Oooh. Good info. I've been wondering about this. It would be really nice to have some good references. Can you post them please?
Ed$ --- In [email protected], Jon Roland <[EMAIL PROTECTED]> wrote: > > I have been studying this problem for a long time, and predicted the > present difficulties years ago. Many are now calling for regulations and > new regulatory powers and institutions, but most seem to be missing the > key points of appropriate intervention. > > The problem started, in a critical way, in the courts: > > First, it stems from judges started accepting affidavits of ownership as > proof, instead of requiring the original signed mortgage note, as they > have done in past ages. It is this that enabled securitizers to bundle > notes and lose track of the individual merits of the notes. > > Second, it stems from courts allowing foreclosures to be made too > easily, often without notice to the borrower, who first learns about it > when he gets an eviction notice, finds he has no defense against > eviction, and winds up having to find a new place to live while > conducting an expensive fight to challenge the foreclosure, often unable > to find who to sue, or perhaps discovering his payments were not > forwarded to the new owner of the note, that the servicing agent has > gone bankrupt, and he is only an unsecured creditor for the payments he > made. > > The mortgage problem arose because lenders, expecting continuing rise in > housing prices, made loans they expected to foreclose on, because they > planned to make their profits on the resale. Courts enabled them to do > that by making foreclosures too easy and inexpensive. > > The main solution to this problem is to return to judicial supervision > of foreclosures, with a requirement of presentation of the original > signed note and not an affidavit of ownership, and a defense of having > made all payments on time to the last known servicing agent. > > These reforms would require lenders to rate each and every note > individually, and maintain those ratings in any bundling, so that the > bundles can't be traded without the purchaser being able to examine the > disaggregated component notes. > > -- > > ------------------------------------------------------------------- > Constitution Society 2900 W Anderson Ln C-200-322, Austin, TX 78757 > 512/299-5001 www.constitution.org [EMAIL PROTECTED] > ------------------------------------------------------------------- >
