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The bank treats the Note like a Deposit of a check; they take it as a loan from the issuer; deposit monetize it (create money from it) then they lend that money back to you in the form of a mortgage; the great irony is that the "borrower" finances his own loan through his signature.

Also they usually sell the note in huge bundles with other notes as "security packages" and make a killing constantly selling your note... believe it or not they get paid the principal amount of the note more than 2 or 3 times; before you ever start making monthly payments to "amortize" the note.

This is the big secret in bankingand it does not Follow GAAP; Many CPA'S have attested this is what the banks are essentially doing; and Banks pretty much pay off Auditors to keep this hush hush... Essentially if ever asked to "PROVE" that someone owes them; they can not... for they are not the holder in due coarse anymore (they probably sold the note).

If you read Modern Money Mechanics you can see how Money Is created

"Assuming that someone deposits 10.000$ in bank A. Bank A will then have the ability to lend out 9000 $ (with a 10 percent reserve requirement). But do these 9000$ actually come from the initial 10.000$ deposited? From the "Modern money mechanics" I get the impression that banks create this money as a cheque or electronic transfer:

"If business is active, the banks with excess reserves

probably will have opportunities to loan the $9,000. Ofcourse, they do not really pay out loans from the money

they receive as deposits.

If they did this, no additional money would be created. What they do when they make loans is to accept promissory notes in exchange for credits to the borrowers' transaction accounts. Loans (assets) and deposits (liabilities) both rise by $9,000. Reserves are unchanged by the loan transactions. But the deposit credits constitute new additions to the total deposits of the banking system.

All it takes is someone to "Depose" a Promissory Note into the Bank to create the funds.... then they monetize the note and pay back the person the value of the Note they essentially stole ;) then they sell the note to make even more money cause they think people are too stupid to realize they have claim to the note in the case of foreclosure

This is based on my understanding; maybe some banks follow the rules and do things right and lend their own money that people lent them from actual deposits (doubtful nowadays) actually the complete irony is that in order to win a court case you have to prove damages did we ever decide if intangible damages are damages? after all the money they lent you never really existed and since its a renewable "resource" if you will; that has almost no limit really they are not harmed at all because they never risked any of their own money in the first place... they could have lent you a million dollars and then deleted, it would of had the same net effect on them as if they lent it to you to buy a house

If someone can prove this wrong I would like to point out that the book keeping entries that the banks make when getting a PNote from a "borrower" looks exactly the same as when a "customer" lends or "deposit" a check into his or her checking account its the same exact entries.

Ask any accountant if you "lend the bank money" when you deposit money/checks into a bank account then ask them if the bank "lent you money " when you withdraw that same money they don't just like they don't lend you anything when you hand them a promissory note loaning someone money to loan you money is not a loan.

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Q: Do banks provide consideration for promissory notes?
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