what if I told you that the bank didn't just make money off of your loan they sold it behind your back and got paid again sometimes within days of you signing the contract all right now in this video I'm going to be breaking down how Bank securitize your loan sell it as a financial product and then try to collect from you like they never got paid and I'll show you the laws that expose it okay now I've studied Credit Systems UCC laws and Loan security ization and I'm here to show you exactly what happens to your loan after you sign it first things first thank you guys for watching this video everything that I'm about to talk about is not legal advice this is only for educational purposes only do your due diligence you dig me also at the same time if you're brand new go ahead and subscribe to the channel turn on those post notifications because I do Post daily content all right secondly like the video mean if you like the video you put that investment in me I'll continue to invest in you all right so we're about to dive right into it my whole point of telling you what really happens when you actually sign the loan because we talk about the fact that you are the Creditor we talk about the fact that you are the one creating that financial asset but we never truly have a video specific uh specifically outlining what really happens okay how they make money off of it and how to be able to use this against them okay so when you get a mortgage when you get a car loan when you get a student loan most people think the bank holds on to it and waits for monthly payments but the reality is that's not what happens what happens is your promissary note becomes an asset and what is a promissary note a promissary note is what they would call your loan agreement okay and the reality is is that it's not a loan agreement okay it's actually a financial instrument it's a negotiable instrument you dig me so let's just look at the definition of a promissary note real quick when you go to Cornell Law it says a promissary note is a unconditional promise to pay a certain amount of money to a named party or holder of the note or two deposit that money as such persons direct okay so a lot of times understand that when you create a promissary note it's literally just a unconditional promise to pay just like the dollar it's very similar to the dollar but it is worth more because when you create that promissary note and put your signature on there the bank actually sells the note into a trust fund or even a Securities pool when we talk about mortgages they sell it into mortgage back Securities when we talk about uh fund or bonds they um you know sell it to Wall Street and things of that nature so when this happened the loan is often securitized meaning it is bundled with other loans and sold to investors now I want you to think they got paid upfront but they still seem to keep you paying or as a matter of fact they expect you to pay like they actually loaned you money but the reality is is that they don't really loan you money they are taking money from you already from the from the start okay so let's just talk about how they profit twice okay and this is me just explaining double dipping I never truly dived into the aspect of double dipping or made a video specific to the aspect of double dipping but this is exactly what they do first profit your signature creates the credit all right the bank deposit is the deposits the note and books it as an asset okay the second profit the bank sells the note or uses it to create mortgage back Securities all right or asset back Securities or even credit default swaps so NBS ABS or credit default swaps so that's the second time that they get paid and then the third layer of them getting paid is you keep paying monthly payments even though they already got paid from those first two times sometimes they even get paid through insurance or bailout funds to cover default so let's just say when you default that promiser note or that debt was insured okay so essentially you are paying for a loan that that's that's already been paid for now if you don't believe anything that I'm saying right now I would just direct you to the book to Modern money mechanics but we're going to tap into a couple of laws a couple of things that essentially breaks down or not only breaks down but affirms everything that I'm talking about okay my goal here is not to uh uh give you any false information and not uh uh uh because I'm just going to show you the information that is literally attainable online the only thing is or the problem that we have is this information has been out there for years but the the reality is people don't like to read one of the uh one of the least used skills since we left school was the ability to read okay if you can get to the point where you're reading you're probably not going to be affected by a lot of the uh you're probably not going to be affected by a lot of the uh BS that these banks will feed you okay so here's what they don't tell you you're not told that your loan is being sold that's number one okay and that's violation we'll talk about that number two they never asked you for consent the thing is when you actually when they decide to use your credit in that way they must ask you for consent given the fact that you are the original creditor I talked about this in my last video third there's no disclosure of profits made on your signature so that is another violation the fact that they don't disclose this information to you which is uh essential according to the truth Lending Act all lenders should should disclose any and everything about your loan even if it got sold and then we dive into you only being treated as the dep door and not the funding source and essentially they just pocket the whole spread of money you have to think God dang man they've been running this game on me for years all the loans that you have gotten credit cards uh uh uh you know auto loans mortgages and then I haven't even spoke about