REAL LIFE CONSPIRACY THEORY (Lets Follow the Money)

This is the way the Big Boys launder their money. OrThe History of PennyMac
August 12, 2012 Lets start with Merrill Lynch and their meltdown in 2006-2008. Bloomberg

reported in September 2008 that Merrill Lynch had lost $51.8 billion in mortgage-backed securities as part of the subprime mortgage crisis.1

If you havent watched the movies, Too Big Too Fail, or Margin Call, or Inside Job, you should, it will give you a good idea of what happened during that time. Wall Street greed had turned our assets into stock options and created the bubble that resulted in the worse economic collapse in American History. So in the effort to protect investors, our government manipulated Bank of America to purchase Merrill Lynch. From Wikipedia:

Sale to Bank of America

Significant losses were attributed to the drop in value of its large and unhedged mortgage portfolio in the form of Collateralized Debt Obligations. During the week of September 8, 2008, Lehman Brothers came under
1

Brett Miller; Chua Kong Ho (September 5, 2008). "Merrill Lynch Cut to 'Sell' at Goldman on Writedowns". Bloomberg. Retrieved September 14, 2008. 1

severe liquidity pressures, with its survival in question. If Lehman Brothers failed, investors were afraid that the contagion could spread to the other surviving investment banks. [Lehman Brothers filed bankruptcy on September 15, 2008, after government officials could not find a merger partner for it.] On Sunday, September 14, 2008, Bank of America announced it was in talks to purchase Merrill Lynch for $38.25 billion in stock. The Wall Street Journal 2reported later that day that Merrill Lynch was sold to Bank of America for 0.8595 shares of Bank of America common stock for each Merrill Lynch common share, or about US$50 billion or $29 per share. Congressional testimony by Bank of America CEO Kenneth Lewis, as well as internal emails released by the House Oversight Committee, indicate that Bank of America was threatened with the firings of the management and board of Bank of America as well as damaging the relationship between the bank and federal regulators, if Bank of America did not go through with the acquisition of Merrill Lynch.3 In March 2009 it was reported that in 2008, Merrill Lynch received billions of dollars from its insurance arrangements with AIG, including $6.8bn from funds provided by the United States taxpayers to bail out AIG.4
Okay, if this is not all dizzying enough for youalong comes Countrywide Homeloans! Our personal nemesis! Apparently, we are not alone on that thought! http://www.countrywidehomeloansucks.com/ (oppshow did I let that site slip into my blog?) I will always associate Countrywide with that handsome and caring looking man in their ads who spouted the words: No one can do what Countrywide can.
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Matthew Karnitschnig; Carrick Mollenkamp, Dan Fitzpatrick (September 14, 2008). "Bank of America Reaches Deal for Merrill". The Wall Street Journal. 3 LOUISE STORY and JO BECKER (June 11, 2009). "Bank Chief Tells of U.S. Pressure to Buy Merrill Lynch". New York Times. Retrieved June 13, 2009. 4 A.I.G. Lists Firms It Paid With Taxpayer Money, The New York Times, March 15, 2009 2

You can see the commercial here: http://www.youtube.com/watch?v=LLFRIyRk3AA I have to admit he stills gives me that warm fuzzy feeling. Hes got that fatherly, I-really-do-care-about-you face, doesnt he? No one can do what Countrywide can.

The SEC filed charges against Mozilo, Sambol, and Sieracki on June 4, 2009, alleging that they failed to disclose to investors the significant credit risk that Countrywide was taking on as a result of its efforts to build and maintain market share. Investors were misled by representations assuring them that Countrywide was primarily a prime quality mortgage lender that had avoided the excesses of its competitors. In reality, Countrywide was writing increasingly risky loans and its senior executives knew that defaults and delinquencies in its servicing portfolio as well as the loans it packaged and sold as mortgage-backed securities would rise as a result.5
Angelo Mozillo co-founded Countrywide in 1969 and continued as CEO until July 1, 2008.

Cond Nast Portfolio ranked Mozilo second on their list of "Worst American CEOs of All Time".6
Yet, we all have to know that Angelo did not come up with this destructive plan all by himself. He didnt walk into the company one day and say I know, I have a plan and you all are going to go along with it, and all of the other executives just nodded their heads in agreement. Yeah, sounds good, boss. What about Angelos right hand man? Stanford Kurland?

Stanford Kurland served as the Chief Operating Officer of Countrywide Financial Corp. from 1988 to September 2006 and President from January 2004 to September 2006.7
http://www.sec.gov/news/press/2010/2010-197.htm http://www.cnbc.com/id/30502091?slide=20 7 http://investing.businessweek.com/research/stocks/people/person.asp?
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We have to ask the question Why wasnt Stanford Kurland charged with anything? Did he make a deal by turning in the other executives? Or testifying against them? We may never know. What we do know is that as COO of Countrywide, a major corporation, he was one of the senior executives that must have known about the default and delinquencies in its servicing portfolo(see above and footnote #5) and yet he escaped prosecution and while Angelo Mozilo is forbidden from ever opening a public corporation again, Stanford Kurland opened a new corporation in 2008 working from the same city as Countrywide:
Company Overview

