ROL_2013-07-05_16k_Hr1-2.timecode

[00:00.000 --> 00:09.120]  You're listening to the Liberty Beat, your daily source for Liberty news and activist
[00:09.120 --> 00:10.120]  updates.
[00:10.120 --> 00:15.120]  Online at TheLibertyBeat.com.
[00:15.120 --> 00:18.880]  John Bush here with your Liberty Beat for July 5th, 2013.
[00:18.880 --> 00:26.440]  Gold opened today at $1,250, silver at $19.54, and bitcoin is trading at $75.
[00:26.440 --> 00:30.400]  For the Liberty Beat comes from Cabo Boggs, the first high-proof post-corn syrup free
[00:30.400 --> 00:35.920]  quick-serve restaurant in the country, serving Baja California-style burritos and non-GMO
[00:35.920 --> 00:44.720]  corn tortillas and chips, in Austin at 500 East Ben White Boulevard, or by phone at 512-432-1111.
[00:44.720 --> 00:46.400]  And now the news.
[00:46.400 --> 00:50.760]  Riots have sprung up in China for reasons that are not completely known at this time.
[00:50.760 --> 00:54.720]  Sources online are indicating that this is a popular uprising, while some media outlets
[00:54.720 --> 00:58.280]  are reporting that Muslim extremists are responsible.
[00:58.280 --> 01:03.400]  Reports from Beijing describe around 70,000 anti-terrorism police that have set up 24-hour
[01:03.400 --> 01:07.100]  patrols in the regional capital of Yerumqi.
[01:07.100 --> 01:12.360]  Every region in Inajan has an armed police detachment, with as many as four in Yerumqi.
[01:12.360 --> 01:17.360]  The People's Liberation Army reportedly has more than 10,000 troops in the region as well.
[01:17.360 --> 01:21.160]  Chinese media has accused the United States media of spreading misinformation about the
[01:21.160 --> 01:25.960]  riots and insists that the incident is strictly an act of terrorism by extremists and not
[01:25.960 --> 01:32.640]  supported by the people.
[01:32.640 --> 01:37.400]  Eurofin's Analytical Laboratory in Louisiana analyzed Coke and Pepsi products purchased
[01:37.400 --> 01:43.760]  from 10 states and found high levels of the cancer-causing chemical 4-methylamidozol.
[01:43.760 --> 01:47.640]  Coca-Cola and PepsiCo had promised to change their products' ingredients in response to
[01:47.640 --> 01:52.480]  a California law that requires labeling of products with known carcinogens as ingredients.
[01:52.480 --> 01:56.780]  The new tests, however, found Coke products and Pepsi products that have high carcinogen
[01:56.780 --> 02:01.240]  levels ranging from four to eight times higher than allowed in the California law.
[02:01.240 --> 02:04.660]  The Center for Environmental Health commissioned the study and will test the Pepsi products
[02:04.660 --> 02:11.200]  again in the spring.
[02:11.200 --> 02:16.960]  Thursday the Daily Le Monde reported that France's external intelligence agency, DGSE,
[02:16.960 --> 02:21.880]  is spying on the French public's phone calls, emails, and social media activity in France
[02:21.880 --> 02:23.360]  and around the world.
[02:23.360 --> 02:28.040]  The Le Monde stated that the agency is intercepting signals from computers and telephones in France
[02:28.040 --> 02:32.240]  and between other countries to create a map of, quote, who is talking to whom.
[02:32.240 --> 02:36.280]  France's seven other intelligence agencies are reported to have access to the data in
[02:36.280 --> 02:39.480]  order to track people whose communications seem suspicious.
[02:39.480 --> 02:43.720]  The report was based upon anonymous intelligence sources and remarks by intelligence officials.
[02:43.720 --> 02:48.280]  The claims are similar to the activities in America by the NSA and the British government
[02:48.280 --> 02:53.560]  that were recently exposed by former NSA contractor Edward Snowden.
[02:53.560 --> 02:57.000]  Support for the Liberty Beat comes from Beeler Education, providing admissions advice and
[02:57.000 --> 03:15.400]  homeschooling consulting for your family's educational needs.
[03:15.400 --> 03:38.400]  For more information on the Le Monde website, visit www.lemonde.gov.uk or visit www.lemonde.gov.uk.
[24:24.400 --> 24:29.400]  Sure. Alright, let's start with the basics.
[24:29.400 --> 24:40.400]  One, for anybody that is in foreclosure, alright, whether you're in a judicial state or a non-judicial state,
[24:40.400 --> 24:45.400]  the main question you should be asking is simple.
[24:45.400 --> 24:54.400]  Is this a proper party to come forth with this action? Yes or no?
[24:54.400 --> 25:00.400]  Because when you get down to semantics, that is what's important.
[25:00.400 --> 25:04.400]  Is this a proper party to come forth with this action?
[25:04.400 --> 25:15.400]  In the last four years, out of all of the hundreds and thousands of documents that I have seen,
[25:15.400 --> 25:23.400]  I've only seen two that were done close to being correct by the book.
[25:23.400 --> 25:34.400]  Two, and one was for like $1.2 million, another was for over $7 million, they were commercial property.
[25:34.400 --> 25:51.400]  Now, ever since the repeal of the Glass-Steagall Act, the securitization market, the RMBSs, the secondary market, has gone by the wayside.
[25:51.400 --> 26:01.400]  I can tell you 99.9% of all foreclosures that are done today, there is some sort of illegality about it.
[26:01.400 --> 26:10.400]  It is not done statutorily according to law as it should be done.
[26:10.400 --> 26:23.400]  In the states that are judicial, or they file a complaint, or they produce exhibits because they must reference a debt instrument,
[26:23.400 --> 26:35.400]  so many times this exhibit that is exhibited is a purported copy of a tangible promissory note.
[26:35.400 --> 26:45.400]  You need to look at this note that's being exhibited and have a better understanding of what it is you're looking at.
[26:45.400 --> 26:49.400]  Negotiable instruments fall under Article 3.
[26:49.400 --> 26:51.400]  That's Article 3 of the UCC.
[26:51.400 --> 26:55.400]  Article 3 of the Uniform Commercial Code.
[26:55.400 --> 27:04.400]  Now, in order to negotiate this note, there are certain requirements, a law that must be done.
[27:04.400 --> 27:12.400]  Now, what the banks purport by fancy work crafting is one thing.
[27:12.400 --> 27:19.400]  When you get into the actual definitions and the requirements of law, it's completely different.
[27:19.400 --> 27:25.400]  Many times you have the banks coming forth and telling you, this is a bearer instrument.
[27:25.400 --> 27:26.400]  I have a blank endorsement.
[27:26.400 --> 27:33.400]  I have the authority to enforce conditions over foreclosure.
[27:33.400 --> 27:39.400]  Foreclosure is just another name for collection of a debt.
[27:39.400 --> 27:46.400]  The problem is there is no holder in due course.
[27:46.400 --> 27:52.400]  What happens in generality is this.
[27:52.400 --> 27:57.400]  A tangible promissory note is created.
[27:57.400 --> 28:03.400]  A security instrument, tangible, is created.
[28:03.400 --> 28:05.400]  Just for clarification, define tangible.
[28:05.400 --> 28:09.400]  That is what most people call a wedding document, is that correct?
[28:09.400 --> 28:10.400]  Correct.
[28:10.400 --> 28:12.400]  It is the wedding original.
[28:12.400 --> 28:15.400]  You can physically touch tangible.
[28:15.400 --> 28:20.400]  You cannot physically touch or possess intangible.
[28:20.400 --> 28:26.400]  So when we're working with documents purported in real estate, they must be tangible.
[28:26.400 --> 28:30.400]  They must end writing.
[28:30.400 --> 28:35.400]  So negotiable instruments fall under Article 3.
[28:35.400 --> 28:41.400]  Now, when the instrument is created, all right, signatures are put on documents.
[28:41.400 --> 28:45.400]  After closing, what happens?
[28:45.400 --> 28:46.400]  It needs to be perfected.
[28:46.400 --> 28:48.400]  How do you perfect something?
[28:48.400 --> 28:52.400]  You perfect it through constructive notice.
[28:52.400 --> 29:03.400]  Constructive notice goes to recording at the county recorder's office, recording in the parish in which you reside, recording in the township in which you reside.
[29:03.400 --> 29:11.400]  So depending upon your physical location, there will be a recording made.
[29:11.400 --> 29:17.400]  Once the recording is made, it's recorded, indexed, and filed into public record, we now have perfection.
[29:17.400 --> 29:22.400]  We now have an encumbrance of property.
[29:22.400 --> 29:29.400]  Now, this goes back all the way prior to the American Revolution.
[29:29.400 --> 29:38.400]  In the 1600s, Plymouth Bay, Massachusetts, was a very few colony in order to have an assignment statute.
[29:38.400 --> 29:45.400]  By the time we had the American Revolution, all 13 colonies had assignment statutes on the books.
[29:45.400 --> 29:51.400]  The difference is the statutes are still there today.
[29:51.400 --> 29:52.400]  However, the bank...
[29:52.400 --> 29:54.400]  Okay, hang on, hang on, hang on.
[29:54.400 --> 29:55.400]  We're going to break.
[29:55.400 --> 29:56.400]  We're going to call Jeff Stevens.
[29:56.400 --> 30:01.400]  We'll be right back.
[30:01.400 --> 30:02.400]  Ha, ha, ha, ha, ha.
[30:02.400 --> 30:08.400]  You might be able to spot a phony laugh, but your body is easily fooled, and that's a very good thing.
[30:08.400 --> 30:15.400]  I'm Dr. Catherine Albrecht, and I'll be back in just a moment to tell you why even fake laughter is good medicine.
[30:15.400 --> 30:17.400]  Privacy is under attack.
[30:17.400 --> 30:20.400]  When you give up data about yourself, you'll never get it back again.
[30:20.400 --> 30:25.400]  And once your privacy is gone, you'll find your freedoms will start to vanish too.
[30:25.400 --> 30:30.400]  So protect your rights, say no to surveillance, and keep your information to yourself.
[30:30.400 --> 30:33.400]  Privacy, it's worth hanging on to.
[30:33.400 --> 30:40.400]  This public service announcement is brought to you by Startpage.com, the private search engine alternative to Google, Yahoo, and Bing.
[30:40.400 --> 30:44.400]  Start over with Startpage.
[30:44.400 --> 30:47.400]  When it comes to laughter, fake it till you make it.
[30:47.400 --> 30:52.400]  Even a forced ha, ha, ha can trigger the release of endorphins, the brain chemicals that make you feel good.
[30:52.400 --> 30:56.400]  What's more, laughter boosts your immune system and helps lower blood pressure.
[30:56.400 --> 30:59.400]  Here are some proven ways for working up a laugh.
[30:59.400 --> 31:02.400]  First, loosen up by shaking out your arms and legs.
[31:02.400 --> 31:04.400]  Then practice smiling, a fake smile will do.
[31:04.400 --> 31:08.400]  Then open your eyes wide and make laughing noises, ha, ha, ha.
