| 00:00:09 | 
Johnson, Henry "Hank" C. Jr. - U.S. Representative, [D] Georgia
RECOGNIZE MYSELF FOR A BRIEF STATEMENT, I DO WANT TO WELCOME SENATOR SHELDON WHITEHOUSE FROM THE STATE OF RHODE ISLAND WHO IS WITH US TODAY TO TESTIFY...
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| 00:01:52 | 
Whitehouse, Sheldon - U.S. Senator, [D] Rhode Island
THAT. I'LL GLADLY DO THAT REPRESENTATIVE JOHNSON. I THANK YOU FOR THE OPPORTUNITY TO TESTIFY. RANKING MEMBER SMITH, MEMBERS OF THE COMMITTEE, THE FORECLOSURE...
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| 00:09:31 |
Johnson, Henry "Hank" C. Jr. - U.S. Representative, [D] Georgia
MENTIONED. I THINK IT'S GOOD IN THE JUDICIAL STATES, FORECLOSURE JUDICIAL STATES BUT THERE ARE ABOUT HALF THE STATES ALMOST THAT SUFFER FROM A NONJUDICIAL...
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| 00:10:16 |
Whitehouse, Sheldon - U.S. Senator, [D] Rhode Island
ABILITY OF A HOMEOWNER TO SEEK BANKRUPTCY PROTECTION IN ORDER TO STOP THE FORECLOSURE AND RESOLVE ALL OF THEIR CREDIT ISSUES AT THE SAME TIME IS FACILITATED... |
| 00:11:09 |
Johnson, Henry "Hank" C. Jr. - U.S. Representative, [D] Georgia
RECOGNIZE MYSELF FOR A BRIEF STATEMENT. THESE ARE CHALLENGING TIMES IN AMERICA. OUR ECONOMY IS STRUGGLING DURING AN UNPRECEDENTED HOUSING CRISIS. A...
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| 00:17:04 | 
Smith, Lamar S. - U.S. Representative, [R] Texas
CHAIRMAN, I WAS INTERESTED IN YOUR OPENING STATEMENT BECAUSE I DIDN'T REALIZE WHAT YOU HAD DONE IN THE GEORGIA LEGISLATURE TO HELP ADDRESS THIS...
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| 00:19:38 |
Johnson, Henry "Hank" C. Jr. - U.S. Representative, [D] Georgia
AND MINDFUL OF OUR BUSY SCHEDULES, I ASK THAT OTHER MEMBERS SUBMIT THEIR STATEMENTS FOR THE RECORD. WITHOUT OBJECTION OTHER MEMBERS' OPENING STATEMENTS...
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| 00:24:52 | 
Kowalski, James - Attorney
ON ISSUES RELATING TO THE FORECLOSURE CRISIS FACING OUR COUNTRY. I'M AN ATTORNEY PRACTICING IN FLORIDA AND A MEMBER OF THE NATIONAL ASSOCIATION...
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| 00:30:50 |
Johnson, Henry "Hank" C. Jr. - U.S. Representative, [D] Georgia
I NEGLECTED TO MENTION TO THE WITNESSES THAT WE EACH OF YOU HAVE FIVE MINUTES AS INDICATED ON THE CONTRAPTION IN FRONT OF YOU. THERE'S A GREEN, A YELLOW...
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| 00:31:27 |
Kowalski, James - Attorney
OF CONSUMER ADVOCATES WE WOULD APPRECIATE THE OPPORTUNITY TO FORM A BIPARTISAN PARTNERSHIP TO CONFER AS REGULARLY AS YOU WANT WITH THE MEMBERS OF THIS...
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| 00:32:05 | 
Cox, Thomas - Volunteer Program Coordinator
TO BE HERE TODAY. I AM RETIRED FROM THE PRIVATE PRACTICE OF LAW IN MAINE WHERE FOR MANY YEARS I REPRESENTED LENDERS AS WELL AS THE FDIC IN LOAN LITIGATION...
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| 00:38:51 | 
Hines, Sandra - , Detroit
MEN AND WOMEN HERE WHO CAN MAKE A DIFFERENCE IN OUR LIVES IN AMERICA. I LOST MY FAMILY HOME TO FORECLOSURE AND EVICTION, AND I DON'T KNOW IF ANYBODY...
