1. SECURITIZATION, HOW IT
EFFECTS YOU, IN SOUTH
AFRICA

2. ROLE PLAYERS:
1. Borrower-
1. Home Loans
2. Motor Vehicle
3. Credit Cards, etc.,
2. Financiers:
1. Banks –
2. Mortgage Originators
3. Aggregator
4. Securities Dealer
5. Investor
6. Legal
1. Advocates
2. Lawyers
7. Judiciary
1. Judges
2. Magistrates
8. Sherriff

3. COMMUNITY LIFE

4. ASSUMPTION -NEW HOME OWNER
Steps
1.Look for House
2.Make Offer
3.Approach Bank
4.Mortgage Granted
5.Take Occupation
6.Pay Rent

5. HOME BUYERS LOOKING FOR MORTGAGES
Before you have even
bought your loan it has
been packaged and sold
into securitisation
Bank Loans Adviser
Estate Agent takes you to Bank
Special Purpose Investors
Bank is a money making
Factory, which is illegal by
law, as only the
government can make
money

6. CURRENT SITUATION
• Company Retrenches you
• Your Business folds
• Cant pay premiums
• Get into Arrears
• Bank Issues Summons
• Bank Takes Judgment
• Bank Attaches House
• Sherriff sell house at sale of Execution
• Balance outstanding, Bank still owed monies
• Send Sheriff to Repossess your other belongings for
next 30 years

8. How did this Happen?
• Retrenchment or loss of employment
• Business goes Insolvent
• Gambled or took a risk
• Death or disablement of Bond payer - Uninsured

9. Alternatives Considered To Rescue
the Situation
• Try to borrow more money
• Sell House before sale of execution
• Put under Debt Counseling
• Gamble
• Rob a bank – This happens
• Suicide – This is a reality

10. TAKE YOUR HOUSE
BACK
STOP THE BANKS
THEIR LAWYERS AND
THE SHERIFF

11. PLEASE RESEARCH THE FOLLOWING WORDS:
1. Home Loans
2. Mortgage Originator
3. Aggregator
4. Securities Dealer
5. Investor
6. Securitization (2001 to 2008 non SA)
7. Special Purpose Vehicle
8. Special Purpose Investor

12. RULES:
a) Rule 14
b) 18(6) The person claiming he has been injured
must prove injury and
c) 18(12) If a party fails to comply then
d) Rule 30A
e) Rule 32
f) Rule 35
g) Rule 37
h) In Duplum Rule – Duplication of Payment of
Interest
i) Par Dilictum Rule – Dirty Hands Rule
j) No Locus Standi – Cannot represent
k) Section 86 of NCA
l) Section 129 and 130 of NCA
m) Promissory Note
PLEASE RESEARCH THE FOLLOWING WORDS:

14. Securitization in South Africa

15. Home Loans
• Past

16. Securitization
• Securitisation is the generic term for any kind of Asset- or
Receivable-Securitisation. It is derived from the word
security, because usually illiquid and sometimes even
intangible assets that generate a constant cash flow are
formed into a tradable security and are floated on the debt
market.
• Securitisation is the conversion of a pool of assets with a
regular and predictable cash income, such as mortgage
repayments or credit card receivables into a security or
marketable instrument. In very basic terms, securitisation
enables a company (in most cases a bank) to “sell” a large
number of its assets

17. Securitization continued
• (e.g. mortgage loans), which would otherwise not be
attractive as individual purchases, to a specially formed
company - the Special Purpose Vehicle (“SPV”). The SPV
funds the purchase by issuing debt securities in the capital
markets, and the cash flows derived from the asset (such as
the mortgage or credit card repayments) will serve as
principal and interest payment obligations under the
marketable securities. Hence the issued securities are called
Asset-Backed Securities (“ABS”).

18. • Securitisation is the generic term for any kind of
Asset- or Receivable-Securitisation. It is derived from
the word security, because usually illiquid and
sometimes even intangible assets that generate a
constant cash flow are formed into a tradable security
and are floated on the debt market.
Securitization continued

19. The Bottom Line
• In a matter of weeks, maybe a month, from the time a
mortgage is originated it can become part of a CMO, ABS or
CDO deal. Few borrowers realize the extent to which their
mortgage is sliced, diced and traded. The end user of a
mortgage might be a hedge fund that makes directional
interest rate bets or uses leveraged positions to exploit small
relational pricing irregularities, or it might be the central bank of
a foreign country that likes the credit rating of an agency MBS.
On the other hand, it could be an insurance company based in
Brussels, that likes the duration and convexity profile of a
certain tranche in an ABS, CMO or CDO deal. The secondary
mortgage market is huge, liquid and complex with several
institutions that all take a slice of the mortgage pie.