[31:08.400 --> 31:11.400]  Finally, hold your stomach and rock back and forth.
[31:11.400 --> 31:19.400]  But be forewarned, pretend chuckles have a way of turning into bona fide belly laughs, and they're contagious.
[31:19.400 --> 31:29.400]  I'm Dr. Catherine Albrecht. More news and information at CatherineAlbrecht.com.
[31:29.400 --> 31:34.400]  This is Building 7, a 47-story skyscraper that fell on the afternoon of September 11.
[31:34.400 --> 31:36.400]  The government says that fire brought it down.
[31:36.400 --> 31:41.400]  However, 1,500 architects and engineers concluded it was a controlled demolition.
[31:41.400 --> 31:44.400]  Over 6,000 of my fellow service members have given their lives.
[31:44.400 --> 31:47.400]  And thousands of my fellow first responders are dying.
[31:47.400 --> 31:48.400]  I'm not a conspiracy theorist.
[31:48.400 --> 31:49.400]  I'm a structural engineer.
[31:49.400 --> 31:51.400]  I'm a New York City correction officer.
[31:51.400 --> 31:52.400]  I'm an Air Force pilot.
[31:52.400 --> 31:53.400]  I'm a father who lost his son.
[31:53.400 --> 31:56.400]  We're Americans, and we deserve the truth.
[31:56.400 --> 31:59.400]  Go to RememberBuilding7.org today.
[31:59.400 --> 32:03.400]  You feel tired when talking about important topics like money and politics?
[32:03.400 --> 32:04.400]  Sorry.
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[32:24.400 --> 32:28.400]  Unfortunately, that puts most Americans at risk of catching stupidity.
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[32:54.400 --> 33:00.400]  Side effects from using Brave New Books products may include discernment and enlarged vocabulary and an overall increase in mental functioning.
[33:00.400 --> 33:10.400]  You're listening to the Logos Radio Network at logosradionetwork.com.
[33:10.400 --> 33:24.400]  Yeah, I got a warrant and I'm going to serve them to the government and prosecute them.
[33:24.400 --> 33:26.400]  OK.
[33:26.400 --> 33:28.400]  OK, we're back.
[33:28.400 --> 33:29.400]  OK, hang on.
[33:29.400 --> 33:30.400]  We are back.
[33:30.400 --> 33:31.400]  This is Randy Kelton.
[33:31.400 --> 33:32.400]  There we see them.
[33:32.400 --> 33:33.400]  We groove our radio.
[33:33.400 --> 33:36.400]  And we're talking to our special guest, Joe Esquivel.
[33:36.400 --> 33:38.400]  OK, Joe, go ahead.
[33:38.400 --> 33:52.400]  All right, so we were talking about assignments and the assignment statutes that started prior to the American Revolution.
[33:52.400 --> 33:55.400]  So this is something that is not new today.
[33:55.400 --> 34:02.400]  The only difference is today we had what's called MERS.
[34:02.400 --> 34:08.400]  Now, MERS came about in the early 90s and actually started.
[34:08.400 --> 34:27.400]  And that is when Fannie Mae, Freddie Mac, Countrywide, a lot of parties, in addition to the Mortgage Bankers Association, got together and they created a private registration, national registry.
[34:27.400 --> 34:35.400]  Now, a registry is not the same as a recorder.
[34:35.400 --> 34:40.400]  They register transferable records.
[34:40.400 --> 34:47.400]  Now, transferable records pertain to personal property, not real property.
[34:47.400 --> 34:49.400]  Big difference.
[34:49.400 --> 35:01.400]  In pursuant to 15 U.S.C. 7003, all right, articles 3 and articles 9 are excluded from UEA and ESUN.
[35:01.400 --> 35:16.400]  So regardless of what is said, when they say we are assigning this, we are assigning that, right, everybody needs to go back to statutory requirements of law.
[35:16.400 --> 35:18.400]  What do the statutes say?
[35:18.400 --> 35:20.400]  I'm in default, all right.
[35:20.400 --> 35:24.400]  I get a notice of default if I'm in a nonjudicial state.
[35:24.400 --> 35:34.400]  Usually when I get a notice of default, usually around day 93, there is also an assignment done prior to that.
[35:34.400 --> 35:40.400]  There is a substitution of trustee if I'm in a nonjudicial state.
[35:40.400 --> 35:45.400]  Now, in the last couple of years, they're trying to get slick.
[35:45.400 --> 35:52.400]  So documents are filed prior to the NOD.
[35:52.400 --> 36:10.400]  Now, on front, in front of the courts, the notice of default, the substitution of trustee, and assignment of deed of trust,
[36:10.400 --> 36:23.400]  they file these documents only after a homeowner has gone into default through no fault of their own.
[36:23.400 --> 36:32.400]  For whatever reason, there is a default on the intangible payment obligation.
[36:32.400 --> 36:41.400]  Now, the homeowner is suddenly getting documents from companies he's never heard of.
[36:41.400 --> 36:47.400]  He's getting phone calls from parties that he has no idea.
[36:47.400 --> 36:56.400]  I signed a document that was purporting to be a tangible promissory note with countrywide home loans.
[36:56.400 --> 36:59.400]  I now have recon trust on documents.
[36:59.400 --> 37:05.400]  I'm now getting letters from Bank of America.
[37:05.400 --> 37:09.400]  So they're being pulled at all ends.
[37:09.400 --> 37:15.400]  And the homeowner does not have an understanding as to what is happening.
[37:15.400 --> 37:25.400]  What is happening is that the banks are trying to enforce collection of a debt.
[37:25.400 --> 37:32.400]  This debt was to be evidenced by the tangible promissory note.
[37:32.400 --> 37:38.400]  However, the debt many times has been sold.
[37:38.400 --> 37:48.400]  Now, there are requirements of law for sale, negotiation, and transfer of a tangible negotiable instrument.
[37:48.400 --> 37:52.400]  It is not followed.
[37:52.400 --> 37:58.400]  Now, what is sold is an intangible obligation.
[37:58.400 --> 38:02.400]  The right to future payments, that is what is sold.
[38:02.400 --> 38:05.400]  That can be sold all day long.
[38:05.400 --> 38:07.400]  I'll give you an example.
[38:07.400 --> 38:11.400]  Let's say that you own a strip shopping center.
[38:11.400 --> 38:13.400]  All right, you own a tilt-up.
[38:13.400 --> 38:20.400]  And within the small shopping center, you have 10 stores, and you have tenants in these stores.
[38:20.400 --> 38:27.400]  Now, you've fallen upon hard times, and you have more bills than you know what to do with.
[38:27.400 --> 38:30.400]  And your creditors are coming after you.
[38:30.400 --> 38:37.400]  And suddenly one day you have an epiphany, wait a minute, I have leases.
[38:37.400 --> 38:44.400]  I can sell the rights to those leases, the rights to future economic benefits.
[38:44.400 --> 38:48.400]  And so you do that, and it's legal.
[38:48.400 --> 38:56.400]  All right, yes, you still own a brick-and-mortar building, but you've sold the rights to future payment.
[38:56.400 --> 39:01.400]  Okay, so now let's go back to the tangible promissory note.
[39:01.400 --> 39:09.400]  The tangible promissory note has a component within it, and it's called the general obligation, the promise to pay.
[39:09.400 --> 39:17.400]  I, Joe Westcoville, promise to pay for the next 360 months, $1,000 a month to countrywide home loans.
[39:17.400 --> 39:29.400]  It is that promise to pay which defines the debt, the legal obligation.
[39:29.400 --> 39:35.400]  That is what the security instrument attaches itself to.
[39:35.400 --> 39:43.400]  Without that debt, there is nothing to attach to.
[39:43.400 --> 39:55.400]  If you look a little deeper, and a simple case one can go to would be the Kemp versus Countrywide, K-E-M-P versus Countrywide.
[39:55.400 --> 40:03.400]  And when you go to the case, go to the deposition of Linda DiMartini, page 14.
[40:03.400 --> 40:11.400]  She states, Countrywide is not in the business of selling notes.
[40:11.400 --> 40:17.400]  Countrywide is in the business of selling beneficial rights.
[40:17.400 --> 40:20.400]  Now, what does that mean?
[40:20.400 --> 40:29.400]  Well, what that means is they're selling the right to collect future payments.
[40:29.400 --> 40:32.400]  That's all they're selling.
[40:32.400 --> 40:34.400]  They're not selling the documents themselves.
[40:34.400 --> 40:43.400]  Correct. If they were selling the document itself, they would have to follow statutory requirements of law.
[40:43.400 --> 40:50.400]  And that would require negotiation, transfer, and delivery of the entire instrument.
[40:50.400 --> 41:01.400]  Because there is only one statute that pertains to acquiring rights within the Uniform Commercial Code and Article 3.
[41:01.400 --> 41:08.400]  So by not selling the entire instrument, they're just selling a partial interest.
[41:08.400 --> 41:14.400]  Now, all one needs to do is look at their security instrument.
[41:14.400 --> 41:19.400]  If you're in Texas, you're going to look at Covenant 20th of the Deed of Trust.
[41:19.400 --> 41:25.400]  Okay, so if you're in Georgia, you're going to have a security deed.
[41:25.400 --> 41:28.400]  If you're in Florida, you're going to have a mortgage.
[41:28.400 --> 41:39.400]  Now, prior to the repeal of the Glass-Steagall Act and when Wall Street joined Main Street,
[41:39.400 --> 41:46.400]  the main players that were out playing this game were Freddie and Fannie and Ginny May.
[41:46.400 --> 41:57.400]  So in order for Freddie and Fannie to allow somebody into the game, you would have to use Freddie-Fannie Uniform Documentation.
[41:57.400 --> 42:05.400]  So it became a source if somebody wanted to do business with Freddie Mac, Fannie May, or Ginny May,
[42:05.400 --> 42:12.400]  they would use what's called Freddie Mac-Fannie May Multistate Identification, or instruments.
[42:12.400 --> 42:21.400]  So all 50 states have their own uniform instruments that they use that were set up with Freddie Mac and Fannie May.
[42:21.400 --> 42:29.400]  Now, if one were to go to Covenant 20 of the security instrument, meaning the Deed of Trust or the mortgage,
[42:29.400 --> 42:43.400]  Covenant 20 reads, this note or a partial interest of the note may be sold one or more times together with the security instrument.
[42:43.400 --> 42:53.400]  Again, this note or a partial interest of the note may be sold one or more times with the security instrument.
[42:53.400 --> 43:03.400]  That's a fallacy. The security instrument cannot follow a partial interest of the note.
[43:03.400 --> 43:14.400]  It must follow the entire tangible promissory note that's been properly perfected.
[43:14.400 --> 43:22.400]  So this verbiage is fraud in the factum. Why?
[43:22.400 --> 43:33.400]  Because the homeowner, through consciousness of innocence, had no realization that this was an impossibility.
[43:33.400 --> 43:42.400]  This could not happen. The attorneys failed to see it.
