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Avoid the Haircut Lenders Charge

Scheme 101
The Haircut Devisees
By M.Soliman

Predatory lending practices are not necessarily exclusive to a high rate charged to the borrower. It can be discovered as lower rate and higher cost or vice versa. The cost of the loan must be tied to a par rate calculated off the corresponding treasury plus margin over the current treasury at time of funding.
In Alt “A” and prime it’s simply whatever the market will bear. A predatory practice can include a competitive rate at abusive price levels measured by points and fees. One trick of trade is to “pack” the borrowers’ funding and disbursements schedule to reduce the net effect of the amount needed t wire in and settle. Lenders have a curtailment or haircut that is required in every funding. It is the difference or shortfall off what their warehouse commercial bank lines will provide at closing. Therefore a lender will post from 200 to 300 basis points per loan closing so for every $100,000 the lender originates and settles it must post $2,000. For a loan in excess of $1.0 million that can total $20,000 in out of pocket funds assuming the loan funds at par. (The note rate)
The special trick of the trade is to charge the borrower the two points arbitrarily and to avoid the haircut. Therefore by charging two points on every borrower loan, the advance is 100.00- 2.00% or funds request at 98% of the note face value. Here the lender avoids its hair cut and when it sells the loan- it makes an extra $2,000 to $20,000 to boot. But it’s the borrower is left paying the points

Avoid the “haircut”.


Attorneys still are not sure . . . who is entitled to foreclose !


In Any Assets of the FDIC Institution

Here is a gravamen for the controversy for whos entitled to foreclose. I believe it to be the core or central issue from which the seed of controversy has blossomed a multitude of claims, beliefs and scattered broad based arguments. Business Trusts offered certifcates that constitue Loans secured by the institution’s assets. Litigation must address the rights to legally enforce or a perfect security interest in any assets of the failed or surviving institution.

Consider where such interest is taken in or with the intent to hinder, delay, or defraud the institution or the institution’s creditors. A business trust assures creditors and others with valid security interests against the institution that their secured claims will be recognized. But a secured creditor only has rights in the collateral equal to the amount of the creditor’s claim; once that claim is satisfied, the lien is of no further consequence.

The FDIC guarantees that the secured party will receive full value of its valid claim, up to the value of the collateral.2326

In the D’Oench Duhme doctrine, which is codified in the Act, agreements which diminish or defeat the interest of the FDIC in any asset acquired by it under Section 1821 or Section1823 of the Act, either as security for a loan or by purchase, or as receiver of any insured depository institution, shall be invalid against the FDIC (subject to conditions under thact).

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Only verified documents can be used in a courtroom.

December 1st 2009

Dear Client;

Upon the acquisition of servicing rights, Servicing coordinates with the prior servicer of the mortgage loans to achieve a transfer of servicing   activities with minimal impact to borrowers. The transfer and boarding process involves notifying the borrowers of the servicing transfer, transferring electronic files containing loan set up information and a payment history, if   applicable.  In addition, loan documents are stored either in hard copy or electronically imaged form for future review and reference.

All boarding   activities are regularly reviewed to assure best practices are employed   throughout the boarding process.

Your engagement of our services will provide a litigant some degree of valuable accounting testing and a supreme insider view towards policies and procedures perspective. It’s the resources and detail necessary to uncover the story line of fraud as we will seek to evidence.

Our expert’s testimony includes other scholarly, accounting and legal professionals and provides current media exposure to support your case. Our intent is to significantly impact the proper legal effort if so required and we will be ready to testify as your expert witness.  We will NOT testify in any matter for the Banks as a defendant in a wrongful foreclosure claim.

Please be sure to forward any correspondence received from your lender to us immediately (i.e.: Notice of Default, Notice of Sale, and Unlawful Detainer). These documents may best be retrieved from the county recorder’s office. Only verified documents can be used in a courtroom.

You’re asked to also submit your available documentation, our engagement forms and fee for expert services whenever possible. Please be sure that you open all mail received by your servicing agent, lender etc in a timely manner and forward copies of the correspondence to NLS promptly upon receipt. We personally don’t see any hope of a modification or workout forthcoming. Save your money there. And for the most part, only an attorney can enforce your rights to defend your home. In any event, you need an intelligent reconciliation before you move in any one direction.

Testimony is subject to the rules of evidence and the local courts instructions where they may already exist in an open matter. The engagement is for supporting by testimonial verifiable evidence of the lender and servicing agent’s unwarranted and unlawful activities.

