The Biggest Mortgage Fraud in History Exposed Pt. 5

DAVE

The notes are basically on Wall Street, are being taken in and spun over anywhere from 9-30 times, maybe more.  We don’t know because they’re hidden in the MERS system.  The MERS Electronic Database keeps track of all the transfers, but none of these are recorded in the Land Records and this is what’s causing the problems with the title.

HOST

And they come take houses, as in some cases, not just when you are behind and then they fraudulently do it.  They just take houses that they never had anything to.

DAVE

Well, it could have been because of the fact that when I was talking to a title guy in Cleveland yesterday, he told me that we see a lot of problems and mistakes that were done because somebody who was preparing the warranty deed, put the wrong legal description on and basically, when they filed the warranty deed, all of the sudden, it looked like that there could be a potential slander of someone else’s title.  And so, when you are looking at a legal description that all of the sudden should say Lot 6, Block 7 but because of the fact that they are having a bad day and looked cross-eyed into the computer and didn’t have enough coffee and hit Lot 7, Block 7, all of the sudden, we have lien on the wrong property.  This is where you see a lot this backlash.

HOST

Yes.  I saw cases, just speaking in California and LA.  They are now having thousands of cases a year of innocent people being arrested because they just clicked your name in a bank robber or a child molester’s area and now your life is ruined.  It so Byzantine that no one can fix it.

DAVE

It’s going to take a least a century to fix this problem if we can stop MERS now.  I do know that there is movement afoot by many legislators who try to cut the MERS equation out of the record dating process…

HOST

Then what does that do to all the derivatives based on it worldwide?

DAVE

The derivatives generally don’t have anything to do with what’s on the Land Records.  They two distinct entities but I mean, you literally could go out if you wanted to and if it was available.  You literally could bet against the weather.  You can say, “You know what?   It’s known that it’s going to rain tomorrow but I’m going to bet against the fact that it’s going to rain.  I bet that it’s going to be sunny.”  So that when it comes to find out that it is not sunny, I’m going to collect on that bet. This is kind of what they did when they structured these loans.

HOST

I know, but I mean, if MERS goes under, they’ll lose more of the cases.  My point is, all these frauds are based on this fraudulent filing system.  From what I have read, the big banks are still doing this.

DAVE

Yes, they are.  This is a thing that we have to – the only thing that I could do because I can’t give you legal advice, I’m a paralegal and not an attorney, but having looked at this from a journalist’s perspective, the only thing that we can do is say no to MERS mortgages.  Just say, “I’m sorry, I’m not going to sign any mortgage paperwork if MERS is involved.”

HOST

So anybody that’s going to buy a house, anybody that is going to sell a house, or reify or already has a house that has a mortgage, you need to get the book, Clouded Titles at inforwarshop.com and read it.  It’s amazing.

Now, continuing here.  First off, here is the toll-free number if you have a horror story, if you have question that he can generally speak to.  We have lawyers on and they’re not going to speak on your case because they don’t know the particulars, so we can’t give legal advice but just general comments or what you would do if you have horror stories, or stories in your family or questions, comments or success stories, we love to hear from you.  The toll-free number to join us is 800-259-9231.  This is a big deal.  It affects our whole economy.  Clouded Titles, Dave Krieger and the book, 800-259-9231.  We will start taking your calls coming up in the next segment.  We will take about 40 minutes of calls.

Continuing, what are some of the other patriot mythology things?  Because people call me, they hear me for 17 years, they send me some of these big stacks of legalese and if I just announced this and that and filed this and I file, magically, bond money that’s under my Social Security Number will be sent to me.

[http://www.youtube.com/watch?v=bR98D3B9lBE]

The Biggest Mortgage Fraud in History Exposed Pt. 5
mortgage expert witness

The Biggest Mortgage Fraud in History Exposed Pt. 4

But imagine old ladies or people who don’t know what they’re doing.  I am certainly no rocket scientist especially 14 years ago.  I have learned a lot since then.  But if you have seen the cases on the news, I mean, we played this here for like CNN where they took in Florida a $1.2 million house that has been paid for a decade plus before with cash, never had a securitized note that it had been sold out in the market.  Explain this to people and let’s get in, as you were, to the Patriot mythology.  Some of the stuff were, “Declare yourself as sovereign of the realm of the Lord and file it”, and they will come and arrest you.  Because that was no different than what the bankers are doing.  If they’re engaged in fraud, you don’t go file something else.  You need to get this book, folks, because this has got a bunch of the cases that actually have succeeded and there are different types of fraud going on.  Please continue, Dave.