[43:42.400 --> 43:52.400]  Okay, hang on a minute. We're about to go to break. This is Randy Kelton, Debbie Stevens, Rue de la Radio, calling number 512-646-1984.
[43:52.400 --> 44:01.400]  But we're going to keep the phones closed until the end of the second hour. We'll be right back.
[44:01.400 --> 44:10.400]  Mr. President, members of Congress, you've been making a lot of noise about taking our guns away, but you might want to review history.
[44:10.400 --> 44:19.400]  1835, Gonzales, Texas Territory. The authorities wanted to confiscate the big gun that protected that colony.
[44:19.400 --> 44:30.400]  You know what the people said? Come and take it. Because they were willing to fight for their freedom and their guns. So are we.
[44:30.400 --> 44:42.400]  Come and take it. If you want it. Come and take it. If you think you can. Come and take it. But I want you. You'll have to buy it from my cold dead hands.
[44:42.400 --> 44:53.400]  We want the freedom that God gave us. So you best not cross that line. If you want this gun, you gotta come through us and take it.
[44:53.400 --> 45:00.400]  One shot at a time. Just like Gonzales, we're keeping our guns.
[45:00.400 --> 45:06.400]  Are you the plaintiff or defendant in a lawsuit? Win your case without an attorney with Jurisdictionary.
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[46:21.400 --> 46:26.400]  Thank you for watching.
[46:52.400 --> 46:54.400]  Okay, we are back.
[46:54.400 --> 47:01.400]  Randy Calp, James Stevens, Rule of Law Radio, and we're going to keep the phones off until the third hour today.
[47:01.400 --> 47:07.400]  So if you're thinking of calling, I keep giving up the call number.
[47:07.400 --> 47:10.400]  It's habit, it just kind of sneaks its way in and out.
[47:10.400 --> 47:13.400]  I'll try not to do that at the end of this session.
[47:13.400 --> 47:15.400]  I'm old and you get stuck in old habits.
[47:15.400 --> 47:19.400]  Okay, we're going to go back to Joe Esquivel.
[47:19.400 --> 47:22.400]  You were talking about Moritz, Joe.
[47:22.400 --> 47:26.400]  Yeah, well, we were talking about Covenant 20 and fraud in the fact of.
[47:26.400 --> 47:28.400]  All right.
[47:28.400 --> 47:39.400]  Now, as I was saying, the homeowner did not have the educational resources that the bank had.
[47:39.400 --> 47:48.400]  They did not have the educational financial background that was needed to understand the documents they were signing
[47:48.400 --> 47:56.400]  because at closing, you're looking at normally anywhere between 60 and 80 documents that get signed.
[47:56.400 --> 48:05.400]  So when you go to closing and you have the stack of papers in front of you and they say, excuse me, Mr. Esquivel, would you like to read them?
[48:05.400 --> 48:08.400]  And I asked them, did you look at them?
[48:08.400 --> 48:09.400]  Are they okay?
[48:09.400 --> 48:10.400]  Yeah, I looked at them.
[48:10.400 --> 48:12.400]  They're okay.
[48:12.400 --> 48:25.400]  Well, the truth is that very few people have actually read it, and if they did read it, none of them had an understanding as to what was being done.
[48:25.400 --> 48:35.400]  It had the title companies understood, and they should have had an understanding because this pertains to title.
[48:35.400 --> 48:37.400]  Everything pertains to title, not about ownership.
[48:37.400 --> 48:41.400]  It's all about rights, rights acquired.
[48:41.400 --> 48:44.400]  All right.
[48:44.400 --> 48:45.400]  Go on, I'm sorry.
[48:45.400 --> 48:47.400]  Hang on just a second, Joe.
[48:47.400 --> 48:48.400]  Let me step in a second.
[48:48.400 --> 48:53.400]  Would I prepare a claim?
[48:53.400 --> 49:05.400]  One of the first things we argue right at the beginning is that the lender exercised due diligence in as much as the lender is
[49:05.400 --> 49:15.400]  is statutorily determined to be nonsiccated purchaser in the matter of a residential mortgage.
[49:15.400 --> 49:31.400]  The plaintiff exercised due diligence by only dealing with licensed professionals and therefore had a right to an expectation of good faith and fair dealing.
[49:31.400 --> 49:36.400]  That's in there from the time when the court says do this.
[49:36.400 --> 49:42.400]  Of course I read it, gobbledygook to me, but I had a right to trust him because you licensed him.
[49:42.400 --> 49:44.400]  Okay, up and up.
[49:44.400 --> 49:45.400]  All right.
[49:45.400 --> 49:47.400]  I agree with you.
[49:47.400 --> 49:52.400]  And that is where the fraud and the fact and lies.
[49:52.400 --> 49:53.400]  All right.
[49:53.400 --> 50:05.400]  The homeowner placed their trust that the documents that were being signed were legal and lawful.
[50:05.400 --> 50:19.400]  However, that sentence is a complete contradiction to the requirements of law for negotiation and transfer and delivery of a negotiable instrument.
[50:19.400 --> 50:20.400]  All right.
[50:20.400 --> 50:28.400]  Now while the mortgage does follow the note, okay, that's true.
[50:28.400 --> 50:36.400]  The mortgage follows a properly secured note upon transfer and delivery and negotiation.
[50:36.400 --> 50:37.400]  All right.
[50:37.400 --> 50:43.400]  However, that security instrument cannot follow up a partial interest.
[50:43.400 --> 50:56.400]  The partial interest being the intangible obligation or the general obligation, the right to collect future economic payments.
[50:56.400 --> 50:58.400]  Very few people have an understanding.
[50:58.400 --> 51:00.400]  They keep saying, well, I know something isn't right.
[51:00.400 --> 51:02.400]  Let's go back to contract law.
[51:02.400 --> 51:03.400]  Correct.
[51:03.400 --> 51:05.400]  Go back to contract law.
[51:05.400 --> 51:06.400]  All right.
[51:06.400 --> 51:07.400]  Look at the document.
[51:07.400 --> 51:10.400]  We understand what their intent was.
[51:10.400 --> 51:21.400]  The intent was to bifurcate the tangible from the intangible, was to create a separation.
[51:21.400 --> 51:27.400]  However, if you have a separation, all right, it's like putting Humpty Dumpty on the wall.
[51:27.400 --> 51:30.400]  When Humpty Dumpty falls off, you cannot get back on.
[51:30.400 --> 51:31.400]  Okay.
[51:31.400 --> 51:43.400]  If you go to Carpenter v. Logan, 1872, all right, the U.S. Supreme Court stated the note and the mortgage are inseparable.
[51:43.400 --> 51:48.400]  The former as essential, the latter as an incident.
[51:48.400 --> 51:52.400]  An assignment of the note carries the mortgage with it.
[51:52.400 --> 52:00.400]  While an assignment of the latter alone is a novelty, the mortgage can have no separate existence.
[52:00.400 --> 52:04.400]  When the note is paid, the mortgage expires.
[52:04.400 --> 52:10.400]  It cannot survive for a moment the debt which the note represents.
[52:10.400 --> 52:15.400]  This dependent and incidental relation is a controlling consideration.
[52:15.400 --> 52:16.400]  All right.
[52:16.400 --> 52:19.400]  So now let's take that apart.
[52:19.400 --> 52:20.400]  All right.
[52:20.400 --> 52:25.400]  So we're talking about the mortgage and the note, and it's as inseparable.
[52:25.400 --> 52:26.400]  All right.
[52:26.400 --> 52:29.400]  And the assignment of the note carries the mortgage with it.
[52:29.400 --> 52:38.400]  So in other words, the sale of the tangible promissory note does carry the mortgage or the deed of trust with it.
[52:38.400 --> 52:50.400]  And pursuant to 9312, there is a temporary perfection afforded the buyer of the tangible promissory note.
[52:50.400 --> 52:56.400]  This temporary perfection is for a period of 20 days.
[52:56.400 --> 53:02.400]  The security interest is temporary perfected.
[53:02.400 --> 53:15.400]  Now, on day 21, should that tangible instrument not be perfected by an operational law, it becomes bifurcated.
[53:15.400 --> 53:21.400]  Again, there is a temporary perfection afforded the buyer.
[53:21.400 --> 53:26.400]  And the reason is to give him time to do his due diligence to do the assignment.
[53:26.400 --> 53:36.400]  Because when there is a sale of a tangible instrument, a tangible promissory note, all right, what must happen?
[53:36.400 --> 53:44.400]  In parallel, there must be an assignment of the security instrument.
[53:44.400 --> 53:47.400]  We have to ask ourselves, what is this instrument Joe's talking about?
[53:47.400 --> 53:50.400]  What is the entire instrument?
[53:50.400 --> 54:05.400]  The entire instrument would be the tangible promissory note, the payment intangible, which is the right to receive future payments, and the security instrument.
[54:05.400 --> 54:11.400]  And these items together comprise the entire instrument.
[54:11.400 --> 54:16.400]  The entire instrument is a vehicle.
[54:16.400 --> 54:24.400]  If you only have part of the vehicle, then you only have a partial cause of action.
[54:24.400 --> 54:34.400]  When it talks about the mortgage can have no separate existence, when the note is paid, the mortgage expires.
[54:34.400 --> 54:39.400]  It cannot survive for a moment the debt for which the note represents.
[54:39.400 --> 54:50.400]  So when that debt has been sold, the right to receive future economic payments is sold from party A to party B.
[54:50.400 --> 54:55.400]  There is no more debt to attach to.
[54:55.400 --> 54:58.400]  I'll use me as an example.
[54:58.400 --> 55:08.400]  In bankruptcy court, I had discharged the debt obligation on our house.
[55:08.400 --> 55:21.400]  Now, upon discharging that obligation, the security instrument cannot survive a moment as there is no debt to attach to.
[55:21.400 --> 55:39.400]  Now, while I would agree that a properly secured lien would survive a bankruptcy, if that lien was not perfected prior to the filing of bankruptcy, what survives?
[55:39.400 --> 55:46.400]  You have a piece of paper that purports to be a tangible promissory note, but there is no debt.
[55:46.400 --> 55:50.400]  So what survives?
[55:50.400 --> 56:10.400]  If one were to go to BK rule 3001, subsection D as in dog, it states, any party coming forth with a secured claim must be evidenced with a properly perfected lien.
[56:10.400 --> 56:23.400]  So that means if a creditor of mine was to lay a claim such as Bank of America did saying, I'm the holder in due course, I have a claim to it.
[56:23.400 --> 56:24.400]  All right, fine.
[56:24.400 --> 56:32.400]  Then that means that you must have been having a properly perfected lien prior to the filing of my bankruptcy.
[56:32.400 --> 56:35.400]  They didn't.
[56:35.400 --> 56:55.400]  Joe, if I might break in here for just a second, I think it'd be important to outline that there is a critical difference here between who is authorized to collect, quote unquote, collect payments and who is authorized to receive payments.
[56:55.400 --> 56:57.400]  Correct.
[56:57.400 --> 57:03.400]  Authorized, again, you're going back to acquiring rights.
