“Because it would mean that literally any entity could gin up some phony paperwork, walk into a Court, swear it was genuine without any fear of legal consequences, and foreclose on any home in the Country.”
You really think this was a deliberate action as opposed to a small snafu? These folks need to be evicted and within weeks and months of defaulting as opposed to staying in these homes for years due a paperwork technicality. This is smoke and a technical error allowing free loaders to put a dent in our economy. The alternative is we the tax payer bails out these former homeowners and buy their worthless paper, modifying their debt to next to nothing (in essence buying them a home) and we foot the bill. This has the potential to the biggest weath transfer in history so just watch who supports this going forward.
You are correct.
The obfuscation is designed to provide legal fees while the mess gets sorted out. A foreclosed homeowner is going to pay out hefty legal fees and then still lose his home and his equity too probably. There is a deed of trust on record and when the note finally shows up in the hands of the bone fide owner, the foreclosures will proceed.
You're so concerned about the dented front fender and who's going to pay to fix it you totally miss the fact the entire ass-end of the vehicle is torn off. You'd better check your own mortgage doc's and be damned sure you can get a cleared title when you supposedly satisfy your note obligation. That's the heart of the issue for some. Who actually has "standing" to issue a statement of satisfaction?
Yes, it was a deliberate attempt to conceal the fact mortgages pooled in the MBS didn't meet underwriters' standards so the toxic paper was "conveniently" omitted. In order that the deceit not become "obvious", prime mortgage security instruments were also omitted - it was cast as a "new thing" and investors were assured their purchases were secured. Those who were provided self-destruct mortgages are credited for revealing the bigger picture - banks' fraud, deceit, lying, cheating - all for a profit.
Banksters were aware how MBS's and REMIC's work and knew the limitations - hell, BofA doesn't bribe, er, pay its gang of lawyers to sit on their asses and miss blunders with the potential caustic effects of this magnitude.