The Mortgage Fraud

Let me preface this with a quote from Henry Ford: "It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning."

Contrary to popular belief, banks do not loan money they receive as deposits. Let me give you a brief synopsis on how our monetary system operates. Carefully read the quote below.

Modern Money Mechanics, page 6, Federal Reserve Bank of Chicago:

"Of course they do not really pay out loans from the money they receive as deposits. If they did this, no additional money would be created. What they do when they make loans is to accept promissory notes in exchange for credits to the borrowers' transaction accounts. Loans (assets) and deposits (liabilities) both raise by $9,000. Reserves are unchanged by the loan transactions. But the deposit credits constitute new additions to the total deposits of the banking system.”

As stated above, a signed promissory note is an asset that can be exchanged for cash, thereby making it a negotiable instrument. 

Once the bank cashes the note with the Federal Reserve Bank, they then create the borrowers transaction account where the money is deposited, and then “loaned” back to the borrower with interest. The account is addressed to the ALL CAPS artificial person/corporation which is governed by the UCC. 

The bank risked none of it’s own assets in this so-called “loan.” According to the UCC 1-204(24) and 3-104, it was our signature on the note that made it legal tender. This money didn’t exist until you signed the note. Starting to see the deception?

Now let’s briefly address the mortgage fraud.

According to the UCC, there are three reasons why the promissory note is an invalid contract:

1. There is no consideration on behalf of the bank.

2. There is no signature from a banker to enforce it as a valid contract.

3. Failure to disclose.

After the promissory note is signed, it is stamped with the words “pay to the order of without recourse.”  Where else have you seen that? A check! These promissory notes are converted into checks. This explains why a banker is never present to sign the note, as it would invalidate the check.

Now let’s look at the Deed of Trust.

The Borrowers Covenant reads: "The borrower is lawfully seized of the estate, hereby conveyed and has the right to grant and convey the property, and that the property is unencumbered except for encumbrances of record.”

Not only does it state that the property is “unencumbered,” it also states that the borrower has the right to “grant and convey" the property. If you entered into a supposed “loan contract” with the bank, then how is the property unencumbered? What you’re doing by signing the Deed of Trust is granting the property back to the bank after it was initially purchased with the autographed note/check. Now you're on the line to pay off a mortgage with an egregious amount of interest.

Can you see how the property is rightfully yours until you sign the Deed of Trust? This is exactly why the bank has you sign the promissory note (check) before the Deed of Trust. You have to purchase the property before you can convey it.

To further the deception, the banks bundle these notes together and sell them on Wall Street as “Mortgage Backed Securities.” This simply means that the bank doesn’t even have possession of the original “contract." How can they enforce this supposed “contract" if they no longer possess it? 

Never forget that all registered property was seized as booty by the military government on March 9, 1933. This is when FDR passed his Emergency War Powers Act, which “temporarily” suspended the Constitution.

Senate Document # 43; SENATE RESOLUTION NO. 62 (Pg. 9, Para 2) April 17, 1933.  "The ultimate ownership of all property is in the State; individual so-called "ownership" is only by virtue of Government, i.e., law, amounting to mere user; and use must be in accordance with law and subordinate to the necessities of the State." (Emphasis added)