[57:03.400 --> 57:09.400]  When they come after your house, you're not dealing with the real party in interest, the guy who is entitled to receive payments under the documents.
[57:09.400 --> 57:13.400]  You're dealing with a debt collector who is trying to collect payments.
[57:13.400 --> 57:14.400]  Correct.
[57:14.400 --> 57:18.400]  And even then, there is no holder in due course.
[57:18.400 --> 57:19.400]  Correct.
[57:19.400 --> 57:30.400]  Having a right to collect payment is not the same as having a right to enforce collection of the obligation.
[57:30.400 --> 57:33.400]  Again, you're apples and oranges.
[57:33.400 --> 57:42.400]  When someone says, I'm coming forward to collect a debt, how did you get permission to collect this debt?
[57:42.400 --> 57:44.400]  I'm the servicer.
[57:44.400 --> 57:48.400]  Okay, so what did you acquire that gave you proof?
[57:48.400 --> 57:52.400]  That gave you the, you know, the right.
[57:52.400 --> 57:56.400]  Again, you go back to the basics, we have to acquire rights.
[57:56.400 --> 57:59.400]  It's not about ownership.
[57:59.400 --> 58:08.400]  Many times I understand that banks comport and they claim that they own this or they own that.
[58:08.400 --> 58:11.400]  Or they have something assigned to them.
[58:11.400 --> 58:17.400]  Again, what is the whole purpose of an assignment?
[58:17.400 --> 58:18.400]  Okay, hang on.
[58:18.400 --> 58:22.400]  We're about to go to our top of the hour break.
[58:22.400 --> 58:31.400]  This is Randy Kelton, Debra Stevens, the root of our radio, and most of the people who listen to this a lot will recognize where he's going.
[58:31.400 --> 58:37.400]  It's what we tend to call agency standing and capacity.
[58:37.400 --> 58:46.400]  You're an agent, but does your principal have standing by holdership and capacity by compliance with our law?
[58:46.400 --> 58:50.400]  Hang on, we'll be right back.
[58:50.400 --> 58:54.400]  I do like to make more definite progress in your walk with God.
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[59:01.400 --> 59:06.400]  The New Testament Recovery Version is one of the most comprehensive study Bibles available today.
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[59:13.400 --> 59:18.400]  The free books are a three-volume set called Basic Elements of the Christian Life.
[59:18.400 --> 59:27.400]  Chapter by chapter, Basic Elements of the Christian Life clearly presents God's plan of salvation, growing in Christ, and how to build up the Church.
[59:27.400 --> 59:40.400]  To order your free New Testament Recovery Version and Basic Elements of the Christian Life, call Bibles for America toll free at 888-551-0102.
[59:40.400 --> 59:49.400]  That's 888-551-0102, or visit us online at bfa.org.
[59:49.400 --> 01:00:02.400]  Live, free speech radio, logosradionetwork.com.
[01:00:02.400 --> 01:00:14.400]  You're listening to the Liberty Beat, your daily source for Liberty news and activist updates, online at thelibertybeats.com.
[01:00:14.400 --> 01:00:18.400]  John Bush here with your Liberty Beat for July 5th, 2013.
[01:00:18.400 --> 01:00:25.400]  Gold opened today at $1,250, silver at $19.54, and bitcoin is trading at $75.
[01:00:25.400 --> 01:00:32.400]  Support for the Liberty Beat comes from Cabo Bob, the first high-fructose corn syrup-free quick-serve restaurant in the country,
[01:00:32.400 --> 01:00:37.400]  serving Baja California-style burritos and non-GMO corn tortillas and chips.
[01:00:37.400 --> 01:00:44.400]  In Austin, at 500 East Bend White Boulevard, or by phone at 512-432-1111.
[01:00:44.400 --> 01:00:45.400]  And now the news.
[01:00:45.400 --> 01:00:49.400]  Riots have sprung up in China for reasons that are not completely known at this time.
[01:00:49.400 --> 01:00:57.400]  Sources online are indicating that this is a popular uprising, while some media outlets are reporting that Muslim extremists are responsible.
[01:00:57.400 --> 01:01:06.400]  Reports from Beijing describe around 70,000 anti-terrorism police that have set up 24-hour patrols in the regional capital of Urumqi.
[01:01:06.400 --> 01:01:11.400]  Every region in Enijan has an armed police detachment, with as many as four in Urumqi.
[01:01:11.400 --> 01:01:16.400]  The People's Liberation Army reportedly has more than 10,000 troops in the region as well.
[01:01:16.400 --> 01:01:21.400]  Chinese media has accused the United States media of spreading misinformation about the riots
[01:01:21.400 --> 01:01:27.400]  and insists that the incident is strictly an act of terrorism by extremists and not supported by the people.
[01:01:32.400 --> 01:01:38.400]  Eurofin's Analytical Laboratory in Louisiana analyzed Coke and Pepsi products purchased from 10 states
[01:01:38.400 --> 01:01:43.400]  and found high levels of the cancer-causing chemical 4-methylamidozol.
[01:01:43.400 --> 01:01:48.400]  Coca-Cola and PepsiCo had promised to change their products' ingredients in response to a California law
[01:01:48.400 --> 01:01:52.400]  that requires labeling of products with known carcinogens as ingredients.
[01:01:52.400 --> 01:01:57.400]  The new tests, however, found Coke products and Pepsi products that have high carcinogen levels
[01:01:57.400 --> 01:02:01.400]  ranging from four to eight times higher than allowed in the California law.
[01:02:01.400 --> 01:02:06.400]  The Center for Environmental Health commissioned the study and will test the Pepsi products again in the spring.
[01:02:06.400 --> 01:02:13.400]  Thursday, the Daily Le Monde reported that France's external intelligence agency, DGSE,
[01:02:13.400 --> 01:02:19.400]  is spying on the French public's phone calls, emails, and social media activity in France and around the world.
[01:02:19.400 --> 01:02:24.400]  The Le Monde stated that the agency is intercepting signals from computers and telephones in France
[01:02:24.400 --> 01:02:28.400]  and between other countries to create a map of, quote, who is talking to whom.
[01:02:28.400 --> 01:02:32.400]  France's seven other intelligence agencies are reported to have access to the data
[01:02:32.400 --> 01:02:36.400]  in order to track people whose communication seems suspicious.
[01:02:36.400 --> 01:02:40.400]  The report was based upon anonymous intelligence sources and remarks by intelligence officials.
[01:02:40.400 --> 01:02:44.400]  Claims are similar to the activities in America by the NSA and the British government
[01:02:44.400 --> 01:02:49.400]  that were recently exposed by former NSA contractor Edward Snowden.
[01:02:49.400 --> 01:02:52.400]  Support for the Liberty Beat comes from Beeler Education,
[01:02:52.400 --> 01:03:02.400]  providing admissions advice and homeschooling consulting for your family's educational needs.
[01:03:22.400 --> 01:03:35.400]  I'm going to play for the car with my money.
[01:03:35.400 --> 01:03:38.400]  I won't pay for the fun with my body.
[01:03:38.400 --> 01:03:52.400]  France's wicked and their logic shoddy.
[01:03:52.400 --> 01:03:55.400]  The whole agenda smells funny.
[01:03:55.400 --> 01:04:02.400]  I want to fight in a war of my own.
[01:04:02.400 --> 01:04:09.400]  That one would be less active than a troll.
[01:04:09.400 --> 01:04:15.400]  I want to pay for a war of my own.
[01:04:15.400 --> 01:04:23.400]  They live in glass houses so I can watch them grow old.
[01:04:23.400 --> 01:04:25.400]  I want to fight in a war of my own.
[01:04:25.400 --> 01:04:26.400]  OK, we are back.
[01:04:26.400 --> 01:04:28.400]  We're in the cabin, Deborah Stevens.
[01:04:28.400 --> 01:04:34.400]  And we had a bit of technical difficulties while we came in late.
[01:04:34.400 --> 01:04:36.400]  Steve was yacking.
[01:04:36.400 --> 01:04:37.400]  It's all his fault.
[01:04:37.400 --> 01:04:41.400]  I'm not technical.
[01:04:41.400 --> 01:04:44.400]  OK, this is Randy Kelton, Deborah Stevens.
[01:04:44.400 --> 01:04:51.400]  We moved our radio and we're talking to Joe Esquivel.
[01:04:51.400 --> 01:04:52.400]  Where were we?
[01:04:52.400 --> 01:04:57.400]  We were talking about standing.
[01:04:57.400 --> 01:05:03.400]  OK, so the question is, they claim they have standing.
[01:05:03.400 --> 01:05:06.400]  Well, do you have constitutional standing?
[01:05:06.400 --> 01:05:11.400]  Do you have prudential standing?
[01:05:11.400 --> 01:05:15.400]  Very seldom do they ever have standing.
[01:05:15.400 --> 01:05:23.400]  People have a misrepresentation when they come forth with these documents.
[01:05:23.400 --> 01:05:28.400]  Many people do not have an understanding as to what is an assignment.
[01:05:28.400 --> 01:05:30.400]  OK?
[01:05:30.400 --> 01:05:45.400]  So many times when I look at something and I say, Randy, this document purporting to be an assignment of deed of trust is invalid as an assignment of deed of trust.
[01:05:45.400 --> 01:05:47.400]  Now, what does that mean?
[01:05:47.400 --> 01:05:54.400]  Well, let's go back to Steve's basic book, Black Law Dictionary.
[01:05:54.400 --> 01:05:55.400]  All right.
[01:05:55.400 --> 01:06:16.400]  Black law defines the term valid as having legal strength or force, executed with proper formalities, incapable of being rightfully overthrown or set aside, founded on trust of fact, capable of being justified, supported, or defended, not weak or defective.
[01:06:16.400 --> 01:06:33.400]  A binding force, legally sufficient, authorized by law, is distinguished from that which exists or took place in fact or appearance, but has not the requisite to enable it to be recognized and enforced by law.
[01:06:33.400 --> 01:06:37.400]  This is out of Black Law Sixth Edition, page 1550.
[01:06:37.400 --> 01:06:46.400]  Now, when I state that it's invalid, all right, it's invalid because what is an assignment?
[01:06:46.400 --> 01:06:48.400]  What is the purpose of an assignment?
[01:06:48.400 --> 01:06:50.400]  There's only one purpose.
[01:06:50.400 --> 01:06:59.400]  The purpose of an assignment is to memorialize the sale of a tangible promissory note.
[01:06:59.400 --> 01:07:01.400]  That's it.
[01:07:01.400 --> 01:07:04.400]  That's what it was supposed to do.
[01:07:04.400 --> 01:07:17.400]  So, if it was to evidence the sale of a tangible promissory note, all right, then why doesn't it happen?
[01:07:17.400 --> 01:07:21.400]  It does not happen at all.
[01:07:21.400 --> 01:07:22.400]  Okay?
[01:07:22.400 --> 01:07:34.400]  The carpenter versus logger word, it states, okay, an assignment of the mortgage itself is a nullity, okay?
[01:07:34.400 --> 01:07:36.400]  It cannot happen.
