Massive mortgage fraud swept under the ‘Fed rug’ – American taxpayers lose

The Leviticus 25 Plan would deliver liquidity to American families – providing the opportunity to pay down (or pay off) mortgages and other consumer/installment debt.

Instead,  we are living through a massive Federal Reserve program (QE3) to buy up Mortgage backed securities (MBS) to the tune of $40 billion per month.  Of course the banks and other mortgage holders are not ‘selling’ (dumping off) to the Fed their high-quality mortgages. They are naturally ‘transfering’ first those low-quality (and often fraudulent) MBS.  At face value, by the way.

In some instances (read below) there aren’t even any properties standing behind the mortgages.  Massive levels of mortgage fraud are getting swept under the rug, and in the process  relieving those responsible of any accountability.

What’s worse – to purchase the MBS ($40 billion / month – ongoing), the Fed is printing and debasing the Dollar.  And Americans are paying a stiff price… and will continue to pay for years ahead.

The Leviticus 25 Plan.  The time is now.

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Excerpts from:   “QE3 – Pay Attention If You Are in the Real Estate Market” by Catherine Austin Fitts

[Note:  The Mortgage Electronic Registration System (MERS) is a private company that electronically tracks and records ownership and servicing rights of mortgages across the country.]

“The Fed is now where mortgages go to die. Thousands of mortgages on homes that do not exist or on homes that have more than one “first” mortgage are now going to the Fed to disappear. Thousands of multifamily and commercial mortgages will be bought up as well. As this happens, trillions of dollars that have been amassed offshore will be free to come back into the US to buy up and reposition land, farmland, residential and commercial real estate and other tangibles.”

With documents shredded, criminal liabilities extinguished and financial institutions made whole, funds can return without fear of seizure.

QE3 proves beyond any shadow of a doubt that the extent of the fraud was as bad as I said it was. You can count up the bailouts and QE1, QE2, QE3 the numbers speak for themselves. The fraud was indeed in the many trillions of dollars. It was intentional. It was a plan.

Now, the $64,000 question for those whose house is underwater or whose mortgage is in default is whether or not you still owe on your mortgage.  Certainly, you still do as a legal matter.  If the bank has been paid off, arguably in some cases several times, why not you? Let’s see if Fannie, Freddie and the big banks are under orders to quietly pass through a portion of their largesse to troubled homeowners in amounts sufficient to unfreeze the market. If you are in a workout situation, you need to take notice. If enough mortgage write-offs flow through, the Democrats will quickly amass a lock on the elections in November.

If you are in the market to buy a home or other real estate, you also need to pay attention – a major turn is now underway. Watch to see how much the banks pass through to homeowners and property owners to see how fast and big the turn may be. Watch to see the inflow of funds from offshore. This is not only funds returning but investors around the world looking to exchange their dollars for tangible assets to protect themselves from debasement of the dollar denominated deposits and securities they hold. Watch to see what the renegotiation of federal tax policy and the reengineering of the federal budget in response to the “fiscal cliff” do to reposition housing and real estate prices and cost of financing for an inflow looking for large accumulations.

Finally, the way the Fed has engineered the Slow Burn to date is to continually offset monetary inflation with labor deflation. It is worth contemplating how much labor deflation will be required to offset QE3 and how sufficient additional labor deflation might be engineered. Ben Bernanke was quite clever to tie QE3 to unemployment. The problem has become the solution, which is the basis for QE-Infinity.”

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More…   The following is an excerpt from Catherine Austin Fitts’ Money & Markets segment on the September 20, 2012 Solari Report. The Solari Report is a subscription-based, weekly briefing via bridge call. Learn more and become a subscriber…

“With QE3, we are essentially being bought out with our own money…and unemployment is being used to facilitate this process in a very clever manner. Monetary inflation is currently being offset by labor deflation. The way you avoid collapse is by printing money and stealing assets. The way you avoid inflation is with labor deflation.”

QE3 is fundamentally different from QE1 and QE2 in that the Fed has not put a limit on what they’re going to do. They are not saying ‘We’re going to stop at such and such a time.’

One of the things they’re doing – and it’s very unusual – is tying QE3 to the unemployment rate. So they’re saying ‘We’re going to keep doing this until we’re not worried about unemployment anymore.’

What are they really doing?

The Fed has decided that it is going to once-and-for-all extinguish all mortgage fraud – buy it all up in the market – and in the process extinguish all criminal liabilities and also protect sovereign governments and institutional investors from around the world from losing money on the mortgage fraud, let alone bringing actions … whether it’s nuclear attacks or actions in the courts complaining about the fact that they were sold AAA mortgage paper. Instead, what they got was something that was fraudulently issued. And fraudulently issued with the blessings of the U.S. government and the central banks.

So, this is a “clean-up” action and I think what the Fed is really saying is ‘We’re going to keep buying this toxic paper and pulling it off of the balance sheets of the banks, pulling it off the balance sheets of Fannie and Freddie, and pulling it off the balance sheets of wherever it is until it’s extinguished.’

Why would they want to do this?

