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View Diary: HEMMED In - Too Big To Fail? Too Small to Care About. (57 comments)

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  •  "Personal responsibility?" (17+ / 0-)

    Considering that banks were slicing up and reselling bundled partial shares of mortgages ... to the point that even Alan Greenspan couldn’t understand how they were valuing the packages ... how, exactly, is Harry Homeowner supposed to know for sure who does or doesn’t have a legitimate claim on his house? The bank may have sold 20 shares of his mortgage, each bundled with shares of other mortgages, to different investors. So who ‘really’ holds Harry’s mortgage?

    Harry had no knowledge of or control over the slicing and dicing and selling of his mortgage, but it’s Harry’s "personal responsibility" to know whether a foreclosure notice is legitimate?

    Eric Cantor needs to find a clue.

    •  I am sick of no one caring about people. (12+ / 0-)

      Senator Bernie Sanders is one of the few strong voices on this. He knew what the banksters were up to and wanted to cut it off.

      Now, because no one had the courage to deal with this the first time around, we will have to deal with it again. And very likely with smaller majorities.

      Much of life is knowing what to Google
      (and blogging at BPI Campus)

      by JanF on Fri Oct 15, 2010 at 05:16:07 AM PDT

      [ Parent ]

    •  Not what happens. (3+ / 0-)
      Recommended by:
      burrow owl, trashablanca, addisnana

      The note is held by one, and only one Trust. The Trust issues notes, and THOSE notes are sliced and diced up, not the original note from the borrower. The vast majority of borrowers can simply ask their servicer for a copy of their note to verify that their servicer is entitled to collect the payments. While most borrowers have no idea which parties share in the cash coming from their payments, there really is no reason for them to know; the servicer appointed by the Trust represents all interested investors.

      I'm in the I-fucking-love-this-guy wing of the Democratic Party!

      by doc2 on Fri Oct 15, 2010 at 05:50:18 AM PDT

      [ Parent ]

    •  That slicing and dicing made the current mess (5+ / 0-)

      predictable, not for homeowners but for the lack of clear title. What's surprising is how long it took before becoming a national focus.

      Slavery is the legal fiction that a person is property. Corporate personhood is the legal fiction that property is a person. -Jan Edwards

      by SoCalSal on Fri Oct 15, 2010 at 05:51:10 AM PDT

      [ Parent ]

      •  I think it wasn't until it started hitting (5+ / 0-)

        a critical mass of homeowners and some of the crazier stories (like the guy with no mortgage who got foreclosed on) started hitting.

        The stories are pretty sticky.

        Much of life is knowing what to Google
        (and blogging at BPI Campus)

        by JanF on Fri Oct 15, 2010 at 05:55:29 AM PDT

        [ Parent ]

      •  At the outset (4+ / 0-)
        Recommended by:
        JanF, trashablanca, NCrissieB, addisnana

        When I started to understand what the Slice 'n' Dice was, I got a visual image of the bank's balance sheets with stinkbugs crawling around on them and multiplying, gradually obscuring the actual numbers.

        Who coulda not known?

        Two good rules of life: Don't brake on a curve and don't drag the gears.

        by JG in MD on Fri Oct 15, 2010 at 05:58:32 AM PDT

        [ Parent ]

      •  Speaking of Sticky Stories (5+ / 0-)

        This week NCrissieB is discussing Sticky Ideas on Morning Feature . Yesterday was the Simple, Unexpected and Concrete. Today is Credible, emotional stories.

        Stories that resonate with people can change their minds and focus their attention.

        Much of life is knowing what to Google
        (and blogging at BPI Campus)

        by JanF on Fri Oct 15, 2010 at 05:58:35 AM PDT

        [ Parent ]

      •  The problem was actually getting the (4+ / 0-)
        Recommended by:
        doc2, JanF, trashablanca, addisnana

        mortgages to the slice-and-dice machine.  The slicing and dicing itself has no impact on the mortgages, since that's just selling and repackaging beneficial interests.  If systemic problems arise, it'll be in the process of getting the mortgage from the originator to the trust (which is the thing sliced and diced)

        •  The actual problem is Utter and Shameful Greed (1+ / 0-)
          Recommended by:
          trashablanca

          in my opinion.

          The banksters could not be bothered trying to sort out the mess so they hired people to create fraudulent affidavits to help their bottom line and protect their personal bonuses.

          That we bailed these guys out only to be poked in the eye is a sin.

          Much of life is knowing what to Google
          (and blogging at BPI Campus)

          by JanF on Fri Oct 15, 2010 at 06:03:04 AM PDT

          [ Parent ]

          •  The fraudulent affadavits issue is (1+ / 0-)
            Recommended by:
            addisnana

            a very obscure one. It occurs in a servicer's back office, or in a third party law firm. Due to the volume of foreclosures, some short-sighted managers decided to make the signatory process a factory-like one. Whoops. So many foreclosures will have to be refiled, delaying the process. Maybe some borrowers will get a modification they weren't otherwise going to get. But for the vast, vast majority of borrowers, this will just be a delay; the servicers hold their notes, and the borrowers are not able or not willing to pay. This is a big deal, but needs to be put in its proper perspective.

            I'm in the I-fucking-love-this-guy wing of the Democratic Party!

            by doc2 on Fri Oct 15, 2010 at 06:07:54 AM PDT

            [ Parent ]

            •  It is a big deal if you are out of your home (0+ / 0-)

              I am not sure I get this:

              But for the vast, vast majority of borrowers, this will just be a delay; the servicers hold their notes, and the borrowers are not able or not willing to pay. This is a big deal, but needs to be put in its proper perspective.

              They are locking people out of their houses.

              Much of life is knowing what to Google
              (and blogging at BPI Campus)

              by JanF on Fri Oct 15, 2010 at 06:09:41 AM PDT

              [ Parent ]

              •  I'm trying to separate the anecdotal (1+ / 0-)
                Recommended by:
                addisnana

                from the real trends. Anecdotally, with all the millions of defaults, there are some individual horror stories that are making the rounds that make it seem like servicers are foreclosing on borrowers that are current of even on people who do not have mortgages. But this is not what is happening for the most part. If people are locked out of their houses, it is because they borrowed money and agreed to provide the houses as collateral. It was a contract, and judges just need to ensure that a) the servicer has proper documentation, and b) the borrower was provided with the option of modifying (but cannot or will not do so).

                I'm in the I-fucking-love-this-guy wing of the Democratic Party!

                by doc2 on Fri Oct 15, 2010 at 06:24:03 AM PDT

                [ Parent ]

            •  There is an opportunity (2+ / 0-)
              Recommended by:
              JanF, winterbanyan

              For the loan modifications that TSTCA people "deserve" and a way to prevent so many foreclosures that any recovery in the real estate market is pushed out years and years. It is a way to protect both the value of property, which declines rapidly when unoccupied and a way to keep people in homes they could afford with loan modifications.

              The paper work issue is giving us an opportunity to do the right thing.

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