[slowhandluke]

You're missing the point. The banks can document the existence of a loan to the deadbeat home buyer who hasn't been making the mortgage payments. What they can't do, without a lot of additional work, is prove that they have clear title to the home. The so-called "fraud" is merely an attempt to speed up the process of foreclosure.

The banks can document that a loan might have been made. What they can't prove is who is now entitled to recover that loan.

So, like the other guy said, what in your world would stop me and every other freeper from filing foreclosure on your loan with papers we create just to 'speed up' the process?

If a bank with 'speedy' paperwork forecloses, what happens when the MBS trustee comes by with the real paperwork and wants payback?

Are you ok with false documents to 'speed up' citizenship? to reduce your tax burden? to get your lawyer's licence? False documents are a crime, plain and simple.

[Zhang Fei]

So, like the other guy said, what in your world would stop me and every other freeper from filing foreclosure on your loan with papers we create just to 'speed up' the process?

Two things:

1 - The MBS's are backed by loan documents, signed by both parties. Unless you have those documents, you're not in a position to foreclose. For the banks, that was always the easy part. It's chasing down title documents that they're having real difficulty with.

2 - These MBS's are serviced by an administrator, typically a bank. When the deadbeat home buyer was making payments, the money was being routed to the owners of the MBS's, via the administrator. Unless that "you and every other freeper" are that administrator, and can show that you received those payments in the past, you're not in a position to foreclose on the property.