How The Crisis Came To Exist

1. How The Crisis Came To Exist Senator Carter Glass (D-VA) and Congressman Henry B. Steagall (D-AL) wrote the Banking Act of 1933 forming the Federal Deposit Insurance Corporation, FDIC Glass-Steagall placed strict controls and barriers on the interactions of Banks with Companies involved in speculative activities In 1998, the Federal Reserve began to dismantle Glass-Steagall by allowing CitiBank to associate with Salomon Smith Barney In 1999, President Clinton signed legislation that killed Glass-Steagall

2. How The Crisis Came To Exist With the barriers removed, commercial banks began to gamble by participating in various securities markets using private depositors’ money Commercial and mortgage bankers began to securitize and sell residential mortgages multiple times to increase their short term profits Rating agencies began to misrepresent and sell AAA+ ratings for fees of hundreds of thousands of dollars (per transaction) regardless of the true risk assessment of a given mortgage backed security The mortgage companies, mortgage bankers, commercial banks, Fannie Mae and Freddie Mac conspired to create an organization to circumvent the legal and long established paper system of recording Mortgages and Deeds of Trusts with the County Clerk’s office By not recording changes in Deed and Promissory Note ownership, the rate of sale of Notes accelerated to lightning speed 2

3. How The Crisis Affects You Because banks and mortgage lenders have securitized the promissory Notes without public filings, the Chain of Title is irrevocably broken A broken Chain of Title means that when you “pay off”your mortgage, no Title Company will certify that your property is free and clear Because the Title to your property is not certified free and clear, you have become an involuntary indentured servant and a renter, not an owner The XII and XIV Amendments to the U.S. Constitution make involuntary indentured servitude illegal except for military service and prison terms Because investors were only concerned with profits, separations of the Deed and the promissory Note have occurred. The owner of the Note will attempt to give you a “Lost Note Affidavit” instead of the Deed to your property after you make your last payment SLIDE 3

4. Mortgage Electronic Registration Systems Professional Organizations Government Sponsored Enterprises Commercial Banks Mortgage Crisis Major Players – MERS & Stockholders Mortgage Companies Title Companies Mortgage and Professional Services SLIDE 4

5. Mortgage Crisis Major Players –Commercial Banks Trillion Dollar Asset Banks –Too Big to Fail! Because of the Residential Mortgage Crisis, the Federal Government erroneously believed that creating banks “too big to fail” and swallowing up smaller banks was a way to solve the crisis. Yet, nothing was done for the Homeowner ~ the Real Victim in this financial mess. 5

6. Mortgage Crisis Major Players –Title Companies Title Companies have been in a feeding frenzy since the middle of the last decade. They have egregiously acquired the assets of smaller regional or local companies. The national or large regional title companies disregarded and don’t care that they have assumed the risks of defending the title work production of the companies they have absorbed. The title companies have forgotten their fiduciary responsibility to make sure the Chain of Title and the Deed to the property under their care is preserved. The major title insurance companies in the United States by volume are: First American Title Insurance Company Fidelity National Financial Stewart Title Insurance Guaranty Old Republic Title Insurance Company North American Title Insurance Company Chicago Title Insurance Company Commonwealth Title – “Instant Case Defendant”

7. Mortgage Crisis Major Players Government Sponsored Enterprises The three largest government sponsored enterprises in the residential market are Fannie Mae, the twelve Federal Home Loan Banks and Freddie Mac. Fannie Mae and Freddie Mac are bankrupt and are in receivership. The Federal Home Loan Banks lend only to its member organizations, being banks and financial thrift institutions. Fannie Mae and Freddie Mac support the electronic shredding of Deeds of Trust and promissory Notes because they specify in their 3000 plus page Pooling and Servicing Agreements that all mortgage promissory Notes they purchase must be endorsed in blank. A promissory note endorsed in blank is a Bearer Bond. The owner is the person in physical possession of the Note. Bearer Bonds are the same as cash. 7

