Written by Susanne Posel, Special Contributor To The Hagmann and Hagmann Report
The House Financial Services Committee (HFSC), headed by chair Jeb Hensarling, has approved proposed bill entitled, “Protecting American Taxpayers and Homeowners Act” (PATH) that is being sold to the American public as a way “to create a sustainable housing finance system.”
Hensarling explained : “Our plan helps taxpayers and homeowners. It gives power and control back to consumers. Under the current broken system, unaccountable Washington elites have more of a say over who gets a mortgage than your local bank. The current system is a government monopoly run by the same types of Washington bureaucrats who run the IRS. America can do better. Americans deserve better.”
Buried in PATH is the creation of the National Mortgage Data Repository (NMDR) which is the brainchild of the Federal Housing Finance Agency (FHFA) and the Consumer Financial Protection Bureau (CFPB).
The NMDR would be “the first comprehensive repository of detailed mortgage loan information. The database will primarily be used to support the agencies’ policymaking and research efforts and to help regulators better understand emerging mortgage and housing market trends.”
Richard Corday, director of the CFPB asserts that “in order to understand what is going on in the mortgage marketplace and develop appropriate consumer protections, we must have the best facts and data. This database will be a valuable tool for regulators and researchers and we look forward to partnering with FHFA on this important work.”
The NMDB would be utilized in conjunction with agencies to:
• Monitor the relative health of mortgage markets and consumers.• Provide new insight on consumer decision making.• Monitor new and emerging products in the mortgage market.• View both first and second lien mortgages for a given borrower.• Understand the impact of consumers’ debt burden.
The problem that justifies the NMDB is the Mortgage Electronic Registration Systems (MERS) that is a database that was incorporated in 1995 and privately held.
MERS board of directors is filled with vested interest from technocrats such as:
• Freddie Mac• Wells Fargo• Citigroup• JP Morgan & Chase Co• Fannie Mae• Bank of America
Those financially invested in MERS include:
• Bank of America• Citigroup• HSBC• Sun Trust• Wells Fargo• Fannie Mae• Freddie Mac
Hensarling took a ski-trip last April and met with powerful members of the financial Elite who have also made campaign contributions to him through the SuperPAC Jobs, Economy and Budget (JEB) Fund just before PATH was announced by the HFSC.
The “weekend getaway” was attended by:
• A representative from the American Securitization Forum (ASF)• Len Wolfson, lobbyist for the Mortgage Bankers Association (MBA)• VISA• And other members of the retail industry and finance corporations
Those who have contributed to the JEB Fund around the time of the ski-trip weekend are:
• Capital One• Credit Suisse• PricewaterhouseCoopers• MasterCard• UBS• US Bank• National Association of Federal Credit Unions• Koch Industries• Cash America International• CheckSmart Financial• Regions Financial• JP Morgan & Chase Co
Considering the implications of PATH for the banksters, it may be that those technocrats who contributed to the JEB Fund would be the first to take advantage of the bill should it pass through to become a law.
Supporting PATH, the American Bankers Association (ABA) released a statement saying: “We commend Chairman Hensarling for this thoughtful measure to begin the essential work of reforming our nation’s housing finance system and protecting taxpayers, which includes reforming Fannie Mae and Freddie Mac and refocusing the Federal Housing Administration.”
The ABA went on to say: “We strongly support provisions of the Chairman’s bill that would delay implementation of pending mortgage rules, including Qualified Mortgage, and provide some important and needed changes to that rule. More time is needed to ensure that banks can comply with these complex new rules to avoid unintended effects on credit availability. Clarifications to the rules are also necessary, both those still to be proposed by regulators and others included in this legislation.”
The NMDR would wipe the slate clean with regard to the mortgage fraud that has become apparent with cases being filed in courts all across the nation. Homeowners and attorneys have realized that with the use of MERS, the banks have been able to robosign their way into mortgage debt that was foreclosable.
However, MERS has proven to be a bit of a thorn for the banksters when it comes to proving they hold title to the property they are in the process of seizing. In fact, it appears that the financial Elite did not consider the clogging of the courts and losing their right to foreclose on home based on the lack of evidence that they hold title of the property because of MERS.
Instead, the technocrats have devised a way to take the homes from ALL homeowners regardless of whether or not they have previously won during foreclosure litigation, are in the process of litigation and would file a complaint with the courts at a future date.
One of the outcomes of PATH would be the right of the technocrats to stop current legal standing of the homeowners in court with regard to foreclosure litigation.
Without this provision, the homeowner cannot sue to stop the foreclosure, nor can new complaints be filed with the courts.
But one of the biggest advantages of PATH would be for the technocrats to reopen foreclosure litigation that was ruled on in favor of the homeowner.
Just as with criminal law, the right of protection from being retried for a “crime” is protected under Jeopardy clause.
The civil version of the Jeopardy clause works much the same of the criminal counterpart. Jeopardy can terminate “in four instances: after acquittal; after dismissal; after a mistrial; and on appeal after conviction.”
What this means for PATH and the NMDR is that a homeowner who previously won a suit against the bank and kept their home, would now be under threat of having the case reopened under the new evidence argument.
The bank could simply open a new case in light of PATH that would empower them bring this law in as evidence (should the law be passed). This would also allow the banks to circumvent the Ex Post Facto clause .
By using PATH as the reason to bring old litigation to new light, this scheme would serve to give the banks a way to acquire those properties anyway.
It is a three-fold win for the technocrats thanks to Henserling and the HFSC.Click here to save this article in PDF format