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Banks Make Fake Threats About “True Lender” Language in Illinois Law

by Neil Garfield

This is a lot like 2008. But then the banks threatened to pull the plug on all trading platforms for bonds and other securities. They manage to convince a large number of decision-makers in the nation’s capital and in State capitals around the country that if securitization “infrastructures” were compromised, the entire financial system would collapse thus bringing the entire economy to a halt and the end of civilization as we knew it.

It was a lie then and it is still a lie. But everyone in legislation, regulation and adjudication bought it hook, line and sinker.

The truth was that the investment banks and found a brand new toy and didn’t want to lose it. They were making more money than was ever conceived possible. Starting in 1983 zero, the shadow banking market is now estimated to be trading “contracts” (securities) with a “nominal” value of more than $1.4 Quadrillion dollars which is around 20 times all the money in the world.
Small wonder that central banks are virtually powerless to control monetary policy or effects. Not even the U.S. Federal reserve controls even 1% of that amount.

So after 25 years of plain pulp fiction about the use of the word “lender” Illinois is the first state to try to address that term and bring it back from the twilight zone. It seems that Illinois thinks that a lender is someone who has paid money in exchange for a promise to pay it back. And even more strange, Illinois thinks that such a true lender must comply with lending statutes.

The investment banks are of course outraged. If states are going to require that the lenders are the people who paid the money and who must comply with lending statutes, then what will happen to securitization? The answer is simple. It can continue but only with disclosure to investors what is really happening and that would mean they would need to stop referring to homeowners as borrowers.

So the latest lie is that the banks will stop lending bringing the financial sector to a halt, crashing the economy and destroying society — or will it? Illinois wants to know what is going on in its state. Investment banks don’t want to reveal that. It is all very proprietary trade secret information mainly in the same sense that organized crime has proprietary trade secrets.

So they’re spinning up the idea that this is bad for “borrowers” who are actually investors in a scheme in which they get nothing and that lenders will simply stop lending in an environment where the truth must be told. Let’s see what happens.

see https://www.troutman.com/insights/new-illinois-predatory-loan-prevention-act-leaves-lenders-and-borrowers-with-uncertain-future.

 

     
 

Mortgage Fraud Daily News Update ⋅ April 27, 2021

 
     
 

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Previous bull markets for housing have also caused suspicion about mortgage fraud, which can involve providing false information to a lender. Equifax …

     
 
 

Pastor charged with fraud after using $1.5M in pandemic relief aid to buy 39 cars and Baltimore …

Baltimore Sun

A Maryland man has been arrested and charged with wire fraud after … restaurants, retail stores, mortgage payments and automotive auctioneers.

DC Pastor Rudolph Brooks Jr. Allegedly Bought 39 Cars, Including Tesla, And Baltimore Property … – msnNOW

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Married couple indicted on $1.1M sleep study fraud scheme

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Married couple indicted on $1.1M sleep study fraud scheme … school tuition, luxury vehicles, and real property purchase and mortgage payments:.

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Finance of America Mortgage president rails against “prehistoric” underwriting

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Has anyone heard anything about a coyote attacking a dog on souvenir drive

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KCBD Mortgage Free For A Year Official Rules 2021

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Entrants are required to provide truthful information and the Sponsors will reject and delete any entry that it discovers to be false or fraudulent. A sponsor …

     
 
 

Round Two: Pallotta Challenging Gottheimer

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… Frank’s spent his career defrauding seniors and veterans with subprime mortgages, so I guess he’s trying to pull another fraud here on the voters. “

     
 
 

Justice Department Warns Taxpayers to Avoid Fraudulent Tax Preparers

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Southfield Bank Founder Linked to Major Fraud Case

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The site notes that Seligman, building on his experience with both Mid-States Mortgage and the family’s growing real estate portfolio, chartered the …

     
 
 

Market “Bubble” May Crest Soon, So Buyers Make Sure You Love That Property: BMO

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The percent of income a median household needs to carry a mortgage in … Booms in real estate tend to see higher risk of mortgage fraud, and that’s …