DAVE

Sometimes it gets very ugly.  We see cases like the one in Stanislaus County, California where the woman is trying to protect her parents’ house.  It’s in the final stages of foreclosure and you know, these well-meaning souls out there, I call them “patriot paralegals” type up these documents thinking that they can use the UCC common law and basically, they move outside the system’s tools to attempt to enforce their way on the system.

HOST

And the system immediately recognizes that it’s not within “kosher” systems.

DAVE

Exactly and these is what causes the problems and as a result of her filing these documents in Stanislaus County, the District Attorney had her prosecuted.  We’ve have instances, numerous instances that I’ve run across in the state of Texas where somebody has gone in and had written and filed affidavits after the trustees deemed the property was foreclosed.  It was sold.  The trustees’ deed was filed and so instead of fighting it at a detainer hearing which would be the next thing, gets kicked out of your house and so we have to do a forcible detainer hearing.  What ends up happening is this particular person files a whole series of documents starting with an affidavit, rescinding everything that has already been foreclosed on.  Well, it’s a little late for that.  When she went to the county clerk to record it, there was somebody who didn’t even worked at the Clerk’s office that looked at the documentation and said, “I don’t think I’d file that step if I were you.”  She went ahead and did it anyway.  When I got to look at it, I was just like scratching my head going, this is paralleling the case in Stanislaus County.  A judge literally…

HOST

There are a bunch of scammers.  I know a bunch of patriot paralegals who are winning in court and who are having success.  But they’re following cases that have won. They’re following systems that are there.  There is success there as well, but there are a bunch of lawyers – I’ve seen countless cases now that are having victories.  The point is you want to go with real instruments that point out the fraud that the bankers are engaged in.  Don’t counter their fraud with your own made out garbage.

DAVE

Well, look at the Country Land Records as a sacred vault of documents that basically represents a person’s chain of title, from the time they took possession of it and were given a warranty deed all the way up to the current state and condition of title.  Through this chain of title assessment seminars and stuff that I do, I teach people to go in and analyze step by step from the warranty deed forward, to see how many times the chain of titles had been affected.  One of the things that we are seeing is, the more you go out and borrow, reify, reify, get a heel lock and reify; the worse condition the chain of title becomes, because you have more outside third parties interfering in the chain and filing documents that appear to be legitimate when they are anything but.

HOST

Let me ask you this, how bad does it get?  Because there are different economists, experts and lawyers and some of the lawyers that have won in court that you mentioned in your book.  They talk about how many times in derivatives the securitized loans are being sold and the fraud that these groups are holding.  How many times are they selling these titles on average?

The Biggest Mortgage Fraud in History Exposed Pt. 4
mortgage expert witness

The Biggest Mortgage Fraud in History Exposed Pt. 3

MERS, actually only is a computer database that, for all intents and purposes, tracks the sales of these repetitively as they occur on Wall Street between the parties.

The unfortunate thing about MERS, which it admits by the way, is that is not a substitute for the Land Records.  All it is, is an electronic database that is used by its membership subscribers which is kind of like the credit bureaus, if you ever wonder who inputs the data on the Credit Reports, well these are all these members subscribers of the credit bureaus that have access to this information.  The credit bureau is entrusted through the Fair Credit Reporting Act to basically keep track and make sure that everything that is being reported is accurate, which is why we have the dispute process.

You know, just to look just at the opposite, MERS does not have this kind of government regulation as due the banks.

HOST

So it is not a real deed registration. They created it so they could run these scams and sell the deeds over and over again.

DAVE

Well, they sell the mortgage notes over and over again.

HOST

Exactly.  How many times exactly?  But it is the same thing in the final equation?  Wouldn’t it?

DAVE

Well, actually no.  Your mortgage note, it was really sad to hear that…

HOST

I know they’re two different things but they come back to court and try to take your house with it?

DAVE

Exactly, but they try to come with part of the equation, not all of it.  This is one of the things that the attorneys who are studying these stuff and sharing this information with me, they’re telling me that they’re trying to get the entire equation put together and do it in such a way that the judge will believe it because right now…

HOST

So they are engaged in perjury, fraud and constructive fraud, but the issue here is that for years now, they’re getting clocks cleaning courts all over the place and that’s what you break down on your book.

DAVE

A lot of them have been.  We have a few significant cases where the homeowners have won.  We just had a Rico-style action happen down in the Gulf Coast of Florida.  We have an appellant attorney down there in Englewood that actually won a case.  It is Elizabeth Coursen and you know, it has been circulating around the Internet.  I’m sure that if you type in Coursen, you’ll see that case.  We actually defeated a motion to dismiss there on the appellant level, basically we’ve reversed it.

