The Mortgage Meltdown of 2006-2010: A Crisis of Fraud, Plausible Deniability, and Failed Legal Oversight

By Daniel Edstrom *
September 24, 2024

The mortgage meltdown of 2006-2010 wasn’t just the result of risky loans or Wall Street’s greed. It was a perfect storm where nearly every step of the process—from mortgage origination to foreclosure—was marred by misrepresentation, fraud, and systemic negligence. Central to this crisis was the culture of plausible deniability, where every participant could claim ignorance of wrongdoing, allowing the entire system to collapse without anyone being held fully accountable. And even when the crisis hit, the legal and regulatory system showed significant leniency toward financial institutions while homeowners were left to face severe consequences.

Perils of Pooling: OneWest

Perils of Pooling: OneWest

By Daniel Edstrom
DTC Systems, Inc.

The following article was posted by Neil F. Garfield of livinglies.wordpress.com and comes from the following URL: http://livinglies.wordpress.com/2013/07/31/perils-of-pooling-onewest/

Apparently my article yesterday hit a nerve. NO I wasn’t saying that the only problems were with BofA and Chase. OneWest is another example. Keep in mind that the sole source of information to regulators and the courts are the ONLY people who understand mergers and acquisitions. So it is a little like one of those TV shows where the only way they can get an arrest and conviction is for the perpetrator or suspect to confess. In this case, they “confess” all kinds of things to gain credibility and then lead the agencies and judicial system down a rabbit hole which is now a well trodden path. So many people have gone down that hole that most people that is the way to get to the truth. It isn’t. It is part of a carefully constructed series of complex conflicting lies designed carefully by some very smart lawyers who understand not just the law but the way the law works. The latter is how they are getting away with it.

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Occupy Leader Bratton Held on $250,000 Bail

Occupy Leader Bratton Held on $250,000 Bail

By Neil F. Garfield
Livinglies.wordpress.com

Occupy Leader Bratton Held on $250,000 Bail

Posted on June 23, 2013 by Neil Garfield

In my judgment, based upon the scant facts and documents supplied to me this far, there is no doubt that Bratton DID own the property and probably still does if the law is applied properly.

I know of cases where probable cause was found for Murder and the bail was set less than that. The calls and emails keep coming in and I can’t say that I have a total picture of what was really going on here. But, based upon what I have the current story is this:

Bratton is one of the leaders in the Occupy movement. It may be true that the Occupy movement has been put on a watch list or even the terrorist list which might account for the high bail. I have not been able to confirm that. But it seems that some inference of that sort was used in getting bail set at a quarter of a million dollars. If so, the government is confusing (intentionally or otherwise) the Occupy movement which is a political movement within the system allowed and encouraged by the U.S. Government — with the sovereign citizen movement for which I have taken a lot of heat.

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Modern Day Rosa Parks Jailed as Domestic Terrorist: God-Fearing Woman Exposes Foreclosure Fraud

Modern Day Rosa Parks Jailed as Domestic Terrorist: God-Fearing Woman Exposes Foreclosure Fraud

By Daniel Edstrom
DTC Systems, Inc.

From Charles Koppa

Modern Day Rosa Parks Jailed As Domestic Terrorist:

God-Fearing Woman Exposes Foreclosure Fraud

Who: Family and Friends of Barbara Bratton, Homeowners’ Rights Advocate

What: Pre-Preliminary Conference (Court Hearing)

When: Monday, June 24, 2014, 8:30 a.m.

Where: Dept. S22, San Bernardino Superior Court

351 N. Arrowhead, San Bernardino, CA. 92415 Map

Ignoring well-documented cases of fraud and abuse that continue to plague the home mortgage industry, the City of Ontario Police Department has instead set its sights on Barbara Bratton, 55, jailed as a domestic terrorist for challenging the validity of property records used to foreclose on her loan. A pre-preliminary conference is set for Monday, June 24 at 8:30am in San Bernardino Superior Court, 351 N. Arrowhead, San Bernardino, CA 92415. Homeowners’ rights advocates will be on hand to show support.

Background:

Barbara Bratton, a life-long resident of Ontario, California and an outstanding community member, was the victim of an illegal foreclosure on her family home of 40 years. Since 2008 she has conducted a tireless and well-documented campaign to expose the land title fraud on her home. An important piece in this complex case came last year, when a Lending Processing Services (LPS) executive pled guilty to filing more than a million fraudulent property documents in county recorder’s offices across the country. The fraud on the Bratton home was linked to the suit. Yet the LPS scheme masked a more insidious crime: the securitization of nearly all home loans since 1996, making it impossible to determine who, if anyone, actually owns the note on a home.