the fact that there's fractional banking so when you actually apply for something they get 10 times the money according to to Modern money mechanics the book of banks okay so let's just dive in and talk a little bit about the laws that back this up so let's just dive straight into article 3 negotiable instruments where essentially this is the Uniform Commercial Code um aspect of talking about negotiable instruments if you want any and everything about negotiable instruments and what a negotiable instrument is are things like that are used to pay for loans that are used to pay for debt let's dive straight into it okay UCC 3-31 is person entitled to enfor enforce the instrument okay person entitled to enforce an instrument means the holder of the instrument also a non-h holder in possession of the instrument who has the rights of a holder and a person who is not in possession of the instrument who is entitled to enforce the instrument pursuant to section 3-39 or 3- 418d a person may be a person entitled to enforce the instrument even though the person is not the owner of the instrument or is in wrongful possession of the instrument so thinking of the definition of people can look at a person entitled to enforce and they may have a misconception of what it means but it's it's really in the name okay typically the person entitled to enforce can be that holder typically the person that's entitled to enforce could be the person who has rights of an holder but they may not um um essentially uh hold or have it in possession okay maybe it was transferred and then we dive into someone who lost the instrument but can still prove they're entitled to enforce under specific conditions okay now um just to kind of break this down to layman's terms a a person or company that has a legal right to collect on a debt or enforce a contract okay like a loan or a promissary note okay but it's not just enough for them to say that you owe us okay they must legally prove that they own the note have possession of the original in most cases and have a legal right to enforce it either it's through transfer endorsement or assignment so let's just dive into the next section which is UCC 3-32 which talks a little bit about the holder in due course okay the holder in due course means the holder of an instrument the instrument when issued or negotiated to the holder does not bear such apparent evidence of forgery or alteration or is not otherwise so irregular or incomplete as to call into question its authen authenticity okay the holder took the instrument for Value in good faith okay without notice that the instrument is overdue or has been Dishonored or that there's been an uncured default with respect to the payment of the of the instrument issued as part of the same series okay so I can read this whole thing but tap into this read it it says notice of discharge of a party so on and so forth but it breaks down what a holder in due course means so if you ever had a question of what a holder and due course and what you should be looking for then tap into this to this section right here okay now here's the thing most debt collectors or third party companies do not meet this standard because they do not have the original contract or note they cannot uh prove that they was legally assigned the debt and they don't have a proper chain of custody or transfer of Rights so this is when you start to challenge whether they are the holder in due course by asking these specific questions so they may not be the person entitled to enforce the instrument but given the fact that you signed it you are a person that is entitled to enforce okay so typical questions that you can ask them and say under UCC 3-31 I demand you to prove that you're the person that's entitled to enforce the instruments okay so this is just under the Uniform Commercial Code in regards to negotiable instrument talking about enforcement of instrument negotiation and transfer and you can gather a lot of information I may choose one of these one one video and dive into it on a deeper level notice of breach of fiduciary duties um enforcement of lost or destroyed or stolen instrument okay so obviously if they sell the instrument and they give away their rights then they don't have a ability to collect on the debt okay but then we dive into article 9 okay and article 9 is about secure transactions typically most of the loans that have a piece of collateral attached to it is considered a secure transaction but you can ask them for the request for accounting request regarding a list of collateral or statement of account okay so you have a right to request a full accounting of your obligation okay and you can legally ask where your payments go and who is collecting that all right all of this under the subsection gives you the ability to request specific information about how the money is being moved as it regards to your loan see most of us don't utilize this to our benefit because if we ask them for this information we'll be able to clearly see when they uh have you know uh uh you know where where the money is going that's one and also at the same time if money has actually came in okay so if you give us some documents that don't essentially uh show where the money um is going but also at the same time if money has came in then there has to be some type of fraud there has to be some type of forgery if you can't give me these items then there's something that you're not telling me and that's just a direct violation of the UCC of also the truth The Lending Act and so on and so forth and that's what we're about to talk about it also says that they must comply with this request within 14 days after the receipt so they have a duty to respond to these requests if you ask for these things then it is their duty to respond to it if they don't if they're any day past 14 days late then they are violating your rights and that's the beauty about it it's written right here so if they can sit there and tell you oh well we