One of the reasons is so that the market can clear. Right now, a great deal of the U.S. real estate market is frozen because we have houses and real estate that are underwater. But we also have a whole world of things that can’t mark-to-market and that’s because there is so much fraud and so much criminal liability involved.

What this means is that the $27 Trillion plus dollars that have been pulled out of the economy are now free to flow back into the U.S. economy and start to accumulate in large amounts of real estate, which I think has already begun to happen, particularly with respect to farmland. But, they can do it with respect to everything.

The thing that makes Bernanke’s tying this to unemployment so politically brilliant and really so vicious is that, to date, the way that we have offset the monetary inflation that comes from quantitative easing and the loose monetary policy is with labor deflation. I have spoken many times about the “slow burn.” In fact, the slow burn is a process by which you create monetary inflation and offset it with labor deflation.

 

Bloomberg: “$64 billion” in delinquent mortgages for Bank of America

(Bloomberg, Dec 19, 2012 – excerpts) –  “Bank of America Corp. has amassed $64 billion of mortgages that are at least six months delinquent and have yet to enter foreclosure, more than twice the amount held by its four largest competitors combined.”

“Bank of America’s stockpile of deteriorating debt is mostly from its 2008 acquisition of Countrywide Financial Corp., once the nation’s largest mortgage provider. Wells Fargo & Co. (WFC), the biggest U.S. servicer, has $15.3 billion of such unpaid loans.”

“Bank of America has about 930,000 loans that are at least 60 days delinquent, down from 1.5 million from the peak in January 2010, Chief Executive Officer Brian Moynihan, 53, said during a Dec. 14 event at the Brookings Institution in Washington.”

“The bank also has a large portion of delinquent Federal Housing Authority mortgages…”  Note:  taxpayers are ‘on the hook’ for these FHA guaranteed loans (and the FHA recently announced that its reserve fund is ‘dry’ and they are on the verge of defaulting).

Note:  Bank of America’s $64 billion in delinquent mortgage represents an amount greater than half of their current market cap.

Full article: Bloomberg 12-19-12

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Nationwide, November 2012: RealtyTrac reports that 1,547,825 homes are under a foreclosure filing in the U.S..

The Leviticus 25 Plan would provide a mechanism for American families to ‘clean up’ delinquent mortgages and engage in successful ‘work out’ plans to regain ownership of their homes.

This would stanch the banks’ balance sheet bleeding and stabilize the housing market.

The Leviticus 25 Plan would pay for itself over a 10-15 year period.

No other plan can make that claim.  And no other plan can deliver the power of economic liberty – and do so much to serve the interests of individual U.S. citizens.

September 2012: U.S. finalizing “international assistance package” for Egypt – will forgive $1 billion in debt.

More from The New York Times:

“In addition to the debt assistance, the administration has thrown its support behind a $4.8 billion loan being negotiated between Egypt and the International Monetary Fund. Last week, it dispatched the first of two delegations to work out details of the proposed debt assistance, as well as $375 million in financing and loan guarantees for American financiers who invest in Egypt and a $60 million investment fund for Egyptian businesses.

The assistance underscores the importance of shoring up Egypt at a time of turmoil and change across the Middle East, including the relatively peaceful uprisings in Egypt and Tunisia, the still-unfinished transition in Libya, the showdown over Iran’s nuclear program and the war in Syria.

Given Egypt’s influence in the Arab world, the officials said, its economic recovery and political stability could have a profound influence on other nations in transition and ease wariness in Israel about the tumultuous political changes under way.”

Note:  The U.S. government is a 17% stakeholder in the International Monetary Fund.  What does that mean?

WSJ Sep 5, 2012:  “The IMF is akin to a global credit union. Members kick in money. The institution’s board lends it out.

Each member has a “quota”—that is, a financial stake in the IMF, expressed as a percentage—and contributes accordingly. The U.S. quota is 17.09%, followed by Japan at 6.12%, Germany at 5.98% and France and Britain at 4.94% each.

Does that mean that the U.S. is responsible for 17% of the IMF’s portion of the Greek package? Not exactly.

First, though all countries are theoretically responsible for investing in the IMF’s lending pool, not all of them have currencies that potential borrowers can use. (Think of Zimbabwean dollars or Venezuelan pesos.)

The IMF doesn’t say that outright. Instead, it uses the concept of “usable resources,” meaning it uses money from countries that are considered financially sound. About 21% of the quota contributions to the IMF were “non-usable,” according to the IMF, as of January 2010.

Because the U.S., Japan and big European countries are in the “usable” camp, they finance a larger percentage of IMF funding than their quota would suggest.”

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The U.S. taxpayer is ‘standing behind’ a large share of the $4.8 billion IMF loan package to Egypt – well over $800 million.  Egypt also receives $1.3 billion per year as a military assistance package from the U.S..  And they just received a $1 billion loan write-off from the U.S. Government.

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There is no legitimate reason why, if the U.S. Government can extend funds to foreign countries (no collateral involved) and forgive loans to those same countries (with no collateral obligation required), that U.S. citizens should not also be granted the same equal access to direct credit extensions.

After all, it is our money.

The Leviticus 25 Plan would pay for itself – over a 10-year period.  And it is fully collateralized.

The Leviticus 25 Plan.