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Failure to Allege Lack of Default

Failure to Allege Lack of Default

By Daniel Edstrom
DTC Systems, Inc.

One of the main reasons many cases do not make it to daylight is because of the failure to allege lack of default. Despite many lawyers knowing that this is the case, and that there is no default, many still fail to make the allegation. On what basis can a lawyer allege lack of default for a homeowner facing foreclosure?

The Note and Security Instrument

The note is not the obligation but evidence of the obligation (for proof of this, in many cases the security instrument refers to the note as the evidence of the obligation). Lawyers usually describe the obligation arising when one party accepts money from another party. The note usually describes who the parties are that are obligated in the section titled OBLIGATIONS OF PERSONS UNDER THIS NOTE. This section of the note states:

If more than one person signs this Note, each person is fully and personally obligated to keep all of the promises made in this Note, including the promise to pay the full amount owed. Any person who is a guarantor, surety or endorser of this Note is also obligated to do these things. Any person who takes over these obligations, including the obligations of a guarantor, surety or endorser of this note, is also obligated to keep all of the promises made in this Note. The Note Holder may enforce its rights under this Note against each person individually or against all of us together. This means that any one of us may be required to pay all of the amounts owed under this Note.

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Control Fraud

Control Fraud

By: Jim Macklin
Secure Document Research

The term “control Fraud” was originally coined by Professor William Black, UMKC. A control fraud essentially starts as a core methodology for the exaction of some enterprise or movement, whether in commerce or at law. The instigators of a control fraud typically have their own self-interests as the motivation for participants to either ignore regulations or laws, or worse yet, to politically pressure or lobby for policy change that suits their agenda(s).

It mattered not that “liar loans”, defective underwriting processes, and securitization obviations were the norm during the run-up to 2008. The control fraud was in place to facilitate complete immunity from prosecution for the big money players at the top of Wall St. Every associated business that derived its income from the mortgage-backed bond sales was expected to follow the guidelines, as set by the fraudsters, or suffer the fate of not working. Everyone from bond insurers, hedge fund managers, realtors and property appraisers had to bend to the poisonous curve…or lose their competitive edge, and thus, their livelihood. When lying becomes the standard upon which your paycheck relies, you are a liar by proxy.

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SEC Corroborates Livinglies Position on Third Party Payment While Texas BKR Judge Disallows Assignments After Cut-Off Date

SEC Corroborates Livinglies Position on Third Party Payment While Texas BKR Judge Disallows Assignments After Cut-Off Date

By Neil Garfield
Garfield Gwaltney Kelley and White | LivingLies

Maybe this should have been divided into three articles:

Saldivar: Texas BKR Judge finds Assignment Void not voidable. It never happened.
Erobobo: NY Judge rules ownership of note is burden of the banks. Not standing but rather capacity to sue without injury.
SEC Orders Credit Suisse to disgorge illegal profits back to investors. Principal balances of borrowers may be reduced. Defaults might not exist because notices contain demands that include money held by banks that should have been paid to investors.

But these decisions are so interrelated and their effect so far-reaching that it seems to me that if you read only one of them you might head off in the wrong direction. Pay careful attention to the Court’s admonition in Erobobo that these defenses can be waived unless timely raised. Use the logic of these decisions and you will find more and more judges listening with increasing care. The turning point is arriving and foreclosures — past, present and future — might finally get the review and remedies that are required in a nation of laws.

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CandyLand

Eliot Spitzer and Kathleen Parker video discussing the Securitization diagram created by our own Dan Edstrom from DTC Systems.

Welcome to the Machine, Video Introduction

Welcome to the Machine, Video Introduction

By Daniel Edstrom
DTC Systems, Inc.

Economics 101 and Elizabeth Warren

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Full Day CLE Workshop Seminar: New Tools & Strategies for Distressed Homeowners

Full Day CLE Workshop Seminar: New Tools & Strategies for Distressed Homeowners

By Daniel Edstrom
DTC Systems, Inc.

8/25/2012 – Emeryville, CA – Full Day CLE Workshop Seminar: New Tools & Strategies for Distressed Homeowners

August 25th, 2012 – in San Francisco, California

Venue is the Hyatt House in Emeryville, CA http://emeryville.house.hyatt.com

This workshop has been approved for Minimum Continuing Legal Education (MCLE) by the State Bar of California. Total credit hours approved are 6.75 hours.

SECURE DOCUMENT RESEARCH<br>Auburn, CA 95603; ph: 530.888.9600

DTC Systems, Inc.

