ASSUMPTION -NEW HOME OWNERSteps1.Look for House2.Make Offer3.Approach Bank4.Mortgage Granted5.Take Occupation6.Pay Rent
HOME BUYERS LOOKING FOR MORTGAGESBefore you have evenbought your loan it hasbeen packaged and soldinto securitisationBank Loans AdviserEstate Agent takes you to BankSpecial Purpose InvestorsBank is a money makingFactory, which is illegal bylaw, as only thegovernment can makemoney
CURRENT SITUATION• Company Retrenches you• Your Business folds• Cant pay premiums• Get into Arrears• Bank Issues Summons• Bank Takes Judgment• Bank Attaches House• Sherriff sell house at sale of Execution• Balance outstanding, Bank still owed monies• Send Sheriff to Repossess your other belongings fornext 30 years
How did this Happen?• Retrenchment or loss of employment• Business goes Insolvent• Gambled or took a risk• Death or disablement of Bond payer - Uninsured
Alternatives Considered To Rescuethe Situation• Try to borrow more money• Sell House before sale of execution• Put under Debt Counseling• Gamble• Rob a bank – This happens• Suicide – This is a reality
TAKE YOUR HOUSEBACKSTOP THE BANKSTHEIR LAWYERS ANDTHE SHERIFF
PLEASE RESEARCH THE FOLLOWING WORDS:1. Home Loans2. Mortgage Originator3. Aggregator4. Securities Dealer5. Investor6. Securitization (2001 to 2008 non SA)7. Special Purpose Vehicle8. Special Purpose Investor
RULES:a) Rule 14b) 18(6) The person claiming he has been injuredmust prove injury andc) 18(12) If a party fails to comply thend) Rule 30Ae) Rule 32f) Rule 35g) Rule 37h) In Duplum Rule – Duplication of Payment ofInteresti) Par Dilictum Rule – Dirty Hands Rulej) No Locus Standi – Cannot representk) Section 86 of NCAl) Section 129 and 130 of NCAm) Promissory NotePLEASE RESEARCH THE FOLLOWING WORDS:
Securitization• Securitisation is the generic term for any kind of Asset- orReceivable-Securitisation. It is derived from the wordsecurity, because usually illiquid and sometimes evenintangible assets that generate a constant cash flow areformed into a tradable security and are floated on the debtmarket.• Securitisation is the conversion of a pool of assets with aregular and predictable cash income, such as mortgagerepayments or credit card receivables into a security ormarketable instrument. In very basic terms, securitisationenables a company (in most cases a bank) to “sell” a largenumber of its assets
Securitization continued• (e.g. mortgage loans), which would otherwise not beattractive as individual purchases, to a specially formedcompany - the Special Purpose Vehicle (“SPV”). The SPVfunds the purchase by issuing debt securities in the capitalmarkets, and the cash flows derived from the asset (such asthe mortgage or credit card repayments) will serve asprincipal and interest payment obligations under themarketable securities. Hence the issued securities are calledAsset-Backed Securities (“ABS”).
• Securitisation is the generic term for any kind ofAsset- or Receivable-Securitisation. It is derived fromthe word security, because usually illiquid andsometimes even intangible assets that generate aconstant cash flow are formed into a tradable securityand are floated on the debt market.Securitization continued
The Bottom Line• In a matter of weeks, maybe a month, from the time amortgage is originated it can become part of a CMO, ABS orCDO deal. Few borrowers realize the extent to which theirmortgage is sliced, diced and traded. The end user of amortgage might be a hedge fund that makes directionalinterest rate bets or uses leveraged positions to exploit smallrelational pricing irregularities, or it might be the central bank ofa foreign country that likes the credit rating of an agency MBS.On the other hand, it could be an insurance company based inBrussels, that likes the duration and convexity profile of acertain tranche in an ABS, CMO or CDO deal. The secondarymortgage market is huge, liquid and complex with severalinstitutions that all take a slice of the mortgage pie.
Special Purpose Vehicle• special purpose institution means a company incorporated or a trust created societyfor the purpose of the implementation of a securitisation scheme;• In terms of securitisation schemes, the sale of the bank’s assets to the SPV (as agoing concern) appears to be a sale of income generating assets, and therefore asale of part of the business of the seller. This sale may therefore constitute a mergeras contemplated in section 12 of the Act. The SPV will, as a result of the sale of theconcerned assets, acquire control over a part of the business of the seller, which itdid not have prior to the transaction. Where the threshold requirements are met,notification of these transactions would be required. The indication that the SPV hasno assets except those acquired as a result of the transaction will be considered inthe calculation of the annual turnover or asset values of the firms to the transactionfor the purpose of determining the threshold.• This approach would be a significant step in line with the international trend toexempt these transactions from merger notification. However, the Commissionreserves the right to review such transactions, particularly if any competition orpublic interest concerns arise.