8. Mortgage Crisis Major Players – Regulatory Agencies The Securities and Exchange Commission (SEC) was created to insure truth in disclosures by publicly held corporations Instant Case – 4,000 plus page SEC filing by Residential Funding Corp, residential Capital Corp, Homecomings Financial Network, Inc, GMAC-RFC Holding Corp (all in the same office in Minneapolis) and 2 other corporations All six corporations used the same SEC Corporate Filing number The 4,000 page filing approved by SEC IN LESS THAN 4 HOURS Federal Reserve was created by Congress in 1913 to avert the US Banking disasters of the kind similar to the disasters occurring in the 1700s and 1800s The Federal Reserve helped to kill Glass-Steagall and create the Toxic Asset Recovery Program to throw a blue tarp over the financial mess occurring in the United States during the last decade 8

9. Mortgage Crisis Major Players Ratings Agencies & Investment Firms · In 2008, Standard & Poors gave a AAA rating to toxic waste mortgages. Then it gave an A rating to Lehman Brothers just before the investment bank went under · Toxic waste mortgages have a loan to value ratio of over 100. In other words, the amount of loans on the house greatly exceed the value of the house · The S.E.C. sued Goldman Sachsfor its disclosures about an esoteric derivative security that misleads mortgage-backed security investors · Synthetic credit debt obligations, CDOs, only referenced mortgage securities and thus were bets on whether borrowers would pay their mortgages When banks lose on CDO speculation, the bank depositors pay the losses 9

10. What is a Mortgage Endgame An endgame is a strategy of developing and using identified scenarios to produce a desired result at the end of a negotiation, transaction or process A Mortgage Endgame is a perfectible and long term strategy implemented so that the borrower owns their home with a Clear Deedand is financially solvent at the end of the process The American Dream is owning a home WITHOUT financial encumbrance. At that point one can live with spending very little money to maintain the chosen lifestyle If you had only to pay for utilities, water and sewer, food and transportation, taxes and had no credit card or mortgage debt, how little money would you need to make? 10

11. What is a Mortgage Endgame – Federal Court Suit The President and Congress killed Glass-Steagall leaving all American homeowners and borrowers at the mercy of the speculative frenzy being promoted by financial institutions State legislative bodies and Governors cannot enact and enforce laws across State borders All State judges have to run for election and are constantly raising money for political campaigns The President makes Federal Bench appointments – Judges are free to do the right thing You have no exposure by participating in a mass case in Federal Court 11 SLIDE 11

12. Mortgage Endgame – Federal Court Suit There are case filing fees associated with actions in Federal Court Because the Rules of the Court may change, there are fees associated with the formatting, production and delivery of documents If a lawyer bills at $400 per hour and your Deed of Trust is 24 pages of fine 6 point text, it may take the lawyer 6 hours (or more) to read and render a simple opinion on your Deed of Trust. That’s $2400 for simply a legal opinion Thousands of legal research hours used in preparing for a case in Federal Court can easily push the cost close to one million dollars 12 SLIDE 12

13. Why You Need a Mortgage Endgame For the last twenty years, financial institutions have shown they are interested in profits and not morality, fairness or fiduciary responsibility If you do not know your rights, you cannot protect yourself ~ Example: the title insurance you paid for in your mortgage closing, in most cases, is for the lender and not you Regulatory Agencies since the Reagan Administration have been willing to protect corporations ahead of the American public It is your right and duty to gain legal redress and adequate civil compensation for the damages financial institutions have done to you in the mortgage crisis You cannot effectively repair your credit as the agencies keep morphing. As of today, they are Experian, Equifax, TransUnionand Innovis. ONLY CASH CAN REPAIR DAMAGED CREDIT! 13

