America’s Mortgage Market: Built on Fake IDs

By: William Paatalo – Private Investigator / Expert Witness – bill.bpia@gmail.com

What if the entire lending system was just a big masquerade—everyone showing up in costume, pretending to be someone they’re not?Imagine walking into a government office and every official behind the desk is wearing a fake ID. No one verifies who anyone really is. No one is held to account. But they’re making life-altering decisions anyway. That, in essence, is how today’s mortgage securitization and servicing industries operate.

The Masquerade Begins:
When you take out a mortgage, you think you’re entering into a contract with a real party—the “lender.” But peel back the layers and you’ll find that the party you’re told is “lending” doesn’t even have skin in the game. The note is quickly endorsed in blank or “assigned” into a trust that may never have received legal delivery. These “transfers” often lack recorded assignments or break every chain of title protocol known to land law.

Using Fake Credentials:
The trusts claiming to own loans often cannot prove they received them. Servicers show up with robo-signed paperwork, claiming to represent entities that don’t exist or never had authority. It’s as if they’re flashing a fake badge—“I’m with the trust!”—but no one checks their credentials. The courts, regulators, and land recorders wave them through.

The Real Lender Never Shows Up:
Truth is, the actual “lender” isn’t even a lender—it’s you. Your note is deposited into a warehouse facility, used to generate credits or securities. The supposed consideration for the loan? Often non-existent. In economic terms, these were manufactured “loans” backed by thin air and monetized through derivative instruments.

Fake IDs, Real Consequences:
While these entities play dress-up with their phony identities, homeowners suffer real harm: foreclosures, tax liabilities, ruined credit. Try asking them to show the accounting ledger that proves they’re owed the money. They can’t. You ask for a verified loan-level assignment into the trust? They won’t provide it. Like someone caught with a fake ID, they run when the bouncer (a diligent borrower) demands to see who they really are.

The Administrative Process: Checking the IDs at the Door
This is where the administrative process shines. It is the due diligence system—the formal challenge where borrowers ask for proof of authority, proof of standing, proof of accounting, proof of chain of title. In this process, you’re not accusing; you’re asking: “Show us your ID. Who are you to demand payment or enforce this contract?”

And when they can’t answer—when they ignore the notices, evade the questions, or outright default—it becomes the proof. Their silence, their refusal, their contradictions become the evidence that they are imposters. This process doesn’t rely on courtroom theatrics. It operates on the rules of logic, equity, and commerce: if you claim the right to collect, you must prove it. If you can’t, you don’t belong at the table.

Conclusion:
We’re not dealing with a broken system. We’re dealing with a counterfeit one—designed to operate on plausible deniability and forgery as a business model. The fake IDs are the securitization documents, the “trusts” that are little more than legal fictions, and the servicers pretending to collect on behalf of parties they can’t identify.

Call to Action:
It’s time for the judiciary, lawmakers, and regulators to stop letting these actors into the club without checking ID. If we don’t demand real accountability and verification of standing, then we’re consenting to a system built entirely on fraud and pretense. The administrative process is the front-line tool for making these demands, for forcing the issue, and for exposing the masquerade for what it really is.