If a Borrowers Promissory Note Funds a Loan Who Is The Creditor?

[Izraul Hidashi]

If a Borrowers Promissory Note is used to fund their loan, then who would the creditor be?

[Izraul Hidashi]

@Chris Seveney Yes sir. I'm familiar with fractional reserve lending. What we're talking about goes way beyond simple FRL. We're talking about conversion of promissory notes without notifying the signatories that the notes are convertible. A convertible note is a debt security, and by law, a convertible note must state that it is such an instrument. Furthermore, the individuals entering into these agreements believe the transaction to be a loan. But that's far from the truth. It's actually a sale of a securities. The banks are entering borrowers into securities transactions, for the secondary market. It's hard to believe that so many financial professionals don't understand what's going on or why this is such a problem.

And that in itself is the problem. Because all of the financial professionals who have answered this topic are clearly confused, to the point they think it's a joke. But it's not. To them it sounds silly, which only proves that even professionals don't understand it. If they don't get it, how can the borrowers? Nobody no what's going on except the servicers and trustees.  To the professionals it seems like nonsense because a loan is straightforward.

One person wants to buy borrower money. Another person lends the money. Borrower signs an I.O.U. promising to pay back that money plus interest. Right? That's simple and straightforward, like it should be. And that's what the professionals and the borrowers both believe is going on. AND THAT'S THE PROBLEM!

When the borrower pay the lender back, the note (I.O.U which is supposed to be the evidence of the debt) should be returned. Because if the lender really lent money, then there's no reason to convert or cash the note. It's supposed to be evidence of the debt. Fractional Reserve Lending has nothing to do with this. Because there is no money being lent. It's not a loan transaction (although the borrower, and clearly all of these professionals, do believe it is). It's really a sale of securities. It's a secondary market transaction disguised as a loan, but IT'S NOT A LOAN.

And that is exactly why the borrower, and clearly a lot of professionals, don't know about it. Because the banks aren't telling anyone. Everybody thinks there's a regular loan happening. THERE'S NOT. 

It's EXACTLY why GLASS STEAGALL was implemented. EXACTLY why it was so IMPORTANT. It's EXACTLY why the economy tanked. The Mortgage Securities market is what collapsed the economy. Not regular market transactions. FRAUD! We're talking about the FRAUD in securities market. That's what was responsible for the collapse. Both the Great Depression and 2008. This is why keeping commercial banks separate from investment banks is so important. Glass Steagall is why we there was no economic collapse for over 80 years. But as soon as jack*** Clinton repealed it, the door for the fraud was opened again. And the banks collapsed the economy, AGAIN. He set it into motion. 

WaMu was directly involved. They weren't in trouble. The FDIC stepped in to help Chase commit a robbery. Jamie Dimon sent moles to WaMu, and through these pretend loans (which were securities transactions) they destroyed WaMu and the economy. And all the foreclosures were fraud. Not a single bank had legal right to foreclose, because once a promissory note is converted & securitized, it's no longer a NOTE. It can't be converted back. It's no longer a tangible asset. The whole market came down because of this exact thing. There was no lenders. The borrowers weren't borrowers. And the notes were no longer notes.

And on top of not disclosing the true nature of the transactions, the borrowers were unknowingly entered into 3rd party transactions, without knowledge, consent, or recourse. But it gets worse. Because the notes were supposed to make into the REMIC trusts within 90 days. But they never made it at all. Because the banks were reselling them to over seas market investors. Which clouded damn near every title in America. Half the REMIC were empty. The investors got screwed. The home owners got screwed. And the insurance companies got screwed. America got screwed. All by Wall Street. And then we gave the bastard crooks a bailout. Then the banks inflated appraisals, fabricated documents, counterfeited the securities (which is a felony) committed securities fraud and tax evasion. Then contacted borrowers to offer them loan modifications under the false premise of having to be 90 days late (which is exactly how long they need to foreclose), then denied the homeowners their modifications to default them and collect on the insurance and credit default swaps, then after squeezing all they could, stole the properties through the fraudulent foreclosures using the fabricated documents and bid rigging.

And now cities in every state are crying about a giant homeless problem. LOL Well no ****!