Banks Take More Mortgage-Fraud Hits

Umnnhhhh....it is the BANKS who are the fraudsters here, although they are not alone.

“The ruling prevents defendant LaSalle Bank – as the trustee holding the plaintiff’s securitized mortgage – from proceeding with a foreclosure because the trust failed to follow its own pooling and servicing agreement, and did not follow applicable New York law when trying to “obtain assignment of Horace’s note and mortgage,” according to the court order.

Without proof the mortgage had been assigned to the trust, in this case a Bear Stearns-related mortgage trust, the trustee lacked standing to foreclose, the court found.”--Ritholtz quoting Housingwire.com

This won't be the last one. [link to 60 Minutes expose]

Basically, a lot of banks saved a lot of expense by ignoring the laws surrounding securitization.

Of course, the banks want you to hear about the rotten people who took out the loans--NOT about the practices of the banks.

Surprised?