"One reason that banks might be unable to solve their document problems would be that, Massachusetts-style, they had failed to comply with state law during the securitization process. (In Massachusetts, the problem was doing "assignments in blank.") Another reason would be if the securitizations weren't done in compliance with their own terms, as testimony has suggested.
In either of those scenarios, neither the trusts that issued the allegedly mortgage-backed securities nor the banks that service them would be able to foreclose. If a borrower really is in default, some bank might be able to foreclose -- the bank that had legal title to the note and mortgage before any securitization-related problem occurred. Unfortunately, some of those banks no longer exist, others couldn't afford to suddenly discover they own the loans and still others would have to both produce the mortgage and note belong to them and gather the documentation necessary before they could foreclose. As a CNBC analyst describes, that's not likely to be an easy process.
PING!!!!!
“One reason that banks might be unable to solve their document problems would be that, Massachusetts-style, they had failed to comply with state law during the securitization process. (In Massachusetts, the problem was doing “assignments in blank.”) Another reason would be if the securitizations weren’t done in compliance with their own terms, as testimony has suggested.
The banks are getting what they deserve for FRAUD for an easy buck they thought.They sold these loans and made a fortune but they forgot to keep the original docs.
As I predicted, the MERS problems are just getting started.
The larger problem facing the mortgage industry is the speculation that a single mortgage was securitized more than once. “Look Out Below!” if this is the case. Time will tell.
What comes around goes around is very true in this world.