Trillion

n Dollar
FUB
BAR

Promiissory 
No
ote
­Collateral­
Secu
urity
Instru
ument
Homeowner / L Loan Originator
Created &
 & Executes
Paper Negotia
able Instrument
Paper Security Instrument

© 2010 j.mcguire
Unco
overed
 Trillion
n Dollar
FUB
BAR

Promiissory 
No
ote
­Collateral­
Secu
urity
Instru
ument
Loan Orriginator
Takes Poossession
Paper Negotia
able Instrument
Paper Security Instrument

© 2010 j.mcguire
Unco
overed
 Trillion
n Dollar
FUB
BAR

Loan Originator
Regis
g sters
Ownership Rights
MERS S
 S t
 System
(Tracks Beneficial Ownership
p of Electronic Collateral File)
(
(Tracks Beneficial Ownershi
ip Rights of Paper if Vaulted)
p g p )

© 2010 j.mcguire
Unco
overed
 Trillion
n Dollar
The image cannot be display ed. Your computer may not hav e enough memory to open the image, or the image may hav e been corrupted. Restart y our computer, and then open the file
again. If the red x still appears, y ou may hav e to delete the image and then insert it again.

FUB
BAR

Paper Do
ocuments

Electronic File – Electro
onic Collateral Package

© 2010 j.mcguire
Unco
overed
 Trillion
n Dollar
The image cannot be display ed. Your computer may not hav e enough memory to open the image, or the image may hav e been corrupted. Restart y our computer, and then open the file
again. If the red x still appears, y ou may hav e to delete the image and then insert it again.

FUB
BAR

Promiissory 
No
ote
­Collateral­
Secu
urity
Instru
ument
Loan Or
L  Originator
i i
Electroniccally Scans
Paper Negotia able Instrument
Paper Security Instrument
Into Electroniic Digitized File

© 2010 j.mcguire
Unco
overed
 Trillion
n Dollar
The image cannot be display ed. Your computer may not hav e enough memory to open the image, or the image may hav e been corrupted. Restart y our computer, and then open the file
again. If the red x still appears, y ou may hav e to delete the image and then insert it again.

FUB
BAR

Loan Originator
Vaults or  Destroys
y
Paper Negotiab ble Instrument
P
Paper Securit
 S itty Instrument
t  I t t

© 2010 j.mcguire
Unco
overed
 Trillion
n Dollar
The image cannot be display ed. Your computer may not hav e enough memory to open the image, or the image may hav e been corrupted. Restart y our computer, and then open the file
again. If the red x still appears, y ou may hav e to delete the image and then insert it again.

FUB
BAR

Loan Originator
“Vaul
Vaullted”
lted
Paper Negotiabble Instrument
P
Paper Securit
 S ity Instrument
 I
T
Transferred 
f d  to Custodian
 t  C t di
Two Nottes Exist
(One Paper – One Electronic)
O

© 2010 j.mcguire
Unco
overed
 Trillion
n Dollar
The image cannot be display ed. Your computer may not hav e enough memory to open the image, or the image may hav e been corrupted. Restart y our computer, and then open the file
again. If the red x still appears, y ou may hav e to delete the image and then insert it again.

FUB
BAR

Loan Originator
“Destrroyed”
Paper Negotiabble Instrument
Paper Securitty Instrument

Willful & In
ntentional
UCC – Discharge  of Indebtedness

© 2010 j.mcguire
Unco
overed
 Trillion
n Dollar
The image cannot be display ed. Your computer may not hav e enough memory to open the image, or the image may hav e been corrupted. Restart y our computer, and then open the file
again. If the red x still appears, y ou may hav e to delete the image and then insert it again.

FUB
BAR

Loan Originator
Files Electrronic Copy
py
o
of
S
Security In
it  Instrument
t t
Public R Records
(Lien Perrfection)

© 2010 j.mcguire
Unco
overed
 Trillion
n Dollar
The image cannot be display ed. Your computer may not hav e enough memory to open the image, or the image may hav e been corrupted. Restart y our computer, and then open the file
again. If the red x still appears, y ou may hav e to delete the image and then insert it again.

FUB
BAR

Security Instrum
ment Perfection
Lenderss Name
(P fected)
(Perfe t d)
MERS as N
 Nominee
(Bifurccated) 

© 2010 j.mcguire
Unco
overed
 Trillion
n Dollar
The image cannot be display ed. Your computer may not hav e enough memory to open the image, or the image may hav e been corrupted. Restart y our computer, and then open the file
again. If the red x still appears, y ou may hav e to delete the image and then insert it again.

FUB
BAR

Loan Originator
Sells Loan to (Trust Securittizer)(Warehouse Lender)
Electronic Collaateral File Sold
Non­Nego otiation of
N
Negotiable I
ti bl  I
 Instrument
t t
(Holder in Due Course Tran
nsfer of Paper Note Failure)
(MERS Records Updated – Ownership Riights of Custodian Held Paper Transfer)

© 2010 j.mcguire
Unco
overed
 Trillion
n Dollar
The image cannot be display ed. Your computer may not hav e enough memory to open the image, or the image may hav e been corrupted. Restart y our computer, and then open the file
again. If the red x still appears, y ou may hav e to delete the image and then insert it again.