14. Benefits of Participating as a Member of a Group Cost of legal research, to Mortgage Endgame, is greatly decreased as you are providing the specifics in accordance with guidelines from legal counsel One major cost is the development of computer systems required to produce the analysis of common points in documents from hundreds of potential litigants Your new job is to educate yourself so that you can receive adequate financial compensation as an outcome fromthe successful judgment of your mass case Because you are involved in a properly filed mass civil lawsuit in Federal Court,legal foreclosure proceedings stop while the lawsuit is prosecuted As a member of a properly filed mass case lawsuit along with certain legal actions taken in advance, you can legally stop paying your mortgage while the case progresses 14

15. Hidden Mental Stresses of Moving Any moving, whether optional or mandatory, is very stressful due to the following factors: Creation of a new family life Loss of familiar settings and neighbors Uncertaintyof the future and moving into an unknown environment Embarrassment due to the loss of your home and financial stability if moving because of foreclosure If downsizing your living space, the new smaller living environment can cause emotional claustrophobia 15

16. Physical and Psychological Costs of Moving Rental Applications filed on average at least 3 at $50 each Need to dispose of possessions Utility deposits can be higher for apartments as opposed to a house Change of address and telephone numbers and disseminating this new info Re-establishing connections with family and friends after moving New routines because of smaller space 7. Higher property and automobile insurance ~ may have to park car on street 16

17. Physical and Psychological Costs of Moving Less control over neighbor inaction in apartments, (thin walls & floors) Costs of moving supplies and tools Actual costs of moving ~ fuel, labor, food, clothing, physical ailments High cost of public storage facilities if you are not able to dispose of excess belongings 12. Development of new daily routines and habits 13. Two bedroom apartment costs the same as a mortgage note for a 3 bedroom house 17 SLIDE 17

18. The Home Buying Process At the closing of the Mortgage Contract, the promissory Note becomes irrevocably linked to the Deed for the term of the contract. This “Linkage” is known as the “Chain of Title.” “The Note Is Secured By The Deed” 1. This bond legally becomes a “Trust” 2. This Trust is commonly referred to and is titled a “Deed of Trust” 3. The Homeowner, at closing, passes the Deed to the lender as “Collateral” for the Note 4. The lender promises and is required by law, to protect the integrity of the “Chain of Title,” as evidenced by the Deed, on behalf of the Homeowner until the Note is paid in full 18

19. How A Trust May Be Amended Or Broken By The Homeowner 1. Homeowner: Pays the Note in full in accordance with the Contract term 2. Homeowner: Pays the Note in full prior to the end of the Contract term 3. Homeowner: Refinances the current Note 4. Homeowner: Defaults on the payment of the existing Note How A Trust May Be Amended Or Broken By The Lender or Holder of the Note 1. Lender: Sell the promissory note and Deed of Trust to a third party SLIDE 19

20. The Slides That Follow Are Presented in Two Columns The “BLUE” column represents what, The “RED” column represents what in a normal environment, would be the has predominantly occurred to the statutorily correct steps that would great majority of mortgage contracts be expected to take place during the during this time of fraudulent, criminal course of a mortgage contract and greed-motivated behavior that has created the largest control fraud in human history SLIDE 20

21. Lender is the Original MortgageeMERS is named as the Original Mortgagee, a Beneficiary or a Nominee The Original Mortgagee is the MERS becomes the Holder of the noteHolder and Owner of the Note when its members register a mortgage with them The Lender/Original Mortgagee MERS demands that all members namenames a Nominee and a it as a Beneficiary or Nominee in allBeneficiary on the original Deedmortgages in the MERS Systemof Trust Now, the named Nominee and/or MERS demands that memberBeneficiary become potential organizations give up rights when theyinheritors of mortgagee rights register loans with MERSfrom the Lender SLIDE 21

