Monday, July 18, 2011
No wonder the Banksters are pushing for a settlement.
A recent investigation by Reuters into current foreclosure cases indicates that the Big 5 and other mortgage banksters are continuing with their same old dirty tricks, including robo signers and failure to own the mortgage being forclosed. And my favorite:
In the housing boom, lenders created millions of new mortgages, packaged them into pools, and securitized them rapidly for sale to investors in so-called mortgage-securities trusts.It looks like New York AG Schneiderman has enough work, if he chooses, to set up a prosecution mill. Lord knows we have enough empty prisons upstate for the convicted.
The agreements setting up the trusts, called "pooling and servicing agreements," require that key documents, properly executed and endorsed, be turned over immediately for each mortgage when a trust is established. The two most important ones are a promissory note and mortgage assignment.
The Reuters examination turned up thousands of instances --more than 2,000 in Florida alone — involving recently filed mortgage assignments which ostensibly transferred mortgages to these trusts years after they were formed.
The problem, according to Georgetown University law professor Adam Levitin, an expert on securitization: About 80 percent of all trust agreements provide that New York State law applies, and under New York law, any mortgage assignments made later than specified in the agreements would be void.
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