Nationally renowned industry expert and expert witness, the late Neil Garfield-said: Too often, the very basic issues of "Legal Standing" are being ignored in courtrooms all across the country, causing all those purported case rulings to be void ab initio.
There is no default without injury…and there is no injury without an unpaid loan account that has been reduced in value because of a gap in scheduled payments…and there is no evidence of such injury until you see the unpaid loan account, not the payment history.
The investment bank is not a lender, the trustee is not a lender, the servicer is not a lender…none hold a “loan” account on an accounting ledger, they use borrowed money to make a payment to the closing table, they sell securitiesbased upon the homeowner’s issuanceof certain documents-they pay off the loan and they keep the bonds; there is no party in this sophisticated RICO scheme that can ever claim they lost money in this transaction-or will suffer a loss if they do not receive promised payments. In fact, unjust enrichment and property theft is the calling card. It’s the perfect fraud and swindle for windfall profits.
If a foreclosure indeed occurred … and knowing that the default insurance (and other means of reimbursement vehicles were initiated, such as credit default swaps, PMI, LPMI, MIP, title insurance, etc.) would pay out after Day 91 of the Borrowers’ default on their loans … the certificate holders were paid, assumedly by the servicer, right?
How then, did the certificate holders (for which the trustee represents to the court or in the notices of default at the time of the foreclosure) suffer financial harm? How did they suffer an actual injury-in-fact if they were being paid by the mortgage loan servicers every month?
DAY 91- this is a significant day in the history of mortgage repayment histories. Many a borrower has been told that in order to do a loan modification, they have to be 90 days late on their payments. There is an underlying reason for this.
On Day 91 is when the REMIC and its servicer get to “cash in on the chips”.
On average, a $500,000 mortgage loan will net the REMIC and its servicer $7,000,000 after Day 91!
How’s that possible?
Credit default swap payouts. Default insurance payouts. Defective title insurance payouts. PMI, LPMI and MIP payouts. And then, the servicer, who has been dutifully paying the certificate holders (investors) of these REMICs every month gets more gravy by foreclosing on the house, alleging default on the part of the borrower when they know in fact, they told the borrower to stop making the mortgage payments … or, even in light of that … made the mortgage payments (principal and interest) to the investors … so they were never in default in the first place!