Real Life Example:
1. Banks sell your loan! - What is Loan Securitization?
2. The process of pooling various forms of debt and creating a new financial instrument from the pooled debt
3. Examples of debt: Residential mortgages, commercial mortgages, auto loans, or credit card debt obligations
4. Bank sells this group of re-packaged assets (Loan Receivable) to investors
5. Benefits of Securitizing Loans: (1) Offers opportunities for investors – they assume default risk. (2) Frees up capital for loan originators (banks) – reduces debt load & can use capital more efficiently. (3) Both promote liquidity in the marketplace
Claim your 10%
After you put money in a bank, it is FDIC-insured. What does that mean? That means that the bank gets insurance money from the Federal Reserve to ensure that money. Then what they do is they take that dollar amount they put it into what is called a second escrow account, that second escrow account what they trade on in the stock. The promissory note is securitized and registered with the SEC. If the promissory note is registered with the SEC and traded on the stock market, it has to have value first.
In order to be traded, it has to have value first. Your signature on a promissory note is what gives that promissory note value to the tune of 10 times the loan value, which is given to the bank form the Federal Reserve. The bank takes 90% of the leveraged proceeds, then the bank goes, and does whatever they want with it. The remaining 10% is yours. Banks borrow from the public. Time to claim your mortgage 2nd escrow money today!
BANKS BORROW FROM THE PUBLIC
MORTGAGE BACKED SECURITIES
CLOSING DOCUMENT EXAMPLE
1. The temporary Power of Attorney allows the servicer to create accounts under your name
2. The Allonge is a blank page within your closing documents that requires your signature for the purpose of transferring funds, after the buyer has left the closing table.
3. Your signature is required on the Transfer form giving permission for the servicer to make unlimited transfers to second and third parties, i.e. mortgage companies
4. Once the creditor’s signature is affixed upon the original Promissory Note, the
securitization process begins
5. The Creditor is the buyer, and the buyer is the creditor
SUBMITTING YOUR CLAIM?
Once we submit your claim and all paperwork is signed, between you and our corporation, we will submit everything to the IRS and make sure the IRS has all the documentation and information. What we will do is wait for the IRS to contact your servicer to request those funds from the 2nd escrow account. At this point, the IRS is our friend, and we always want to make sure our friend is taken care of. All the IRS wants to do is tax those funds. We want to make sure that when they tax those funds, they don't tax it at 24 to 28 percent like they would for you as an individual. We want to make sure you are receiving the maximum amount from that second escrow account because of course, on the back end, there's a third which goes to the legal team. The IRS can tax us a lot less than that if the correct structure is in place. We have a plan to maximize your return from your escrow account. So you do not have to owe or pay so much to the IRS.
Escrow Claim Process:
● Submit the claim
● IRS contacts the Servicer
● Servicer releases funds
● The IRS taxes the fund
● Recovery Fee settled
● Homebuyer receives claim check
START FILING YOUR 2ND ESCROW CLAIM TODAY!
Send us a copy of your closing documents to:
EMMANUEL COFFY, ESQ.
515 VALLEY ST STE 1
MAPLEWOOD, NJ 07040
Fax: (323) 232-7902
Phone: (855) 834-4663
Yes, the bank will take your promissory note in your closing documents shortly after it signed and securitized it. Therefore, the promissory note will be already processed.
The promissory note is a contract between two parties. The promissory note can be found in your closing documents. The homeowner or creditor is one party, and then you have the servicer on the other part of that contract, hence, several sections addressing different matters can be found in the promissory notes.
The second escrow account is under your loan number. Lenders cannot report to the credit bureaus your loan number in place of your social security number or ITIN and that's why you can't see the second escrow account on your credit report.
Google is not a research engine, in fact, Google is actually a search engine. Many private web pages, government pages, social media posts, deep web content are not indexed. You cannot see any of that via Google. Private information is typically a classification of information that bushiness use for themselves. In this case, the second escrow information is not widely broadcasted to the public.
As an example, we can look at the credit bureaus being TransUnion, Equifax, and Experian who each have an algorithm for how they calculate your credit score. Publically, FICO Scores are calculated using many pieces of credit data in your credit report. This data is grouped into five categories: payment history (35%), amounts owed (30%), length of credit history (15%), new credit (10%) and credit mix (10%). One can hit those calculations perfectly, but their credit score still falls because of the credit bureaus private algorithms. The credit bureaus are the only ones who hold that information. That algorithm is not public, which is the same thing in the 2nd escrow claiming process.
Do keep in mind, banks will not call you or email you in regard to the 36 month (3 year) deadline. It's not a bill you owe to receive physical letters or emails. If you do not claim it, the banks can legally dispose of it at their discretion. FYI, their shareholders pockets.
Your servicer typically processes your loan payments, responds to borrower inquiries, keeps track of principal and interest paid, manages your escrow account
Your mortgage lender is the financial institution that loaned you the money. Your mortgage servicer is the company that sends you your mortgage statements. Your servicer also handles the day-to-day tasks for managing your loan.
"Securitization" is a process that takes individual mortgage loans, bundles them, and turns them into marketable mortgage-backed securities that can be bought and sold.
The initial fee is $4,000. The initial will cover legal fees and administrative cost.
No, because the "securitization" happens after the closing documents are signed. At closing, when you sign the documents, you're in fact also signing a temporary power of attorney for the bank to transact on your behalf. Being that closing documents are already signed, the bank will apply the industry standard of 10% that will go into the second escrow account.
The bank's position is they are taking most of the risk. Case in point, the stock market and housing crash of 2008 had its origins in the unprecedented growth of the market beginning in 1999. From September 2008 to September 2012, there were approximately 4 million completed foreclosures. Mortgages that have defaulted cause a negative effect on the securities market, where the bank used your securitized promissory note to invest.
Yes, we want to make sure that when they tax those funds, they don't tax it at 24 to 28 percent like they would for you as an individual. We want to make sure you are receiving the maximum amount from that second escrow account because of course, on the back end, there's a third which goes to the legal team. The IRS can tax us a lot less than that if the correct structure is in place. We have a plan to maximize your return from your escrow account. So you do not have to owe or pay so much to the IRS.
No, owing the IRS will only delay the process. The IRS checks whether you owe it any money for back taxes before completing the processing of your claim. Back taxes must be satisfied first.
No worries, if you have passed the three-year period (36 months) of when the first escrow account that you started you can refinance the mortgage which would give you a new promissory note to claim within another 36 months.