don't have to do this or they can ignore you but anybody who reads this for themselves can clearly see that it says that they have 14 days so if they ignore you in this past 14 days well you know that they're violating the UCC okay then we talk about the truth of Lending Act 15 USC 1601 Congressional findings and Declaration of purpose or as a matter of fact the whole truth of lending section okay but specifically under the truth and lending act it says that it is the purpose of this sub chapter to assure a meaningful disclosure of credit terms so that the consumer will be able to compare more readily for the various credit terms available to him and avoid the uninformed use of credit and to protect the consumer against inaccurate unfair credit billing and and also unfair credit card practices okay so the thing is is under the truth of Lending Act I mean this is the truth in lending so when I talk about the truth of lending I'm talking about the fact that it requires they are they have a required to provide full disclosure when it comes to your loan okay quote unquote when it comes to your contract they must provide full disclosure so not only can you ask them for all those details listed in the UCC that is a part of the truth The Lending Act but there are violations put in place when you do not follow that direction as a lender okay so essentially they must provide full disclosure of the terms charges and parties involved in the financing okay it's important for them to let you know who the parties that are involved in the financing okay because the failure to disclose the sale or securitization can be argued as a violation so when we look at back at it okay we can dive into the fact that they'll be the we can go to the disclosure guidelines okay but we can just go straight to criminal liability for willful and knowing violations so it's a criminal offense if they ignore you when you are asking them questions about the contract okay because they will be misrepresenting they would be doing something fraudulent if you ask them a specific question and they don't give you that answer you I mean so that's under the truth of Lending Act 12 USC uh 16001 all the way to 1616 okay so if a person wanted to learn so when it gets to the aspect of you challenging the company you may send your negotiable instrument first boom then they try to say oh man well you can't use that so then you want to go and challenge the uh uh the actual contract itself you want to challenge their jurisdiction or their authority to not accept certain things but I'm I'm jumping the gun a little bit we'll talk about that in a second so then I want to talk about respa which is um 12 USC 2605 and I I'll pull up a different uh section to talk about respa okay respa is the real estate settlement procedures Act is a federal law enacted in 1974 to protect consumers in real estate transaction requiring lenders to disclose settlement costs and prohibiting Kickbacks and unearned fees okay I don't think this just applies to real estate okay but it's called the real estate settlement procedures act okay now part of this okay and this is particular let's just say this this is particular for mortgage loans okay under respa it requires disclosures when servicing or when it comes to the ownership of mortgage loan changes okay so if a debt was sold and they didn't notify you properly that is another violation of the USC code okay the whole aspect I'm telling you all of these things so that you understand what to look for what to ask for and it's just as simple as them violating you for not provid in certain documentation that needs to be given to you okay and then we want to talk a little bit about just negotiable instruments so we can kind of push through this negotiable instruments the the truth in negotiable instruments if your note has value and they sold it you can argue that your consideration funded the deal and not theirs okay so the thing is is in context of negotiable instruments truth or truthfulness refers to requirement that the instrument must be unconditional unambiguous and clearly State the promise or order to pay a fixed amount of money so it says that in negotiable instrument is a promise to pay which is considered lawful tnder okay when we dive into the definition of tender not Tinder it says tnder is to unconditionally offer money and performance to mean an obligation so again it it it it it breaks it all down on the law but a lot of times we'll say oh this stuff doesn't work or this that and what was the point of me reading this if it doesn't work you know what I mean so again for those of you guys that that are truly tapped in and on a frequency that I am on that says okay damn this is what I needed to be able to take action Perfect all right also at the same time if you got this far 20 minutes into the video go ahead and like the video okay go ahead and subscribe to the channel turn on those post notifications because I will consistently keep dropping these games even if I have to repeat certain laws so that you guys can be able to understand it on a deeper level even if I have to do this to be able to maybe you didn't catch it in the last video but this will be the video you catch it okay so now I want to talk a little bit about what to do if you want to be able to uh take action on these things and a lot of times that is the biggest problem right we don't know how to take action on these things yes Nicholas you can tell me all of these laws and things in that nature but I don't know how to take action okay so before I dive into this make sure you hit that like button okay so let's dive into it here's what you can do first thing you want to do is you want to go ahead and send in a qualified written request what is a qualified written request okay it is a written correspondence that you or someone acting on your beh have can send to your mortgage serer okay now not just the mortgage serer but you can send a similar letter to anybody you have a loan uh