Joe invented chain of title analysis, a method for tracing who owns your mortgage as it gets bought and sold. He explains how to track these transfers through mortgage documents and securitization records.
Hello, everyone, this is Gianna Maseli on our Monday night zoom in the legal faucery University. And our very special guest tonight is Joe. He is a friend of the university. Joe, you are the inventor, creator, pioneer, all these words of chain of title analysis, correct?
Correct. I came up with that acronym years ago. Right, because that's what it is. It's a chain of title analysis.
How did you come up with that? Where did this come from?
Well, my best friend and I were. We've been working on this for quite a while. Back then, going back in 2010. 29, actually, 2010, and coming up with different wording. All right? Because what I do is not an audit, it's an investigation, right? When you see audit, right, someone says, I need a forensic audit, right? That's an accounting of the numbers. So what we do, what I do, all right? I'm the gentleman that's done all the investigations. I'm the one that puts my name on everything, okay? We have the unique ability to reverse engineer loans, all right? And then we take that information from the loans, okay? And we follow the trail of money, right? Because that's what it's all about. It's all about money. And I know everyone gets into their rants, oh, my God, Joe, they didn't lend me anything. Oh, my God, Joe, the banks can't lend me money. All right? So let's get past all of that. Let's talk about just basics for everybody, all right? It doesn't matter whether you're in California, if you're in Florida, or if you're in New York or Georgia, all right? What happens is you go to closing and you're going to sign between 100, 120 documents somewhere around there. And among those documents that are going to be signed is a note and a security instrument. And that security instrument can be either a mortgage, a deed of trust, or security deed if you're in the state of Georgia. Now, understand, these documents are called unilateral adhesion contracts. That means it is a contract written by party A and signed by party B. These are legitimate contracts. The difference is having an understanding of them, right? Because the parties that write these contracts, they do this every single day. The problem is that we do not have a proper understanding when you go to closing, many, many times you're given one interest rate and you show up and suddenly you have another. And they say, well, take it or leave it. It's too bad if you don't want it, well, I'll give it to somebody else right now. You sign the documents and you look at the document and, and the very first paragraph, this is something to this effect. For a loan I have received, I promise to pay, right? That is the sentence that is giving value to that document. But ask yourself a question, okay? It says, for a loan I have, okay, have is possessory. That means you already possess it. But yet you're signing a document saying I've received this when nothing could be further from the truth. What they are doing is they extend you a line of credit. All debt is sold, right? 99% of all debt is sold. Now you say Joe, how do you know that? Ask yourself this, okay? It's real simple. Your loans are amortized at 360 months, 30 years, okay? That means let's say you borrow $200,000. At the end of 30 years, you have paid back roughly $500,000. If I'm an investor, hey, it's a good thing. I'm going to make more than the party that's putting up the funds. And understand what's happened in the last 10 years. Great question. Guys, you're on the ball. So in the last 10 years, right, all of these entities that used to create RMBS's and MBSs and ABS's have gone by the wayside. For example, Lehman Brothers, out of business. Bear Stearns, out of business. Okay? Wamu out of business. So all of these entities that used to create our MBS's residential mortgage backed securities, Mortgage backed securities, Asset backed securities, they've gone by the wayside. So who is picking up the slack? Great question. So the parties that are picking up the slack are the GSEs. All right? Government sponsored enterprises such as Fannie Mae, Freddie Mac, Ginnie Mae, Farmer Mac for those Aggie loans, the agricultural loans that the federal Department of Agriculture puts out, Again, those are all securitized. And while everyone says that they're doing everything procedurally correct, nothing could be further from the truth. Because understand people, when they sell the debt, that is what is sold. And when we look at the documents, right, and we have actual manuals from Fannie Mae, Freddie Mac, Ginny Mae, and we go through the manuals and read what do the manuals say? Because we don't make any of this up, right? Data doesn't lie. People lie. So what we do is we reverse engineer your loan. Let's just say that Gianna, you took out a loan and you were a veteran, so you went and got yourself a VA loan. All right? Now, automatically understand, all VA loans go to Ginnie Mae, right? What does that mean? That means that your loan is guaranteed by government. National Mortgage Association. They are the guarantor, but they are not the trustee. So what happens is your debt is sold to Ginnie Mae, and then Ginnie Mae places it into a trust based on the underwriting standards pertaining to your loan. So depending on the amount of the loan, the city, all these circumstances. All right, what type of loan was it? You know, was it a wholesale loan? You know, was it a full purchase loan? So there's many different things. And there's many companies out there that make claims. Oh, we can do this. Horse pucky. I've been doing this since 2010, and there is no one that has access to those GSEs other than us. It.
