Banking

Below is a very brief overview of the ultimate fraud committed by the banks. We recommend that, if you are interested in finding out more, you go to the Bank Secrets Revealed website – www.banksecretsrevealed.com.au

To understand the fraud, you first need to understand what “money” is. Money, as we know it, comes in the form of coloured polymer notes. The Reserve Bank – which, by the way, is privately owned by the international banking cartel – tells us that it is legal tender. Unfortunately, however, it is completely worthless, and the ONLY thing that gives it“value” is that people are prepared to accept it for its face “value”.

Now, these polymer notes were originally paper notes and those, in turn, used to be certificates for gold. In the old days, when we used to have a gold backed currency, you could always exchange your “notes” for the amount of gold detailed on them.

This is an important point that you will need to get your head around if you want to fully understand the ultimate banking fraud that is explained below.

Okay, so let’s get into it ...

When you buy a house, you run around looking for properties until you find just the right one. You then negotiate with the real estate agent or vendor and settle on a price - you do all that work, not the bank. You then approach the bank and ask to borrow x amount of dollars. For simplicity, in this example, we'll say it's a million dollars.

Now, the bank doesn't obviously just hand over a million dollars and say "Here you go, go buy your house, just pay it back when you can" - in fact, far from it. Instead, what they do is they defraud you with 3 important documents - the loan agreement, the mortgage document and the Certificate of Title.

The loan agreement is the value to the bank, it is your promise to pay them an amount of money. Now, in our 1 million dollar example, they don't actually lend you a million dollars, they only advance you usually 80%, so, in this case, $800,000 because they expect you to put 20% of your own money in. And, of course, you don't just pay them back that original $800,000 either.  In fact, over the course of a 25 year loan, it would be closer to $2 million+

Now remember, the loan agreement is a promise to pay back that $2 million+ over, say, 25 years - it is a promissory note. Now, many of you would be familiar with the old practice of writing out a cheque and then someone signing that cheque over to a 3rd party. It's not done that much anymore, but if we wrote you out a cheque for $100 and you wanted money straight away, you could ask a friend to give you, say $80, and you would write the cheque over to him or her.

The bank can on-sell your promissory note by way of securitisation, which is what happens the majority of the time. That starts to get very complicated so we won't get into that, but the point to take from this is that the loan agreement is the value to the bank.

Now, the mortgage is the guarantee that the bank can take some kind of action if you break your promise to pay. In this case, they have a mortgage over your house and have a right to sell it to cover any shortfall. It is very important to note that YOU own the house at all times.

It is not a case that the bank owns the home until you pay it off - you can paint it, renovate it and even sell it if you want to - the bank will expect that their balance is paid off before the property changes hands and no buyer would purchase a house that still had a mortgage in place but they certainly could, by law, if they wanted to. This is VERY important, it's YOUR house NOT the bank’s!

Okay, so now we get to the juicy bit - the Certificate of Title. What is it? It is the title to your house. Remember we said previously that bank notes used to be certificates of title to an amount of gold? Well, in this case, the house is the gold because it has value, so the Certificate of Title is the “money”. Remember, at ALL times, the Certificate of Title has YOUR name on it, it's yours. So, what happens to it at settlement?

The bank keeps it - why? Why do they keep YOUR Certificate of Title when they already have the value from you - your loan agreement - and they already have the mortgage document, which is their security.

They have it because they steal or swindle it from you. We challenge you all to look through your mountain of terms and conditions and see if the Certificate of Title is listed or detailed anywhere. They don't mention it and, because it is not mentioned and they take it, then they have defrauded you. There has been no meeting of the minds - a necessary part of any lawful contract - because you have not been given full disclosure before you entered into the contract.

So, what do they do with it? Well, we haven't been able to confirm this independently, but the following information was passed onto us from the guys at Bank Secrets Revealed. As we understand it, they deposit that on the books as an asset, and that is where the “money comes from that they then supposedly "loan" you. So, in essence, they have stolen the money from you that they then turn around and loan to you, at interest.

They then turn around and bundle up your loan agreement with many others and securitise - or sell - those off, so they have already been paid once. They still collect monthly payments from you for the life of the loan so, you have paid 2 - 3 times the amount of the supposed "loan" and, if you miss even a few payments, they can then turn around and sell your house and get paid a THIRD time. Now, if that's not fraud, then we don't know what is!

So, now that you understand this - even if you only have a basic grasp of what we have just explained, the fraud should still be clear - what can you do about it? Well, anyone who has a current mortgage can write a simple letter to their bank asking about the Certificate of Title.

You can download a sample letter here. We recommend that you fill in the parts in red, change all the red text to black and then print off the letter and sign it and send it off to your bank ASAP.

If you are after a more comprehensive/advanced letter, that raises a number of other banking issues, then you might want to download this letter and use that one instead.

Were you forced to pay mortgage insurance when you took out your home loan? Do you understand that the mortgage insurance policy that the bank forced you to pay for actually only covers them, and not you? Would you like to do something about this clear and obvious insurance fraud?

Great!  Then, as a starting point, download this letter and send it off to your bank to get the ball rolling.