1. The Mortgage Originator• The mortgage originator is the first company involved in thesecondary mortgage market. Mortgage originators consist ofbanks, mortgage bankers and mortgage brokers. Onedistinction to note is that banks and mortgage bankers usetheir own funds to close mortgages and mortgage brokers donot. Mortgage brokers act as independent agents for banksor mortgage bankers. While banks use their traditionalsources of funding to close loans, mortgage bankerstypically use what is known as a warehouse line of credit tofund loans. Most banks, and nearly all mortgage bankers,quickly sell newly originated mortgages into the secondarymarket.
2. The Aggregator• Aggregators are the next company in the line ofsecondary mortgage market participants. Aggregatorsare large mortgage originators with ties to Wall Streetfirms and government-sponsored enterprises (GSEs),like Fannie Mae and Freddie Mac. Aggregatorspurchase newly originated mortgages from smalleroriginators, and along with their own originations, formpools of mortgages that they either securitize intoprivate label mortgage-backed securities (by workingwith Wall Street firms) or form agency MBSs (byworking through GSEs). (To learn more about GSEs,see Profit From Mortgage Debt With MBS.)
3. Securities Dealers• After an MBS has been formed (and sometimes before it isformed, depending upon the type of the MBS), it is sold to asecurities dealer. Most Wall Street brokerage firms haveMBS trading desks. Dealers do all kinds of creative thingswith MBS and mortgage whole loans. The end goal is tosell securities to investors. Dealers frequently use MBSs tostructure CMO, ABS and CDO deals. These deals can bestructured to have different and somewhat definiteprepayment characteristics and enhanced credit ratingscompared to the underlying MBS or whole loans. Dealersmake a spread in the price at which they buy and sell MBS,and look to make arbitrage profits in the way they structureCMO, ABS and CDO deals.
4. Investors• Investors are the end users of mortgages. Foreigngovernments, pension funds, insurance companies, banks,GSEs and hedge funds are all big investors in mortgages.MBS, CMOs, ABS and CDOs offer investors a wide range ofpotential yields based on varying credit quality and interestrate risks.Foreign governments, pension funds, insurance companiesand banks typically invest in high-credit rated mortgageproducts. Certain tranches of the various structured mortgagedeals are sought after by these investors fortheir prepayment and interest rate risk profiles. Hedge fundsare typically big investors in low-credit rated mortgageproducts and structured mortgage products that havegreater interest rate risk.
ISSUER ASSETS VALUE (R) ORIGINATOR ARRANGER YEARUnited RMBS 250 million United BS United BS 1989Sasfin AssetSecuritisationLease receivables 60 million Sasfin Bank Sasfin Bank 1991Siltek Trade Receivables 250 Siltek Mettle 2000FirstRand2000-ACredit Card - FutureFlows1,8 bn RMB / CSFB FirstRand Bank 2000RMB CDO 1LimitedCDO 3,9 bn RMB / MorganStanleyRMB 2000Kiwane CDO 500 million Gensec / JP Morgan Gensec / RealAfrica Durolink2000Thekwini I RMBS 1,2 bn JP Morgan / SCMB SA Home Loans 2001RMB CDO 2LimitedCDO 2,9 bn RMB / GoldmanSachsRMB 2001Clover Trade Receivables 300 million Clover Danone Mettle 2001Mustek Trade Receivables 250 million Mustek Computers Mettle 2001FRESCO CDO 1,1 bn RMB FirstRand Bank 2002Procul Autoloans 1,3 bn RMB FirstRand Bank 2002OntheCards StoreCard 1,93 bn RMB Edgars 2002Thekwini II RMBS 1,1 bn SCMB SA Home Loans 2002Fintech Lease receivables 630 million Gensec / JP Morgan Fintech 2002PrivateMortgagesRMBS 1 bn Investec Investec PrivateBank2002Eagle BondsOneAircraft - ECA Guaranteed 1 bn SCMB / Gensec / Imperial Bank Safair LeaseFinance2003AutoloanInvestmentsAutoloans 1 bn RMB BMW 2003CARS 1 Autoloans 2,955 bn ABSA Corporate & Merchant ABSA Asset & VehicleFinance2003Thekwini III RMBS 1,5 bn SCMB SA Home Loans 2003PrivateMortgages IIRMBS 1 bn Investec Investec PrivateBank2003AutoloanInvestments II Autoloans 1 bn RMBBMW FinancialServices 2003Equipment RentalsSecuritisation Lease receivables 670 million Sasfin Bank Sasfin Bank 2003Workforce Trade Receivables 50 million Mettle 2003Clover II Trade Receivables 100 million Clover Danone Mettle 2003SOME OF THE COMPANIES BUYING YOURDEBT