FUB
BAR

Securitizer Tak
kes Possession
Electronic Colla
ateral Package
By MERS Reg
y g
gistry Update
y p
Holds Ownership Rightss of Electronic Collateral 
P kage
Pack

(Holder in Due Course Tran
nsfer of Paper Note Failure)
(MERS Records Updated – Ownership Righ
hts of Custodian Held Paper Transferred)

© 2010 j.mcguire
Unco
overed
 Trillion
n Dollar
The image cannot be display ed. Your computer may not hav e enough memory to open the image, or the image may hav e been corrupted. Restart y our computer, and then open the file
again. If the red x still appears, y ou may hav e to delete the image and then insert it again.

FUB
BAR

Securritizer
Trust O
Offering
Electronic Co
ollateral File
Offered up a
 as Collateral

© 2010 j.mcguire
Unco
overed
 Trillion
n Dollar
The image cannot be display ed. Your computer may not hav e enough memory to open the image, or the image may hav e been corrupted. Restart y our computer, and then open the file
again. If the red x still appears, y ou may hav e to delete the image and then insert it again.

FUB
BAR

Rating A
Agencies
Credit Defau
ult Carriers

Revieww & Rate
Electronic Colla
ateral Package

© 2010 j.mcguire
Unco
overed
 Trillion
n Dollar
The image cannot be display ed. Your computer may not hav e enough memory to open the image, or the image may hav e been corrupted. Restart y our computer, and then open the file
again. If the red x still appears, y ou may hav e to delete the image and then insert it again.

FUB
BAR

Securritizer
Creaates
Truust
Certifi
ficates
© 2010 j.mcguire
Unco
overed
 Trillion
n Dollar
The image cannot be display ed. Your computer may not hav e enough memory to open the image, or the image may hav e been corrupted. Restart y our computer, and then open the file
again. If the red x still appears, y ou may hav e to delete the image and then insert it again.

FUB
BAR

Truust
Certifi
ficates
Rights to Princcipal Payments
Rights to Future Interest Payments
Rights to Future I nterest Payments

© 2010 j.mcguire
Unco
overed
 Trillion
n Dollar
The image cannot be display ed. Your computer may not hav e enough memory to open the image, or the image may hav e been corrupted. Restart y our computer, and then open the file
again. If the red x still appears, y ou may hav e to delete the image and then insert it again.

FUB
BAR

Fanniee Mae
Freddiie Mac
(Securities Offerings)
Principal 
P i i l  Only Split
 O l  S lit
Interest O
 Only Split

Slice and Dice Ownership of E
p  Electronic Collateral Package
g

© 2010 j.mcguire
Unco
overed
 Trillion
n Dollar
The image cannot be display ed. Your computer may not hav e enough memory to open the image, or the image may hav e been corrupted. Restart y our computer, and then open the file
again. If the red x still appears, y ou may hav e to delete the image and then insert it again.

FUB
BAR

Securritizer
Assigns Loan to (Trust Depositor)
Electronic Co
ollateral File
Non­Nego otiation of
N
Negotiable I
ti bl  I
 Instrument
t t
(Holder in Due Course Tran
nsfer of Paper Note Failure)
(MERS Records Updated – Ownership Riights of Custodian Held Paper Transfer)

© 2010 j.mcguire
Unco
overed
 Trillion
n Dollar
The image cannot be display ed. Your computer may not hav e enough memory to open the image, or the image may hav e been corrupted. Restart y our computer, and then open the file
again. If the red x still appears, y ou may hav e to delete the image and then insert it again.

FUB
BAR

Depositor Tak
kes Possession
El t
Electronic 
i   Collateral
 C ll t l
By MERS Reg
gistry Update
Holds Ownership Rightts of Electronic Package

(Holder in Due Course Tran
nsfer of Paper Note Failure)
(MERS Records Updated – Ownership Righ
hts of Custodian Held Paper Transferred)

© 2010 j.mcguire
Unco
overed
 Trillion
n Dollar
The image cannot be display ed. Your computer may not hav e enough memory to open the image, or the image may hav e been corrupted. Restart y our computer, and then open the file
again. If the red x still appears, y ou may hav e to delete the image and then insert it again.

FUB
BAR

Depo ositor
Executees SWAP
Electronic Colla
ateral Package
(Rights of Ownership Updated MERS Registry)

Fo
or

Trust Cerrtificates
((Holder in Due Course Tran
nsfer of Paper Note Failure)
p )
(MERS Records Updated – Ownership Righhts of Custodian Held Paper Transferred)

© 2010 j.mcguire
Unco
overed
 Trillion
n Dollar
The image cannot be display ed. Your computer may not hav e enough memory to open the image, or the image may hav e been corrupted. Restart y our computer, and then open the file
again. If the red x still appears, y ou may hav e to delete the image and then insert it again.