20. Special Purpose Vehicle
• 'special purpose institution' means a company incorporated or a trust created society
for the purpose of the implementation of a securitisation scheme;
• In terms of securitisation schemes, the sale of the bank’s assets to the SPV (as a
going concern) appears to be a sale of income generating assets, and therefore a
sale of part of the business of the seller. This sale may therefore constitute a merger
as contemplated in section 12 of the Act. The SPV will, as a result of the sale of the
concerned assets, acquire control over a part of the business of the seller, which it
did not have prior to the transaction. Where the threshold requirements are met,
notification of these transactions would be required. The indication that the SPV has
no assets except those acquired as a result of the transaction will be considered in
the calculation of the annual turnover or asset values of the firms to the transaction
for the purpose of determining the threshold.
• This approach would be a significant step in line with the international trend to
exempt these transactions from merger notification. However, the Commission
reserves the right to review such transactions, particularly if any competition or
public interest concerns arise.

21. 1. The Mortgage Originator
• The mortgage originator is the first company involved in the
secondary mortgage market. Mortgage originators consist of
banks, mortgage bankers and mortgage brokers. One
distinction to note is that banks and mortgage bankers use
their own funds to close mortgages and mortgage brokers do
not. Mortgage brokers act as independent agents for banks
or mortgage bankers. While banks use their traditional
sources of funding to close loans, mortgage bankers
typically use what is known as a warehouse line of credit to
fund loans. Most banks, and nearly all mortgage bankers,
quickly sell newly originated mortgages into the secondary
market.

22. 2. The Aggregator
• Aggregators are the next company in the line of
secondary mortgage market participants. Aggregators
are large mortgage originators with ties to Wall Street
firms and government-sponsored enterprises (GSEs),
like Fannie Mae and Freddie Mac. Aggregators
purchase newly originated mortgages from smaller
originators, and along with their own originations, form
pools of mortgages that they either securitize into
private label mortgage-backed securities (by working
with Wall Street firms) or form agency MBSs (by
working through GSEs). (To learn more about GSEs,
see Profit From Mortgage Debt With MBS.)

23. 3. Securities Dealers
• After an MBS has been formed (and sometimes before it is
formed, depending upon the type of the MBS), it is sold to a
securities dealer. Most Wall Street brokerage firms have
MBS trading desks. Dealers do all kinds of creative things
with MBS and mortgage whole loans. The end goal is to
sell securities to investors. Dealers frequently use MBSs to
structure CMO, ABS and CDO deals. These deals can be
structured to have different and somewhat definite
prepayment characteristics and enhanced credit ratings
compared to the underlying MBS or whole loans. Dealers
make a spread in the price at which they buy and sell MBS,
and look to make arbitrage profits in the way they structure
CMO, ABS and CDO deals.

24. 4. Investors
• Investors are the end users of mortgages. Foreign
governments, pension funds, insurance companies, banks,
GSEs and hedge funds are all big investors in mortgages.
MBS, CMOs, ABS and CDOs offer investors a wide range of
potential yields based on varying credit quality and interest
rate risks.
Foreign governments, pension funds, insurance companies
and banks typically invest in high-credit rated mortgage
products. Certain tranches of the various structured mortgage
deals are sought after by these investors for
their prepayment and interest rate risk profiles. Hedge funds
are typically big investors in low-credit rated mortgage
products and structured mortgage products that have
greater interest rate risk.

26. ISSUER ASSETS VALUE (R) ORIGINATOR ARRANGER YEAR
United RMBS 250 million United BS United BS 1989
Sasfin Asset
Securitisation
Lease receivables 60 million Sasfin Bank Sasfin Bank 1991
Siltek Trade Receivables 250 Siltek Mettle 2000
FirstRand
2000-A
Credit Card - Future
Flows
1,8 bn RMB / CSFB FirstRand Bank 2000
RMB CDO 1
Limited
CDO 3,9 bn RMB / Morgan
Stanley
RMB 2000
Kiwane CDO 500 million Gensec / JP Morgan Gensec / Real
Africa Durolink
2000
Thekwini I RMBS 1,2 bn JP Morgan / SCMB SA Home Loans 2001
RMB CDO 2
Limited
CDO 2,9 bn RMB / Goldman
Sachs
RMB 2001
Clover Trade Receivables 300 million Clover Danone Mettle 2001
Mustek Trade Receivables 250 million Mustek Computers Mettle 2001
FRESCO CDO 1,1 bn RMB FirstRand Bank 2002
Procul Autoloans 1,3 bn RMB FirstRand Bank 2002
OntheCards StoreCard 1,93 bn RMB Edgars 2002
Thekwini II RMBS 1,1 bn SCMB SA Home Loans 2002
Fintech Lease receivables 630 million Gensec / JP Morgan Fintech 2002
Private
Mortgages
RMBS 1 bn Investec Investec Private
Bank
2002
Eagle Bonds
One
Aircraft - ECA Guaranteed 1 bn SCMB / Gensec / Imperial Bank Safair Lease
Finance
2003
Autoloan
Investments
Autoloans 1 bn RMB BMW 2003
CARS 1 Autoloans 2,955 bn ABSA Corporate & Merchant ABSA Asset & Vehicle
Finance
2003
Thekwini III RMBS 1,5 bn SCMB SA Home Loans 2003
Private
Mortgages II
RMBS 1 bn Investec Investec Private
Bank
2003
Autoloan
Investments II Autoloans 1 bn RMB
BMW Financial
Services
2003
Equipment Rentals
Securitisation Lease receivables 670 million Sasfin Bank Sasfin Bank
2003
Workforce Trade Receivables 50 million Mettle 2003
Clover II Trade Receivables 100 million Clover Danone Mettle 2003
SOME OF THE COMPANIES BUYING YOUR
DEBT