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| 00:46:48 | 
Fluker, Vanessa - Attorney
YOU PULL THAT MICROPHONE UP, IT'S -- >> IS THAT GOOD? >> CUT IT ON. IS IT ON? >> THE LIGHT'S ON. >> THE LIGHT'S ON. YEAH. I DON'T THINK IT MUST BE...
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| 00:53:37 | 
Deutsch, Thomas - Executive Director
NAME IS TOM DEUTSCH, AND AS THE EXECUTIVE DIRECTOR OF THE AMERICAN SECURITIZATION FORUM, I APPRECIATE THE OPPORTUNITY TO TESTIFY HERE TODAY ON BEHALF...
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| 00:58:27 |
Johnson, Henry "Hank" C. Jr. - U.S. Representative, [D] Georgia
IF THE PANEL WILL ALLOW ME JUST A COUPLE OF SECONDS TO CONSULT. >> OKAY. MR. PETERSON, YOUR TESTIMONY,
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| 00:59:53 | 
Peterson, Christopher - Attorney
PLEASE. >> IT'S AN HONOR TO BE HERE TODAY. >> AND I BELIEVE THAT MIKE MAY NOT BE ON. OKAY. >> HOW'S THAT? NO? THERE. MR. CHAIRMAN, RANKING MEMBER SMITH,...
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| 01:05:56 |
Johnson, Henry "Hank" C. Jr. - U.S. Representative, [D] Georgia
DEVASTATING INFORMATION ABOUT THE MORTGAGE INDUSTRY IN THIS COUNTRY AS IT WORKS. MR. KOWALSKI, HAVING PUT THREE PEOPLE ON DEATH ROW IN FLORIDA AS A...
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| 01:12:29 |
Kowalski, James - Attorney
SEE THAT MERS ASSIGNMENT. IT IS AN ASSIGNMENT THAT PURPORTS TO HAVE BEEN SIGNED ON BEHALF OF FIRST HORIZON HOME LOAN. IT IS ACTUALLY SIGNED BY AN OFFICE...
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| 01:13:41 |
Cox, Thomas - Volunteer Program Coordinator
US IN MAINE. MERS CLAIMS THAT IT HAS THE RIGHT TO FORECLOSE MORTGAGES IN ITS OWN NAME. MERS HAS ADMITTED THAT IT DOES NOT OWN ANY LOAN, IT NEVER HAS...
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| 01:15:48 |
Fluker, Vanessa - Attorney
WELL. AS STATED EARLIER, MICHIGAN IS A FORECLOSURE BY ADVERTISEMENT STATE. THAT MEANS IT'S DONE STATUTORILY. IN MICHIGAN, IN ORDER TO HAVE A VALID...
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| 01:18:16 |
Deutsch, Thomas - Executive Director
TO ALLOW ADDITIONAL ACCESS TO CREDIT. MERS ACTS AS A TRANSFER OF THE TITLE OF THE MORTGAGE LOAN. THAT IS, AS AN ORIGINATOR ORIGINATES THE LOAN, THEY...
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| 01:19:49 | 
Conyers, John Jr. - U.S. Representative, [D] Michigan
OF THE WITNESSES TO THAT RESPONSE. I'D LIKE TO NOW TURN TO THE DISTINGUISHED GENTLEMAN FROM ARIZONA, MR. TRENT FRANKS. >> WELL, THANK YOU, MR. CHAIRMAN....
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| 01:20:01 | 
Franks, Trent - U.S. Representative, [R] Arizona
HERE. LET ME START BY SUGGESTING, MR. PETERSON, THAT YOUR OPENING STATEMENT WAS VERY COMPELLING TO ME. YOU KNOW THERE'S AN OLD IROQUOIS QUOTE THAT...
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| 01:23:52 |
Peterson, Christopher - Attorney
SAID? >> WELL, THANK YOU FOR THE RESPECTFUL COMMENTS. YEAH. I THINK THAT I'D LIKE TO ADD THAT, YOU KNOW, MERS -- MERS IS SIGNIFICANTLY DEPRIVING...
