I’m not totally ignorant about how the banking system works, but as they say about a little knowledge.
I have a question. Been in the automobile business since ‘92. Taken thousands of credit applications. At one time a majority of my customers had their mortgages sold by the originating bank. And often resold. And resold again. This practice has pretty much, not totally, but pretty much been ended since the crash.
Why were the banks selling and were these loans “bundled”. And if bundled then they could be broken up and rebundled and sold again? The bank of record still owned the paper but bundled them as securities?
>>And if bundled then they could be broken up and rebundled and sold again?
And again, and again, and...
Until...
http://www.google.com/search?q=mers%20cannot%20assign%20mortgage&rct=j
Ooops!
>>The bank of record still owned the paper but bundled them as securities?
Per the MERS fiasco - who is the “bank of record”?
In some cases the originator retained the servicing of the loan (and collected fees for doing so) but flushed the loan (and the investment exposure to it) down stream.
The originator and their “warehouse lender” can often ...
http://www.google.com/search?q=Argent+Deutsches+bank
... still be observed swimming in the chummed waters.
I’d expect the entire process is managed and sorted through by lawyers who interpret the structure of the securitized legal instruments involved — sort of like the bacteria in a colon.
>>Why..?
“It’s my nature”, said the [organized criminal] scorpion to the frog...