[01:07:36.400 --> 01:07:53.400]  I don't know how many corporate assignments I've seen from mortgage electronic registration systems that is either endorsed in blank or it says on its face, assignment of deed of trust.
[01:07:53.400 --> 01:08:00.400]  That's an assignment of the latter alone, and that nullifies the security instrument, the deed of trust.
[01:08:00.400 --> 01:08:01.400]  Correct.
[01:08:01.400 --> 01:08:05.400]  So, and again, what is an assignment in blank?
[01:08:05.400 --> 01:08:15.400]  Many of us are under the misconception of what the banks tell us and what is legal and what is lawful.
[01:08:15.400 --> 01:08:16.400]  All right?
[01:08:16.400 --> 01:08:27.400]  Because if an assignment of deed of trust is to memorialize the sale of the tangible promissory note, then that means for every assignment there must be an endorsement.
[01:08:27.400 --> 01:08:29.400]  Why?
[01:08:29.400 --> 01:08:35.400]  Because the assignments match and parallel the endorsements.
[01:08:35.400 --> 01:08:50.400]  The chain of title should match the endorsements on the note line by line, from party A to party B, from party B to party C, from party D to party E.
[01:08:50.400 --> 01:08:54.400]  That is how it was to have happened.
[01:08:54.400 --> 01:09:09.400]  That also happened prior to MERS registration systems, all right, claiming to be a national registry, Mortgage Electronic Registration Systems, Incorporated.
[01:09:09.400 --> 01:09:12.400]  That's what did happen.
[01:09:12.400 --> 01:09:17.400]  What happened was that greed got in the way.
[01:09:17.400 --> 01:09:26.400]  In October 1998, President Clinton repealed the Glass-Steagall Act, replaced with the Grand Leach-Biley Act.
[01:09:26.400 --> 01:09:27.400]  All right?
[01:09:27.400 --> 01:09:46.400]  Now, when that happened, it opened the floodgates, because prior to that there were banking restrictions that were placed on the banks as to how much money they could invest and whose money they had.
[01:09:46.400 --> 01:09:51.400]  All the banks were required to have so much in reserve.
[01:09:51.400 --> 01:09:54.400]  They were only allowed to dole out so much money.
[01:09:54.400 --> 01:09:56.400]  It had to be their money.
[01:09:56.400 --> 01:10:03.400]  On Wall Street there was a gluttony of profits being made.
[01:10:03.400 --> 01:10:17.400]  Now, when Travelers Insurance and Citigroup merged, they had repealed the Glass-Steagall Act. It was the largest acquisition of its kind back then. It was over a billion dollars.
[01:10:17.400 --> 01:10:23.400]  So when they replaced it with the Grand Leach-Biley Act, they lifted off the restrictions.
[01:10:23.400 --> 01:10:28.400]  There was enormous profits that were being made left and right.
[01:10:28.400 --> 01:10:35.400]  Now, mind you, securitization has been going on since the 70s when the Salomon Brothers started it.
[01:10:35.400 --> 01:10:36.400]  All right?
[01:10:36.400 --> 01:10:39.400]  Prior to that, there was just one market.
[01:10:39.400 --> 01:10:40.400]  All right?
[01:10:40.400 --> 01:10:48.400]  The secondary market, which is the RMBS market, residential mortgage-backed securities.
[01:10:48.400 --> 01:10:49.400]  All right?
[01:10:49.400 --> 01:10:52.400]  That didn't come about until after the 70s.
[01:10:52.400 --> 01:10:58.400]  And once the Glass-Steagall Act was repealed, they just went nuts.
[01:10:58.400 --> 01:11:02.400]  They were selling loans to anyone that they could.
[01:11:02.400 --> 01:11:05.400]  The American dream.
[01:11:05.400 --> 01:11:15.400]  At that time, the Democrats were in control, and Clinton was claiming that they were doing everything to give everybody the American dream.
[01:11:15.400 --> 01:11:22.400]  We had loans coming out that were pick-a-pay, pick-a-payment.
[01:11:22.400 --> 01:11:25.400]  They had no right putting these loans out there.
[01:11:25.400 --> 01:11:26.400]  Ninja loans.
[01:11:26.400 --> 01:11:31.400]  Ninja, no assets, no income.
[01:11:31.400 --> 01:11:40.400]  The funny thing is that the banks knew when they wrote the loans that they were going to have defaults.
[01:11:40.400 --> 01:11:45.400]  I could look at a loan and look at a tangible promissory note.
[01:11:45.400 --> 01:11:53.400]  And by reading the note, there were so many of these that Wang Wu did, that World Savings Bank did.
[01:11:53.400 --> 01:12:05.400]  And what they were doing on some of these negation loans is they were giving the homeowner a chance and a choice to pick whatever payment he wanted to make.
[01:12:05.400 --> 01:12:18.400]  You can go to door number A, and you can pick minimum payment, door B, partial payment, or door C, principal and interest.
[01:12:18.400 --> 01:12:29.400]  Now, should you choose to pick door A, minimum payment, which a large number of people picked?
[01:12:29.400 --> 01:12:30.400]  Why?
[01:12:30.400 --> 01:12:36.400]  Because now they have extra money to go buy more stuff, more stuff.
[01:12:36.400 --> 01:12:40.400]  Is this where the arm loans came in, the adjustable rate mortgages?
[01:12:40.400 --> 01:12:41.400]  Yes, and they did.
[01:12:41.400 --> 01:12:42.400]  Yeah.
[01:12:42.400 --> 01:12:48.400]  Now, what would happen, Steve, is that they would make a minimum payment.
[01:12:48.400 --> 01:12:56.400]  Now, the money that they did not pay, the banks took that amount, and they put that at the back end of the loan.
[01:12:56.400 --> 01:13:00.400]  You still owed it, we're just not going to collect on it today.
[01:13:00.400 --> 01:13:05.400]  Now, if you read into these loans, they have adjustable rates.
[01:13:05.400 --> 01:13:06.400]  All right?
[01:13:06.400 --> 01:13:11.400]  So many of these, they would start out with a very low interest rate.
[01:13:11.400 --> 01:13:24.400]  And then after 12 months or 24 months or 36 months, all right, they have an index and a margin built in, and they would tell you, we are going to bump it up minimum of three points.
[01:13:24.400 --> 01:13:27.400]  After six months, it will go up to four and a half points.
[01:13:27.400 --> 01:13:30.400]  But nobody bothers to read the fine print.
[01:13:30.400 --> 01:13:35.400]  By the time you get to 36 months, there's a couple of things that have happened.
[01:13:35.400 --> 01:13:37.400]  Number one, you can no longer afford the mortgage.
[01:13:37.400 --> 01:13:42.400]  And number two, your statute limitations on tail and respite damages or rescission has run out.
[01:13:42.400 --> 01:13:44.400]  Correct.
[01:13:44.400 --> 01:13:52.400]  But even worse than that, when you look at the loan and then the print that they show you,
[01:13:52.400 --> 01:13:58.400]  it says floor rate can be as low as three and a half percent.
[01:13:58.400 --> 01:14:07.400]  And then about two paragraphs down, it says there is a cap rate, 17%.
[01:14:07.400 --> 01:14:09.400]  And it's legal.
[01:14:09.400 --> 01:14:10.400]  That's a big point spread.
[01:14:10.400 --> 01:14:12.400]  Right?
[01:14:12.400 --> 01:14:18.400]  Now, the gentleman selling you the loan says, Mr. Skidmore, you know what?
[01:14:18.400 --> 01:14:21.400]  I'm only charging $1,000 for my fee.
[01:14:21.400 --> 01:14:26.400]  What you don't know is that he's making $8,000 on the back end of the loan that you don't see
[01:14:26.400 --> 01:14:33.400]  because he sold you this loan of which the bank is making more money on.
[01:14:33.400 --> 01:14:43.400]  Now, the underwriters know, okay, that they can look at that note and they know at month 24, your payment is this.
[01:14:43.400 --> 01:14:45.400]  At month 36, your payment is this.
[01:14:45.400 --> 01:14:48.400]  I could look at that note and tell you, you know what?
[01:14:48.400 --> 01:14:54.400]  At month 63, their loan payment has gone from $1,500 to $3,700.
[01:14:54.400 --> 01:14:58.400]  And at that month, they're going to go into default.
[01:14:58.400 --> 01:14:59.400]  All right?
[01:14:59.400 --> 01:15:02.400]  Because the time before that, at month 24, it went up.
[01:15:02.400 --> 01:15:05.400]  Yeah, it went up and it scared the hell out of them.
[01:15:05.400 --> 01:15:08.400]  But now they're pulling out of their 401Ks.
[01:15:08.400 --> 01:15:11.400]  Now the wife is getting a second job.
[01:15:11.400 --> 01:15:13.400]  They're making ends meet.
[01:15:13.400 --> 01:15:21.400]  And it goes up for that last and final time because what happens is that many of them have a cap or a balloon
[01:15:21.400 --> 01:15:27.400]  where it would say when it reaches 125%, that's as high as we're going to go.
[01:15:27.400 --> 01:15:29.400]  We're going to call the note due.
[01:15:29.400 --> 01:15:35.400]  And at that time, we are going to re-amortize your loan and we're going to start all over again.
[01:15:35.400 --> 01:15:42.400]  So, Steve, you could end up paying at the end of five years all these payments you made,
[01:15:42.400 --> 01:15:49.400]  your loan amount that you owe is now 125%.
[01:15:49.400 --> 01:15:52.400]  You took out a loan for $100,000.
[01:15:52.400 --> 01:15:56.400]  You now owe $125,000.
[01:15:56.400 --> 01:15:57.400]  And we're going to start all over again.
[01:15:57.400 --> 01:15:59.400]  Those payments you made didn't matter.
[01:15:59.400 --> 01:16:01.400]  Yeah, it's just free money.
[01:16:01.400 --> 01:16:03.400]  It's free money.
[01:16:03.400 --> 01:16:11.400]  So, Washington Mutual and many of these other banks, they knew what they were doing.
[01:16:11.400 --> 01:16:15.400]  They decided, okay, how much money am I making?
[01:16:15.400 --> 01:16:20.400]  How much money will I lose?
[01:16:20.400 --> 01:16:27.400]  So, their gains exceeded the losses.
[01:16:27.400 --> 01:16:36.400]  So, I could look at that if I was an underwriter and say, okay, for five years, we're going to make a killing.
[01:16:36.400 --> 01:16:42.400]  Well, okay, hang on. We're about to go to break. This is Randy Kelton, Debra Stevens, Groove Law Radio.
[01:16:42.400 --> 01:16:45.400]  Our phones will be off for another 45 minutes.
[01:16:45.400 --> 01:16:50.400]  So, after that, give us a call. We'll be taking questions.
[01:16:50.400 --> 01:17:07.400]  We'll be starting with Steve Skidmore and Joe Esquivel, and we'll be right back.
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[01:19:22.400 --> 01:19:49.400]  Okay, we are back.
[01:19:49.400 --> 01:19:54.400]  Randy Kelton, David Stevens, Radio, here with our special guest, Joe Esquivel.
