Trillion Dollar FUBAR

We shall include Fannie Mae as Fannie Mae and Freddie Mac are brother and sister and follow the same guidelines for the purchase of mortgage loans.

Fred/Fan typically purchase an "Electronic Digitized File" in which is stored a "Electronic Digitized Graphical Image" of the "Original Wet Blue Ink Signed Paper Homeowner Promissory Note" along with an "Electronic Digitized Graphical Image" of the "Paper Security Instrument". There are no supporting laws for an "Electronic Negotiable Instrument/Electronic Promissory Note".

Mortgage Bankers Association, Mortgage Electronic Registration Systems, banks, etc and title companies executed an advertising blitz that E-Sign and UETA have allowed for the use of "Electronic Negotiable Instruments/Electronic Promissory Notes". 15 USC 7003 of the E-Sign Act excludes UCC Article 3, Negotiable Instruments and UCC Article 9. UETA has the same exclusions.

One procedure:

1. Homeowner signs a Paper Promissory Note and a Paper Security Instrument.

2. The Lender is named on the Paper Promissory Note and in the case of MERS, the Paper Security Instrument on it's face identifies MERS as the Beneficiary and MERS as Nominee for Lender.

3. The Security Instrument is recorded in public records naming MERS as Beneficiary (Invalid Perfection). (Laws of Local Jurisdiction) 4. The "Original Wet Blue Ink Signed Paper Homeowner Promissory Note"

along with "Paper Security Instrument" are scanned into an "Electronic Digitized File" and the relevant data is scrapped from the paper documents and attached to the "Electronic Digitized File" to create an "Electronic Mortgage Package". The "Original Wet Blue Ink Signed Paper Homeowner Promissory Note" along with "Paper Security Instrument" in some cases were destroyed and in other cases vaulted for later retrieval if required in litigation.

(Writers Note: In cases where the Original Paper Note returns it often has an incomplete Chain of Endorsements which would reflect that Fred/Fan never achieved "Holder in Due Course", UCC Article 3 - Negotiation of Instrument or it the item presented as "True and Correct Copy" lacks proper Chain of Endorsements.

It is the "Electronic Mortgage Package" that has been offered up to Fred/Fan.

So Fred/Fan have purchased an "Electronic Promissory Note" and an "Invalid Perfected Security Instrument" based on the above scenario, there are variations but the results are similar that are "Worthless".

Humpty Dumpty is Broken and there are no laws to support either side of what can not exist.

-"Word, brother. Amen!"