October 7, 2011
Number one violation of the Securities Act is Banks cannot hold assets and claim Tax Exempt Status for their Mortgage Pass-through Trusts, i.e. R.E.M.I.C., as defined in Title 26, Subtitle A, Chapter 1 Subchapter M, Part II, 850-862.
Second is the security placed into Mortgage backed securities are mostly indorsed in Blank. Most, if not 99% of the security trusts are under New York Law that requires a completed transaction to the Note instrument. What that means is there must be by name indorsement to each holder of the Note. The plain ordinary meaning is if the Note is indorsed without a corporate signature "in blank" there is no complete transaction. The note cannot be securitized (deposited into the trust).
Third is the trustee's are not reporting that the Notes are not deposited to the trusts. This is a securities violation and fraud upon the investors.
Fourth is the Banks failed to disclose to the lender that the Note is not a Note it is a security because it has a life of more than nine months by true definition. See 15 U.S.C. 78c 10. Failure to disclose is fraud.
Furthermore, when a note is securitized it can no longer be a note, it is a security and no longer a Note instrument. Thus the Mortgage/Deed of Trust/Trust Deed is violated and no longer is the obligation of the contract.
The last and final fraud by the banks is taking the Notes that were securitized and supposedly deposited into the securitized trusts and then reclaiming the note and foreclosing on homeowners. The banks sold the Notes to the investors and can no longer claim the Notes, however, they are using "robosigners" and Mortgage Electronic Registration Systems, Inc. (MERS) to hide the fact the Bank sold the Note and are not entitled to it, yet using the Note the bank no longer owns to foreclose. This is fraud on the homeowner and the investors in the Mortgage backed securities.