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| 01:26:59 |
Franks, Trent - U.S. Representative, [R] Arizona
TO RESPOND TO THAT, BECAUSE I KNOW THAT HE HAD SOME -- SOME POTENTIAL DISSENT HERE AND I WANTED TO GIVE YOU A CHANCE TO DO
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| 01:27:08 |
Deutsch, Thomas - Executive Director
THAT. THEN I'M PREPARED TO YIELD BACK. ? THANK YOU, MR. FRANKS, AND CERTAINLY FOR THE RECORD I DO HAVE STRONG DISSEVENTH WITH MR. PETERSON'S COMMENTS....
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| 01:28:40 |
Conyers, John Jr. - U.S. Representative, [D] Michigan
BEFORE I RECOGNIZE, WANT TO MAKE ANY COMMENT ABOUT THIS DISCUSSION SO FAR? MR. KOWALSKI AND MR. COX? >> ONE QUICK POINT, IF I COULD, MR. CHAIRMAN....
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| 01:28:52 |
Kowalski, James - Attorney
THE ISSUE OF WHETHER OR NOT MERS IS TRANSPARENT AND TRACKS INVESTORS, I'VE GOT A MERS SCREEN PRINT FROM THE MERS SERVICE I.D. SYSTEM THAT I PRINTED...
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| 01:29:53 |
Cox, Thomas - Volunteer Program Coordinator
COUNTRY. MAINE IS ONE OF THE FIRST STATE SUPREME COURTS TO ADDRESS THE LEGITIMACY OF MERS' RIGHT TO FORECLOSE MORTGAGES, AND IT DID SO THIS SUMMER...
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| 01:30:35 |
Fluker, Vanessa - Attorney
ISSUE, AS WELL. ONE THING THAT I THINK IS VERY IMPORTANT THAT THE EMPHASIS HAS BEEN ON MERS RECORDING, THE ASSIGNMENTS, THINGS OF THAT NATURE, BUT...
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| 01:32:54 |
Peterson, Christopher - Attorney
NEVER CLEAR WHETHER OR NOT THE PERSON THAT'S ACTING ON BEHALF OF MERS -- REMEMBER, THIS IS NOT A REAL EMPLOYEE OF MERS. THIS IS A VICE PRESIDENT THAT'S...
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| 01:33:12 | 
Scott, Robert "Bobby" - U.S. Representative, [D] Virginia
I MEAN, THE FEE SIMPLE TITLE, WHO TRANSFERS TITLE? >> MERS SAYS THAT THEY'RE FILING RELEASE OF THE LIEN, AND THEN THE HOMEOWNER BUYS FEASIBLE TITLE...
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| 01:33:58 |
Kowalski, James - Attorney
OF THE SALE, WHICH IS ALMOST ALWAYS, UNLESS THERE'S ANY EQUITY IN THE PROPERTY, IS ALMOST ALWAYS THE FORECLOSING SERVICER IN FLORIDA. IN FLORIDA...
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| 01:37:51 |
Fluker, Vanessa - Attorney
I BEGAN WAS THAT SUCH A LARGE PERCENTAGE OF THE LOANS NOW ARE INSURED BY THE FEDERAL GOVERNMENT, FANNIE MAE AND FREDDIE MAC. NOW, LET ME BE CLEAR....
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| 01:41:18 |
Cox, Thomas - Volunteer Program Coordinator
BASE OF THIS PROBLEM. IF YOU CONSIDER A SITUATION SUPPOSE A LENDER OR SERVICER IS, IF THE SERVICER APPROVES THE SHORT SALE TODAY, ITS FEE REVENUE FOR...
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| 01:42:19 |
Hines, Sandra - , Detroit
HOUSE IS FORECLOSED ON AND THE PEOPLE ARE THROWN OUT. THEY SEE THE DUMPSTER ROLL UP.
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| 01:42:27 |
Hines, Sandra - , Detroit
THE NEXT DAY THE THIEFS STEAL EVERYTHING OUT OF THE HOME OF ANY VALUE. AND THEY LEAVE THE HOME A SHELL, AND THE BANKS STILL OWN THE HOMES, THE HOMES...
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| 01:43:40 |
Conyers, John Jr. - U.S. Representative, [D] Michigan
PARK TO TALK WITH YOU AND ME ABOUT THE UNDERLYING PROBLEMS THAT WE'RE ACTUALLY ENCOURAGING THE WRONG THING TO HAPPEN IN THESE -- IN THIS DOWNTURN...
