For more information contact: Richard F. Kessler Documentary Clearing House LLC. 941-924-5608, richardfkessler@verizon.net www.cancelthemortgagenow.

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10310 FROMTHETIPOFTHEICEBERGDOWN:THECRISISINDOCUMENTSUSEDFORFORECLOSURE RichardF.Kessler Regarding the spreading delay of foreclosure proceedings due to widespread use of spurious documentation to authenticate debt, everyone is overlooking all the other types of problem documents that are being used for foreclosure. Most of the news reports only deal with authentication fraud, that is that the person signing the affidavit falsely attested to the accuracy of the amount owed while never having reviewed the borrowers financial records. Soon the companion problem of assignment fraud will be reported. Assignment fraud occurs where spurious documents have been filed as evidence of the chain or title of the mortgage note from the originator of the loan to its current holder. Fraud is widespread because securitization is structured as a paperless transaction through the use of digitized management information technology. Paper records were regarded as redundant, inefficient, unproductive, obsolete, space wasting and time consuming. In short, paper documents were never produced having been replaced by digitized computer files. When the legal requirements for foreclosure required the production of non-existent paper records, the widespread fabrication of after-the-fact impostor documents came into use. The foreclosure requirement for production of a variety of non-existent paper records posed not only a problem for authentication of the amount owed by the borrower. Instead, I have identified 15 different types of records required for foreclosure not produced in securitized mortgage transactions.

15 different types of records required for foreclosure not produced in securitized mortgage transactions. 1.Authenticationfraud.Fraudulentaffidavitused. 2.Assignmentfraud.Chainoftitle.Propertytakenandforeclosureenforcedonbehalfofapartywhich isnotthenoteholder.Fraudulentaffidavitused. 3.Verificationfraudbyattorneys.Fraudulentaffidavitused. 4.MERS.Assignmentinblankdoesnotconveyasecuredinterestinthemortgagedproperty.Chainof title.MERSwrongfullyforeclosedorassigneditsinteresttoasuccessorwhowronglyforeclosedwithout standing.Novaliddocumenttransferringtitletothenotetoplaintiff.

5.Incompleteorderofjudgmentwhichfailstoextinguishthirdpartyinterestsintheproperty. Unmarketabletitle.Failuretouseandproducereportoftitle. 6.Failuretocomplywithcourtrulesandadministrativeorderstoobtainjudgment.Mandatory mediationinFloridaisanexampleofsuchanorderissuedbyacourt,inthiscase,theSupremeCourtof Florida.Fraudulentdocumentusedtoshowcompliance. 7.Failuretoprovideproperlegalnoticetodebtor.Fraudulentdocumentusedtoshowcompliance. 8.Failuretoprovideproperlegalnoticetodebtorinmilitaryservice.Fraudulentdocumentusedtoshow compliance. 9.Falselostnoteaffidavit.Fraudulentaffidavitused. 10.FailuretodiscloseadvancesofdefaultedmortgagepaymentstoMBSTtrustee.Fraudanddeceit uponthecourtresultingfromfailuretodisclosethepaymentsinthecomplaintanduseofafraudulent authentication. 11.Contradictionbetweenpleadingsandotherdocumentsfiledwiththecourtorinthelandrecords andtheMasterPoolingandServicingAgreement.Creatingcontradictingdocumentswhichbar foreclosureunlessanduntilcontradictionisexplainedandresolved. 12.FailuretoconfirmthattheMBStrustwasshownastheholderofthemortgageonschedulesfiled withtheSEC.Falseverificationaffidavitandfalseallegationincomplaintthatplaintiffisthenoteholder. 13.MisuseoftaxexemptionforRealEstateMortgageInvestmentConduit(REMIC)resultingintax evasion.LackofdocumentstoshowcompliancewithIRSREMICrulesasaresultoffailuretotransfer mortgagestoMBSTwithintherequiredtimeperiod. 14.Documentaryevidenceofpredatoryfinancingandnoncompliancewithfederalandstatestatutory authoritiesformakingaloan,settlingaloanorcollectingpaymentofadebt. 15.Documentaryevidenceofmortgagefraud,i.e.deliberatelymakingbadloanstoborrowerswhich thelenderknowsorhasreasontoknowthattheborrowercannotaffordtorepay. Whoisaffected? Anypartywhohasfunded,organizedoradministeredamortgagebackedsecuritizationtrust (MBST). AnyinvestorwhohaslostmoneyoncertificatesissuedbyaMBST. Anypropertyownerinforeclosureorwhohasbeenwrongfullyforeclosed. TitlecompanieswhoinsurepropertiesforeclosedonbehalfofaMBST. LawyerswhobringforeclosureactionsonbehalfofanMBSTordefendagainstforeclosureon behalfofanMBST. Investmentcompaniesinterestedinfundingclassactionlawsuitstorecovermonetary compensationforwrongfulforeclosureandmortgagefraud. 2

 Questions 1. Whenwillthemediapointthespotlightofpublicattentionupontheother14typesofrequired butnonexistentrecords? 2. Whatwillbetheconsequencesforeachoneoftheaffectedparties? 3. Howcanthedocumentaryproblemsbecorrectedintheshorttermandavoidedinthefuture? 4. Whatliabilityexistsforwrongfulforeclosuretoownerswhohavelosttheirpropertyin foreclosureproceedingsrelyinguponspuriousdocumentseitherforcompensatorydamagesor areturnoftheforeclosedproperty? 5. Whatliabilityexiststoinvestorsifmortgagesarefoundtobeunenforceable. 6. Whatwillbetheeconomicconsequencesfortherealestateindustryandthefinancialmarketsif largenumbersofmortgagesindefaultbecomeunenforceable?