Truth and Proof

Truth and Proof

Wednesday, April 15, 2015

Truth and Proof "Your Mortgage Documents Are Fraudulent"

If you know about foreclosure fraud, the mass fabrication of mortgage documents in state courts by banks attempting to foreclose on homeowners, you may have one nagging question: Why did banks have to resort to this illegal scheme? Was it just cheaper to mock up the documents than to provide the real ones? Did banks figure they simply had enough power over regulators, politicians and the courts to get away with it? (They were probably right about that one.)

A newly unsealed lawsuit, which banks settled in 2012 for $95 million, actually offers a different reason, providing a key answer to one of the persistent riddles of the financial crisis and its aftermath. The lawsuit states that banks resorted to fake documents because they could not legally establish true ownership of the loans when trying to foreclose.

This reality, which banks did not contest but instead settled out of court, means that tens of millions of mortgages in America still lack a legitimate chain of ownership, with implications far into the future. And if Congress, supported by the Obama administration, goes back to the same housing finance system, with the same corrupt private entities who broke the nation’s private property system back in business packaging mortgages, then shame on all of us.

The 2011 lawsuit was filed in U.S. District Court in both North and South Carolina, by a white-collar fraud specialist named Lynn Szymoniak, on behalf of the federal government, 17 states and three cities. Twenty-eight banks, mortgage servicers and document processing companies are named in the lawsuit, including mega-banks like JPMorgan Chase, Wells Fargo, Citi and Bank of America.

Szymoniak, who fell into foreclosure herself in 2009, researched her own mortgage documents and found massive fraud (for example, one document claimed that Deutsche Bank, listed as the owner of her mortgage, acquired ownership in October 2008, four months after they first filed for foreclosure). She eventually examined tens of thousands of documents, enough to piece together the entire scheme.

A mortgage has two parts: the promissory note (the IOU from the borrower to the lender) and the mortgage, which creates the lien on the home in case of default. During the housing bubble, banks bought loans from originators, and then (in a process known as securitization) enacted a series of transactions that would eventually pool thousands of mortgages into bonds, sold all over the world to public pension funds, state and municipal governments and other investors. A trustee would pool the loans and sell the securities to investors, and the investors would get an annual percentage yield on their money.

In order for the securitization to work, banks purchasing the mortgages had to physically convey the promissory note and the mortgage into the trust. The note had to be endorsed (the way an individual would endorse a check), and handed over to a document custodian for the trust, with a “mortgage assignment” confirming the transfer of ownership. And this had to be done before a 90-day cutoff date, with no grace period beyond that.

Georgetown Law professor Adam Levitin spelled this out in testimony before Congress in 2010: “If mortgages were not properly transferred in the securitization process, then mortgage-backed securities would in fact not be backed by any mortgages whatsoever.”

The lawsuit alleges that these notes, as well as the mortgage assignments, were “never delivered to the mortgage-backed securities trusts,” and that the trustees lied to the SEC and investors about this. As a result, the trusts could not establish ownership of the loan when they went to foreclose, forcing the production of a stream of false documents, signed by “robo-signers,” employees using a bevy of corporate titles for companies that never employed them, to sign documents about which they had little or no knowledge.

Many documents were forged (the suit provides evidence of the signature of one robo-signer, Linda Green, written eight different ways), some were signed by “officers” of companies that went bankrupt years earlier, and dozens of assignments listed as the owner of the loan “Bogus Assignee for Intervening Assignments,” clearly a template that was never changed. One defendant in the case, Lender Processing Services, created masses of false documents on behalf of the banks, often using fake corporate officer titles and forged signatures. This was all done to establish standing to foreclose in courts, which the banks otherwise could not.

Szymoniak stated in her lawsuit that, “Defendants used fraudulent mortgage assignments to conceal that over 1400 MBS trusts, each with mortgages valued at over $1 billion, are missing critical documents,” meaning that at least $1.4 trillion in mortgage-backed securities are, in fact, non-mortgage-backed securities. Because of the strict laws governing of these kinds of securitizations, there’s no way to make the assignments after the fact. Activists have a name for this: “securitization FAIL.”

One smoking gun piece of evidence in the lawsuit concerns a mortgage assignment dated Feb. 9, 2009, after the foreclosure of the mortgage in question was completed. According to the suit, “A typewritten note on the right hand side of the document states: ‘This Assignment of Mortgage was inadvertently not recorded prior to the Final Judgment of Foreclosure… but is now being recorded to clear title.’”