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| 01:44:31 | 
Coble, John "Howard" - U.S. Representative, [R] North Carolina
MR. CHAIRMAN. I PLEAD GUILTY TO BEING A SENIOR MEMBER OF THE COMMITTEE. THAT'S ABOUT ALL I KNOW WITH CERTAINTY RIGHT NOW, BUT THANK YOU FOR THAT. STAY...
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| 01:45:08 |
Peterson, Christopher - Attorney
ROLE. I THINK THAT THE ORIGIN OF MERS WAS THAT MORTGAGE BANKING TRADE ASSOCIATION MEETINGS WHERE THEY SORT OF COOKED UP THE IDEA AND FANNIE MAE WAS A...
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| 01:47:01 |
Deutsch, Thomas - Executive Director
MARKET. IF YOU ULTIMATELY DECLINE OR DISALLOW FORECLOSURES TO OCCUR IN SITUATIONS WHERE MODIFICATIONS DON'T WORK AND THE SHORT SALE DOESN'T WORK, ULTIMATELY...
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| 01:47:46 |
Coble, John "Howard" - U.S. Representative, [R] North Carolina
OR MR. FLUKER OR ALL THREE. YOU'VE TESTIFIED ABOUT SERVICERS IN SOME CASES. COURTS, HOWEVER, HAVE PROCEDURAL RULES IN PLACE TO PUNISH THOSE WHO SWEAR...
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| 01:48:09 |
Cox, Thomas - Volunteer Program Coordinator
CALDER, SPEAKING FOR MAINE, WE'VE GOT A STATE JUDICIAL SYSTEM THAT IS IN DEEP TROUBLE. WE HAVE JUDICIAL VACANCIES. WE HAVE VACANCIES IN THE COURTHOUSES....
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| 01:49:37 |
Fluker, Vanessa - Attorney
THE POTENTIALLY FRAUDULENT OR FAULTY PAPERWORK. I AM FROM MICHIGAN. MICHIGAN IS A NONJUDICIAL FORECLOSURE STATE. THEREFORE, TECHNICALLY THERE IS ...
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| 01:51:05 |
Kowalski, James - Attorney
NOT BEEN ACTIVE WITH THIS ISSUE, ALTHOUGH I UNDERSTAND THERE'S A COLLECTION OF 50 STATES ATTORNEY GENERALS THAT ARE LOOKING AT THIS. BUT PART OF...
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| 01:52:34 | 
Watt, Melvin - U.S. Representative, [D] North Carolina
READY. >> ASK THE FELLA TO FIND OUT. >> WELL, THEY HAVEN'T CALLED VOTE, SO WE WOULD HAVE AT LEAST 15 MINUTES AFTER THEY CALLED VOTE, SO I THINK WE CAN...
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| 01:53:38 |
Deutsch, Thomas - Executive Director
I DON'T HAVE A DETAILED UNDERSTANDING OF THE CORPORATE GOVERNANCE RELATIONSHIP WITH MERS. THEY ARE SOME PART OWNERS OF THE MERS REGISTRATION SYSTEM....
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| 01:56:49 |
Watt, Melvin - U.S. Representative, [D] North Carolina
GSEs AND THE PREEMPTION ISSUES THAT GET RAISED WHEN -- SO WRSH, MISS FLUKER. THERE'S BEEN A LOT OF TALK RECENTLY ABOUT STANDARDIZING THESE FORECLOSURE...
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| 01:57:45 |
Fluker, Vanessa - Attorney
FIRST AND FOREMOST, I THINK THAT IT'S IMPORTANT TO NOTE THAT SPECIFICALLY WITH RESPECT TO MERS ISSUE, THERE ARE QUITE A FEW CASES UP ON APPEAL BECAUSE...
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| 01:59:51 |
Deutsch, Thomas - Executive Director
TO DIRECT THOSE QUESTIONS TO MERS. NEITHER ONE OF US ARE AWARE OF THE PRECISE OWNERSHIP -- >> WELL, YOU'RE HERE REPRESENTING MERS, HUH? >> I DON'T REPRESENT...
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| 02:00:29 |
Conyers, John Jr. - U.S. Representative, [D] Michigan
AND OUR STAFF TO THINK ABOUT THE NEXT HEARING, MEL, AND I THANK YOU VERY MUCH. I TURN NOW TO ELTON
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| 02:00:42 | 
Gallegly, Elton - U.S. Representative, [R] California
GALLAGIGLY, THE DISTINGUISHED GENTLEMAN FROM CALIFORNIA. >> THANK YOU VERY MUCH, MR. CHAIRMAN. THIS IS OF PARTICULAR INTEREST TO ME. IN MY FORMER LIFE...