Private National Mortgage Acceptance Company, LLC operates as an asset management company that acquires and manages residential mortgage assets. The company, through its subsidiary, PennyMac Loan Services, LLC, offers home loan services for borrowers and investors; and engages in purchasing and managing mortgage investment portfolios, originating loans, servicing/managing assets, and facilitating sales on the secondary market. It offers also real estate properties on sale, real estate developers financing solutions, and residential loans. The company has strategic alliances with BlackRock and Highfields Capital. The company was founded in 2008 and is based in Moorpark, California. It has a facility in Tampa, Florida. Private National Mortgage Acceptance Company, LLC operates as a subsidiary of Blackrock Holdco 2, Inc.8 So lets see if we can get that clear. Angelo Mozilo was CEO of Countrywide until July 1, 2008and while Angie-baby was dealing with charges of mortgage fraud and insider trading, his former second-incommand, Stanford Kurland is opening a new IPO named PennyMac. I wonder whose idea that was?
personId=264662&ticker=PMT&previousCapId=383301&previousTitle= RAIT%20FINANCIAL%20TRUST 8 http://investing.businessweek.com/research/stocks/private/snapshot.as p?privcapId=47576801 4

Wait for it. Because if you dont already know It might come as a shock It was the idea of our own United States Secretary Treasurer, Tim Geither! Timothy Geithners new TALF/PPiP/FDIC* plan, like all his other plans, seems designed to shovel billions into the coffers of the very same bankers who got rich on the mortgage bubble. When the public gets a glimpse of the tip of this giant iceberg, as they did with the AIG bonuses, theyre dismissed as angry rubes who Just Dont Understand How Things Work. But his latest scheme is proof that they are absolutely right.9
This must be part of foaming the runway that Barofsky mentioned in his book, Bailout.

Warren asked Geithner repeatedly about HAMP. After several evasions, Geithner said about the banks, We estimate that they can handle ten million foreclosures, over time this program will help foam the runway for them. This is a revelatory moment for Barofsky in the book, and should be for everyone reading. Geithners concern, first of all, was with how the banks would respond to the program, not how homeowners would respond to it. In fact, homeowners are quite besides the point. Regardless of their situation, they will be one of the 10 million foreclosures, in Geithners construction. His goal was merely to space out the foreclosures and give the banks time to earn their way back to health, mostly through the other parts of the bailout, that enabled them to earn profits.10
That means, dear http://firedoglake.com/2009/03/23/timothy-geithner-makingcountrywide-executives-rich-again/ 10 http://news.firedoglake.com/2012/07/20/barofsky-book-geithnerconfirmed-in-2009-that-hamp-was-designed-for-banks-to-spread-outforeclosures/
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homebuyer, that WE have become the sacrificial lambs to the too big too fail banks, Kraken. 11 And our Secretary Treasurer Tim Geithner has been the one to chain us to the altar. So.. On June 1, 2008, Angelo Mozilo steps down as CEO of Countrywide. On July 1, 2008, Bank of America purchases Countrywide. Now follow me here.because at the same time Countrywide Homeloans and many other lenders were raising out interest rates as high as 8-12%....in the back ground.the interest rates (LIBOR) were being manipulated.

WSJ Libor study

Libor manipulation to lower rate
Hi Guys, We got a big position in 3m libor for the next 3 days. Can we please keep the lib or fixing at 5.39 for the next few days. It would really help. We do not want it to fix any higher than that. Tks a lot. Barclays Bank trader in New York to submitter, 13 September 200612

On 29 May 2008, The Wall Street Journal (WSJ) released a controversial study suggesting that some banks might have understated borrowing costs they reported for the Libor during the 2008 credit crunch that may have misled others about the financial position of these banks.13 14
As I mentioned at the beginning of this article, Bank of America, was forced to purchase Merrill Lynch. Merrill Lynch was one of those institutions considered too big too fail. Why was Bank of America chosen for purchasing Merrill Lynch? Why not Chase or JP Morgan? The answer to those questions have yet to penetrate my Release the Kraken by Genzoman on Deviant Art http://www.nytimes.com/interactive/2012/07/10/business/dealbook/be hind-the-libor-scandal.html 13 http://online.wsj.com/article/SB121200703762027135.html 14 http://en.wikipedia.org/wiki/Libor_scandal#cite_note-nytimes_behind-5
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understanding, yet this Merrill Lynch is sill alive and The Bank of America Covering. Next, B of A chose to purchase Countrywide. #1 lender in the nation.

much I do know. well inside

Countrywide bragged of being the

With the acquisition of Countrywide, B of A stood to be #1 in mortgage lending in the world. Definitely, too big too fail and by far too big to shoulder billions of dollar losses, so why did they agree to acquire a mortgage lender that had so many distressed mortgages on their books? Could it be because they already knew that the runway was being foamed and they would be able to foreclose on the American people? Unsuspecting middle-class taxpayers who simply had a dream of owning their first home before the prices ran-away clear out of reach?