This means• Banks are Committing Fraud:1. Do not have our permission to sell your debt2. Lawyers have no locus standi, they do not represent the partyowning the debt3. There is no contract between you and this debt collector, butthey will make it sound like you still owe the original creditor,and they are just collecting on behalf of them no locus standi4. They have Dirty Hands and thus the Par Dilictum Rule applies
• The Banks are Stealing From Us:1. My understanding is that when a debt collector (or anyone) buysyour debt from the original creditor, that debt is settled. This iscoming from the SA Reserve Bank - NewERA has writtenconfirmation from the South African Reserve Bank that, once abank sells a loan into a securitisation pool, they lose the legalright to that asset2. Not giving us the profit from the sale3. Taking a monthly installment even though debt paid - In Duplumrule4. Claiming twice on a debt –It is illegal for banks to claim morethan double the amount loaned from any borrower (the induplum rule).This means
Current Situation• YOUR BOND IS SETTLED• BANK HAS BEEN PAID BY AN INVESTOR
HERE IS OUR STORY IN A BRIEF OUTLINE1. We have been battling ABSA since 2009. Their strategy to try and win bygetting default Judgement. They do not want to go to trial. So if they lose atsummary Judgement, they withdraw the case and reissue to go forsummary Judgement again.a. There have been 3 Cases since 2009a. Case 1 Case No. 747/09b. Case 2 Case No. 2019/12c. Case 3 Case No. 810/20131. ABSA Withdrew the first two cases without serving notice on our Attorney ofRecord at the time. They Sent a registered slip, so they say to mydaughters, yet cant produce slip, no slip, no signatures. This was not doneby following correct court procedure2. On Withdrawing the two of the cases, they did so without tendering costs,which is also contrary to court procedure and court rules.
5. The Banks legal team are not supposed to put information inthere documents that they know to be wrong, yet their Advocateand lawyers, who know and admit this is securitisation, do notcare. They Perjure themselves the on behalf of Banks by sayinga fire destroyed all the documents and copies, includingmicrofilm, yet we have a securitisation letter from ABSA sayingit was securitised. Why did their legal team not request thefollowing as we did in our rule 45a. Proof of Fireb. Witness Reportsc. Photos of fired. Safety Officer Reporte. Police Reportf. Fire station reportg. Auditors Reporth. NCR Reporti. This is a Breach of Archiving’s and Record Keeping Act
6. The ABSA Manger who signed our certificate, whichin itself is not a correctly provided certificate, as itdoes not comply to GAAP principles and theaffidavit supplied by the manager has no standing1. Juristic entities, like that of ABSA, whomauthorise employees to dispense and swear tothe correctness of averments in an affidavit areto state how it obtained such authority.2. Sworn Affidavit Invalid. The State Presidenthas, in terms of section 10 of the Justice of thePeace and Commissioners of Oaths Act, 1963(Act 16 of 1963)
7. They are basing their claim on a liquid document, whichthe court rules say they must provide, but they havestated in their court papers they don’t have them, andthat they were burnt in a fire.a. Legislationi. Rule 14ii. Rule 18 of the Uniform Rules of Courtiii.Rule 32b. Case Lawi. In the matter of FirstRand Bank Ltd v Beyer 2011(1) SA 196 (GNP)7. They have admitted to selling it into securitisation, andtherefore have, as per the banking act and securitisationlegislation lost ownership of the so called “asset”. Hencetheir need to say lost in a fire, which is perjury
9. Their attitude is extremely Vexatious, wanting to win at all costsa. They are constantly withdrawing and reissuing summonsesb. Keep going for default judgement, then withdrawing whenthey loose and reissuingc. By not tendering costs when withdrawingd. Not withdrawing procedurally and correctlye. There is Legislation against this type of attitude