This admission confirms that the mortgage assignment was not made before the closing date of the trust, invalidating ownership. The suit further argued that “the act of fabricating the assignments is evidence that the MBS Trust did not own the notes and/or the mortgage liens for some assets claimed to be in the pool.”

The federal government, states and cities joined the lawsuit under 25 counts of the federal False Claims Act and state-based versions of the law. All of them bought mortgage-backed securities from banks that never conveyed the mortgages or notes to the trusts. The plaintiffs argued that, considering that trustees and servicers had to spend lots of money forging and fabricating documents to establish ownership, they were materially harmed by the subsequent impaired value of the securities. Also, these investors (which includes the Treasury Department and the Federal Reserve) paid for the transfer of mortgages to the trusts, yet they were never actually transferred.

Finally, the lawsuit argues that the federal government was harmed by “payments made on mortgage guarantees to Defendants lacking valid notes and assignments of mortgages who were not entitled to demand or receive said payments.”

Despite Szymoniak seeking a trial by jury, the government intervened in the case, and settled part of it at the beginning of 2012, extracting $95 million from the five biggest banks in the suit (Wells Fargo, Bank of America, JPMorgan Chase, Citi and GMAC/Ally Bank). Szymoniak herself was awarded $18 million. But the underlying evidence was never revealed until the case was unsealed last Thursday.

Now that it’s unsealed, Szymoniak, as the named plaintiff, can go forward and prove the case. Along with her legal team (which includes the law firm of Grant & Eisenhoffer, which has recovered more money under the False Claims Act than any firm in the country), Szymoniak can pursue discovery and go to trial against the rest of the named defendants, including HSBC, the Bank of New York Mellon, Deutsche Bank and US Bank.

The expenses of the case, previously borne by the government, now are borne by Szymoniak and her team, but the percentages of recovery funds are also higher. “I’m really glad I was part of collecting this money for the government, and I’m looking forward to going through discovery and collecting the rest of it,” Szymoniak told Salon.

It’s good that the case remains active, because the $95 million settlement was a pittance compared to the enormity of the crime. By the end of 2009, private mortgage-backed securities trusts held one-third of all residential mortgages in the U.S. That means that tens of millions of home mortgages worth trillions of dollars have no legitimate underlying owner that can establish the right to foreclose. This hasn’t stopped banks from foreclosing anyway with false documents, and they are often successful, a testament to the breakdown of law in the judicial system. But to this day, the resulting chaos in disentangling ownership harms homeowners trying to sell these properties, as well as those trying to purchase them. And it renders some properties impossible to sell.

To this day, banks foreclose on borrowers using fraudulent mortgage assignments, a legacy of failing to prosecute this conduct and instead letting banks pay a fine to settle it. This disappoints Szymoniak, who told Salon the owner of these loans is now essentially “whoever lies the most convincingly and whoever gets the benefit of doubt from the judge.” Szymoniak used her share of the settlement to start the Housing Justice Foundation, a non-profit that attempts to raise awareness of the continuing corruption of the nation’s courts and land title system.

Most of official Washington, including President Obama, wants to wind down mortgage giants Fannie Mae and Freddie Mac, and return to a system where private lenders create securitization trusts, packaging pools of loans and selling them to investors. Government would provide a limited guarantee to investors against catastrophic losses, but the private banks would make the securities, to generate more capital for home loans and expand homeownership.

That’s despite the evidence we now have that, the last time banks tried this, they ignored the law, failed to convey the mortgages and notes to the trusts, and ripped off investors trying to cover their tracks, to say nothing of how they violated the due process rights of homeowners and stole their homes with fake documents.

The very same banks that created this criminal enterprise and legal quagmire would be in control again. Why should we view this in any way as a sound public policy, instead of a ticking time bomb that could once again throw the private property system, a bulwark of capitalism and indeed civilization itself, into utter disarray? As Lynn Szymoniak puts it, “The President’s calling for private equity to return. Why would we return to this?”

Update: This story previously suggested that banks settled this lawsuit with the federal government for $1 billion. That number is actually the total for a number of whistle-blower lawsuits that were folded into a larger National Mortgage Settlement. This specific lawsuit settled for $95 million. The post above has been changed to reflect this fact.