27. CURRENT SITUATION

28. This means
• Banks are Committing Fraud:
1. Do not have our permission to sell your debt
2. Lawyers have no locus standi, they do not represent the party
owning the debt
3. There is no contract between you and this debt collector, but
they will make it sound like you still owe the original creditor,
and they are just collecting on behalf of them no locus standi
4. They have Dirty Hands and thus the Par Dilictum Rule applies

29. • The Banks are Stealing From Us:
1. My understanding is that when a debt collector (or anyone) buys
your debt from the original creditor, that debt is settled. This is
coming from the SA Reserve Bank - NewERA has written
confirmation from the South African Reserve Bank that, once a
bank sells a loan into a securitisation pool, they lose the legal
right to that asset
2. Not giving us the profit from the sale
3. Taking a monthly installment even though debt paid - In Duplum
rule
4. Claiming twice on a debt –It is illegal for banks to claim more
than double the amount loaned from any borrower (the in
duplum rule).
This means

30. Current Situation
• YOUR BOND IS SETTLED
• BANK HAS BEEN PAID BY AN INVESTOR

32. • YOU HAVE NO DEBT
THEREFORE

33. YOUR DEBT HAS BEEN PAID

34. HERE IS OUR STORY IN A BRIEF OUTLINE
1. We have been battling ABSA since 2009. Their strategy to try and win by
getting default Judgement. They do not want to go to trial. So if they lose at
summary Judgement, they withdraw the case and reissue to go for
summary Judgement again.
a. There have been 3 Cases since 2009
a. Case 1 Case No. 747/09
b. Case 2 Case No. 2019/12
c. Case 3 Case No. 810/2013
1. ABSA Withdrew the first two cases without serving notice on our Attorney of
Record at the time. They Sent a registered slip, so they say to my
daughters, yet cant produce slip, no slip, no signatures. This was not done
by following correct court procedure
2. On Withdrawing the two of the cases, they did so without tendering costs,
which is also contrary to court procedure and court rules.

35. 5. The Banks legal team are not supposed to put information in
there documents that they know to be wrong, yet their Advocate
and lawyers, who know and admit this is securitisation, do not
care. They Perjure themselves the on behalf of Banks by saying
a fire destroyed all the documents and copies, including
microfilm, yet we have a securitisation letter from ABSA saying
it was securitised. Why did their legal team not request the
following as we did in our rule 45
a. Proof of Fire
b. Witness Reports
c. Photos of fire
d. Safety Officer Report
e. Police Report
f. Fire station report
g. Auditors Report
h. NCR Report
i. This is a Breach of Archiving’s and Record Keeping Act

36. 6. The ABSA Manger who signed our certificate, which
in itself is not a correctly provided certificate, as it
does not comply to GAAP principles and the
affidavit supplied by the manager has no standing
1. Juristic entities, like that of ABSA, whom
authorise employees to dispense and swear to
the correctness of averments in an affidavit are
to state how it obtained such authority.
2. Sworn Affidavit Invalid. The State President
has, in terms of section 10 of the Justice of the
Peace and Commissioners of Oaths Act, 1963
(Act 16 of 1963)

37. 7. They are basing their claim on a liquid document, which
the court rules say they must provide, but they have
stated in their court papers they don’t have them, and
that they were burnt in a fire.
a. Legislation
i. Rule 14
ii. Rule 18 of the Uniform Rules of Court
iii.Rule 32
b. Case Law
i. In the matter of FirstRand Bank Ltd v Beyer 2011
(1) SA 196 (GNP)
7. They have admitted to selling it into securitisation, and
therefore have, as per the banking act and securitisation
legislation lost ownership of the so called “asset”. Hence
their need to say lost in a fire, which is perjury

38. 9. Their attitude is extremely Vexatious, wanting to win at all costs
a. They are constantly withdrawing and reissuing summonses
b. Keep going for default judgement, then withdrawing when
they loose and reissuing
c. By not tendering costs when withdrawing
d. Not withdrawing procedurally and correctly
e. There is Legislation against this type of attitude