22. In Texas, a company cannot MERS never registered as a mortgageinherit the rights of Holder in Duebanker or mortgage broker and cannotCourse unless it meets the inherit Holder in Due Course rights forrequirements of either a Mortgagea Promissory NoteBanker or a Mortgage Broker Texas requires registration with MERS decides never to register with National Mortgage Licensing the Secretary of State and is notSystem & Registry, NMLSR, allowed legally to conduct business inSecretary of State and Dept. of Texas. MERS does not register withSavings and Mortgage Lending if NMLSR nor the Dept. of Savings anda business makes over 4 loans a Mortgage Lendingyear At the mortgage closing, the At the mortgage closing, theborrower/homeowner signs theborrower/homeowner signs theDeed of TrustDeed of Trust SLIDE 22

23. An irrevocable bond is established MERS breaks the Chain of Title by notbetween the Deed of Trust and the filing changes to note ownership withPromissory Note at the mortgage the County Clerk’s Officeclosing This bond, the Chain of Title, is This bond, the Chain of Title, isunbreakable except through unbreakable except through completecomplete payment of the loan or payment of the loan or by a legalby a legal foreclosure foreclosure In Texas, the lender and borrowerThe original Deed of Trust is filed in theagree that the Deed of Trust in the County Clerk’s Officeshould be filed with the CountyClerk’s Office Filing the Deed of Trust protects MERS and its member organizations both the lender and the borrower don’t care about protection SLIDE 23

24. The financial interests of the MERS claims that interests arelender are protected because the protected because it is a Nominee or apublic can review the County Beneficiary. MERS registers norecords changes The borrower’s rights are The borrower’s rights are destroyed asprotected as the lender is MERS and the members break theremanded by both Federal and Chain of Title and electronically shredState statutes to protect the Deed the Deed of Trustwhich belongs to the borrower The original Deed of Trust is filed Any changes and/or assignments of thewith the County Clerk’s Office note are never publicly filed The lender can use a mortgageThe lender should send written servicer that only has the right tonotification to borrower that it is usingcollect mortgage paymentsa mortgage servicer SLIDE 24

25. The lender may rid itself of In many cases the lender has sold theobligations to finance your note before the Deed of Trust is signedmortgage debt To do this, the lender may sell the In the MERS System, notes are soldmortgage to a nominee, a numerous times in secret. No publicbeneficiary or a completely recording occursdifferent third party After the Promissory Note sale, a MERS tells its members any changes public recording is required if the after the initial filing does not have tooriginal Deed of Trust was publicly be recordedfiled This selling of the Note is called Although state law requires the filing ofan assignment. The assignment assignments, these are never filedcan be the result of a sale or a except for foreclosurestransfer of rights SLIDE 25

26. The third party to whom the The third party purchases the note andPromissory Note is sold is is the Holder in Due Coursedesignated as the “Holder in DueCourse” With public recording of the Because the Holder in Due Course doesmortgage assignment, the Holder not publicly record the mortgagein Due Course becomes the new assignment, it cannot legally becomeowner and holder of the Note, the the new holder and owner of the notenew mortgagee or mortgagee The new owner of the Note The new holder of the note has no legalassumes all of the “rights andrights because they have violated responsibilities” of the mortgagee.Texas statutes by not publiclyPublic filing preserves the Chainrecording the new mortgage of Title and protects the assignmentborrower’s rights SLIDE 26

27. When the borrower makes the Unknown to the borrower, a defectivefinal payment, he engages a title “Affidavit as Release of Lien” is createdCompany to develop an “Affidavit because the lender, grantee, in theas Release of Lien” public records is not the owner of the Note The mortgage servicer andThe title company sends the “Affidavitmortgagee are notified. Forty-fiveas Release of Lien” to the mortgage(45) days after notification and noservicer. The mortgage servicercountermanding orders are issuednotifies the title company that there isby the mortgagee, the Affidavit isa new note ownerfiled with the County Clerk’s Office SLIDE 27