Truth and Proof "How Congress Has defrauded the American People"

 This is how Congress deceived the American people to submit to its FEDERAL jurisdiction. It's mostly by the use of ZIP codes. ZIP codes designate FEDERAL AREAS in States of the Union. Areas within States of the Union DON'T have ZIP codes! They are WITHOUT the United States, and are in United States of America. What they did was to divide USA into ZONES (Zone Improvement Plan = ZIP) for the purpose of designating federal areas.
For example, post offices are federal territories. They created ZIP codes for small areas such as a city, so that all post offices in that city would be in that ZIP code. And that ZIP code would also apply to other federal areas in that city or territory, such as military bases or federal buildings. So for example, all federal areas in city of Fresno would have one ZIP code, but that WOULD NOT include other areas in Fresno which are not federal. But if you were dumb and thought that federal regulations such as ZIP codes apply to people in your State, then you might start using ZIP codes, and so VOLUNTARILY submit yourself to federal jurisdiction that you were not subject to previously.

Furthermore, if you were a recipient of federal benefits such as Social Security, then you'd be receiving mail from the gov't with the ZIP code in your address, as the corporate gov't only has jurisdiction in federal areas, which are identified by ZIP codes, AND federal STATE designations such as CA, FL, NY, TX, etc.
And that means that if your address has a ZIP code, then it's in a federal area, where Congress has an EXCLUSIVE JURISDICTION, just as if you were living in District of Columbia. And THAT makes you a SUBJECT to federal law, such as federal drug and gun laws.

So until about 1963 when ZIP codes were created, most Americans were living in States of the Union, which were OUTSIDE of Congress's jurisdiction (WITHOUT the United States), except if you voluntarily admitted to be a federal US citizen, by, for example getting an SSN. So until 1963, most Americans were fairly free, as only those with SSNs were federal subjects.

And after 1963 most Americans voluntarily started using ZIP codes and thus voluntarily submitted themselves to federal jurisdiction.

But that's not all. The NEXT STEP in corralling the American people under gov't control, was that the federal gov't created FEDERAL STATES for certain areas. So if there was a State of the Union called California, Congress would create a FEDERAL state called CALIFORNIA for the same area. So California is a State of the Union, while CALIFORNIA is a State of the United States, which consists ONLY of federal areas within California. One is in the Republic, the other one is in the federal Democracy.

And these ZIP codes also were the reason that around 1972, the US Post Office was replaced by US Postal Service. The US Post Office was a NATIONAL organization  created on the authority of the US Constitution, but since by 1972 most Americans were using ZIP codes and so living in federal zones, it became possible to replace the NATIONAL Post Office with a federal/private/DOMESTIC US Postal Service.

Now, the USPS still can deliver to people OUTSIDE of the ZIP areas, in States of the Union, but by default they consider all places within territorial USA as Domestic areas with ZIP codes, so they will add the ZIP to the address, if you don't. So if you were sending a letter to someone in a State of the Union (without a ZIP code), you'd have to mark it either NON-DOMESTIC, or INTERNATIONAL MAIL, because States of the Union are FOREIGN to federal United States.

And the reason why they can do this, i.e. replace Constitutional organizations with PRIVATE organizations such as USPS of District of Columbia, is due to the number of their citizens. Now there are TWO KINDS of citizens in USA; State Citizens of the Republic, and federal citizens of District of Columbia AKA the United States.
So when more than 50% of citizens in USA are federal citizens, then they can replace Constitutional organizations such as the US Post Office, with federal ones, such as the US Postal Service. So if a large number of US citizens would return back to the Republic and reached over 50% of State Citizens, they'd have to restore the Constitutional Post Office.

Furthermore, having an address with a ZIP code is considered a prima facie evidence of your RESIDENT status in a State. What does that tell you? As we know that ZIP codes designate federal areas, then being a State resident means being a resident of a FEDERAL State, i.e. State of United States, which obviously is NOT a State of the Union. Consequently, if you have address WITHOUT a ZIP code, you're neither in a federal area, nor in a federal STATE, such as CALIFORNIA, and so might claim being a State Citizen or Inhabitant.

