Then who owns the mortgage????
Those MBS’s were made to be streams of income for investors and pension plans. They are interwoven across the entire financial services “world” of the US and the world.
It seemed to me that this rush to foreclose was a rush to keep the “balls” in the air, and keep the system from crashing.
Besides, the banks weren’t planning on keep the liar loans because they KNEW that they were bad, they were hot potatoes, to be gotten rid of quickly.
So, I ask again, Then who owns the mortgage????
The simple answer is: Who do you send your mortgage payments to? When I bought my home I got a mortgage from "Company A". At that point, "Company A" held the paper. A few years later, they sold my mortgage to "Company B". Now "Company B" holds the paper. After "Company B" feels that they've made enough interest off my loan, they'll no doubt sell it to "Company C".
I haven't said anything about securitization, because to me it's meaningless (except in a macroeconomic sense). I don't care if Companies A, B, or C sold mortgage backed securities with my mortgage as part of the package because my mortgage stayed put. I don't owe money to the Singapore Housing Authority, or to the Sovereign Bank of Bahrain, or to anyone else who bought that stuff, and never will. That's not how it works. The mortgage backed security is based on the income stream from the mortgage, not the mortgage itself. Purchasers of MBS have no claim on me, only on the issuers of the MBS.