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| 02:02:55 |
Hines, Sandra - , Detroit
HOME? >> IN 2006. >> 2006. >> UH-HUH. >> AND HOW LONG WAS IT AFTER YOU INHERITED THE LOAN BEFORE BORROWED MONEY? >> I THINK IT WAS 2005. >> OKAY. >> IT...
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| 02:08:49 | 
Chu, Judy - U.S. Representative, [D] California
KNOW, IT FELL FAR SHORT OF THE EXPECTATIONS. IT WAS SUPPOSED TO HELP 3 MILLION TO 4 MILLION PEOPLE FROM FORECLOSURE, BUT INSTEAD ONLY HELPED 700,000...
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| 02:10:32 |
Fluker, Vanessa - Attorney
PEOPLE DON'T LIKE THIS WORD, BUT IT NEEDS TO BE OUT THERE. IT NEEDS TO BE UNDERSTOOD. THERE NEEDS TO BE A MORATORIUM ON THE FORECLOSURES. PEOPLE HEAR...
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| 02:12:43 |
Kowalski, James - Attorney
COUNSELORS TO ASSIST WITH FORECLOSURE PREVENTION AND NOT SURPRISING THE BANKING LAW FIRM GAVE -- I'M NOT SURE WHY THE TREASURY LAWYERS COULDN'T DO THIS...
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| 02:14:20 |
Peterson, Christopher - Attorney
SERVICER IF THEY SUCCEED, AND THAT HAPPENS OVER A STAGED PERIOD OF TIME, BUT IT'S NOT VERY MUCH MONEY AND IT'S NOT A SHARP ENOUGH INCENTIVE TO GET THEM...
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| 02:16:21 |
Deutsch, Thomas - Executive Director
A FIREFIGHTERS PENSION FUND OR POLICE PENSION FUND WHERE NOW YOU'VE CREATED AN INCENTIVE FOR A BORROWER TO DEFAULT BECAUSE THEY'RE PAID $15,000...
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| 02:18:08 | 
Deutch, Theodore "Ted" E. - U.S. Representative, [D] Florida
CHAIR. BUT IN AN ATTEMPT TO GET TO KNOW MR. DEUTSCH BETTER, I DO HAVE SOME QUESTIONS FOR YOU. AND WE'LL SEE IF IT'S -- IF THESE ARE QUESTIONS THAT...
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| 02:19:31 |
Deutsch, Thomas - Executive Director
TO A 100% TAXATION. >> IF THE TRUST DOESN'T MEET THE REMIC REQUIREMENT AND THE SECURITIZATION PROCEEDS PAID ON TO THE INVESTORS WOULD BE PAID AS A...
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| 02:21:37 |
Peterson, Christopher - Attorney
MY UNDERSTANDING IS THAT YOU CAN'T PUT THEM BACK IN AFTER IT'S CLOSED. AFTER THE 90-DAY WINDOW FOLLOWING CLOSURE OF THE REMIC IS INSPIRED, YOU CAN'T...
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| 02:21:59 |
Deutch, Theodore "Ted" E. - U.S. Representative, [D] Florida
IF THEY'RE PAST THIS 90-DAY PERIOD, AND MR. PETERSON, I'LL STICK WITH YOU FOR A SECOND, IF THEY'RE PAST THE 90-DAY PERIOD AND THE TAX EXEMPT STATUS --...
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| 02:25:34 |
Deutsch, Thomas - Executive Director
ON ANALYZING AND IMPROVING THE PROCESSES. I THINK ULTIMATELY THERE IS NO MERIT TO THE ARGUMENT OR SUGGESTION THAT ANY RERIC VIOLATIONS HAVE OCCURRED...
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| 02:27:11 |
Johnson, Henry "Hank" C. Jr. - U.S. Representative, [D] Georgia
AND FRIGHTENING HEARING TO REALIZE THAT IT'S A BASIC HUMAN INSTINCT TO WANT TO CONTROL, AND THAT CONTROL MANIFESTS ITSELF IN OWNERSHIP OF PROPERTY. IT...
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