FUB
BAR

Depo
ositor
Assigns Loan to  (Trust Trustee)
For Benefit of the C
 Certificate Holders

Electronic Co
ollateral File
Non­Nego
gotiation of
Negotiable I
 Instrument
(Holder in Due Course Tran
nsfer of Paper Note Failure)
(MERS Records Updated – Ownership Riights of Custodian Held Paper Transfer)

© 2010 j.mcguire
Unco
overed
 Trillion
n Dollar
The image cannot be display ed. Your computer may not hav e enough memory to open the image, or the image may hav e been corrupted. Restart y our computer, and then open the file
again. If the red x still appears, y ou may hav e to delete the image and then insert it again.

FUB
BAR

Trusstee
Assigns Loan to (T
Trust­Custodian)
For Benefit of the C
 Certificate Holders

Electronnic File
Non­Negogotiation of
Negotiable I
 Instrument
(Holder in Due Course Tran
nsfer of Paper Note Failure)
(MERS Records Updated – Ownership Riights of Custodian Held Paper Transfer)

© 2010 j.mcguire
Unco
overed
 Trillion
n Dollar
The image cannot be display ed. Your computer may not hav e enough memory to open the image, or the image may hav e been corrupted. Restart y our computer, and then open the file
again. If the red x still appears, y ou may hav e to delete the image and then insert it again.

FUB
BAR

Trusstee
Contracts Services of  a Servicing Company
Collections of Hom
meowner Payments
(Servicin
ng Fees)

Trusstee
Payments t  o Investors
(Servicinng Fees)

© 2010 j.mcguire
Unco
overed
 Trillion
n Dollar
The image cannot be display ed. Your computer may not hav e enough memory to open the image, or the image may hav e been corrupted. Restart y our computer, and then open the file
again. If the red x still appears, y ou may hav e to delete the image and then insert it again.

FUB
BAR

Homeowner A
Alleged Default

Unchallenged
Non­Ju
udicial
Forecclose
(Withdraw f from Trust)
(Future Paymments Lost)

© 2010 j.mcguire
Unco
overed
 Trillion
n Dollar
The image cannot be display ed. Your computer may not hav e enough memory to open the image, or the image may hav e been corrupted. Restart y our computer, and then open the file
again. If the red x still appears, y ou may hav e to delete the image and then insert it again.

FUB
BAR
Homeowner A
Alleged Default

Challe
enged
Judiicial
Forecclose
(Withdraw f from Trust)
(F
(Future Paym
 P ments Lost)
 L )

© 2010 j.mcguire
Unco
overed
 Trillion
n Dollar
The image cannot be display ed. Your computer may not hav e enough memory to open the image, or the image may hav e been corrupted. Restart y our computer, and then open the file
again. If the red x still appears, y ou may hav e to delete the image and then insert it again.

FUB
BAR
Paper Note if N
 Not Destroyed

Retrieved From
m Original Vault
Indorsemeents Added
(HIDC Acchieved)
(HIDC A hi d)

((Indebtedness Stattus “UNSECURED”))
(Perfection Failss by Bifurcation)
(Public Record Lacks CContinuous Perfection)
(Equitable Relief Maybe Pursued on
n a properly negotiated Note, ONLY)

© 2010 j.mcguire
Unco
overed
 Trillion
n Dollar
The image cannot be display ed. Your computer may not hav e enough memory to open the image, or the image may hav e been corrupted. Restart y our computer, and then open the file
again. If the red x still appears, y ou may hav e to delete the image and then insert it again.

FUB
BAR
Paper if Nott Destroyed

Trusstee
Transfers Retrieved Paper Documents to Law Firm

Bank Claims Valid Note and
d Valid Security Instrument

(If Negotiation of the eNote is Reflectted in the MERS system and there is a 
failure to properly update public recorrds to maintain a continuous perfected 
Security Instrument The Power  of Sale Clause is unobtainable.)
(Author Note: There can be no negotia ation of an eNote and therefore public 
records do not have to be updated, at
p , t the same time Holder In Due Course 
has not been achieved by the Trustee e and if the name on the Note and the 
Security Instrument are not the s  same there is no perfected lien.) 

© 2010 j.mcguire
Unco
overed
 Trillion
n Dollar
The image cannot be display ed. Your computer may not hav e enough memory to open the image, or the image may hav e been corrupted. Restart y our computer, and then open the file
again. If the red x still appears, y ou may hav e to delete the image and then insert it again.

FUB
BAR
Paper Note Destroyed

Printed Copy of  Electronic Note
Lost Note
e Affidavit
“LNA  ith t 
“LNA without pers
sonal knowledge”
l k l d ”
“Hearsay Under R
 Rules Of Evidence”

(Indebtedness Stattus “UNSECURED”)
(Perfection Failss by Bifurcation)
(Public Record Lacks CContinuous Perfection)
(Equitable Relief Maybe Pursued on
n a Properly Negotiated Note, ONLY)

© 2010 j.mcguire
Unco
overed