[email protected]

http://www.dtc-systems.net

Presented by:
Secure Document Research and DTC Systems, Inc.

http://www.dtc-systems.net

in Association with the Garfield Continuum and Neil F. Garfield, Esq. http://livinglies.wordpress.com

Visit us at http://www.dtc-systems.net

If you have any problems paying for this event, you can also pay by sending PayPal payments directly to [email protected]

Problems Registering? Call 530.888.9600

Presented by:
Secure Document Research and DTC Systems, Inc. in Association with the Garfield Continuum and Neil F. Garfield, Esq.
REGISTER EARLY, LIMITED SEATING IS AVAILABLE

Workshop Information
This is a comprehensive 1-day workshop CLE seminar for lawyers and paralegals: Deny and Discover: New Tools & Strategies for Distressed Homeowners

This workshop has been approved for Minimum Continuing Legal Education (MCLE) by the State Bar of California. Total credit hours approved are 6.75 hours.

Speakers:

1. James Macklin

Owner of Secure Document Research providing Securitization Research and Analysis. While working briefly within the securities industry, Mr Macklin has been focused on the study of economics and macro-economics for over fifteen years, gathering professional insight into Generally Accepted Accounting Principles, Financial Accounting Standards, business ethics, securitization and the effects of “Control Fraud” (William Black, Professor; U.M.K.C.,) on market analysis. Mr. Macklin is now committed to the education, en mass, of the legal industry as a tool for the protection of rights of the under-sophisticated investing and borrowing public at large. James Macklin has over 10,000 hours of research into Securitization, Title and Publicly Recorded Instruments.
[email protected]

2. Daniel Edstrom

President of DTC Systems, Inc, having been in Information Technology for the last 18 years as a Systems Architect and Software Architect.The transformation of complex business requirements to complex Wall Street Engineering was an easy one. Securitization Expert, Daniel Edstrom analyzes complex financial engineering securitization transactions as well as providing a failure analysis, with well over 10,000 hours of research into Securitization and Title. Besides working for his own company, Daniel is a Senior Securitization Analyst for the Garfield Firm (www.garfieldfirm.com). [email protected]

3. Neil Garfield

Neil F. Garfield, M.B.A., J.D., 61, is the winner of dozens of academic awards, a popular speaker, and author of technical treatises on law and economics. He has come out of retirement with a bang and financial institutions should take note. He knows them from the inside-out, who the deciders are, and how they arrived at a catastrophic scheme to defraud people, agencies, institutions and governments all over the world. For more information on Neil Garfield visit his website at www.livinglies.wordpress.com

4. Daniel Hanecak

Daniel Hanecak, B.A. J.D., will be speaking on motion practice and recent court experience. Mr. Hanecak is licensed in California and specializes in complex real property litigation. Mr. Hanecak is currently representing homeowners against banks and mortgage servicers for fraud and wrongful foreclosure.

*Both James Macklin and Daniel Edstrom are not attorneys.

THIS WORKSHOP AND/OR ANY MATERIALS DISTRIBUTED AT THE WORKSHOP IS NO SUBSTITUTE FOR LEGAL ADVICE FROM LOCAL COUNSEL LICENSED TO PRACTICE IN THE COUNTY AND STATE WHERE THE SUBJECT PROPERTY IS LOCATED. The information presented is for general information for you to understand the current context of foreclosures and to enable you to ask relevant questions of an attorney of your choosing. Any opinions presented here, along with facts, cases, examples or arguments, may not apply to your case. You should consult with local licensed counsel before employing them.

Venue:

Venue is the Hyatt House in Emeryville, CA

http://emeryville.house.hyatt.com

Registration:
Pre-Registration is required and can be done on this website or over the phone at 530.888.9600, with payment by PayPal to [email protected]. Tickets will be emailed after payment is completed.

Pricing:
$497.00 for the one day workshop.

This workshop has been approved for Minimum Continuing Legal Education (MCLE) by the State Bar of California. Total credit hours approved are 6.75 hours.

Workshop Agenda

8:30–9:15 Introduction: James Macklin / Daniel Edstrom

9:15–10:00 The Securitization Process and Chain of Title: James Macklin

10:00–10:15 Morning Break

10:15–11:00 Prospectus, Pooling/Servicing and Trust Agreements: James Macklin

11:00–11:45 Discovery / Procedure: Neil F. Garfield, J.D., M.B.A.

11:45 to 1:00 Lunch

1:00–1:45 Proprietary Currency, Appraisals and Ratings: Neil F. Garfield, J.D., M.B.A.

1:45–2:30 Law and Motion Practice / Recent Courtroom Experience: Daniel Hanecak, Esq.

2:30–2:45 Afternoon Break

2:45–3:30 Credit Enhancements in Action: Daniel Edstrom

3:30–4:15 Panel Q&A

** Schedule subject to change without notice **