And all this is why they spell your name in ALL CAPS, as well as the STATE, and the PEOPLE OF THE STATE OF.... I.e., when you see these all-caps NAMES, it means that these are all persons and entities of the FEDERAL CORPORATE Democracy, and not people and organizations of the dejure Republic.
                                                    *******************
BTW, if Congress was honest and not intent on subjugating the American people, they'd ONLY assign ZIP codes to Post Offices. So that ZIP code would not apply to your address but to the Post Office that delivers mail to your house. But that's NOT the case. Most Post Offices are designated by a -9998 ZIP code extension, as you can see here:


I.e. a Post Office is not the place assigned the ZIP, it's just one of many places within the ZIP area that is considered a federal region.
Further proof of this is the fact that the IRS has adopted the ZIP code areas as Internal Revenue Districts. And as the IRS is a federal agency with no authority in States of the Union, it's obvious that the ZIP codes designate FEDERAL areas where federal agencies have jurisdiction, without having to register with the State as a foreign corporation.
And the official definition of ZIP codes is that "US ZIP codes are a type of postal code used within the United States to help the United States Postal Service (USPS) route mail more efficiently. "

And (federal) United States is NOT the same as United States of America, as you can see in 28USC1746, which says "If executed without the United States: “I declare (or certify, verify, or state) under penalty of perjury under the laws of the United States of America that the foregoing is true and correct." So USA is WITHOUT the United States. 
Here's some general info about ZIP codes:

                                                          ********************
So the SCHEME is that while no one forces you to use ZIP codes (they're NOT required for First Class and Priority Mail), in order to apply for gov't benefits, you're REQUIRED to provide it, thus submitting yourself to federal jurisdiction, as well as jurisdiction of the federal STATE. And that places you OUTSIDE of a State of the Union, and into the federal United States, where you no longer are protected by PUBLIC Laws of the Republic, but instead are subject to United States PUBLIC POLICY.

Truth and Proof "These documents are NOT secret a matter of Public Record.



1. The IRS is Not a US government agency. It is an agency of the IMF (International Monetary Fund) (Diversified Metal Products v I.R.S et al. CV-93-405E-EJE U.S.D.C.D.I., Public Law 94-564, Senate report 94-1148 pg. 5967, Reorganization Plan No. 26, Public Law 102-391)

2. The IMF (International Monetary Fund) is an agency of the U.N. (Black’s Law Dictionary 6th Ed. page 816)

3. The United States has NOT had a Treasury since 1921 (41 Stat. Ch 214 page 654)

4. The U.S. Treasury is now the IMF (International Monetary Fund) (Presidential Documents Volume 24-No. 4 page 113, 22 U.S.C. 285-2887)

5. The United States does not have any employees because there is no longer a United States! No more reorganizations. After over 200 years of bankruptcy it is finally over. (Executive Order 12803)

6. The FCC, CIA, FBI, NASA and all of the other alphabet gangs were never part of the U.S. government, even though the “U.S. Government” held stock in the agencies. (U.S. v Strang, 254 US491 Lewis v. US, 680 F.2nd, 1239)

7. Social Security Numbers are issued by the U.N. through the IMF (International Monetary Fund). The application for a Social Security Number is the SS5 Form. The Department of the Treasury (IMF) issues the SS5 forms and not the Social Security Administration. The new SS5 forms do not state who publishes them while the old form states they are “Department of the Treasury”. (20 CFR (Council on Foreign Relations) Chap. 111 Subpart B. 422.103 (b))



8. There are NO Judicial Courts in America and have not been since 1789. Judges do not enforce Statutes and Codes. Executive Administrators enforce Statutes and Codes. (FRC v. GE 281 US 464 Keller v. PE 261 US 428, 1 Stat 138-178)

9. There have NOT been any judges in America since 1789. There have just been administrators. (FRC v. 
GE 281 US 464 Keller v. PE 261 US 428 1 Stat. 138-178)

10. According to GATT (The General Agreement on Tariffs and Trade) you MUST have a Social Security number. (House Report (103-826)

11. New York City is defined in Federal Regulations as the United Nations. Rudolph Guiliani stated on C-Span that “New York City is the capital of the World.” For once, he told the truth. (20 CFR (Council on Foreign Relations) Chap. 111, subpart B 44.103 (b) (2) (2) )

12. Social Security is not insurance or a contract, nor is there a Trust Fund. (Helvering v. Davis 301 US 619 Steward Co. v. Davis 301 US 548)

13. Your Social Security check comes directly from the IMF (International Monetary Fund), which is an agency of the United Nations. (It says “U.S. Department of Treasury” at the top left corner, which again is part of the U.N. as pointed out above)

14.You own NO property!!! Slaves can’t own property. Read carefully the Deed to the property you think is yours. You are listed as a TENANT. (Senate Document 43, 73rd Congress 1st Session)

15. The most powerful court in America is NOT the United States Supreme court, but rather the Supreme Court of Pennsylvania. (42 PA. C.S.A. 502)

16. The King of England financially backed both sides of the American Revolutionary War.. (Treaty of Versailles-July 16, 1782 Treaty of Peace 8 Stat 80)