through now it says that in the qw these are the things that you want to ask them of okay so or these are the things that you can ask them now this is specifically it says to specifically send this in regards to your mortgage things in that nature but the things that you can request for clarification documentation regarding the servicing and ownership of the mortgage loan okay please provide the following a full itemized accounting of the loan from the original uh uh for from origination to present number two the name address and contact info of the current creditor or note holder a certified copy of the original promissary note including endorsements and assignments proof that your institution is the legal servicer or agent of the Creditor disclosure of whether the loan was sold security ITI or transfer a copy of the pooling or servicing agreement a complete transaction history from the date of origination to now any 1099a or 1099c filings related to this account and a copy of the original closing disclosure or HUD one settlement statement and proof of lawful consideration exchanged at the origination of the loan okay so it says please respond in 30 business days you can give them 14 right but the the whole aspect of this and I'll make sure to include this in my complete deck guide so if you want this specific letter go ahead and grab to complete that guide It's only 47 bucks um the value is going up every single day so expect the value to go up and also at the same time if you do grab it then you're going to be able to get use it um be able to resell it as an affiliate okay so you want to write a qwr and you want to request those things remember it doesn't have to be special perfect if you write a letter with your name letterhead and you direct to the right person and you ask specific questions and you sign it then it is a it is a formal written request okay it doesn't have to be special okay and also at the same time you can demand this under UCC 9-2 um 210 so you can add those things that is in um UC CC 9210 so make sure you ask for the note security itation info transactional history challenge the collection if the party is demanding payment that they can't prove so under 15 USC 692 G when you when you do this stuff and they ignore you and decide to send you a bill then you want to send them a debt validation letter okay you can also use conditional acceptance to force them to admit what they did with your loan and number three you can leverage the truth of lending violations to file the disp or resend the agreement within 3 years for some loans okay so we talk about we'll we'll have a separate video talking about the right recision as a matter of fact there's already a video right above I'll go ahead and Link it right here or link it down in the description um so if I don't do it y'all can remind me in the comment section but obviously these are some things that you can do I give you those that the the application of these things the strategy behind them and I hope you I helped you understand the aspect that they turn your signature into a product okay they make you pay twice but once you understand the system you can challenge debt and demand proof and hope they never ask for it okay never ask for the debt and also at the same time they really don't want you to do this they don't want you to know this and yes they're going to give you some push back yes they're going to make it hard for you to actually do these things yes you're going to be have to be willing to go through the full process and this is why I tell people it's super important for you to tap into the law tap into the information for yourself do your due diligence get confident with the information so that you know exactly what to get you know exactly what they're supposed to be giving you also at the same time you know what to ask for okay you know what should go and what should not go you know how to do your part because when you do your part when you go on Court and you show that you have done your part and they didn't do their part forget how much you owe forget uh uh what they claim that you owe if you tried to do everything in your power to get them to prove that you actually owe them and they decided to ignore you oh they are hurting themselves okay so if you want that UCC um -210 template if you want that qualified written request that I just showed you it will be in the complete thatb guide okay anybody who Taps into the complete Deb guide will be able to resell it as an affiliate okay go ahead and tap down that link will be in the description okay for all my debt people to complete that guide is where you want to go if you want that one-on-one mentorship in regards to credit repair business funding or setting up your online business if we're talking about an online business you should already be in a space or in a motion of online space in order for you to tap into that aspect if you're a beginner I wouldn't recommend tapping into that 101 okay but when it comes to credit when it comes to funding tap into that 101 book a call down below get a free oneone either speaking to me or my team and we'll be able to see if you're fit for my program okay also the same time if you want to challenge a debt collector or a servicer and you don't want to learn any of this stuff you don't want to write your letters or nothing at all down below with solo suit solo suit you can pay them upfront and they'll pretty much take care of most of the dir work in regards to negotiating with a debt collector and then lastly if you want to follow me on Instagram for daily credit content daily legal strategy go ahead and tap in with your boy at b.n and also at the same time if you found out your loan was sold without your knowledge drop down in the comment section let people know how your what your experience was and if you made it all the way to the end comment the word discharge so that I know that you're a real one thank you guys I love love you and I see you in the next one h