We left off with the question of "What Happened to Truth in Lending"? and the answer is, "NOTHING" it is alive and well. The challenge is people (the "D2D") are presuming its content and effect by accepting its continued enforcement.
Here's what we didn't recognize in our conditioned nature for presumptive existences.
When a D2D participates in the buying and selling of real property with the use of a "table funded loan" that process is facilitated by a "day player" (day players are people who show up on a production and participate in a production only for the day, they get paid and they walk away with no skin in the game).
THE OLD STANDARD aka the good old days.
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A borrower and a bank would contract to lend money.
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The borrower would borrow the money; and
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Offer a security interest in its property; and
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The bank would lend money off its balance sheet; and
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Hold both the note and mortgage (deed of trust) in the event you failed to pay.
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Those days are gone in favor of a large number of “securitized loans” (loans that are bundled into pools and sold off on Wall Street) that allow for unlimited fundings by unknown participants.
NOWADAYS in the "Securitized World" (aka SECZ) the process looks more like this.
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A loan “originator” posing as a “lender” and the loan originator is NOT loaning you a dime (rather, someone else or some other entity is funding, lending, or table funding the loan).
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The originating lender, purporting to contract to “lend” you money, is not actually lending you any money.
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In reality, they are doing nothing more than earning a commission on the money SOMEONE ELSE IS LENDING YOU.
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(i.e. some Wall Street investor in your loan pool who is funding the loan, who is NOT IDENTIFIED AT ANY STAGE OF THE LOAN PROCESS, and who expects a return on their investment).
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These HIDDEN INVESTORS are the true “lender” who is the source of funds for your loan. Strange, but true.
In this respect the "TFL" creates a unique type of Lender Identity known as a "Debtor-Mortgagee". This creates the illusion of the entity that gives you money. However, the reality is that a "Debtor-Mortgagee" is a conduit for the entity (nka Certificate Holders) that truly supplies the money for the intended transaction. The "real party in interest LENDER" is unknown from the very beginning and by design.
This business model is why the Courts have said that the "TFL" is, by nature, "predatory per se" and against public policy. Don't confuse this description to mean that a "TFL" is "illegal" or "unlawful". However, it does bring up some questions.
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Shouldn't the Mortgagor/Debtor (MoD) have a Promissory Note & Debt Obligation ONLY with the party actually giving them the money? and
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If they don't know WHO (identifiable lender) is giving them the money, where is the exchange of value that gives rise to the "debt obligation"?
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When does the agreement become legally enforceable if there is no meeting of the minds element, no counter-party signature and no identifiable parties element?
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When does the "enforceable contract" manifest?
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How does a "statute of repose" or a "statute of limitations" operate without the anchor of consummation (consideration)?
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And if there is no reasonable evidence of a consummation does the "M/B" still have a right of rescission? or does the "M/B" even need it?
What happens in a case of "designed concealment of ownership"? We have a property to save.
[Season 1, Episode 2]