Why the Residential Mortgage Backed Security Business Fails in America
References: Risk - Janet Tavakoli Other People's Money - John Kay Bailout Nation - Barry Ritholz The Big Short - Michael Lewis Other People's Houses - Jennifer Taub Chain of Title - David Dayen Too Big To Fail - Andrew Ross Sorkin The Best Way to Rob a Bank is to Own One - William Black Win Your Case - Gerry Spence We the People built America. We came from the King's shitholes. We came from the Queen's shitholes. We came from the Emperor's shitholes. We came from the shitholes of the Grand Pu Bah. We declared ourselves Free Men. We came ashore, and we owned the clothes on our backs. We established Agriculture. We built ships. We laid track. We built bridges over rivers. We tunneled through mountains. We built factories. We fought the War to End All War. Twice. We built America on private property, and equality before the law. We were lean, and we were mean. We bred some Fat Cats. They came up with Residential Mortgage Backed Securities. We are on our knees. You may be struggling with a financial behemoth today. In 2007, 69% of American Homes were owner occupied. In 2017, ten years later, 52% of American Homes are owner occupied. Yes, some of those financial behemoths are gone. Some paid large fines. Eighteen Million Homeowners are gone. Two million homes are in pre-foreclosure litigation. The cards are against you. 98% of these homes will be lost to the owners, seized by the banks, and flipped by your nephew or neice. If you are in this position today, we recommend you gather your belongings, and move to Texas. You'd rather fight? I'm glad to hear that. Go back to the top. Read through our references. Sharpen your wits. You'll need every one. You'll start in Federal District Court, which will cost you $550 to file your complaint, or your cross-complaint if you are already a Defendant). Property is now a federal question, and the parties are diverse. If you prevail in State Court, your counterparties will remove to Federal Court. If you lose in State Court, you will appeal to Federal Court. Start in Federal Court. Demand a jury to hear your complaint. Did I mention that 98% of these conflicts are won by the financial institution? Does that seem sensible that one party in conflict will prevail 98% of the time? Does that seem a little bit corrupt? Your jury doesn't play golf together every week. Your jury doesn't take winter vacations in Cozumel. The one-armed man doesn't meet your jury at the end of the runway and drop off bags of money. Your jury is yours to give away. Every judgment starts out with the sentence 'The two parties, having waived their right to jury trial in this matter, have submitted to the Court...' Don't do it. Start with a review of the facts. Have your opponents been financially damaged in any way? Very probably they have not. Financial professionals are very adept at protecting themselves from financial stress. There are many counterparties, who provide credit enhancements. These are generally detailed on electronically stored information. Inspect payments from all sources. You may remember back in 1983, when you met up with PETE (Person Entitled To Enforce) at your real estate closing. He may not have actually appeared that day, but you were probably given assurances that you were uppermost in his mind. Who is PETE today? Who does PETE work for? Does PETE(2), or PETE(5), or PETE(23) have proper identification? Dollar bills are so hard to counterfeit. There are easier ways to make money. Talk to PETE. Make sure he is the one. [Your opponents may seem defensive, and resistant to your curiosity. Such curiosity may be burdensome, or overbroad, or proprietary, or you may just be some kind of flibbertigibbet. After all, they just want your house, broom cleaned, with keys, and you gone. If communications seem completely broken down, you may have to declare bankruptcy. It's kind of an intermission. You stay home, and the federal trustee sorts out everyone's information. The trustee has abilities you do not. Don't go here without some preparation.] Once all parties are comfortable with the material facts, and possibly have even agreed on a mutual stipulation to save time for the jury, or at least a stipulation of all the unopposed facts, and a query to the jury of the missing ones, you may all direct your inquiries to behavior. Has PETE been timely, honest and forthright in his communications? FIRREA 1989 is a big book, as is RESPA-TILA, Regulation X, FDCPA...don't forget the comments, guidelines and interpretations. Make sure the jury has a good picture of all the issues, and everyone's behavior. Now you are ready for trial. Help the judge pick out a jury. Use the No-Asshole rule, sparingly. When the jury files in, and is sworn, you might join in with your opponent and ask for a brief recess. You might do some final negotiating. You are fixing to lose your house, by due process, which you figgered was 98% gone anyway. You bank is fixing to lose $87,000,000, and costs, every one of which is going to hurt like the dickens, and someone might even get fired...if you figger it out in the hallway, you can always excuse the jury, and go have lunch.
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AuthorDave McCrae is a retired engineer now settled in Oatmeal, Texas. I trained as a nuclear physicist and for a brief time was able to hold positions operating a small cyclotron, a large computer (CDC-6400 BITD) and as a medical researcher. After a weekend in Cleveland, and learning to weld, I left academia and joined Clan MacRae, constructing large buildings, setting complex machinery, devising manufacturing processes, and operating deepwater submersibles. I had too much fun, and made too much money. The cyclotron was kind of quaint, punch card computers are pretty much extinct, and we still have issues with cancer. Archives
November 2018
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