..on the ongoing foreclosure crisis.

<http://www.nytimes.com/2010/10/15/opinion/15krugman.html>

"conservative commentators like those at The Wall Street Journal’s editorial 
page have come out dismissing the lack of proper documents as a triviality. In 
effect, they’re saying that if a bank says it owns your house, we should just 
take its word. To me, this evokes the days when noblemen felt free to take 
whatever they wanted, knowing that peasants had no standing in the courts. But 
then, I suspect that some people regard those as the good old days."

Like this guy, a senior editor on CNBC (Home of Jim Cramer, et all) on the 
foreclosure mess:

<http://www.cnbc.com/id/39657316>

[He's discussing someone wh is being foreclosed on by Citibank]

"CitiMortgage modified D’Amelio’s mortgage but she defaulted anyway. Now she 
claims that Citi cannot foreclose upon her because Fannie Mae is the owner of 
her mortgage. Her lawyer argues that the mortgage was improperly assigned to 
Citi, and is contesting the foreclosure on those grounds.

Let’s grant D’Amelio not only the facts but also her interpretation of 
foreclosure law. Perhaps Citi, which purchased the mortgage in late 2006 and 
sold it to Fannie Mae in early 2007, shouldn’t be able to foreclose. Maybe the 
MERS system somehow vitiated any security interest attached to her house 
through the mortgage."

"Perhaps Citi...who sold the mortgage in 2007" shouldn't be able to foreclose?

Perhaps??? PERHAPS???!!??!!!?

This is an explicit rejection of the rule of law. 

By his logic ANY former owner of the mortgage can foreclose, worse ALL of them 
can.

When the really big guns (major institutional investors who can legally assert 
they own these mortgages via RBS'es) start getting pissed that the banks are 
stealing their property, or defrauding them with bogus RBS'es (because you 
can't HAVE an RBS without holding the note) this will get ugly, very ugly.

-- 
Bruce Johnson
University of Arizona
College of Pharmacy
Information Technology Group

Institutions do not have opinions, merely customs


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