The first document everyone should read is by S&P, the largest of the rating agencies. The context of the document is that a professional credit rater has told his superiors that he needs to examine the mortgage loan files to evaluate the risk of a complex financial derivative whose risk and market value depend on the credit quality of the nonprime mortgages "underlying" the derivative. A senior manager sends a blistering reply with this forceful punctuation: Any request for loan level tapes is TOTALLY UNREASONABLE!!! Most investors don't have it and can't provide it. [W]e MUST produce a credit estimate. It is your responsibility to provide those credit estimates and your responsibility to devise some method for doing so. Fraud is the principal credit risk of nonprime mortgage lending. It is impossible to detect fraud without reviewing a sample of the loan files.15
So Bank of America must have been feeling a little overwhelmed, at this point. They were bloated with default swaps and derivatives (that is a nice way of http://www.huffingtonpost.com/william-k-black/the-two-documentseveryon_b_169813.html
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saying sub-prime loans that have been guaranteed and securitized). These companys have found a way of dehumanizing the families they have managed to deceive in all of this mess, by finding names for us that have nothing to do with our humanity and everything to do with mining us for our remaining assets. And in 2008 as all of this was converging upon an unsuspecting public, the FHFA placed Fannie Mae and Freddie Mac in a conservatorship and we, the taxpayers, footed the bill. Now we come into modifications. The amount of losses was going to be staggering, and people were angry. Senators and lawmakers were getting letters from angry and frustrated homebuyers. The Senate and legislatures demanded that the government needed to keep track of the money poured into Wall Street as a condition of TARP. It all got very complicated and confusing, but the banks did not want to cooperate. They did not want to reduce their profits and they did not want to sacrifice their bonuses, so they began stroking the propaganda of the deadbeat homebuyer. They had no legal obligation to modify the loans, rather it was a verbal agreement as a condition of using government money. As time passed we all came to realize how few modifications were really being achieved. Lenders purposely stalled. There was no oversight, but they couldnt stall forever, they needed to get the problem loans off of their books. As part of the TARP/PPiP plan, our government poured billions of tax payer dollars into the big lenders with little or no oversight. So along came PennyMac. PennyMac is the brain child of Timothy Geithner PennyMac would take the non-performing loans off the hands of the lenders that had to answer to the Federal Government for the money they borrowed. Once these loans were off their books, they could deduct the loss from their inventory and they no longer had to work out a solution with the borrowers. PennyMac would be a hedge fund that did not have to answer to government regulators. PennyMac would be able to run with a minimum amount of regulation. All they needed was an IPO and they were off and running. Now we know that Timothy

Geithner came up with the idea for PennyMac, but wait until you find out who is underwriting it.. On October 7, 2009, SIGTARP, (Special Inspector General for Troubled Asset Relief Program) submitted a study titled: Selecting Fund Managers for the Legacy Securities Public-Private Investment Program.16 The reason for the report was stated as follows: The Chairman and Ranking Member of the Subcommittee on Contracting Oversight, Senate Committee on Homeland Security and Governmental Affairs, requested that SIGTARP review Treasueys selection of fund managers for PPIP. This study complements another planned SIGTARP audit tht examines PPIP fund managers compliance programs to prevent fraud, waste, and abuse in executing the program. SIGTARPs reporting objectives for this audit were to determine: What criteria Treasury used to select the fund managers and their minority partners. Whether Treasury consistently applied its criteria in the selection of the fund managers; The extent that Treasury performed due diligence reviews on the fund managers and their minority partners; and Whether financial agreements between Treasury and the successful fund manager applicants were governed by the Federal Acquisition Regulation.

In addition to the information presented in this report SIGTARP has begun a separate audit to determine whether Treasury has established operational controls to prevent or mitigate conflicts of interest. (underline is mine) It is important to note that avoiding a conflict of interest was a factor in choosing the operational controls, especially considering that Tim Geithners past associations.17 http://www.sigtarp.gov/Audit%20Reports/Selecting%20Fund %20Managers%20for%20the%20Legacy%20Securities%20Public-Private %20Investment%20Program%2009_07_10.pdf or http://www.sigtarp.gov/pages/audit.aspx
16 17

Geithner worked for Kissinger Associates in Washington for three years and then joined the International Affairs division of the U.S. Treasury Department in 1988. He went on to serve as an attach at the Embassy of the United States in Tokyo. He was deputy assistant secretary for international monetary and financial policy (19951996), senior deputy assistant secretary for international affairs (19961997), assistant secretary for international affairs (19971998).[9] He was Under Secretary of the Treasury for International Affairs (19982001) under Treasury Secretaries Robert Rubin and Lawrence Summers. Summers was his mentor,[14][15] but other

