Thanks for all your explanations. Interesting racket.
To expand on that just a little bit ...
The “loans” were usually paid for initially from a credit line NOT from the bank or lending company that is named as the lender on the consumers paperwork.
Not only is shelf funding completely illegal as it “de facto” predatory lending , breaking all the federal consumer protection laws but it breaks the chain of title right at the start as the seller of the loan isn’t who is listed on the paperwork.
The loan paperwork was never surrendered (as is legally required for a trust) to the trusts , instead they got spreadsheets ... the trust never paid for the loans (another failure) , they were just given various duties and a comission.
The banks that actually funded the loans insured them and they WANTED bad loans that would FAIL ,, it was a “The Producers” scheme from the beginning , however they found a way to insure the loans a minimum of 3x face value (title ins. , fannie / freddie , private mortgage ins. , portfolio ins. (AIG etc.) ...
It’s past time to get mad .. the banksters are getting $85B a month from us , that’s $1T a year because they’re too big and important to fail... when it was their plan to fail and collect.
We , even those of us not caught up in the initial crisis , are victims of the banks massive fraud ,, because the policies meant to help the banks are gutting the land title system (by encouraging and allowing the filing of known blatantly false documents to show ownership) and devaluing our money ...