17. You CANNOT use the U.S. Constitution to defend yourself because you are NOT a party to it! The U.S. Constitution applies to the CORPORATION OF THE UNITED STATES, a privately owned and operated corporation (headquartered out of Washington, DC) much like IBM (International Business Machines, Microsoft, et al) and NOT to the people of the sovereign Republic of the united States of America. (Padelford Fay & Co. v The Mayor and Alderman of the City of Savannah 14 Georgia 438, 520)

18. America is a British Colony. The United States is a corporation, not a land mass and it existed before the Revolutionary War and the British Troops did not leave until 1796 (Republica v. Sweers 1 Dallas 43, Treaty of Commerce 8 Stat 116, Treaty of Peace 8 Stat 80, IRS Publication 6209, Articles of Association October 20, 1774)

19.

20. Britain is owned by the Vatican. (Treaty of 1213)

21. The Pope can abolish any law in the United States (Elements of Ecclesiastical Law Vol. 1, 53-54)

22. A 1040 Form is for tribute paid to Britain (IRS Publication 6209)

23. The Pope claims to own the entire planet through the laws of conquest and discovery. (Papal Bulls of 1495 & 1493)

24. The Pope has ordered the genocide and enslavement of millions of people.(Papal Bulls of 1455 & 1493)

25. The Pope’s laws are obligatory on everyone. (Bened. XIV., De Syn. Dioec, lib, ix, c. vii, n. 4. Prati, 1844 Syllabus Prop 28, 29, 44)

26. We are slaves and own absolutely nothing, NOT even what we think are our children. (Tillman vs. Roberts 108 So. 62, Van Koten vs. Van Koten 154 N.E. 146, Senate Document 438 73rd Congress 1st Session, Wynehammer v. People 13 N.Y. REP 378, 481)

27. Military dictator George Washington divided up the States (Estates) in to Districts (Messages and papers of the Presidents Volume 1 page 99 1828 Dictionary of Estate)

28. “The People” does NOT include you and me. (Barron vs. Mayor and City Council of Baltimore 32 U.S. 243)

29. It is NOT the duty of the police to protect you. Their job is to protect THE CORPORATION and arrest code breakers. (SAPP vs. Tallahassee, 348 So. 2nd. 363, REiff vs. City of Phila. 477 F. 1262, Lynch vs. NC Dept. of Justice 376 S.E. 2nd. 247)

30. Every thing in the “United States” is up for sale: bridges, roads, water, schools, hospitals, prisons, airports, etc, etc… Did anybody take time to check who bought Klamath Lake?? (Executive Order 12803)

31. “We are human capital” (Executive Order 13037) The world cabal makes money off of the use of your signatures on mortgages, car loans, credit cards, your social security number, etc.

32. The U.N. – United Nations – has financed the operations of the United States government (the corporation of THE UNITED STATES OF AMERICA) for over 50 years (U.S. Department of Treasury is part of the U.N. see above) and now owns every man, woman and child in America.
The U.N. also holds all of the land of America in Fee Simple.

The good news is we don’t have to fulfill “our” fictitious obligations. You can discharge a fictitious obligation with another’s fictitious obligation.

Serving Documents, Certificate of Service Information

If the other party in your case has answered or appeared, and you need to file additional documents in your court case, you will need to deliver a copy of the document to the other party. This is called serving the document.

You can serve the document on the other party if he or she does not have a lawyer. If the other party has a lawyer, you should serve the party’s lawyer.
Documents are often served on the other party by certified mail, return receipt requested, sent to the other party at his or her last known address (or to his or her attorney’s address). When you receive the green card, with the other party’s or the attorney’s signature, you and the Court will know that he or she received a copy of the document. The Rules of Civil Procedure also allow you to hand deliver or fax the document. You are also allowed to use a delivery service. Texas Rules of Civil Procedure, 21 (a).
Any document you serve on the other party must include a paragraph describing how you served the document. This is called a Certificate of Service.
A sample Certificate of Service looks like this:
Certificate of Service
I certify that a complete copy of the above was served on
, [PRINT the first and last name of the person you served.]
by : [Choose one]
certified mail, return receipt requested, certificate # ,
[PRINT certificate number from green card.]
at the following address: ,
fax, to the following number: ,
delivery service,
personal delivery,
on , [PRINT month, day and year.]
[SIGN your first and last names.] Petitioner, In Propria persona 
For more and how to put this in force EMAIL truthandproof7@gmail.com