Nine of the finalists applying for the $700 billion dollars of TARP funds are as follows: 1) Alliance Bernstein, L.P. and its sub-advisors Greenfield Partners, LLC and Rialto Capital Management, LLC 2) Angelo, Gordon & Co., and GE Capital Real Estate 3) BlackRock, Inc. 4) Invesco Ltd. 5) Marathon Assett Management L.P. 6) Oaktree Capital Management, L.P. 7) The Trust Company of West Croup, Inc. 8) Wellington Management Company, LLP 9) RLJ Western Asset Management L.P. Blackrock funding was partially owned by Bank of America (it was a package deal with Merrill Lynch) until Bank of America unloaded its shares in 2011.18
sources call him a Rubin protg. Treasury Secretary designee Geithner meets Finance Committee Chairman Max Baucus on November 25, 2008 (16 cont.) In 2002 he left the Treasury to join the Council on Foreign Relations as a Senior Fellow in the International Economics department. He was director of the Policy Development and Review Department (20012003) at the International Monetary Fund. In October 2003, at age 42, he was named president of the Federal Reserve Bank of New York. His salary in 2007 was $398,200. As President of the New York Fed, he served as Vice Chairman of the Federal Open Market Committee. In 2006, he also became a member of the Washingtonbased financial advisory body, the Group of Thirty. In May 2007, he worked to reduce the capital 16 (cont.) required to run a bank. In November he rejected Sanford Weill's offer to take over as Citigroup's chief executive. In March 2008, he arranged the rescue and sale of Bear Stearns. In the same year, he played a supporting role to Henry Paulson, Treasury Secretary and former CEO of Goldman Sachs, in the decision to bail out AIG just two days after deciding not to rescue Lehman Brothers from bankruptcy. Some Wall Street CEOs subsequently expressed the opinion that decisions in which Geithner participated, especially the failure to rescue Lehman, contributed to worsening the global financial crisis. As a Treasury official, he helped manage multiple international crises of the 1990s in Brazil, Mexico, Indonesia, South Korea, and Thailand. Geithner believes, along with Henry Paulson, that the U.S. Department of the Treasury needs new authority to experiment with responses to the late-2000s (decade) financial crisis.[14] Paulson has described Geithner as a "very unusually talented young man...[who] understands government and understands markets". (http://en.wikipedia.org/wiki/Timothy_Geithner)

http://www.dailyfinance.com/2011/05/31/why-bank-of-americaoffloaded-its-blackrock-stake/
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Yet in 2008 when our Treasury began to dole out the money, Blackrock was still a part of B of A. Important to know when following the money. Now if you have read this faryou must continue to the endif you do you will find a plan so diabolical, so reprehensible that you will believe it must be a plot of a movie where some leader wants to take over the world! For those of you who have children around the age of our childrenjust think Pinky and the Brain.

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Since Countrywide was the #1 lender in the nation and most of the Countrywide loans were considered liar loans, the lenders needed a way to recoup their losses. Bank of America had purchased Countrywide and along with it all of their problems. Thus, the inception of PennyMac came into play. PennyMac was born very shortly after the day that Countrywide ceased to exist. The underwriters of PennyMac were BlackRock Funding and Highland Financial. BlackRock was funded by none other than our own taxpayer dollars, through the TARP FUNDS.
19

Animaniacs produced by Steven Speilberg, ran from 1993-1998 11

From October 7, 2010, SIGTARP REPORT page 8: Between February 10, 2009, and the beginning of the PPIP fund manager application process on March 23, 2009, Treasury officials held conversations with priviate investment firms BlackRock, Inc. (BlackRock), Pacific Investment Management Company, LLC (PIMCO), and The Trust Company of the West Group, Inc. (TCW) to seek advice on the structure of the planned program that would later be called the Legacy Securities Program. Treasury told SIGTARP that it consulted the companied on the market feasibility of different proposed structures for the Legacy Securities Program, including the size of the program and the amount of capital that could feasibly be raised from the private sector for such an effort, and the relative impact of differently sized programs on illiquid securities markets. Treasury officials told SIGTARP that it contacted these thee firms because each had successfully developed distressed asset funds and raised private capital for their own investors similar to the funds Treasury envisioned for PPIP. Treasury did not document its communications with the three firms.20 Sowas part of the Legacy Securities Program, the birth of PennyMac? Did they need the previous executives of PennyMac to help them foreclose on their former bad loans? Was PennyMac the bulldog of B of A? ..and not only the Bulldog of B of A, but of Citimortgage and Fannie Mae and Freddie Mac, who owned most of the distressed loans! Is PennyMac simply Countrywide reopened under a new Corporate logo and IPO? Read this response by a PennyMac shareholder:
Oh, Countrywide had some very bad apples at the top of the bank that did some bad things, but the back office, for the most part, still had control of the mess they were creating, as they still had some of the best folks in the industry running the back office (hint, that wasn't where the problems were in Countrywide). You might even find a bunch of them at PMT, since they seem to have some pretty bright folks there as well, and no so-called leaders of the industry doing any side deals. But when the government came to BofA and said to take this turkey off their hands, they didn't realize they were handing a viable company to a bunch of incompetents. Had

http://www.sigtarp.gov/Audit%20Reports/Selecting%20Fund %20Managers%20for%20the%20Legacy%20Securities%20Public-Private %20Investment%20Program%2009_07_10.pdf

