Was There a Loan Contract?

Bastiat said that government is that great legal fiction wherein everyone tries to live at the expense of everyone else; yet, at some point we have to settle the bills; in peace

Livinglies's Weblog

In addition to defrauding the borrower whose signature will be copied and fabricated for dozens of “sales” of loans and securities deriving their value from a nonexistent loan contract, this distorted practice does two things: (a) it cheats investors out of their assumed and expected interest in nonexistent mortgage loan contracts and  (b) it leaves “borrowers” in a parallel universe where they can never know the identity of their actual creditor — a phenomenon created when the proceeds of sales of MBS were never paid into trust for a defined set of investors.  The absence of the defined set of investors is the reason why bank lawyers fight so hard to make such disclosures “irrelevant” in courts of law.

The important fact that is often missed is that the “warehouse” lender was neither a warehouse nor a lender. Like the originator it is a layer of anonymity in the lending…

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5 thoughts on “Was There a Loan Contract?

  1. Good piece.
    In SA we seem to have a different scenario. Should we make application for a loan, that is an offer to contract and all the ‘lender’ needs to do is furnish terms and conditions and there is a contract in place. No disclosure as to who the ‘lender’ actually is. We receive the benefit of a loan, with ALL strings attached.
    Applications and registrations, there lies the rub. B

      1. Loads of ‘elections’ coming up. I wonder how many will submit to be ruled by these ‘leaders’. Rhetorical obviously. The Soros funded DA should do well as our guy was expected to succumb to the scandals…. And the US corp is such a farce.
        Who said “If voting made a difference, we would not be allowed to do it”
        Thank you Brother, respect. B

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