We are having a few victories and then of course, we have some of the sad consequences of what happens to people when they go on and try to fight this thing on their own and they file documents in the Land Records that are not appropriate.  As I was sharing with you before we went on the air Alex, this woman in California filed a document in the Land Records in an attempt to stop a foreclosure of her parents’ home.  Now, she was convicted of two felony counts and sentenced to a year in jail.

HOST

Stay there.  We are going to come back and break that down because there are people out there on the Internet that will tell you stuff like this.  This is the power of common law.  You are filing and swearing to something.  Let me tell you, it is fraud if it’s not true.  Now, the banks are doing it, but just because they’re engaged in fraud, doesn’t mean we now run to beat them and engage in fraud.

BREAK

Dave Krieger is the guest in our studio.  You have literally hundreds of trillions of dollars worldwide by the Chinese government, Russian government, European governments and pension funds.  This is also done in Europe to some extent, though not as bad as here, but some countries are even worse from what I’ve read to where it’s all just fraudulent. I remember, they make you put money in escrow to pay your property taxes.  On my first house like 14 years ago, I moved into this little-bitty house that I had put my money in.  About a year later, I was told that my mortgage had been sold two or three times  and it’ is finally Bank of America.  Every few months, it’s a new place to — back then, it was send the check in and then they said, “You don’t have $3,000 or whatever it was on escrow.”  I hadn’t checked the escrow.  We did.  They’ve taken the money and then they would let me know that they are starting proceedings to take the house that I have put money down on and have been paying on for a year and half or so.  I had to go get a lawyer and send them a letter and threaten Bank of America.

The Biggest Mortgage Fraud in History Exposed Pt. 3
mortgage expert witness

The Biggest Mortgage Fraud in History Exposed Pt. 2

Yes.   It is $50 trillion they made off derivatives.

HOST

By the way, you don’t add here, you are Vietnam veteran, combat veteran.  What was it like for you to see the country become this corrupt?

DAVE

You know what?  From a Vietnam vet’s point of view, it is sad that we have to see all these stuff that went over there.  I mean, first off, most of the vets in Vietnam didn’t even know why they were there.  In most of the stuff I was involved in was involved with Army security agencies and so I don’t talk about that.  It is just one of these things where as far as combat goes, you know, we didn’t see a lot of that.  We were more behind the scenes.

HOST

You were more of an Air America capacity. (Laughter)

DAVE

You got to love that.  You got away with that one.

HOST

Loving government, huh?

DAVE

I got to love it.  Air America, Black Ops, all of the other good stuff.  We know that there is some amount of that going on but…

HOST

It is a very loving government.

DAVE

The bigger problem we have now is trying to…

HOST

I have some family in Army security and you know what they did in the US?

DAVE

I’m ears.

HOST

I said it before.  I’m not going to get into it.  Anyways, we will be right back ladies and gentlemen, stay with us.

BREAK

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HOST

Here it is.  Deed, who really owns your home?  Over 700,000 or that 70 million?

DAVE

70 million.

HOST

70 million titles.  I can’t read that, it is so big.  The property is clouded.  Is yours one of them?  This book can help you find out and fix it.  I use information similar to this book to make sure with my house that I had that.  It goes on to break it all down, Clouded Titles, new updated edition, with case studies and cites and Dave Krieger is our guest.   It is available at infowarshop.com.

As I was saying, an invaluable book to have.

Okay Dave, this is a short segment, the long segment coming up.  Break down how the scam worked, what happened, what MERS is and let’s get into the usual suspects.  I mean, it seems like everything the Attorney General is involved in it, even back during Clinton, with his law firm.  He was Deputy Attorney General, getting all these change, where this is going and let’s go into the patriot mythology, getting a lot of people in trouble versus real stuff that’s in your book and then let’s take phone calls.

DAVE

Sure.  Well, Alex, the thing started in 1995.  It was a concept of how can we basically control, track and transfer these mortgage notes on Wall Street. So Fannie Mae, Freddie Mac, the Mortgage Bankers Association, American Land Title Association and all the major banks got together and came up with a game plan and they got Covington and Burling law firm in Washington, DC to issue an opinion letter and basically, what it did was it gave what we call Mortgage Electronic Registration Systems or MERS claims to do what it’s doing in America.

