7/27/2019 Fannie.Mae.Admits.it.Owns.nothing 2013-07-11

1/2

FANNIE MAE, BY ITS OWN ADMISSION, OWNS NOTHING

LIBERTY ROAD MEDIAWouldn't you like just to be free ?

MERS, PAPER TERRORISM, BARBARA BRATTON FREE MONEY SCAMS: Fractional Reserve Banking

Posted onJuly 11, 2013byeggsistense

In the latest smackdown of the big banks making the rounds, namely JP MorganChase Bank, Natl. Assn. v Butler, heroic Judge Arthur Schack puts Fannie Mae

in her place more than any other judge Im currently aware of. He takes Fannie

to task over a portion of Fannies Servicing Guide (Part VIII, Chapter 1, Section102) tha t I have a lways found shockingly ar rogant and a t odds wi th the l aw.

Schack quotes the whole offending section, but Ill just give the most arrogant parts:

Fannie Mae is at al l t imes the owner of the mortgage note, whether the

note is in our portfolio or whether we own it as trustee for an MBS trust.

In addition, Fannie Mae at all times has possession of and is the holder of the

mortgage note, except in the limited circumstances expressly described below. [SNIP]

[Schack italicizes the following section] In any jurisdiction in which our servicer must bethe holder of the note in order to conduct the foreclosure, we temporarily transfer our

possession of the note to our servicer, effective automatically and immediately before

commencement of the foreclosure proceeding. When we transfer our possession, ourservicer becomes the holder of the note during the foreclosure proceedings. [SNIP]

[Schack also italicizes the following section] This Guide provision may be relied upon by a court to

establish that the servicer conducting the foreclosure proceeding has possession, and is the holder, ofthe note during the foreclosure proceeding, unless the court is otherwise notified by Fannie Mae.

Schack correctly concludes that FANNIE MAEs Servicing Guide, with its deceptive practices

to fool courts, does not supercede New York law. I had the same thought when I firstencountered this fiat decree of Fannie Maes when researching my own lawsuit against

Fannie Mae and others a couple of years ago. It is a relief to hear a judge articulate this so starkly.

However, I am somewhat dismayed to read that Schack refers to Fannie Mae as the

owner of the note and mortgage throughout his decision. Schack appears to be relying

on affidavits from Fannie Mae/Chase types for this information, as he must. I havent readthe affidavits on which Schack relied, but I have read information from Fannie Maes own

trust documentation and website that puts the lie to the idea that Fannie Mae owns anything.

Fannie Mae Tells Us It Owns Nothing

A PDF from Fannie Maes own website entitledBasics of Fannie Mae MBS explains Fannie

Maes lack of ownership very simply and succinctly:

In general, mortgage-backed securities are commonly called MBS or

Pools but they can also be called mortgage pass-through certif icates.

NOTE: Double Click on Icon to Left to View Doc

NOTE: Double Click on Icon to Right to View Doc

http://libertyroadmedia.wordpress.com/2013/07/11/fannie-mae-by-its-own-admission-owns-nothing/http://libertyroadmedia.wordpress.com/http://libertyroadmedia.wordpress.com/http://libertyroadmedia.wordpress.com/2013/07/05/mers-paper-terrorism-barbara-bratton/http://libertyroadmedia.wordpress.com/2013/07/05/mers-paper-terrorism-barbara-bratton/http://libertyroadmedia.wordpress.com/2013/07/05/mers-paper-terrorism-barbara-bratton/http://libertyroadmedia.wordpress.com/2013/07/16/free-money-scams-fractional-reserve-banking/http://libertyroadmedia.wordpress.com/2013/07/16/free-money-scams-fractional-reserve-banking/http://libertyroadmedia.wordpress.com/2013/07/16/free-money-scams-fractional-reserve-banking/http://libertyroadmedia.wordpress.com/2013/07/11/fannie-mae-by-its-own-admission-owns-nothing/http://libertyroadmedia.wordpress.com/2013/07/11/fannie-mae-by-its-own-admission-owns-nothing/http://libertyroadmedia.wordpress.com/2013/07/11/fannie-mae-by-its-own-admission-owns-nothing/http://libertyroadmedia.wordpress.com/author/eggsistense/http://libertyroadmedia.wordpress.com/author/eggsistense/http://libertyroadmedia.wordpress.com/author/eggsistense/http://livinglies.wordpress.com/2013/07/09/jpm-chase-shell-game-stopped-in-its-tracksny-judge-shack-does-it-again/http://livinglies.wordpress.com/2013/07/09/jpm-chase-shell-game-stopped-in-its-tracksny-judge-shack-does-it-again/http://livinglies.wordpress.com/2013/07/09/jpm-chase-shell-game-stopped-in-its-tracksny-judge-shack-does-it-again/http://livinglies.wordpress.com/2013/07/09/jpm-chase-shell-game-stopped-in-its-tracksny-judge-shack-does-it-again/http://www.fanniemae.com/resources/file/mbs/pdf/basics-sf-mbs.pdfhttp://www.fanniemae.com/resources/file/mbs/pdf/basics-sf-mbs.pdfhttp://www.fanniemae.com/resources/file/mbs/pdf/basics-sf-mbs.pdfhttp://www.fanniemae.com/resources/file/mbs/pdf/basics-sf-mbs.pdfhttp://livinglies.wordpress.com/2013/07/09/jpm-chase-shell-game-stopped-in-its-tracksny-judge-shack-does-it-again/http://livinglies.wordpress.com/2013/07/09/jpm-chase-shell-game-stopped-in-its-tracksny-judge-shack-does-it-again/http://libertyroadmedia.wordpress.com/author/eggsistense/http://libertyroadmedia.wordpress.com/2013/07/11/fannie-mae-by-its-own-admission-owns-nothing/http://libertyroadmedia.wordpress.com/2013/07/16/free-money-scams-fractional-reserve-banking/http://libertyroadmedia.wordpress.com/2013/07/05/mers-paper-terrorism-barbara-bratton/http://libertyroadmedia.wordpress.com/http://libertyroadmedia.wordpress.com/http://libertyroadmedia.wordpress.com/2013/07/11/fannie-mae-by-its-own-admission-owns-nothing/

