Most people by now know the story of how speculation in mortgage-backed securities, along with a host of exotic derivatives built around them, created our banking crisis. The bursting of the housing bubble brought down some of our country’s largest financial institutions and plunged us into the Great Recession that began late in 2007. We have fought our way partly back, yet (...)
Short Take
Who Owns This House?
WHEN THE PAPER TRAIL DISAPPEARS
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A good first step would be to repeal the mortgage systems in use by so many states that use idiot attorneys at settlement instead of reputable title companies and a deed of trust with an associated note. It is the note that is then sold or assigned and its ownership is easy to track. Remember also it was not Fannie or Freddie who approved these sleazy no doc and teaser rate loans with no credit checks and faulty appraisals. Their standards were not loosened. It was the greedy banksters themselves who created the derivative market underwritten by bond rating agencies who were responsible for this self-inflicted debacle. Do not blame the innocent homeowners who were litterally taken for a ride.