What in essence happens is that when you go to the closing table and you sign this piece of paper which represents a mortgage or deed of trust, there is an 18-digit MIN number or MERS Identification Number that is the property of MERSCORP Holding, Inc. that appears near the document title.   The things that we have been trying to do is to get people to recognize this, which is one of the fundamental reasons I wrote the book because if you knew what the consequences were of getting a MERS loan or MERS mortgage.  MERS doesn’t have anything to do with the actual mortgage note itself.

The Biggest Mortgage Fraud in History Exposed Pt. 2
mortgage expert witness

Finance: Why Study Finance???

So, the crisis of 2007, which we’re going to spend a longtime talking about, I just want to get back to that subject. So, that list of questions were the kinds of things that I used to teach for years before I was confident about my theory of crises, and this is the kind of questions you have to face all the time in hedge funds, and decisions you have to make and things you have to tell investors, and so that’s the basic part of the course, but I want to say more.

So, I want to talk about the crisis of 2007-2009. It started as a mortgage crisis. Now, how could it be that everything goes wrong in mortgages? I mean, they’re four thousand years old. The Babylonians invented mortgages.

What is a mortgage? You lend somebody money. They put up collateral. They don’t pay, you take the house or you take the guys life, he’s a slave or something, but it’s the same thing. You borrow money and the guy promises you can confiscate something if he doesn’t pay. Four thousand years and we screwed it up. How could that be? And why should a screw up in the mortgage market have such a big effect on the rest of the economy? Were a sub-prime mortgages a terrible idea? Was there some logic to it?  And how did we get out of the crisis?

How is it that everybody was saying this is the worst crisis since the Depression, maybe another Depression and things seem to have turned around. What is it that we did to get things to turn around? I don’t think we’re out of it yet, but things are a lot better than they were a year ago. So, what is it that the government did to turn things around? It didn’t do nearly enough, I think, but it did something. What exactly did it do?

Now, Shiller would talk about the whole thing was irrational exuberance. I’m going to say it’s all the leverage cycle, but anyway so that’s the mortgage crisis. Now, are free markets good? I want to talk about the argument.

The argument was first made by Adam Smith about the invisible hand. The modern mathematical argument is Ken Arrow’s, my thesis adviser. And of course, everybody knows that monopoly and pollution and things like that interfere with the free market and they have to be regulated. But, the financial markets, there’s no monopoly. As long as there’s no monopoly and there’s no pollution should the free market function there? So, I want to go over that argument and show you what was missing in it, as I said before.

And then lastly, we’re going to talk about Social Security and how could that system be going bankrupt. I mean, it just seem shocking. There’s a two trillion dollar trust fund that’s going to run out in 2024 or something and after that the system will be broke. So, how did it happen? Why is it broke? What can we do to fix it? So, George Bush said, “Well, it’s terrible. Even if we manage to sort of get the trust fund rehabilitated, young people like you are going to get a two percent rate of return. If you put your money in the stock market even allowing for the last crash, over the long haul, the returns have been six percent. So, it’s terrible Social Security. Something’s wrong with the system. We should privatize it and let young people like you put your money in stocks instead.”

Well, Gore, in the debate in 2000 said, “You can’t do that because then the old people who are expecting their money can’t get paid.” And both of them agreed that it was all the baby-boomers’ fault. People like me, we’re getting old, we’re going to retire. That’s why the system’s going to get broke. So, that’s the conventional wisdom. All three of those things are wrong, so we’re going to find out why.

So in summary, why study finance? It’s to understand the financial system, which is really part of the economic system. It’s to make informed choices. Is privatizing Social Security a good or bad thing? Is regulation of financial markets a good thing? The language that you learn is the language that’s spoken on Wall Street, and was created by professors and yet practitioners use it. For me, it’s incredibly fun, all these little puzzles. As J.P. Morgan said, “Money’s just a way of keeping score.” You have to figure out what something’s worth in the end and if you get it right, you’ve solved the puzzle right and it’ll help you make good financial decision in a pensioned career. That’s the standard reason to take Finance as a course.

Finance: Why Study Finance???

Finance: Leverage In Housing Prices Pt 3

So, I remember in ’98, for example, when there was a margin call. Our lenders called and said, “We want more money. We don’t believe that the assets are worth as much as they were and so the collateral is not covering the loan anymore.” And we said, “You can’t make a margin call. It’s not legal. You promised not to change the margins on us for six months. You can’t make a margin call.” And they said, “Blah, blah, blah, we don’t really know about that. We’re making a margin call.” So, we called up Warren Buffet and we said, “This is terrible. They’re making a margin call.