[01:19:54.400 --> 01:19:56.400]  Okay, Joe, go ahead.
[01:19:56.400 --> 01:20:01.400]  Okay, Steve had a question, and I'll let Steve ask the question.
[01:20:01.400 --> 01:20:09.400]  Okay, we're discussing tangible, that is the wedding documents, and intangible, a photocopy of the wedding documents.
[01:20:09.400 --> 01:20:14.400]  We know that there are statutory requirements here in Texas.
[01:20:14.400 --> 01:20:19.400]  There we've got local government code, and, you know, folks, check your own state statutes.
[01:20:19.400 --> 01:20:23.400]  I mean, I go off of Texas because I live here and I'm more familiar with it.
[01:20:23.400 --> 01:20:31.400]  But Texas local government code section 192.00... cut, take three.
[01:20:31.400 --> 01:20:39.400]  Texas local government code section 192.007, that one was correct.
[01:20:39.400 --> 01:20:44.400]  Records of releases and other actions.
[01:20:44.400 --> 01:20:56.400]  A, to release, transfer, assign, or take another action relating to an instrument that is filed, registered, or recorded in the office of the county clerk.
[01:20:56.400 --> 01:21:10.400]  A person must file, register, or record another instrument relating to the action in the same manner as the original instrument was required to be filed, registered, or recorded.
[01:21:10.400 --> 01:21:13.400]  Now, it doesn't get much simpler than that.
[01:21:13.400 --> 01:21:29.400]  My question is that since we are discussing the transfer of the tangible wedding document, the tangible instrument would be warehoused or destroyed,
[01:21:29.400 --> 01:21:37.400]  and what they are trading on Wall Street, what they're assigning, what they're selling, is the intangible.
[01:21:37.400 --> 01:21:53.400]  Is there a statutory requirement, Joe, that you're aware of that obligates a transferor to file that transfer or record that transfer in the county records?
[01:21:53.400 --> 01:22:01.400]  No, because what you have to understand is that a transferable record is not a negotiable instrument.
[01:22:01.400 --> 01:22:04.400]  It's a transferable record.
[01:22:04.400 --> 01:22:12.400]  That would explain why when we go down to the county recorder's office and we ask to look at the assignments and all that, there are none.
[01:22:12.400 --> 01:22:18.400]  Well, you have to understand what you're talking about is a intangible.
[01:22:18.400 --> 01:22:22.400]  All right, so tangible means we can physically touch.
[01:22:22.400 --> 01:22:25.400]  We can possess it physically.
[01:22:25.400 --> 01:22:28.400]  Intangible, we cannot touch it.
[01:22:28.400 --> 01:22:30.400]  It's a figment of computer imagination.
[01:22:30.400 --> 01:22:40.400]  All right, so when we're talking about transferable records, all right, let's go a little deeper into that, okay?
[01:22:40.400 --> 01:22:45.400]  If we're talking about transferable records, all right, there are just that.
[01:22:45.400 --> 01:22:49.400]  They are just records, all right?
[01:22:49.400 --> 01:22:59.400]  There is no statutory requirements of law for transferable records, electronic negotiable instruments.
[01:22:59.400 --> 01:23:03.400]  There are no electronic negotiable instruments.
[01:23:03.400 --> 01:23:12.400]  You have to understand in order to do real estate, everything must be in writing.
[01:23:12.400 --> 01:23:14.400]  Why?
[01:23:14.400 --> 01:23:20.400]  Because mothers will kill their daughters and fathers will kill their sons.
[01:23:20.400 --> 01:23:23.400]  Everything is required to be in writing.
[01:23:23.400 --> 01:23:28.400]  Everything is required to be tangible.
[01:23:28.400 --> 01:23:36.400]  So when you're talking about transferable records, you're talking about personal property.
[01:23:36.400 --> 01:23:48.400]  Now, I know I've had many people come up to me and they say, Joe, Bank of America is claiming that they have my original note.
[01:23:48.400 --> 01:23:52.400]  They're the holder of the note.
[01:23:52.400 --> 01:23:58.400]  Now, yes, under lender, it says countrywide home loans.
[01:23:58.400 --> 01:24:01.400]  And I'm scared to death.
[01:24:01.400 --> 01:24:10.400]  They have the original, but they fail to have an understanding as to what's actually happened.
[01:24:10.400 --> 01:24:18.400]  Sure, in February of 08, Bank of America had a portfolio buyout of countrywide.
[01:24:18.400 --> 01:24:25.400]  But now ask yourself, what did Bank of America acquire?
[01:24:25.400 --> 01:24:30.400]  They acquired personal property assets.
[01:24:30.400 --> 01:24:32.400]  Okay, what were those assets?
[01:24:32.400 --> 01:24:34.400]  What were they comprised of?
[01:24:34.400 --> 01:24:41.400]  All right, now we all know that Bank of America had hundreds and thousands and millions of loans.
[01:24:41.400 --> 01:24:51.400]  Okay, so within those documents, there were pieces of paper that purported to be tangible promissory notes.
[01:24:51.400 --> 01:25:02.400]  And within those tangible promissory notes, there was an intangible obligation,
[01:25:02.400 --> 01:25:15.400]  the right to receive future payments, which was stripped out and sold, thus leaving that paper,
[01:25:15.400 --> 01:25:22.400]  which evidenced the debt, a worthless piece of paper.
[01:25:22.400 --> 01:25:28.400]  All right, so now that paper goes back into the warehouse and it has this incomplete stamping on it,
[01:25:28.400 --> 01:25:34.400]  paid to the order of, and then there's a blank line, an unnamed as of yet payee.
[01:25:34.400 --> 01:25:38.400]  It's just an empty line, paid to the order of, blank.
[01:25:38.400 --> 01:25:40.400]  I'm sorry, that's not a blank line.
[01:25:40.400 --> 01:25:44.400]  It is an empty space.
[01:25:44.400 --> 01:25:46.400]  I caught myself.
[01:25:46.400 --> 01:25:53.400]  Through the years, we've been indoctrinated to associate words with descriptions.
[01:25:53.400 --> 01:26:00.400]  And it's something that I have to catch myself and I tell everybody else to catch yourself.
[01:26:00.400 --> 01:26:03.400]  It is an unfinished payee line.
[01:26:03.400 --> 01:26:10.400]  That payee line has an unnamed party, paid to the order of.
[01:26:10.400 --> 01:26:13.400]  That shows intent.
[01:26:13.400 --> 01:26:22.400]  However, until that payee line is filled in, negotiation does not take place.
[01:26:22.400 --> 01:26:31.400]  All right, so now Countrywide has this stamping on this paper that purports to be a tangible promissory note.
[01:26:31.400 --> 01:26:36.400]  Okay, that's personal property.
[01:26:36.400 --> 01:26:46.400]  The obligation, the payment intangible, has been stripped and sold, thus leaving the security instrument
[01:26:46.400 --> 01:26:49.400]  nothing to attach itself to.
[01:26:49.400 --> 01:26:52.400]  They go into a vault.
[01:26:52.400 --> 01:26:58.400]  Years later, Bank of America acquires personal property of Countrywide home loans.
[01:26:58.400 --> 01:27:05.400]  So now when Bank of America goes into the vault and finds all these millions of pieces of paper,
[01:27:05.400 --> 01:27:10.400]  they grab some of them, they show up at the courtroom and they say, Your Honor,
[01:27:10.400 --> 01:27:17.400]  I have the tangible, wet ink original promissory note of John Doe.
[01:27:17.400 --> 01:27:21.400]  And everybody is scared to death.
[01:27:21.400 --> 01:27:30.400]  The truth is they have simple possession of personal property with no legal rights.
[01:27:30.400 --> 01:27:37.400]  And simple possession with no legal rights is not the same as legal possession with rights,
[01:27:37.400 --> 01:27:44.400]  rights acquired through negotiation transfer and delivery pursuant to 3203D.
[01:27:44.400 --> 01:27:51.400]  If a transfer purports to transfer less than the entire instrument, negotiation does not take place.
[01:27:51.400 --> 01:27:59.400]  The transfer only acquires a partial assignee, a partial assignment.
[01:27:59.400 --> 01:28:05.400]  So you need to have an understanding what is being said, what was acquired.
[01:28:05.400 --> 01:28:16.400]  This party coming forth with this action to collect a debt on behalf of an unnamed party, how do they acquire the rights?
[01:28:16.400 --> 01:28:24.400]  Do they have prudential standing? Is there standing evidence by fact of law?
[01:28:24.400 --> 01:28:28.400]  These are questions that need to be asked.
[01:28:28.400 --> 01:28:37.400]  I know we hear time and time again, well, Joe, they didn't do things like they were supposed to do, correct.
[01:28:37.400 --> 01:28:42.400]  And the judge says, I'm not a party to that contract, correct.
[01:28:42.400 --> 01:28:46.400]  Let's look at other ways that you're a party to that contract.
[01:28:46.400 --> 01:28:50.400]  Let's look at what was to take place.
[01:28:50.400 --> 01:28:56.400]  What did take place and what did not take place?
[01:28:56.400 --> 01:29:04.400]  Because what happens is that in order for the banks to get summary judgment,
[01:29:04.400 --> 01:29:16.400]  they need to show by above and beyond that they have proof, that they have evidence to do what they're doing.
[01:29:16.400 --> 01:29:26.400]  In order to stop summary judgment, all one needs to do is to show issues of material fact.
[01:29:26.400 --> 01:29:35.400]  So what I do is I show what was to take place, what did take place and what did not take place.
[01:29:35.400 --> 01:29:41.400]  And then I take all of this legalese and I put it together.
[01:29:41.400 --> 01:29:50.400]  Okay, hang on, we're about to go to break. This is Randy Keltland, David Stevens, Mute of Law Radio, our call in number 512-646-1984.
[01:29:50.400 --> 01:29:53.400]  We've got two more segments and then we'll go to the phones.
[01:29:53.400 --> 01:30:00.400]  So if you have a question or comment, we'll be taking them. We'll be right back.
[01:30:00.400 --> 01:30:05.400]  We all know the world's oil supplies are dwindling, but there's another shortage that's less well known.
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[01:33:32.400 --> 01:33:36.400]  Okay, we are back.
[01:33:36.400 --> 01:33:43.400]  Randy Kelton, Deborah Stevens, and we have our radio here with our special guest, Joe Esquivel.
[01:33:43.400 --> 01:33:47.400]  Okay, Joe, we were talking about standing.
[01:33:47.400 --> 01:34:02.400]  Now we're talking about standing because while a party coming forth claims to have standing, one of the things that I question all the time is, how did you acquire it?
[01:34:02.400 --> 01:34:06.400]  Again, claiming it is one thing.
[01:34:06.400 --> 01:34:21.400]  But actually acquiring it, acquiring the rights to enforce, and coming forth showing how you acquired those rights, very, very seldom ever happens.
[01:34:21.400 --> 01:34:25.400]  You hear excuses, and we all know what are excuses.
[01:34:25.400 --> 01:34:29.400]  You know, everyone has one.
