Certified Forensic Loan Auditors, LLC

 
  Upcoming Classes

Search CFLA's Article Archive:

Here is the Answer to Guilt About the “Free House” — the one the banks don’t want you thinking about.

livinglies.me | October 4, 2019

Imagine we are in a new era, where disclosure was full and complete to investors and borrowers.

The deal pitched to investors is simple: the investment bank gets your money and uses it to buy debts, notes and mortgages. The purchased loans (including the debts) will be put into a portfolio and the investors grant ownership to a trust with the investors as beneficiaries. [Instead of the investment bank as beneficiary under a secret trust agreement.]

The investment bank promises to use its best efforts,  (1) to pay cash flow to investors equal to a specified interest rate, and (2) multiply the investment through issuance of complex derivatives.

The investment bank shares in the investment through administration fees and sharing in profits from the sale of complex derivative instruments whose value is based upon the certificates purchased by investors.

In the end, the investors receive the stated rate of return on their investment plus a return of 200% in capital gains. The investment bank earns profits in excess of 600% of the investment by investors.

So the investors get back whatever principal is paid on the loans plus 200% of their investment plus interest. Good deal.

Since all of this is disclosed in detail, there is no conceivable problem anyone could have in such an arrangement. Bravo to the investors and investment banks.

The pitch to borrowers is equally simple: the borrower gets a loan in a specified amount at a stated rate of interest subject to specific payment terms. The lender is the trust. In addition the borrower becomes an investor in their own loan in which the investment bank premises to use its best efforts to obtain profits such that borrowers could receive up to 200% of the loan over a period of time.

In the end, the borrowers receive 200% of their loan which is required to be allocated toward payment of interest and principal. The investment bank receives in excess of 600% of the loan amount which is different from the invested amount received from investors.

Since all of this is disclosed in detail, there is no conceivable problem anyone could have in such an arrangement. Bravo to the borrowers and the investment bank.

The entire plan generates 1200% of invested capital and 1600% of loan balances. Everybody pays tax on their gains. The plan is completely legal and doable as long as investors invest and borrowers borrow.

Nobody has a problem with that scenario except the investment banks who want to keep all of the excess gains derived from issuance, sale and trading in complex derivative instruments using money from investors and collateral from borrowers.

Investors get a free investment with profit. The borrowers ultimately get a free house and some profit. The free house doesn’t seem so outlandish, does it?

Everything I have described above is what is happening with three exceptions: there is no disclosure of excess profits from sales and trading in complex derivatives and neither investors nor borrowers share in a business plan that requires their investment of money and collateral. In addition virtually no taxes are paid on the gains. They don’t share because they didn’t know.

 

Order Cutting-Edge Services Now   Quiet Title Packages from Licensed Attorneys
     
CFLA Sponsored Attorney Links   CFLA Training Academy

 

Back to October 2019 Archive

"CFLA was founded by the Nation's Leading Foreclosure Defense Attorneys back in 2007 to serve the Foreclosure Defense Industry and fight pervasive Bank Fraud. Since opening our virtual doors, CFLA has rapidly expanded to become the premier online legal destination for small businesses and consumers. But as the company continues to grow, we're careful to hold true to our original vision. For us, putting the law within reach of millions of people is more than just a novel idea–it's the founding principle, just ask Andrew P. Lehman, J.D.. With convenient locations in Houston and Los Angeles, you can contact Our National Account Specialist and General Manager / Member Damion W. Emholtz at 888-758-CFLA (2352) for a free Mortgage Fraud Analysis or to obtain samples of work product, including cutting edge Bloomberg Securitization Audits, Litigation Support, Quiet Title Packages, and for more information about our Nationally Accredited and U.S. Department of Education Approved "Mortgage Securitization Analyst Training Certification" Classes (3 days) 24 hours for approved CLE & MCLE Credit (Now Available Online)".

SEE BELOW- http://www.certifiedforensicloanauditors.com

Call us at 888-758-CFLA (2352)

 

 

 

 

 

 

 

 

Bookmark and Share

spacer

Facebook Like us on Facebook
Twitter Follow us on Twitter
YouTube View our YouTube Videos
LinkedIn Connect to us on Linkedin

 

BBB Logo

 

spacer

Contact us or view our Sample Documents & Audits by completing the form below.

 

 

 

DVD Sets Only $99

 

FREE Mortgage Fraud Analysis

 

Order Cutting-Edge Services Now

 

Quiet Title Packages from Licensed Attorneys

 

Affiliate Services

 

CFLA Sponsored Attorney Links

 

Take-Home Education Package

 

The True News Network

 

Rubenstein Business Law

 

Atighechi Law Group

 

Scunziano & Associates

 

Foreclosure Defense LLC

 

Get Certified to Perform Mortgage Securitization Audits

 

CFLA Training Academy

 

Expert Witness Services

 

Cutting Edge Expert Securitization Reports

 

CFLA Credit Cards

 

Breaking News

 

Letters to the Editor

 

CFLA Weekly Newsletters

 

Code of Ethics

 

Testimonials

 

Instructional Videos

 

Job Opportunities

 

License Opportunities

 

MARS Rule

 

Product Samples

 

Resource Links

 

Servicer Information

 

Foreclosure Laws

 

REST Report

 

Quiet Title Packages from Licensed Attorneys

 

Advertise on CFLA

 

Advertising Space: Mortgage Securitization, Quiet Title

 

Certified Forensic Loan Auditors, LLC
13101 West Washington Blvd.
Suite 444
Los Angeles, CA 90066

Phone: 888-758-CFLA (2352)
Mobile Users: CLICK TO CALL
info@certifiedforensicloanauditors.com

   
 
CFLA IS NOT A LAW FIRM AND DOES NOT PROVIDE ANY LEGAL ADVICE. CFLA DOES NOT OFFER FORECLOSURE CONSULTING OR FORECLOSURE RELIEF
SERVICES. CFLA DOES NOT OFFER OR ASSIST WITH ANY LOAN MODIFICATION SERVICE. CFLA ALWAYS RECOMMENDS THAT CLIENTS RETAIN COMPETENT COUNSEL IN THEIR RESPECTIVE JURISDICTION. CFLA HAS A FREE PROGRAM TO REFER CFLA CLIENTS TO LAW FIRMS IN NEARLY EVERY STATE AND CFLA
DOES NOT CHARGE OR OBTAIN REFERRALS FEES FOR THESE SERVICES. SERVICES NOT OFFERED TO RESIDENTS OF THE STATE OF NEVADA.

 
Home About Us Privacy Policy Terms of Service Disclaimer SERVICES Careers Contact Us
 
COPYRIGHT © 2007-2017 Certified Forensic Loan Auditors ™ All rights reserved