“If two banks ultimately end up fighting over who owns the loan, it would not affect the home purchaser at all.”
Ma’am, with all due respect.
Would you wish to continue doing business with a bank that had defrauded you? Anytime a bank sells property that they do not actually own is fraud, and ought to be punished.
Look at it this way. If you cannot sell the house because you don’t actually have the deed, and you can no longer trust the bank not to lie to you, how fast do you think housing prices are going to drop?
This is no different then having crooked scales, and selling short.
I have already explained why the banks aren’t “defrauding” the homeowners. The only claim of “fraud” is that some bank officers have signed affidavits attesting to the documentation without actually checking the documents. All this is doing is allowing people to stay in — and retain title to — houses that somebody else has paid for.