Originate To Hold & Show Me The Note
A Naybob of legal beagles sent me a PDF file of interest, Senator Carl Levin's comments re: Wall Street and the Financial Crisis: The Role of High Risk Home Loans.
More can be found at the Permanent Subcommittee on Investigations web site.
The Nattering One muses... Remember when I worked at the S&L which Cal Fed bought out? And then I worked for GW S&L?
My experience underwriting 1st TD's 1981 - 1984 did not go for naught, as this was one of the toughest times to get a home loan, in history.
"Originate to sold" rather than "Originate to hold"... this was the undoing of everything.
We were "originate to hold", so even portfolio loans that were sold to the agencies would still be your problem...
as Fannie & Freddie could come back and force you to repurchase the offending loan.
But if your not going to hold the loan, "originate to sold"... and sell it downstream, then, who gives a shit?
Much less for a securitized bundle being put into a derivative debenture to be resold over and over again?
As we warned many times years ago in these pages... this being the ealiest example from Sept 2007's It's DejaVU all over Again.
The Nattering One muses further... Before I became an underwriter, I worked every single phase of loan origination and loan servicing.
So, unlike these new school, new age escrow, title, loan and mortgage broker f*cks...
I know exactly what a reconveyance, note and trust deed are, and how they have to be legally treated.
As a result of the computer age and digital nature of documents, the cheap bastard bankers formed a company called MERS.
MERS (Mortgage Electronic Recording Service) was formed by with the sole intent of...
evading the recording fees due to the county in which the security is located, and reaping those borrower paid recording fees for the lenders.
You would be well informed to read the following, SHOW ME THE NOTE:
as 60 million mortgages CANNOT be foreclosed on legally... and a Nevada judge agrees with me.
As a result of MERS, when loans got packaged and sold, and resold and resold downstream...
the chain of title was destroyed and when the note is split from the deed, the note becomes unsecured... he he he
as we used to say in the consumer loan (REPO) and foreclosure REO dept "you aint got shit when your unsecured" and...
"a 2nd is exactly that, a sloppy 2nd position, if anything is left after the 1st position is done.".
A person holding only a Note lacks the power to foreclose because it lacks the security.
MERS lost track of the Notes and in some cases, they deliberately destroyed them.
So if you know anyone with a loan that MERS is involved in...
Another Public Service from...
The Nattering One
Principal Enlightener - Purveyor of Darkness
More can be found at the Permanent Subcommittee on Investigations web site.
The Nattering One muses... Remember when I worked at the S&L which Cal Fed bought out? And then I worked for GW S&L?
My experience underwriting 1st TD's 1981 - 1984 did not go for naught, as this was one of the toughest times to get a home loan, in history.
"Originate to sold" rather than "Originate to hold"... this was the undoing of everything.
We were "originate to hold", so even portfolio loans that were sold to the agencies would still be your problem...
as Fannie & Freddie could come back and force you to repurchase the offending loan.
But if your not going to hold the loan, "originate to sold"... and sell it downstream, then, who gives a shit?
Much less for a securitized bundle being put into a derivative debenture to be resold over and over again?
As we warned many times years ago in these pages... this being the ealiest example from Sept 2007's It's DejaVU all over Again.
Yeah, it sure is "different" this time...
Instead of being fueled by rising wages, rising housing prices were fueled by low interest rates (cheap money) and risky lending (originate to sold, rather than hold).
As a result, homeowners have faced a growing gap between their incomes and the price of their homes.
Wages barely kept pace with inflation in this artificial (dot con) economy which took housing prices and housing stagflation to unsustainable levels.
California leads the way with 51.8% of gross income being used for housing loan costs. The US average housing debt ratio is now 36.9% of total income.
In another lifetime as an underwriter, the maximum PITI that we would write was 33% over; total debt 38%; of gross income with 20% down on a fixed 30 year owner occ loan.
Non owner occ, ARM's and 90% LTV were much stricter at 25% over 30%, interest only, no down & stated income loans DID NOT EXIST.
And we lent using sound principles (finanical products, LTV ratios & docs) on solid properties with the intent to hold and service the loans.
We always had to mitigate the risk to the savings association. At worst, we would portfolio the "conforming" brokered loans and pass them to FNMA, FHLMC, FHA or VA.
The Nattering One muses further... Before I became an underwriter, I worked every single phase of loan origination and loan servicing.
So, unlike these new school, new age escrow, title, loan and mortgage broker f*cks...
I know exactly what a reconveyance, note and trust deed are, and how they have to be legally treated.
As a result of the computer age and digital nature of documents, the cheap bastard bankers formed a company called MERS.
MERS (Mortgage Electronic Recording Service) was formed by with the sole intent of...
evading the recording fees due to the county in which the security is located, and reaping those borrower paid recording fees for the lenders.
You would be well informed to read the following, SHOW ME THE NOTE:
as 60 million mortgages CANNOT be foreclosed on legally... and a Nevada judge agrees with me.
As a result of MERS, when loans got packaged and sold, and resold and resold downstream...
the chain of title was destroyed and when the note is split from the deed, the note becomes unsecured... he he he
as we used to say in the consumer loan (REPO) and foreclosure REO dept "you aint got shit when your unsecured" and...
"a 2nd is exactly that, a sloppy 2nd position, if anything is left after the 1st position is done.".
A person holding only a Note lacks the power to foreclose because it lacks the security.
MERS lost track of the Notes and in some cases, they deliberately destroyed them.
So if you know anyone with a loan that MERS is involved in...
Another Public Service from...
The Nattering One
Principal Enlightener - Purveyor of Darkness
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