Saturday, October 23, 2010

A MESS that can't be Papered Over! MSM Article On How Banks Can NOT Fix their Mortgage Security Fraud Problems! The Real Info Is Getting Out!

I am Impressed with This New York Times article, they have given the real information about the Mortgage Securities Problem of not being able to be fixed, though they fudged on the mortgage foreclosure problem.  I guess they still don't want people to know outright the MERS banks have no standing to foreclose on homes.

They do say, it will be a problem for the banks to fix all the paperwork, in regards to foreclosing on people, but they say it can still be done.  I believe there are many lawyers who disagree with that.  The article also states the MERS lawyers can go to Judges and say "gosh we are missing a paper or two, but we are still the legal owners of the mortgage, so you should allow us to foreclose"!  If that is an argument MERS lawyers plan on using in the future, Well... Judges have to rule by the Law!  If you don't have the paperwork, you Can Not Foreclose!

Anyone can go to court and say "I have the right to take that person's home, nope don't  have the paperwork to prove it, but you just have to trust me".  A Judge would not rule for a normal person doing that, so they should NOT rule for some Wall Street Banks making that argument either!

Portions:

According to real estate lawyers, most banks that have gotten into trouble because they didn’t produce proper proof of ownership in foreclosure proceedings can probably cure these deficiencies. But doing so will be costly and time-consuming, requiring banks to comb through every mortgage assignment and secure proper signatures at each step of the way — and it surely will take much longer than a few weeks, as banks have contended. 

Once this has been done appropriately (not by robo-signers, mind you) the missing links in the banks’ chain of ownership can be considered complete and individual foreclosures can proceed legally. 

None of this will be easy, however. And it will be especially challenging when one or more of the parties in the chain has gone bankrupt or been acquired, as is the case with so many participants in the mortgage business.
Still, addressing all of these lapses is possible, according to Joshua Stein, a real estate lawyer in New York. “If there are missing links in your chain of title, you go back to your transferor and get the documents you need,” he said in an interview last week. “If the transferor doesn’t exist any more, there are ways to deal with it, though it’s not necessarily easy or cheap. Ultimately, you can go to the judge in the foreclosure action and say: ‘I think I bought this loan but there is one thing missing. Look at the evidence — you should overlook this gap because I am the rightful owner.’


Big investors are already rattling the cage on the issue of inadequate loan documentation. Last week, investors in mortgage securities issued by Countrywide, including the Federal Reserve Bank of New York, sent a letter to Bank of America (which took over Countrywide in 2008) demanding that the bank buy back billions of dollars worth of mortgages that were bundled into the securities. The investors contend that the bank did not sufficiently vet documents relating to loans in these pools.

The letter stated, for example, that Bank of America failed to demand that entities selling loans into the pool “cure deficiencies in mortgage records when deficient loan files and lien records are discovered.” Bank of America has rejected the investors’ argument and said that it would fight their demand to buy back loans. 

Seems to me, things are going to get real interesting, with even more fireworks in the Mortgage Securities Side!  It has only just begun! 

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