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Warren Buffet not shown up with $5 billion to spare when he did to pick of one hell of a deal (10% preferred shares, with a gazillion share option at around $7 per share on the common), the liars running BofA would have had to come clean and tell everyone it wasn't Countrywide, where they installed some of their own with no mortgage banking experience to run things, but their own incompetence in their own loan portfolio that was the real problem. How do I figure I know these things? Because the government was nearly begging PMT to take a bunch of the bad BofA loans over and get the government out of a bad spot. From what I heard, PMT had the good sense to decline.21

Take a good look at PennyMacs line-up of executives and decide for your self:
Stanford Kurland Chairman of the Board and CEO of PennyMac formerly CEO of Countrywide Homeloans. David a. Spector President and Chief Operating Officer at PMC formerly Senior Managing Director for Countrywide. David M. Walker Chief Financial Officer at PMC formerly chief lending officer at Countrywide. Fazad Abolfathi Chief Technology Officer formerly Countrywide senior program analyst. Scott D. Anderson Chief Mortgage Operations Officer formerly Countrywide executive vice-president of wholesale lending. Anne D. McCallion - chief financial officer of PCM and PLS formerly served Countrywide as deputy chief financial officer, chief operations officer, and chief administrative officer. Michael M. Muir chief capital markets manager of PCM formerly senior vice president at Countrywide Home Loans. Julianne Fries chief compliance office of PCM formerly served as managing director and chief compliance officer of Countrywide Capital Markets. Aratha M. Johnson - chief administrative officer of PCM formerly served as chief of staff and managing director of the executive office of the president for Countrywide. Brandon Ohnemus. - director of portfolio strategy of PCM formerly first vice president of lending finance for Countrywide Bank, N.A., a subsidiary of Countrywide. Lee Trumble - director of due diligence of PCM formerly worked for Countrywide Bank, N.A., a subsidiary of Countrywide, managing the counterparty asset repurchase process.

o Nicole Sutherland mortgage underwriter at PennyMac formerly

mortgage underwriter for Bank of America.

http://seekingalpha.com/article/858301-pennymac-mortgageinvestment-trust-ceo-at-barclays-capital-global-financial-servicesconference-transcript?page=2
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o Doug Jones - chief correspondent lending officer for PennyMac o o

formerly oversaw retail sales and institutional mortgage services for Bank of America Home Loans. Jim Follette - Managing Director, Correspondent Fulfillment formerly served as Senior Vice President for Bank of America Home Loans. Kim Nicols - Regional Sales Manager for correspondent lending for the western region formerly vice President, Regional Sales Manager, Institutional Mortgage Services for Bank of America.

Former executives, Angelo Mozilo and David Sambol were sued by the SEC for mortgage fraud and insider trading and later settled out of court. Yet Countrywide is allowed to reopen and profit from their former predatory loans under the guise of PennyMac?

Was the inception of PennyMac, that is the brainchild of Tim Geithener, really the foam on the runway of bank foreclosures? Is the promise of modification really just a ruse to lead us into default and cash in on our distress? Distress, I might add, caused by the very lenders that are now profiting from these foreclosures. The SEC definition of insider trading is as follows: Illegal insider trading refers generally to buying or selling a security, in breach of a fiduciary duty or other relationship of trust and confidence, while in possession of material, nonpublic information about the security. Insider trading violations may also include "tipping" such information, securities trading by the person "tipped," and securities trading by those who misappropriate such information. Examples of insider trading cases that have been brought by the SEC a are cases against: Corporate officers, directors, and employees who traded the corporation's securities after learning of significant, confidential c corporate developments; Friends, business associates, family members, and other "tippees" of such officers, directors, and employees, who traded the securities a after receiving such information; Employees of law, banking, brokerage and printing firms who were given such information to provide services to the corporation w whose securities they traded; Government employees who learned of such information because of t their employment by the government; and Other persons who misappropriated, and took advantage of, confidential information from their employers. 14

Because insider trading undermines investor confidence in the fairness and integrity of the securities markets, the SEC has treated the detection and prosecution of insider trading violations as one of its

enforcement priorities.22

Angelo Mozilo is famous in his infamy of running Countrywide Homeloans into the ground, yet when his time as CEO of Countrywide ended on July 1, 2008, the former executives of Countrywide were already beginning to flee and were forming a new company. Countrywides former 2nd in-command, Stanford Kurland, opened a new corporation, PennyMac Loan Services, started on April 28, 2008. Stanford Kurland, former COO of Countrywide Homeloans openly admits his responsibility in starting the subprime loans. In an article in the New York Times it states:
Mr. Kurland acknowledges pushing Countrywide into the type of higher-risk loans that have since, in large numbers, gone into default. But he said that he always insisted that the loans go only to borrowers who could afford to repay them. He also said that Countrywides riskiest lending took place after he left the company, in late 2006, after what he said was an internal conflict with Mr. Mozilo and other executives, whom he blames for loosening loan standards. In retrospect, Mr. Kurland said, he regrets what happened at Countrywide and in the mortgage industry nationwide, but does not believe he deserves blame. It is horrible what transpired in the industry, said Mr. Kurland, who has never been subject to any regulatory actions.23