[01:34:29.400 --> 01:34:40.400]  So one of the things I would like to take a few minutes and go over is, while I've got everybody on board is, I'd like to just clarify a few definitions.
[01:34:40.400 --> 01:34:53.400]  Now again, these are Joe's definitions, but just to provide everyone out there so that when I speak, we're all on the same page.
[01:34:53.400 --> 01:35:06.400]  When somebody says a word, and my perception of the word is one thing, and Randy's perception is another, and Steve's is another, it makes for a mixed conversation.
[01:35:06.400 --> 01:35:09.400]  And the same thing happens in the courts.
[01:35:09.400 --> 01:35:22.400]  So unless you define what you're talking about, specifically with particularity and specificity, all right, there is just a huge mix.
[01:35:22.400 --> 01:35:26.400]  I hear the word mortgage loan out there a lot.
[01:35:26.400 --> 01:35:29.400]  What is a mortgage loan?
[01:35:29.400 --> 01:35:46.400]  For me, a mortgage loan is a loan secured by real property through the use of a tangible promissory note, which evidences the debt and the encumbrance of property rights through the granting of a mortgage or deed of trust, which secures the loan.
[01:35:46.400 --> 01:35:54.400]  However, today the word mortgage alone is most often referenced to use mortgage loan.
[01:35:54.400 --> 01:35:56.400]  They just say mortgage.
[01:35:56.400 --> 01:35:59.400]  They mean the mortgage loan.
[01:35:59.400 --> 01:36:01.400]  And I find it very interesting.
[01:36:01.400 --> 01:36:06.400]  A lot of attorneys that I work with, they're talking about the mortgage.
[01:36:06.400 --> 01:36:14.400]  They don't mean the mortgage being a contract, a separate contract.
[01:36:14.400 --> 01:36:17.400]  They're talking about the mortgage loan.
[01:36:17.400 --> 01:36:24.400]  When you hear the word tangible promissory note, again, what is tangible?
[01:36:24.400 --> 01:36:26.400]  What is promissory note?
[01:36:26.400 --> 01:36:43.400]  The promissory note is just a piece of paper that can be touched, that contains the promise to pay, but the real significance is not the physical paper, but the legal rights, which the paper confers.
[01:36:43.400 --> 01:36:50.400]  So, and hence, the promissory note is defined by the legal debt.
[01:36:50.400 --> 01:36:57.400]  The note is a tangible negotiable instrument that evidences the intangible obligation.
[01:36:57.400 --> 01:37:06.400]  I promise to pay the next 300 months, $1,000 a month.
[01:37:06.400 --> 01:37:08.400]  That is the intangible obligation.
[01:37:08.400 --> 01:37:11.400]  That is what brings value to everything.
[01:37:11.400 --> 01:37:22.400]  When you strip that debt, your tangible promissory note is a worthless piece of paper.
[01:37:22.400 --> 01:37:24.400]  So it's pretty interesting.
[01:37:24.400 --> 01:37:25.400]  What is your security instrument?
[01:37:25.400 --> 01:37:28.400]  What is the deed of trust, actually?
[01:37:28.400 --> 01:37:37.400]  The deed of trust is seen as a real property lien if filed of record, and it's a separate contract.
[01:37:37.400 --> 01:37:48.400]  It lists an alternative means for collecting payment due of the intangible obligation, which is evidenced by the tangible promissory note.
[01:37:48.400 --> 01:37:53.400]  All these parts need to be together, all right?
[01:37:53.400 --> 01:38:03.400]  If all the parts aren't together, you can't enforce conditions over for collection.
[01:38:03.400 --> 01:38:10.400]  If you have only been assigned the deed of trust, or if you have only been assigned the mortgage,
[01:38:10.400 --> 01:38:16.400]  if you did not acquire the tangible promissory note and the intangible payment obligation,
[01:38:16.400 --> 01:38:24.400]  meaning the right to collect future payments, along with the assignment of that security instrument,
[01:38:24.400 --> 01:38:35.400]  then you did not acquire the entire instrument at the same time, and pursuant to 3203D, negotiation did not take place.
[01:38:35.400 --> 01:38:41.400]  I know many people get confused about the obligors, the obligees.
[01:38:41.400 --> 01:38:43.400]  What is an obligor?
[01:38:43.400 --> 01:38:45.400]  Who is the tangible obligor?
[01:38:45.400 --> 01:38:53.400]  The tangible obligor is the party who assigned the tangible promissory note, the homeowner.
[01:38:53.400 --> 01:38:56.400]  Who is the tangible obligor?
[01:38:56.400 --> 01:39:06.400]  The party who is named on the tangible promissory note is either the lender or the party is named as payee on the payee line
[01:39:06.400 --> 01:39:11.400]  that is physically affixed to the tangible promissory note.
[01:39:11.400 --> 01:39:18.400]  Now, when we say physically affixed, we don't mean held together on a paperclip,
[01:39:18.400 --> 01:39:23.400]  which dappy frappy and mappy do all the time, all right?
[01:39:23.400 --> 01:39:29.400]  It says physically affixed when there is no more room on the note.
[01:39:29.400 --> 01:39:36.400]  And a lounge is to be attached in such a fashion as to destroy the documents if separated.
[01:39:36.400 --> 01:39:38.400]  Correct.
[01:39:38.400 --> 01:39:42.400]  And who is the intangible obligor?
[01:39:42.400 --> 01:39:51.400]  That is the party that creates the intangible obligation using the intangible payment stream of the tangible promissory note.
[01:39:51.400 --> 01:39:57.400]  That's also another name is given to that party as the account debtor.
[01:39:57.400 --> 01:40:00.400]  That is the party that creates it.
[01:40:00.400 --> 01:40:10.400]  The intangible obligee is the party that purchases the intangible obligation from the intangible obligor.
[01:40:10.400 --> 01:40:17.400]  Very seldom have they ever filed a record as a secured party to the tangible obligor security instrument.
[01:40:17.400 --> 01:40:28.400]  Very seldom do I ever see Freddie Mac or Fannie Mae, I never do, named as party into public record.
[01:40:28.400 --> 01:40:38.400]  I think in the last four years, I've probably seen three or four times out of all the thousands of documents that I've gone through.
[01:40:38.400 --> 01:40:51.400]  So then you need to ask yourself, if Fannie Mae is claiming to be the investor of the note or Freddie Mac is claiming to own an interest of my loan,
[01:40:51.400 --> 01:40:56.400]  why are they not named into public record?
[01:40:56.400 --> 01:41:07.400]  If they're not named into public record and they foreclose on you and they say, Fannie Mae did a credit bid on you, John Doe,
[01:41:07.400 --> 01:41:14.400]  they bought your property.
[01:41:14.400 --> 01:41:22.400]  Who were they? If not named into public record, who were they?
[01:41:22.400 --> 01:41:27.400]  I would ask myself, is there a properly secured party?
[01:41:27.400 --> 01:41:35.400]  Is that party named as a payee on the payee line on the tangible promissory note?
[01:41:35.400 --> 01:41:38.400]  Chances are there's not.
[01:41:38.400 --> 01:41:47.400]  What is an account debtor? The account debtor means a person obligated on an account, channel paper, general and tangible.
[01:41:47.400 --> 01:41:57.400]  The term does not include persons obligated to pay a negotiable instrument, even if the instrument constitutes part of the channel paper.
[01:41:57.400 --> 01:42:02.400]  These are things we must take a grasp on.
[01:42:02.400 --> 01:42:06.400]  You know, have a better understanding of what is MERS.
[01:42:06.400 --> 01:42:10.400]  MERS to me is like an iceberg in the ocean.
[01:42:10.400 --> 01:42:12.400]  All right.
[01:42:12.400 --> 01:42:14.400]  And you're in the Titanic.
[01:42:14.400 --> 01:42:19.400]  You only see 10 percent of that iceberg in the ocean.
[01:42:19.400 --> 01:42:28.400]  And that 90 percent that you cannot see is going to kill you.
[01:42:28.400 --> 01:42:33.400]  So what you need to do is to take a closer look at that iceberg.
[01:42:33.400 --> 01:42:36.400]  You need to look what's below the surface.
[01:42:36.400 --> 01:42:39.400]  What is MERS really about?
[01:42:39.400 --> 01:42:45.400]  Who are these parties that MERS is claiming to represent?
[01:42:45.400 --> 01:42:47.400]  Is there an agency relationship?
[01:42:47.400 --> 01:42:50.400]  Usually no.
[01:42:50.400 --> 01:42:55.400]  I can claim to have an agency relationship.
[01:42:55.400 --> 01:43:02.400]  MERS claims to have about 20,000 employees all signing on behalf of MERS.
[01:43:02.400 --> 01:43:12.400]  I can tell you we've done background checks on employees and very few of these parties receive paychecks from MERS.
[01:43:12.400 --> 01:43:16.400]  Very few.
[01:43:16.400 --> 01:43:24.400]  Usually they're employed by lender processing services, Wells Fargo, Bank of America, Recon Trust.
[01:43:24.400 --> 01:43:27.400]  So you need to look at your documents.
[01:43:27.400 --> 01:43:37.400]  You need to look at what does it say because there's a lot of fancy work crafting going on.
[01:43:37.400 --> 01:43:38.400]  Okay.
[01:43:38.400 --> 01:43:39.400]  Hold on.
[01:43:39.400 --> 01:43:40.400]  We're about to go to break.
[01:43:40.400 --> 01:43:43.400]  This is Randy Kelton, Debra Stevens, rule of our radio.
[01:43:43.400 --> 01:43:47.400]  We have one more segment before we open the phone lines.
[01:43:47.400 --> 01:43:49.400]  So give us a call.
[01:43:49.400 --> 01:43:51.400]  Get in line.
[01:43:51.400 --> 01:43:54.400]  We'll start taking calls after this next segment.
[01:43:54.400 --> 01:44:00.400]  We'll be right back.
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[01:46:52.400 --> 01:46:59.400]  Welcome back to Rule of Law Radio, folks. You are listening to your hosts, Randy Kelton, Deborah Stevens as the night off.
[01:46:59.400 --> 01:47:14.400]  I am one of Randy's short-bust special guests, Steve Skidmore, and we are all here together with the sharpest mind in international securities that I personally know, Mr. Joe Esquivel.
[01:47:14.400 --> 01:47:29.400]  All right. So we were talking about MERS. One of the interesting things, like I said, I look at it as being an iceberg because what you don't see is what can hurt you.
[01:47:29.400 --> 01:47:37.400]  But if we dive deep into that iceberg and start peeling back the layers like it's an onion, what do we see?
[01:47:37.400 --> 01:47:50.400]  Well, we've got a bunch of MERS documents and MERS PowerPoint presentations where MERS tells their definition, MERS basics.
[01:47:50.400 --> 01:48:01.400]  MERS says, registration versus recording. The MERS system is not a system of legal record nor replacement for the public land records.
[01:48:01.400 --> 01:48:09.400]  Mortgages must be recorded in the public records. This is from MERS own PowerPoint presentation that I have.