They can’t do this. We have great bonds. There’s nothing wrong with the band. They’re going to force us to sell all the bonds to pay them the money, and how can they force us to do that? They shouldn’t force us to do that. We’ve got great bonds, it’s a great business, it’s a great company and they’re going to run us out of business. You can’t let this happen. Warren Buffet, why don’t you buy part of the company and save us and you’ll get rich and it’ll be great.” He said, “Say that again.”

And we said, “Well, they’re going to force us to sell all the bonds on Tuesday to meet their margin call and we’ll get terrible prices for the bonds and we’ll be driven out of business, even though they’re great bond, just because they’re making a margin call. You can’t let this happen to us. Buy part of the business and save us and you’ll get rich. You’ll own part of a great company.” And he said, “Hell, I should just show up on Tuesday and buy the bonds.” So, we survived. I’ll tell you more about what we did. We survived that, no thanks to Warren Buffet, although he had a pretty good idea, and then we survived the last crash.

So, we survived all these crashes, but the fact is things go up, they crash, they go up, they crash, they go up. Could it all be my fault? I decided it can’t be all my fault. It’s got to be there’s something more basic at work and that’s why I’m going to tell you about the leverage cycle.

Now, of course, I realized that my pet theories may not turn out to be right, although I think more and more people are starting to think there’s something to it. So, I’m not going to spend a huge portion of the course just talking about my pet theories. I mean, I recognize that I have to teach partly what’s standard.

So, the course is going to be divided in the following way. I’m going to talk about the standard no-arbitrage Financial Theory, and I’m going to talk about it theoretically and mathematically and from a practical point of view, because helping to run the hedge fund – lots of the things that I’ll be teaching are things that we actually confronted in the hedge fund. So, you’ll get the standard financial theory course taught from a hedge fund perspective both theoretically and from a practical point of view.

On the other hand, I’ve lived now through three mortgage crises and so it seems silly for me not to describe how the mortgage market works, even through you’ll find almost none of that in any standard finance textbooks, how the mortgage market works and what’s going on and what happened in the crises and how we survived and how other people didn’t.

And I’ll talk about the leverage cycle. I’ll also spend some time – I think it’s quite important on the mathematical logic of the invisible hand argument. That’s the most important argument in economics that the free market does good for the economy and a huge number of people believe it. And part of that argument and part of the sort of hazy knowledge of that argument is what drives resistance to a lot of government programs. I mean, the government can only screw things up is what people generally believe. Is it a prejudice or is there some actual argument behind that? Well, I want to go over that argument and show you precisely how it works and how is doesn’t work in the financial sphere.

And then, I want to talk about Social Security. That’s one more program. That’s the biggest program in the budget. It’s as big as defense and the two of those are much bigger than everything else, vastly bigger than every other thing in the budget. So, I want to talk about Social Security and should it be privatized and should it be reformed and why did it go bankrupt. It’s also an interesting mathematical problem because Social Security critically involves the belief that things will go on forever, so there’s an infinity in it. Each generation, the young are paying for the old. Nobody would do that if they thought they were going to be the last generation on paying to the old, and when they got old nobody would help them. So, Social Security rests on this world going on forever which makes it mathematically interesting.

Anyway, I got interested in it from a theoretical point of view and then I got put on all these National Academy panels on Social Security and privatizing. And so, I know quite a bit about it so I might as well talk about something I know about, so that’s why I’m going to talk abut that.

Finance: Leverage In Housing Prices Pt 3

Mortgage Expert Witness In Court

post by: Lucas M.

A Mortgage Expert Witness must have a current and up-to-date knowledge of the industry around mortgages, considering areas of regulations, accepted standards, normal practices and operations performed. It is crucial that he/she dominates this information and just as important to convey it in a compelling and easy-to-understand manner.

The purpose of the testimony is to educate the jury and general audience at the court, therefore, must not only be thorough as to details and explanations given, but also, clear and to elucidate in a simple manner.

It is highly important that the individual not only relies on education but also personal work experience, field experience.  It is very useful that this individual will be a real estate attorney, since will be able to provide insight on real estate and mortgage topics, but will also understand court talk. The most common practice is that the witness provides a written testimony (in a clear, compelling manner) and also an oral testimony at the stand, in a persuasive style.

A Mortgage Expert Witness shall have the skill to provide forensic studies into loan audits; this will assure a complete gathering of information, in order to assemble a complete and thorough report. It is important to understand that, just as any other witness, he/she will be exposed to an increased amount of pressure while at the stand, and it is crucial to find a mortgage expert witness that can endure this kind of stress.

Mortgage Expert Witness In Court