So we cannot help but question his decision to open a new company founded on the premise of profiting from these former bad loans. While our government and the corporate leaders have tried to blame the homebuyers for knowingly getting in over their heads and purchasing bad loans, they then, in turn, want us to believe that Stanford Kurland and the other executives who ran Countrywide, had no idea of the fraud being wrought by their company and they were innocent of all culpability in the matter. Huh? I think it might be easier to believe that they are trying to take over the world. Consider the following:
22 23

http://www.sec.gov/answers/insider.htm
http://www.nytimes.com/2009/03/04/business/04penny.html

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PennyMac was started up shortly before Countrywide was sold to Bank of America. Blackrock Funding (the backers of PennyMac) was meeting with Tim Geithner in private meetings along with a few other private investment firms, in February and March of 2009. What was the purpose to open up a new corporation before the HARP program was even started? THEY were formulating a plan to structure a program later known as the Legacy Securities Program. There were no homebuyers included in this meeting and planning committee. What was their motivation for looking out for our best interests? We had been labeled deadbeats without benefit of facing our accusers or a fair trial. So PennyMac must have been formed to be part of the foam for the foreclosure runway. Did Angelo Mozilo agree to be the scapegoat so that the other former executives could have a free market run? Are we to actually believe that the former executives had no knowledge of the past wrong-doings? Are we asked to accept that one manAngelo Moziloand two other executives were solely responsible for this massive fraud? Are they asking us to believe that his second-incommand, Stanford Kurland, a senior executive, who acknowledges pushing Countrywide into highrisk loans, knew nothing?

The SEC filed charges against Mozilo, Sambol, and Sieracki on June 4, 2009, alleging that they failed to disclose to investors the significant credit risk that Countrywide was taking on as a result of its efforts to build and maintain market share. Investors were misled by representations assuring them that Countrywide was primarily a prime quality mortgage lender that had avoided the excesses of its competitors. In reality, Countrywide was writing increasingly risky loans and its senior executives knew that defaults and delinquencies in its servicing portfolio as well as the loans it packaged and sold as mortgage-backed securities would rise as a result.24
Our own government guaranteed Mortgage Backed Securities (our mortgages), and because of this our government had to take over Freddie Mac and Fannie Mae. Freddie Mac and Fannie Mae were in trouble due to all of the bad mortgages, which meant our Treasury was in trouble. They cant raise the taxes
24

http://www.sec.gov/news/press/2010/2010-197.htm 16

because our debt is estimated to be about $177,000 per person. So they have created a vortex of greed and fraud by collecting on underwater mortgages, from a bubble fraudulently created by WallStreet, which they bailed out with our tax dollars. This is a simple rendition of a complex problem, but if you are following the moneyyou probably have the idea by now: Millions of home buyers and their families have become the sacrifice to coverup WallStreet fraud and the massive amounts of money poured into their coffers to cover up the damage. .And PennyMac becomes rich! It has been very successful very strong, John Lawrence, the companys head of loan servicing, told Mr. Kurland one recent morning in a glass-walled boardroom here at PennyMacs spacious headquarters, opened last year in the same Los Angeles suburb where Countrywide once flourished. In fact, its off-the-charts good, he told Mr. Kurland, who was leaning back comfortably in his leather boardroom chair, even as the financial markets in New York were plunging.25
Wednesday, August 4th, 2010, 11:53 am PennyMac Mortgage Investment Trust (PMT: 15.90 +0.51%) Wednesday reported a Q210 net income of $8.2m or $0.48 per share, up 630.8% from $1.3m in Q110. The company reported a total net investment income of $13.3m and increase of 630% over last quarter's earnings.26

And how much does PennyMac pay for our mortgages that they are unwilling to lower the principle on?
Kurland's new company, PennyMac (!), goes to a demolished bank or the FDIC and buys up delinquent mortgages at, say, 20 cents on the dollar. Kurland's people then call the delinquent homeowner and say, "How would you like to pay $2,000 a month instead of $4,000?" Once the homeowners realize it's not a scam, they say "hell, yes." PennyMac
25 26 http://www.nytimes.com/2009/03/04/business/04penny.html http://www.housingwire.com/2010/08/04/pennymac-net-income-grows-630-in-q210-on-mortgage-investments

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then books the often-massive spread between what it paid for the loan (20 cents) and what it is getting from the loan (50 cents).27

If only that is what really happened, but statistics state other wise. In fact, lets take a look at the foreclosure statistics:

Year

Foreclosures

Foreclosure Filings

Home Repossessions

2011

3,920,418

3,580,000

1,147,000

2010 2009 2008 2007 2006

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3,843,548 3,457,643 3,019,482 2,203,295 1,215,304

3,500,000 2,920,000 2,350,000 1,260,000 545,000

1,125,000 945,000 679,000 489,000 268,532

http://www.businessinsider.com/ex-countrywide-execs-pennymac-files-for-an-ipo-2009-5

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2005 2004 2003 2002 2001 2000

Tags:

801,563 640,000 660,000 700,000 540,000 470,000

530,000

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So tell me again, why Bernie Madoff is in jail? Why did Martha Stewart serve jail time? Honestly, how does the Federal government justify this stuff? Families cannot get better jobs, prices are going up, properties are dropping and our Federal government is pouring money into the coffers of the perpetrators. Just today I read that our government has decided to pour $40 million a month into mortgage-backed securities to help stimulate the economy! http://www.huffingtonpost.com/2012/09/13/fed-stimulus-federal-reserveqe_n_1881216.html
The Fed in its statement on Thursday said it plans to buy $40 billion in mortgagebacked securities every month and continue another program, called "Operation Twist," in which it trades short-term bonds for long-term bonds. Along with another program to reinvest income from bonds it already holds into buying more mortgage-backed securities, the Fed expects to add $85 billion to its balance sheet until the end of the year. In an unusually aggressive step, the Fed also said it would buy more bonds, and consider other measures, if unemployment, currently at 8.1 percent, does not start falling more quickly: "If the outlook for the labor market does not improve substantially, the Committee will continue its purchases of agency mortgage-backed securities, undertake additional asset purchases, and employ its other policy tools as appropriate until such improvement is 29 achieved in a context of price stability," the Fed said.
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http://www.statisticbrain.com/home-foreclosure-statistics/
http://www.huffingtonpost.com/2012/09/13/fed-stimulus-federal-reserve-qe_n_1881216.html

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This move is supposed to help increase jobs. Lets see what increases firstjobs or foreclosures. In an article in the Chicago Tribune it looks like the FHFA is planning on going after the homebuyers rather than the fraudulent lenders:

Mortgage cops taking tough stance

Office of Inspector General on the prowl for strategic defaulters
http://www.chicagotribune.com/classified/realestate/foreclosure/sc-cons-0913strategic-default-20120913,0,4134066.story Strategic defaulters, beware. The feds are coming for you. And

they are not happy. Not the FBI. The Office of the Inspector General at the Federal Housing Finance Agency. The OIG may not have the same fearsome "G-man" reputation as its better-known counterparts at the Federal Bureau of Investigation, but it is every bit as much a law enforcement agency, with the same powers to search, seize and arrest. Special OIG agents are even authorized to carry firearms. The OIG's mission is to seek administrative sanctions, civil recoveries and criminal prosecutions against anyone who abuses the FHFA's programs. And it is pursuing its calling with passion, if not vengeance.

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Our own government oversight committee, SIGTARP, tried to warn us what was coming and our leaders still did not listen! From the SIGTARP report of 3/25/2010 titled: Factors Affecting Implementation of the Home Affordable Modification Program: WHAT SIGTARP FOUND: When HAMP was launched in the first few months of 2009, Treasury justified the program by stating that it would help up to 3-4 million at-risk homeowners avoid foreclosure, and that it would do so by reducing monthly payments to sustainable levels. Notwithstanding this laudable aspiration that the program would actually help 3-4 million homeowners avoid foreclosure, Treasury has stated its 3-4 million homeowner goal is not tied to how many homeowners actually receive sustainable relief and avoid foreclosure, but RATHER that 3-4 million homeowners will receive offers for a TRIAL MODIFICATION. (emphasis mine).. A year into the program, although more than a million trial modifications have been initiated, the number of permanent modifications thus far, 168,708, has been, even according to the Treasury, disappointing. One Treasury officials current estimate for how many permanent modifications will result from HAMP 1.5 TO 2 million over the course of a four-year program may be only a small fraction of the total number of foreclosures that will occur during that period. It is the current projected estimate of permanent modifications (and not Treasurys still repeated 3 4 million figure) that should inform the debate on whether HAMP is worth the resources being expended or whether the program needs to be revamped to actually help more borrowers. .Finally, given the prevalence of negative equity in mortgages eligible for modification, re-defaults resulting from negative equity, including strategic defaults, may be a factor as borrowers decide that it makes more economic sense for them to walk away from their mortgages notwithstanding the lower payments.30 All the while companies like PennyMac cash in on a massive Ponzi scheme started by their own peers. http://www.sigtarp.gov/Audit %20Reports/Factors_Affecting_Implementation_of_the_Home_Affordable _Modification_Program.pdf
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What about all the companys that claim they are losing massive amounts of money due to foreclosures? That is where the alleged money laundering comes in. Lets take CitiMortgage, for example, they lose our mortgages on their books and write them off. (Please dont forget that Mortgage-backed securities are guaranteed by our government.our tax dollars). Then they sell these written-off mortgages to hedge fund companies, such as PennyMac. Then PennyMac forecloses on borrower..and then sell our property for market valuean amount we could probably have afforded if we had been given the option. You remember we started this blog with Merrill Lynch? Merrill Lynch who is now part of Bank of America? The same Bank of America that also owns Countrywide? Well on August 16th, 2012, PennyMac filed a purchase agreement with the SEC for 15,000,000 common shares to Merrill Lynch, Citigroup and Credit Suisse. For those of you who understand this stuff.here it is: Each of PennyMac Mortgage Investment Trust, a Maryland real estate investment trust (the Company), PennyMac Operating Partnership, L.P., a Delaware limited partnership and the operating partnership of the Company (in such capacity, the Operating Partnership), and PNMAC Capital Management, LLC, a Delaware limited liability company and the manager of the Company (in such capacity, the Manager), confirms its agreement with each of Merrill Lynch, Pierce, Fenner & Smith Incorporated, Citigroup Global Markets Inc. (Citigroup) and Credit Suisse Securities (USA) LLC (each, an Underwriter and collectively, the Underwriters, which term shall also include any underwriter substituted as hereinafter provided in Section 11 hereof), with respect to the issue and sale by the Company and the purchase by the Underwriters, acting severally and not jointly, of the respective numbers of common shares of beneficial interest, $0.01 par value per share, in the Company (the Common Shares) set forth on Schedule A and with respect to the grant by the Company to the Underwriters, acting severally and not jointly, of the option described in Section 2(b) hereof to purchase all or any part of 15,000,000 additional Common Shares. The aforesaid 15,000,000 Common Shares (the Initial Securities) to be purchased by the Underwriters and all or any part of the 2,250,000 Common Shares subject to the option described in Section 2(b) hereof (the Option Securities) are hereinafter called, collectively, the Securities. The Company understands that the Underwriters propose to make a public offering of the Securities as soon as they deem advisable after this Agreement has been executed and delivered.31 http://www.sec.gov/Archives/edgar/data/1464423/0001104659120594 75/a12-18834_1ex1d1.htm
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So now CitiMortgage, and other lenders, who have written off these bad mortgages can now collect on them via stock options with PennyMac. Merrill Lynch, a division of Bank of America (Countrywide) can now begin to bring in a profit from their former loses via PennyMac, who in their most recent meeting with Barclays (are you seeing a pattern here yet?) bragged of their awesome profits:32 (My input is in red)