[01:48:09.400 --> 01:48:22.400]  Tracking versus transfer. The MERS system is a tracking system. No interests are transferred on the system, only tracked.
[01:48:22.400 --> 01:48:34.400]  That's interesting because everybody's gotten all of these assignments from MERS. And with MERS, you see your loan just extinguish.
[01:48:34.400 --> 01:48:42.400]  It's like now you see it, now you don't. This is why we need to have an understanding.
[01:48:42.400 --> 01:48:54.400]  What MERS says they are, on one hand, doesn't balance the other hand. Because when I get this assignment and it says an assignment of deed of trust,
[01:48:54.400 --> 01:49:08.400]  together with the note and all principal and interests and payments accrued, I ask myself, are they talking about the tangible note or are they talking about the electronic note?
[01:49:08.400 --> 01:49:21.400]  Because one is a transferable record and the other is a tangible, negotiable instrument. They don't define what they're talking about.
[01:49:21.400 --> 01:49:37.400]  Now, for me, I know that they operate in the intangible world. Why? Because that's the only power that they have, transferable records.
[01:49:37.400 --> 01:49:48.400]  Now, an interesting thing to note is that MERS does not fall under the IRS definition of a beneficiary.
[01:49:48.400 --> 01:49:58.400]  The IRS has its own definition of a beneficiary, and that is one who receives funds. MERS does not receive funds.
[01:49:58.400 --> 01:50:00.400]  There's that word again, receive.
[01:50:00.400 --> 01:50:18.400]  Again, MERS is like the chameleon. It changes colors to suit it at that given time.
[01:50:18.400 --> 01:50:30.400]  If one were to look at all the employees that were employed by MERS, oh my God, you'd have a list going out the door and all the way down the block and around the street.
[01:50:30.400 --> 01:50:49.400]  Well, Joe, that's kind of contradictory to a deposition. I remember hearing one of the executives of MERS hearing in the deposition and where he said in open court that MERS has no employees.
[01:50:49.400 --> 01:50:50.400]  Correct.
[01:50:50.400 --> 01:50:56.400]  They don't have quote unquote employees by what standard? By IRS standards.
[01:50:56.400 --> 01:51:07.400]  By that, once they have made that statement, they are subject to collateral estoppel from taking a different position in any other court.
[01:51:07.400 --> 01:51:08.400]  Okay.
[01:51:08.400 --> 01:51:11.400]  I really like collateral estoppel.
[01:51:11.400 --> 01:51:26.400]  Now, they appear to have a lot of executives because there's a lot of attorneys out there who are attorneys or, I don't know, could have been somebody that just quit at McDonald's or got fired from somewhere for smoking pot or something.
[01:51:26.400 --> 01:51:38.400]  But all these people claim to be, oh, what is it, Assistant Secretary to MERS. Nowhere in the system can you find their name.
[01:51:38.400 --> 01:51:55.400]  Well, we have had people sending a request to MERS claiming that we have a document signed by this person under power of attorney for MERS, but we find no evidence of power of attorney in the county record.
[01:51:55.400 --> 01:52:00.400]  Would you kindly provide us with evidence of power of attorney?
[01:52:00.400 --> 01:52:04.400]  Odd as it may seem, we've never received a response.
[01:52:04.400 --> 01:52:06.400]  I wonder why.
[01:52:06.400 --> 01:52:08.400]  You can go to have that information right there.
[01:52:08.400 --> 01:52:11.400]  It should be in the resolution bylaws.
[01:52:11.400 --> 01:52:12.400]  Yes.
[01:52:12.400 --> 01:52:17.400]  And, you know, we say you can go to the court and say, Your Honor, this guy's a robber.
[01:52:17.400 --> 01:52:20.400]  Well, his name's flattered all over the Internet, and the judge is going to say so.
[01:52:20.400 --> 01:52:25.400]  That doesn't mean he doesn't have standing to sign in this instance.
[01:52:25.400 --> 01:52:26.400]  So we say he's a robber.
[01:52:26.400 --> 01:52:28.400]  He's flattered all over the Internet.
[01:52:28.400 --> 01:52:32.400]  So we send a letter to MERS and ask them for power of attorney, and we didn't get it.
[01:52:32.400 --> 01:52:34.400]  That's probable cause.
[01:52:34.400 --> 01:52:36.400]  That's part of the face shift.
[01:52:36.400 --> 01:52:40.400]  Now we have something the judge can wrap his head around.
[01:52:40.400 --> 01:52:43.400]  I'm inclined to agree with Joe, though.
[01:52:43.400 --> 01:52:47.400]  I believe that they do have thousands and thousands of employees.
[01:52:47.400 --> 01:52:49.400]  They may not be on the books.
[01:52:49.400 --> 01:52:52.400]  But they claim to be vice president of MERS.
[01:52:52.400 --> 01:52:53.400]  Exactly.
[01:52:53.400 --> 01:52:56.400]  Assistant secretary.
[01:52:56.400 --> 01:53:00.400]  Qualified person to sign on behalf of.
[01:53:00.400 --> 01:53:04.400]  Now, I don't know what qualifies them.
[01:53:04.400 --> 01:53:06.400]  But it's pretty risky.
[01:53:06.400 --> 01:53:13.400]  You need to ask, is a document that was recorded into public, was it eligible to be recorded?
[01:53:13.400 --> 01:53:15.400]  Yes or no?
[01:53:15.400 --> 01:53:16.400]  All right.
[01:53:16.400 --> 01:53:26.400]  If the whole purpose of that assignment of deed of trust, the state of Texas, all right, was to memorialize the sale of a tangible promissory note,
[01:53:26.400 --> 01:53:36.400]  and that note, that note's intangible payment obligation was sold to Fannie Mae,
[01:53:36.400 --> 01:53:42.400]  then why did they do an assignment to Bank of America NA?
[01:53:42.400 --> 01:53:45.400]  Because Bank of America NA is a servicer.
[01:53:45.400 --> 01:53:56.400]  Now, that servicer, all right, is the servicer of the intangible payment obligation that was created by the accountant debtor Countrywide,
[01:53:56.400 --> 01:54:07.400]  that was sold to Fannie Mae, and then Fannie Mae took the intangible payment obligation that it had purchased from Countrywide,
[01:54:07.400 --> 01:54:22.400]  and it created a second intangible obligation, which it sold and it put into the certificates for, say, trust 2005-62.
[01:54:22.400 --> 01:54:41.400]  Now, the certificate holders in that trust were duped into believing that they had invested in a mortgage-backed security.
[01:54:41.400 --> 01:54:49.400]  That trust was not backed by any properly secured mortgages or deeds of trust.
[01:54:49.400 --> 01:55:00.400]  That trust is full of intangible payment obligations of an intangible payment stream.
[01:55:00.400 --> 01:55:06.400]  So now, the investors cannot go after the homeowner.
[01:55:06.400 --> 01:55:11.400]  How far can the homeowner, you know, he can't go after the homeowner.
[01:55:11.400 --> 01:55:14.400]  The investors purchased these certificates from Fannie Mae.
[01:55:14.400 --> 01:55:20.400]  Fannie Mae guarantees all of these investors.
[01:55:20.400 --> 01:55:27.400]  Fannie Mae is obligated to pay all these investors.
[01:55:27.400 --> 01:55:34.400]  Now, Fannie Mae is not listed into public as a properly secured creditor.
[01:55:34.400 --> 01:55:40.400]  Fannie Mae's name is not on the note, tangible promissory note.
[01:55:40.400 --> 01:55:52.400]  Fannie Mae is not listed into public as a properly secured creditor, being either on the deed of trust or on the mortgage.
[01:55:52.400 --> 01:55:54.400]  So who does Fannie Mae go after?
[01:55:54.400 --> 01:55:58.400]  Fannie Mae goes back to the account debtor.
[01:55:58.400 --> 01:56:09.400]  Oh, well, now the account debtor is Countrywide, who is taken over by Bank of America, and Bank of America is a server, is a servicer.
[01:56:09.400 --> 01:56:14.400]  So do you think that Bank of America is going to go after itself?
[01:56:14.400 --> 01:56:20.400]  No, they're going to go after the innocent bystander on the side.
[01:56:20.400 --> 01:56:36.400]  That innocent bystander on the side had signed one document to one party, the original lender, Countrywide Home Loans.
[01:56:36.400 --> 01:56:44.400]  And just like credit card debt is sold, so is the debt sold of that tangible promissory note.
[01:56:44.400 --> 01:56:49.400]  Now, we're not saying that that homeowner does not owe an obligation.
[01:56:49.400 --> 01:56:54.400]  We're saying that you're not the proper party to come forth with this action.
[01:56:54.400 --> 01:56:58.400]  We'll deal with that payment obligation in the future at another date.
[01:56:58.400 --> 01:57:02.400]  Today, we're talking about this specific action.
[01:57:02.400 --> 01:57:10.400]  So when the judge says, Mr. Skidmore, don't you have a debt you're obligated to pay?
[01:57:10.400 --> 01:57:12.400]  What are we going to say?
[01:57:12.400 --> 01:57:13.400]  Prove it.
[01:57:13.400 --> 01:57:14.400]  Correct.
[01:57:14.400 --> 01:57:17.400]  Objection, relevance.
[01:57:17.400 --> 01:57:19.400]  There you go.
[01:57:19.400 --> 01:57:21.400]  Correct.
[01:57:21.400 --> 01:57:24.400]  What are we here at this hearing for?
[01:57:24.400 --> 01:57:30.400]  We have a party trying to enforce collection of an obligation.
[01:57:30.400 --> 01:57:33.400]  How did you acquire these rights?
[01:57:33.400 --> 01:57:35.400]  What did you acquire?
[01:57:35.400 --> 01:57:39.400]  Again, it all goes back to title.
[01:57:39.400 --> 01:57:40.400]  All right?
[01:57:40.400 --> 01:57:47.400]  The union of all elements constituting the legal right to control and dispose a property.
[01:57:47.400 --> 01:57:53.400]  The legal link between a person who owns property and the property itself.
[01:57:53.400 --> 01:57:59.400]  The legal evidence of a person's ownership rights in the property.
[01:57:59.400 --> 01:58:04.400]  Title is a manner in which the right to real property is acquired
[01:58:04.400 --> 01:58:10.400]  and the conditions necessary to acquire a valid claim to land.
[01:58:10.400 --> 01:58:17.400]  Title is a right itself, which is the legal consequences of such conditions.
[01:58:17.400 --> 01:58:22.400]  That is everything we are talking about.
[01:58:22.400 --> 01:58:24.400]  Did you acquire the rights?
[01:58:24.400 --> 01:58:27.400]  Okay, we are about to go to our talk of the hour break.
[01:58:27.400 --> 01:58:29.400]  Our phone lines are open.
[01:58:29.400 --> 01:58:33.400]  We will be taking calls when we come back on the other side.
[01:58:33.400 --> 01:58:35.400]  So give us a call, get in line.
[01:58:35.400 --> 01:58:40.400]  Call in number 512-646-1984.
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