Understanding the Securitization Process and the Impact on Consumer Bankruptcy Cases

Securitization is a complex series of financial transactions designed to maximize cash flow and reduce risk for debt originators. This is achieved when assets, receivables or financial instruments are acquired, classified into pools, and offered as collateral for third-party investment. Then, financial instruments are sold which are backed by the cash flow or value of … Read more

Understanding the Securitization of Subprime Mortgage Credit

Federal Reserve Bank of New York Staff Reports In this paper, we provide an overview of the subprime mortgage securitization process and the seven key informational frictions that arise. We discuss the ways that market participants work to minimize these frictions and speculate on how this process broke down. We continue with a complete picture … Read more

Wells Fargo Sues Wells Fargo? You can’t Expect a Bank that is Dumb Enough to Sue Itself to know why it is Suing Itself…

Wells Fargo Sues Wells Fargo? Fox News Interviews Al Lewis of Dow Jones about it… You can’t expect a bank that is dumb enough to sue itself to know why it is suing itself. Yet I could not resist asking Wells Fargo Bank NA why it filed a civil complaint against itself in a mortgage … Read more

Lender’s Refusal to Modify Loan May Have Violated Borrowers’ Fifth Amendment Right of Due Process

LYNNE HUXTABLE and JEFFREY A. AGNEW, Plaintiffs, v. TIMOTHY F. GEITHNER, et al., Defendants. Case No. 09cv1846 BTM(NLS) UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF CALIFORNIA   December 23, 2009, Decided December 23, 2009, Filed OPINION ORDER DENYING MOTION TO DISMISS On  [*2] September 21, 2009, Defendants National City Bank and PNC Financial … Read more

Florida Chief Justice Peggy Quince Issues State Wide Mandatory Foreclosure Mediation Order

Final Report and Recommendations on Residential Mortgage Foreclosure Cases TALLAHASSEE — Facing the nation’s worst foreclosure crisis, Florida Supreme Court Chief Justice Peggy Quince has Ok’d recommendations from a panel of experts to order foreclosure cases into a new “managed mediation” program where debtors could try to negotiate their way out of losing their homes. … Read more

Foreclosure Fraud, Securites Fraud, Mortgage Fraud – The Root of America’s Economic Malaise

Mortgage Fraud is a very unpopular topic. It is simply not something anybody wants to talk about at all, let alone trace the corrosive effects of the dishonesty of our neighbors and fellow citizens on the fabric of the economy. However, it is not something that will go away. Indeed, the longer this fundamental problem … Read more

“Morgicide” – The Illegal Destruction of Mortgages by Securitization

If a bank modifies a loan, the modification may result in injury to certain classes of investors. Such financially injured investors may then sue the banks for improper administration of the investment resulting in billions of dollars of liability. Foreclosure, the measure generally accepted and prescribed in the investment documents to cure default of securitized … Read more

Interview with UK Banker Steven Green HSBC, The New World Order “Is Already Underway”

In a SPIEGEL interview, London banker and lay preacher Stephen Green, group chairman of HSBC, discusses the divide between his Christian faith and the pursuit of profit, the morality of being involved in the subprime mortgage business and whether he and his fellow bankers have learned anything from the financial crisis. SPIEGEL: Mr. Green, when … Read more

TOXIC TITLES – FOLLOWING A SUBPRIME LOAN INTO A MORTGAGE-BACKED SECURITY

The Problem of Foreclosure Titles Securitized by MERS So, I  was recently featured in a post by Karl Denninger, A Birdie On Possible Foreclosure Frauds The comments on my discoveries in The Tickerforum Comment Zone were very interesting as well. It was then followed up with Tying It Together: Massive, Pernicious Fraud the next day… … Read more

Stratigic Default – Finally: Mainstream Press (Intentional Defaults)

Posted by Karl Denninger The Market Ticker I have written about “strategic defaults” many times in The Ticker, with the most recent being right here: Therefore, until the law is changed to prohibit the use of said “Strategic” legal containers and the resulting option of business interests – including the banks that are complaining now – to … Read more

The Equilibrium Distribution of Prices Paid by Imperfectly Informed Customers in the Mortgage Market

This document made my brain hurt. Anyway, good info… Consumers often transact with imperfect information about the best price available for a product. Some examples are mundane, a grocery shopper does not know the price of Kleenex at every other nearby grocery store. Others are more substantial, such as the best available price for a … Read more

MBA Files 2 “Comment Letters” with Federal Reserve on Proposed TILA Changes

On Tuesday, December 22, 2009, the Mortgage Bankers Association (MBA) filed 2 comment letters with the Board of Governors of the Federal Reserve System, both relating to the proposed amendments to Regulation Z, the implementing regulation for the Truth in Lending Act (TILA). The first letter specifically addresses the proposed rules to revise consumer disclosures … Read more