So.
40 State AG's are investigating the fraudulent-mortgage-foreclosure mess called "MERS."
It's just a 'technicality,' you understand.
But wait! There's more!
Remember that all those mortgages--both good and bad--were rolled into "CDO's"?
The CDO note holders will have potential claims stemming from the interruption of non-performing loan processing. Think breaches of the trust servicing agreements and allegations of "gross negligence or willful misconduct", the latter being magical legal hurdle in these types of agreements. However, the much more troubling aspect, is the growing realization that the various pools of securitized mortgages may never have been properly assigned, transferred and recorded at inception. If this turns out to be the case, game over--the noteholders will have to be made whole (here we will be expanding into the universe of securities "underwriter" liability).
Your friendly local mortgage broker/banker is not sleeping well at all.
For good reason.
HT: ZeroHedge
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment