typically do not allow their homes to be foreclosed on and therefore the debt instrument, the note itself, was sold several times to multiple parties. The banks were rolling in dough as every street corner in America that now has a bank is a testimonial to the high times enjoyed by the banks.

The owner of the note was considered to be only those that were indicated to own the note as appeared in the database on the MERS system. But, the reality was that several domestic banks were making copies of these notes and selling them to several parties.

By arranging for its members to make posts directly to its database MERS could claim that they are innocents when any fraud by the members became a counter-claim raised against the service companies in litigation by victimized homeowners. It is apparent that MERS' real function (MERS is owned by government sponsored enterprises Freddie Mac, Fannie Mae and other major financial arms) was to hide the fraud of the banks selling the note to unsuspecting foreign investment banks and hedge funds several times over.

MERS as a component part of the fraud was necessary so as not to alert Attorneys General of the several states and their regulators. Thus, MERS was born and came into existence. The bill of goods for the necessity of its existence was to "reduce operating costs to benefit consumers." But, the real reason was to serve as the key component part to allow the paper trade of mortgage backed securities hundreds or thousands of times without having to record the ownership of the debt.

Then, to assure that the mortgage debtor did not ever pay off the note debt, the servicers had to do their part to keep that mortgage debtor in debt so as to never allow them to get out of debt. In that way, they never had to take a payoff of a mortgage and lose that cash cow of monthly payments flowing through the servicer and then to the note owner. So, keeping a mortgagor in a debtor's prison by servicing fraud was created to keep that cash flowing and the fraudsters at the various financing institutions in green.

The recently announced creation of a super fund by Citicorp, Bank of America and J.P. Morgan Chase is to assure the hedge funds that their legal claims will be paid. This is done by a digitized entry onto these banks' balance sheets.

Did anyone see the Jon Astin film from the 1970's titled "Evil Roy Slade" or something like that?  In that film Evil Roy (played by Astin...Sean Astin's dad and Patty Duke's ex) instructed the accountant from the gang to give him a check to take to town so he could whoop it up. The mousy accountant explained that the books showed that they had no money and showed Roy the entry balance of $0.00. Roy explained that he needed to go to town anyway so he took out his gun and demanded that the accountant put a couple of more zeroes in there with a one in front of them. Thereby, giving him a balance of $1,000.00. The imbalance problem was solved for Roy. That is pretty much what is now going on..... the digitized entry of ones in front of zeroes to create a negative into a positive. Draw your own conclusions. But, the privileged banks are creating something from nothing with the regulators blessings. If the miracle of creating money from nothing doesn't occur the fallout is potentially huge.

The next and final attack on the American public is the lobbying effort now under way in Congress and the Senate to allow the mortgages to be only electronically databased without any real paper signed by the debtor. In this way, there could never be a proof of the fraud involving the servicer's creation of a fraudulent default. In our own case, we've obtained this proof of the fraud only by way of the lack of an actual note signed in ink by us. For the Congress to enact any legislation that further compounds the problems in the system by enacting legislation to allow electronic documentation of mortgages and notes would be a huge breach of the public trust and interest. Without a paper trail, there is no legitimate way for a vicitmized debtor to obtain relief in the courts. The electronic mortage could be and would be altered to conform to whatever reality was needed at the instance of a problem such as a debtor attempting to pay off the debt in its entirety.

The real story behind our falling dollar and huge oil prices is that the oil producing nations need assurance that the mortgage backed debt that they have bought and was purchased with our oil dollars is risky to hold as the dollar may become worthless some day should someone decide to take the steps necessary to purge the huge fraud from our system.

Starting with the dismantling of the necessary components of the fraud is a good place to start. Is any regulator interested in his children's and grandchildren's welfare?? If there is...then do something.
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