     
 
 

SHAREHOLDER ALERT: Rigrodsky Law, PA Announces Investigation of Tremont Mortgage Trust

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Pastor charged, accused of spending PPP on Tesla, property

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HAGENS BERMAN, NATIONAL TRIAL ATTORNEYS, Alerts Lordstown Motors Corp. (RIDE …

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$1.67 Trillion in Purchase Originations Forecast for 2021

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‘He understands more than anyone what I’ve been through’: Fiancee of serial conman who …

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… thanks to the liar, discovered that Acklom had been jailed in 1991 for four years for a £466,000 mortgage fraud after he posed as a City stockbroker.

     
 
 

Ex-White House adviser for Obama charged in $200K theft from schools

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Seth Andrew, founder of Democracy Prep, was arrested in Manhattan on wire fraud, money laundering and false statement charges. … The couple obtained a $1,776,000 mortgage with an interest rate of 2.5%, the complaint said.

     
 
 

Solicitor and accountant charged over alleged €268k property registration fraud

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Mr Kicline’s solicitor Daniel Cahalane applied for free legal aid, saying Mr Kilcline was a part-time solicitor earning €300 per week and had a mortgage. “ …

     
 
 

Sunderland scammer ordered to repay more than £1million could face further six years behind bars

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It followed a complex fraud which uncovered how the 50-year-old and … and his house sold after he used the fraudulent funds to pay off the mortgage.

     
 
 

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DC pastor used PPP loan to buy Tesla, Baltimore property, US Attorney says

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… Brooks Jr., of Cheltenham, Maryland, known as the pastor at Kingdom Tabernacle of Restoration Ministries, faces a federal charge for wire fraud.

     
 
 

Bottom line

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Rock Central, a Detroit-based mortgage, real estate, and business services company, hired Cypress Advocacy to work … to work on Medicaid payment reform, fraud and abuse law reform, health care reform and coronavirus funding.

     
 
 

Sunderland scammer ordered to repay more than £1 million

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Thousands of pounds from his bank accounts have been seized and his house sold after he used the fraudulent funds to pay off the mortgage.

     
 
 

Commercial Real Estate Bubble Post

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Eden Garden EDH Non Approved Area/Mortgage Fraud | Facebook

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See more of Eden Garden EDH Non Approved Area/Mortgage Fraud on Facebook. Log In. Forgot account? or. Create New Account. Not Now.

     
 
 

1 in 5 Canadian Homeowners Commits Mortgage Fraud : canada

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Mortgage fraud industry is thriving big time and is one of the reasons that housing is getting unaffordable in GTA and rest of Canada. Vote. Reply.

     
 
 

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Morgan Stanley Private Bank Mortgage

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FRAUD STOPPERS Daily NEWS Update ⋅ April 27, 2021

 
     
 

Houston officials, FBI warn against use of fake vaccination cards

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“They’re very easy to get, and a lot of people are getting them,” Crime Stoppers of Houston CEO Rania Mankarious said in an interview on Monday.

     
 
 

Kan. woman lost $21K in alleged legal trouble scam

hays Post

Just before noon April 24, police filed a report for fraud in the 300 block of … can contact RCPD or the Manhattan Riley County Crime Stoppers.

     
 
 

5 things for Houstonians to know for Tuesday, April 27

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1. Houston officials, FBI warn against use of fake vaccination cards. The list of venues, establishments and government entities that currently or will soon …

     
 
 

Manhattan woman, 77, victim of $21000 phone scam

WIBW

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Financial Crimes Squad charge man after WIFI jammer, firearm and vehicle seized

Mirage News

… an outstanding warrant for fraud-related offence had fled to New South Wales. … man for offences including dishonestly obtain property by deception. … contact Crime Stoppers: 1800 333 000 or https://nsw.crimestoppers.com.au.

     
 

 

 

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