7/27/2019 Fannie.Mae.Admits.it.Owns.nothing 2013-07-11

2/2

Page 2 of 2

An investor in a mortgage-backed security the certificate holder owns an undivided interestin a pool of mortgages that serves as the underlying asset for the security. Interest payments and

principal repayments from the individual mortgage loans are grouped and paid out to investors.

The mortgages that back a Fannie Mae MBS are held in a trust on behalf of Fannie Mae MBSinvestors and are not Fannie Mae assets. As a Fannie Mae MBS investor, the certificate holder receivesa pro rata share of the scheduled principal and interest from mortgagors on the loans backing the security. Interestis paid at a specific interest rate. The certificate holder also receives any unscheduled payments of principal.

So from the above, we see that Fannie itself says that certificate holdersnot Fannieown the

beneficial interest in the mortgage pool (Fannie says in other documentation that it can alsopurchase these types of cert if icates , although I haven t seen any indication that Fanniesmokes its own dope). Even more importantly, we see that Fannie itself says that the mortgages(i.e., the promissory notes) that are supposedly in the pools/trusts are NOT Fannie assets.

The very definition of the term asset of course involves ownership, as spelled out at Investopediasdefinition of asset,which it defines as:

A resource with economic value that an individual, corporation or country

owns or cont ro l s with the expectat ion that i t wi l l provide future benef i t .

Therefore , Fannie admits i t ne i ther owns nor controls the promissory notes .

So if Fannie Mae itself admits that it does not own the notes and mortgages in the

pools , why are Fannie s goons swear ing to Schack that Fannie does own them ?Some people may not be satisfied with such an admission in the text of a website meant to simplifymatters. OK, well how about these jewels from the Fannie Mae Amended and Restated 2007

Single-Family Master Trust Agreement for Guaranteed Mortgage Pass-Through Certificatesevidencing undivided beneficial interests in Pools of Residential Mortgage Loans dated January 1, 2009:

By delivering at least one Certificate of a Trust in the manner described in Section 3.1,the Issuer [i.e. Fannie Mae] unconditionally, absolutely and irrevocably sets aside,

transfers, assigns, sets over and otherwise conveys to t he Trustee [i.e., Fannie Mae],

on behalf of related Holders, all of the Issuers [Fannie Mae] right, title and interestin and to the Mortgage Loans in the relate d Pool, together with any Pool Proce eds.

Concurrently with the Issuers [Fannie Mae] setting aside, transferring, assigning,

setting over and otherwise conveying Mortgage Loans to the Trustee for a Trust: (a) theTrustee [Fannie Mae] acknowledges that it holds all of the related Trust Fund in trust

for the exclusive benefit of the related Holders [of certificates issued by the Trust]

No te tha t Fann ie Mae as Issuer irrevocably transfers all of its interest to Fannie asTrustee, and that Fannie Mae as Trustee says that it holds all the money in the trust for the

exclusive benefitof the certificate holders. So again, Fannie Mae admits it doesnt own notes.

Fannies DuplicityAll Things To All People?

No tice the dupl ici ty of Fannie Mae made pl ain in these documents. In the Fannie ServicingGuide, Fannies intended audience is obviously its servicers, so they want the servicers to

be lieve that Fannie Mae is at al l times both the owner and ho lder of promissory no tes.However, in the other two documents (the Basics of Fannie Mae MBS website excerpt

and the Amended 2007 Trust Agreement) excerpted above, Fannies intended audience isinvestors and potential investors, both of whom Fannie wants to believe that they (theinvestors or potential investors)and not Fannieare the owners of t he promissory notes.

So why is anyone letting Fannie Mae get away with saying that it owns promissory notes

(and by extension the deeds of trust/mortgages) and can foreclose due to that ownership?

Please Spread This Article (Info) Far and Wide.

Article Source:http://LibertyRoadMedia.wordpress.com/2013/07/11/fannie-mae-by-its-own-admission-owns-nothing

http://www.investopedia.com/terms/a/asset.asphttp://www.investopedia.com/terms/a/asset.asphttp://libertyroadmedia.wordpress.com/2013/07/11/fannie-mae-by-its-own-admission-owns-nothinghttp://libertyroadmedia.wordpress.com/2013/07/11/fannie-mae-by-its-own-admission-owns-nothinghttp://libertyroadmedia.wordpress.com/2013/07/11/fannie-mae-by-its-own-admission-owns-nothinghttp://www.investopedia.com/terms/a/asset.asp