28. As a result, the County Clerk The legal problems for the borrowerreverses the names of the grantor begins as they are informed that theand the grantee. Thus, the original Deed and Deed of Trust areborrower/homeowner becomes missing and they are offered a “Lossthe grantee Note Certificate.” In addition, the titlecompany tells the new homeowner that Now, the borrower/homeowner there is no clear title to the propertyhas a Deed and a title to his they believe they have finished paying property that is free of forencumbrances SLIDE 28

29. The Mortgage Endgame Education Process In the Bible, there is a quote stating “my people perish for the lack of knowledge…” No truer words have ever been spoken. This country has gotten the majority of people to believe that paying a mortgage is the same as owning the home. As long as you are paying for it, the house is not yours. The only reason you need credit is because you never have enough money to meet your needs or wishes. The Mortgage Endgame Education Phase forces you gently but forcefully to understand that a credit score is not important if you are financially independent. By educating yourself such that you can identify and thoroughly document the fraud and criminality concerning your mortgage, you begin your path to financial independence. 29 SLIDE 29

30. The Mortgage Endgame Education Process The educational process is tailored to you. To get maximum benefit from the Education Phase, you need to have a copy of your Deed of Trust. During the Education Phase, you will highlight, underline, circle and add comments on a working copy of your Deed of Trust. You will learn how to verify the accuracy of the property description, property appraisal and will learn how to verify all fees paid in your HUD-1 Closing Statement. You will learn the difference between a mortgage servicer and the actual holder of your Promissory Note. You will learn to identify your lender and subsequent holders of the Note as MERS Members. You will learn how to identify scams from lending institutions and companies offering to stop your foreclosure or repair your credit. 30 SLIDE 30

31. The Mortgage Endgame - Education Phase During your Education Phase, Mortgage Endgame will gladly support private group training on particular aspects of your Mortgage Endgame strategy. Mortgage Endgame charges a one-time fee of $849.95. We assist you in developing your Mortgage Endgame strategy of becoming financially independent. You will rarely use a credit card again. You will learn that once you begin to purchase items with cash, junk mail begins to disappear because cash does not have your name on it. Paying for items with cash protects your financial independence and protects your civil liberties. With your new independence, you become a source of benefit to your community, educational, charitable and religious affiliations. 31 SLIDE 31

32. The Mortgage Endgame - Participation Phase Having completed your Education Phase, you now have the required and credible information and legal documents to exhaust your lesser legal remedies. Mortgage Endgame guides you through this process. Once you have exhausted your lesser legal remedies, you are ready to voluntarily join our pool of litigants. You submit your documents describing the facts and crimes associated with your mortgage. Mortgage Endgame analyzes your documents for common points with others in the litigation pool. Upon identifying groups of litigants with 85% to 90% common points, the group is selected and evidence is presented to legal counsel for final determination. You will be notified and kept abreast of progress through the website, http://mortgageendgame.com There are No Up Front Costs associated with joining our pool of potential litigants. 32 SLIDE 32

33. Why You Need Mortgage Endgame Your Education Phase is based upon your own Deed of Trust and your home mortgage transaction The financial reward you receive through the successful prosecution of your mass case grants you financial freedom and eliminates the need to use credit cards or other forms of debt You learn how to protect your home and loved ones from the criminality that has caused the mortgage crisis You learn that your home was never meant to be a financial investment. Normal sustainable equity growth in a residence is at most 1% per year $150,000 or more in cash is the only true way to repair your credit rating 33 SLIDE 33

34. Why You Need Mortgage Endgame Using other people’s money makes you a financial slave. Things are much less expensive if you offer cash. How much more could you do if you had an extra $1,500 to $3,500 a month in the bank? If you pay off your $1,500 a month mortgage, you will have an extra $90,000 in cash in 5 years. You could pay cash for a Tesla Roadster. If you pay off your $3,500 a month mortgage, you will have an extra $210,000 in cash in 5 years. You could pay cash for a Bentley Continental GS. The examples above do not include the cash generated from the compensatory, punitive or exemplary damagesreceived as award proceeds. 34 SLIDE 34