Re-Securitizing Paper = Third-Party Junk Debt!

... and it's illegal ... and it can be stopped!

(BREAKING NEWS)— We all learn something new every day, right?

While I’m not making any promises here, the main theme of this short public/paid subscriber piece benefits everyone, especially those who are fighting Selene Finance LP out of Houston, who claims to be the servicer of a “newer dated” REMIC trust.

As I’ve explained before, third-party junk debt pools come straight out of hell. These Delaware-based statutory trusts with no EIN number (so they don’t have to report an income) are totally maintained by mortgage loan servicers, who retain attorneys to go to court and lie about the capacity of these trusts in an effort to do nothing more than:

1. Misleading the homeowner into signing a loan modification, which traps them into the re-securitized paper; and

2. Collecting payments on top of the loan modification with the pure intent on foreclosure of the home!

My sources are telling me that Selene Finance LP is one such entity that conducts business in the manner just described and they also inform me that 2-year bridge loans are being used to “buy them out” and expose their dirty deeds. The one thing the servicers don’t want is to be exposed in court. If you are facing Selene Finance, we need to know (contact us through Substack). All bets are off with these RE-REMICs!

The other part of the equation is the attorneys who represent the servicers. They are retained, carte blanche, to do whatever is necessary to misrepresent the truth in favor of their clients. In both deed of trust and mortgage states, the servicer’s employees manufacture false and misleading assignments in favor of the servicer-controlled RE-REMIC and proceed to conduct foreclosure proceedings after fleecing unsuspecting homeowners for thousands of dollars in cash all the while conducting what amounts to dual tracking in the foreclosure of the property.

When the property is sold, the servicer then retains all the proceeds, pays the parties involved in the foreclosure process itself … and then sticks the rest of the booty in its proverbial pocket (and no one is the wiser). It then proceeds to launder the money through its networks of servicing entities in order to continue and fund its “process”.

My contacts have the means to find the dirty deals on Wall Street. Re-securitization of already-securitized paper is illegal, especially after the information that was shared in Foreclosure Wars 2.0! In its very essence, securitization in of itself converts a loan application into a security (upon which the note is cancelled through a process called “realignment” per the Internal Revenue Code) and after the REMIC trust claiming to hold the note is CLOSED … the mortgage loan servicer takes a copy of the note out of the MERS System® and attempts to re-securitize it, even though the loan has been “derecognized” at its inception.

The homeowners are fooled into believing that they are “borrowing money” in the form of a “loan”. None the wiser, they show up at closing and the closing agent (a title company generally), who is “in on the scheme” indirectly, by arm’s length in the processing of the alleged “loan”, gets the homeowners to sign mortgage paperwork and notes that obligates them to make payments for 30 years on a promissory note that they themselves (the homeowners) created!

So … and not to make you (the reader) feel stupid … but you encumbered your own property by signing a note and mortgage that obligated you to make payments (by contract, ie. dirty paper) on a transaction in which the bank lent you nothing!

More simply explained:

1. You lent the bank your credit via your signature on the loan application;

2. You believed what you were told through some ingenious marketing, that you were “borrowing” money to buy a home, in the form of a “loan”;

3. The bank took your signature, created a security out of it and marketed it for sale in the secondary investment markets, making millions in the process;

4. You went to closing, unaware of what had transpired, ignored the 18-digit MERS MIN (mortgage identification number) on the contract, signed it, and obligated yourself to make payments on a promise you gave to the bank.

So the bank made money, closed out the note when the security was created (derecognition), and when realignment occurred as the security was dumped into the alleged mortgage pool (the note was already cancelled), the bank (through its servicer) started collecting payments from you on a note that was not only cancelled, but the security it was created from was being traded and making the players rich in the process!

The “process” violates all sorts of Generally Accepted Accounting Principles (GAAP). The schemers belong in jail but none of them are being prosecuted. The IRS won’t prosecute it. The DOJ only prosecutes cases where one rips off the government … and even that scheme only has to be mildly proven in order to create a whole new subclass of convicted felons … all in favor of the banks … who your government, whose officials you elect … get paid off or blackmailed to perpetuate the scheme for generations to come!

Now let’s talk about the judges that let these “banksters” get away with it … and the officers of the court (the attorneys for the servicers) who come before courts across the nation and lie to the judge in order to get the court’s permission to steal the home …