It is also to encourage your selection in lawyers to ratchet up the legal presumption of “unclean hands” against lenders or the lenders attempts to circumvention of your rights.

We look forward to working with you. Please feel free to call me direct with any questions.




Telephone 213-627-2324

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Author Message
tstony Message #1

12/20/08 03:48 AM

There is a company that says they “utilize our intimate knowledge of Federal and Consumer Homeowner Laws to help our clients in this housing crisis that is threatening the American Dream.” The company is FedMod7555 Irvine Center Drive Irvine, CA 92618. This company has been given a rating of “F” from the BBB. In times like this too many people are seeking some way of relief. Just be careful. The complaints on BBB have stated the they have been ripped off. BE CAREFUL.
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PrivateExaminerMessage #2
12/22/08 06:27

AM Itmay or may not be totally the company’s fault other than these people should never have gotten into a business they did not understand. THERE ARE NO MODIFICATIONS and we telling people that. The bank has to repurchase your loan first and then replace it. Cash strapped with no business coming in ? Forget it. People need to understand you can fight a foreclosure and seek a rescission for breach. But short sales and modifications for the most part do not exist outside of an application and FHA loan submission. http://www.borrowerhotline.com
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motomanual1 Message #3
12/30/08 03:11 AM

Its true. the structure of a real estate trust used to fund a sub prime loan is being revealed as a no fit for HUD & compliance. These poor folks being thrown out if its true. I did not believe at first but….now I do. Seeing is believing. Its a fight to keep your house but more are doing it as these lenders prey on weaker spirits…so I am told! Anyone knonw anything here about subject. You must file a claim. And that’s just it …scams everywhere so careful…but do not accept your fate. But how come the government does not approach the subject and admit it? I know, it would bankrupt the company. Try these site – advice is free and etc etc secondarytradedesk@yahoo.com http://www.infoshare.com http://www.foreclosurewebpage@wordpress.com

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Offering attorneys and their clients the latest i research and up to the minute SEC filing information. You need substance to make a claim and the exemplar your take to court can make the difference for prevailing in a wrongful foreclosure case. Ph 213-805-0157 www.borrowerhotline.com * Foreclosure Process Overview * How to Buy Foreclosures * Foreclosure Laws * Foreclosure Articles * Foreclosure Trends * Foreclosure Software * Avoid or Stop Foreclosure * Bank Owned Foreclosures / REO Homes * Veteran Affairs / Government Foreclosures * HUD Foreclosures * Foreclosure Questions and Answers * Foreclosure Auctions * Foreclosure Financing

What is the History of Notices?

The History of Notices section includes a list of all the data records RealtyTrac has for that property. Since RealtyTrac receives foreclosure information from different data sources, it’s not uncommon for several records (with separate property Id’s) to appear in our database for the same property. Some of the other data records may have more details about the property, including contact information (owner, trustee, lender) and estimated price information (Balance, Opening Bid, Trans Value).


Why is the data sometimes different between records in the History of Notices?

The data for different records on the History of Notices for a property may vary for several reasons.

First, the records in the History of Notices may represent different notices filed during the foreclosure process. The notices tracked by RealtyTrac include pre-foreclosure notices (NOD, LIS); notice of trustee or foreclosure sale (NTS, NFS); and bank repossessions (REOs). So you may see an NOD, an NTS and an REO on the same property to represent the different stages of the foreclosure process. The balance and default amount will change slightly throughout the foreclosure process, so you may see different amounts for those.

Second, the records in the History of Notices may represent more than one lien holder or lender foreclosing on the same property at the same time. While relatively rare, multiple foreclosure proceedings will result in multiple notices with different amounts and different trustees and lenders. For example, if two lien holders file a Notice of Default on a property at the same time, the property history page would contain two records, both with the status of NOD, but each with a different balance, default amount, lender and trustee. To determine if the records signify separate foreclosure proceedings, compare the lender name, trustee name, and loan date (if available). If any of these are different, or if the balance or default amounts are extremely different, that indicates multiple foreclosure proceedings on the same property.

Third, the records in the History of Notices may represent data RealtyTrac has received from different sources. So you might see two NOD records that have the same lender, same trustee and same default amount. This indicates both records represent the same foreclosure proceeding, but RealtyTrac includes data from both sources to provide as much information as possible about the property. Some of our sources overlap, but provide different levels of information. We suggest you review and compare both records to get the complete picture.



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