A Primer On The Foreclosure Crisis – CNBC

8:45 pm in Economy, Housing by admin

Informative piece about Foreclosure Freezes at major banks across US. In short, the Banks are in some cases unable to provide proof that they own the mortgages. Due the multiple resales, and mortgage securitization, the paperwork transferring the ownership of mortgages did not make it through from the sellers of mortgage loans to the buyers. Ooch!!!

Also, don’t forget to see this article on the whole mortgage securitization process.

But during the height of the housing bubble, investment banks were churning out mortgage bonds in such a frenzy, sometimes the assignments never got executed and mortgage notes never got delivered. Keep in mind that this was during the years when lenders were giving out low-doc and no-doc mortgages. It was inevitable that the fast and loose and slightly documented culture would not stop at the mortgage originator but stretch all the way through the process. For more on this, see RortyBomb’s excellent discussion of the securitization process, complete with nifty and highly informative charts.

via A Primer On The Foreclosure Crisis – CNBC.

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