Our investment activities perform well and we are pleased with the performance on PMTs distressed mortgage loan investments during the quarter. (distressed mortgages are people who are losing their homes, or their homes are underwater and PennyMac anticipates they will lose their homes soon.) Pretax earnings increased 82% from the first quarter driven by a 144% increase in net investment income. We purchased 402 million in UPB reports distressed home loans during the quarter which were comprised of 224 million in UPB non-performing home loans and 178 million in UPB of re-performing home loans. (They are making a killer profit on people losing their homes) Re-performing pools are likely to become more prevalent in the pipeline distress available to purchase going forward. (here they are referring to loans that are modified or in temporary modification that people are current on. They anticipate that the underwater status will cause them to be delinquent in the foreseeable future) The second quarters results underscore the strength of PMTs business model and our ability to capitalize on opportunities as they emerge. (They will make money as these people begin to lose their homes) Look at the highlights for the third quarter today, we begin with the equity offering we complete in August of over 70 million shares generating proceeds totaling 357 million. The offering was met with both strong institutional retail demand and the underwriters green shoe option was fully exercise, we expect to use a portion of the capital assurance to purchase a $452 million pool of nonperforming loans. (We will use the money we make from foreclosing and reselling to buy more
http://seekingalpha.com/article/858301-pennymac-mortgageinvestment-trust-ceo-at-barclays-capital-global-financial-servicesconference-transcript?page=2
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loans that are underwater and in trouble.) This purchase alone would make the third quarter 2012 the highest quarter for distress loans purchased since the first quarter of 2011 and we are actively pursuing additional distressed home loan pools. (there are a lot of people going into foreclosure, they stand to make a fortune from the distress of others).
This needs to be exposed and stopped. We need to get our country back on track before our history begins to read like the Fall of the Roman Empire.

When the distressed mortgage market runs it course we will be passing homeless people on our way to work and tent cities that we will want to chase out of our communities because they will create a "blight". There will be empty homes taken over by the new indigents who will be families that have been striped of all their assets by this lending fraud, mixed in with law breakers who will no longer fear the law. Communities are filing for bankruptcy because when the community loses its middle class, they lose their source of income. Crime will multiply, because young people will lose their hope in achieving success by doing things the "right way. Wealth is now being aggregated to the hands of those who know how to cheat the system, what does this say to our future generations? Here in California there are cities talking about using "eminent domain" to take back the land "stolen" by these fraudulent lending practices. Which demonstrates that even our own government is becoming divided. Families that are creating "fortresses" around their foreclosed home and refusing to leave. There are people being foreclosed upon when they own their homes outright, but because of securitization, the lenders have lost track of what is theirs and what is not. More often than not these families are able to prove their cases, but the cost and emotional toll is horrendous.

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The problem could be remedied if the lenders would work out a way to work with the borrowers that would acknowledge the lose of value in the land that the lenders created. People who bought homes were basically hard working family types and anyone who tells you differently is exploiting them. In working with people, instead of seeking ways to annihilate all their years of hard work by stealing their home out from under them, they could still make a steady profit, and in doing so, salvage our retirement funds and encourage future business by creating a reputation of ethical and fair business dealings. That is still a good way of doing business, isn't it? The alternative is that we destroy the United States of America as we know it. And yes, in the process, some people will make a nice profit. Is that all that matters? Do not let the intellectual rhetoric of the large corporate executives fool you, these companies need to be called to task for their role in the destruction of our families and our country!

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