Insight: Losses Loom for Investors Enmeshed in Mortgage Chaos

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Insight: Losses Loom for Investors Enmeshed in Mortgage Chaos

As reported on 4closureFraud well over a year ago here, here and here…

It sure takes editors at major news outlets a long time to approve a story…

(Reuters) – Since the financial crash, banks have been accused of wrongfully foreclosing on homeowners because they failed to create and maintain proper mortgage paperwork. Now, there are signs that chaotic document management is harming investors in mortgage bonds, too.

A review of loan documents, property records and the monthly reports made available to investors show that mortgage servicers are reporting individual houses are still in foreclosure long after they have been sold to new buyers or the underlying mortgages have been paid off.

These delays enable banks and other mortgage servicers to continue to charge monthly fees to investors in these mortgage-backed securities, the banks’ investor reports show. It means that investors are buying mortgage bonds that may have billions of dollars of undisclosed losses that will become apparent only at a later stage. It could also lead to a new round of litigation for banks just when some appeared to have been putting their mortgage problems behind them.

The review, conducted by foreclosure investigator Lisa Epstein, found hundreds of instances across the United States where information about the status of individual home loans was incorrect. The information about the mortgages is sent from the mortgage servicer, which handles tasks such as collecting monthly mortgage payments and handling foreclosures, to the trustee of the mortgage bonds, which administers monthly reports and makes sure investors get paid.

More fro Reuters here…

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4closureFraud.org

Comments
One Response to “Insight: Losses Loom for Investors Enmeshed in Mortgage Chaos”
  1. BOBBI SWANN says:

    I seriously doubt if any of the ramifications of this ‘scandal’ will have an effect on those homeowners who have already suffered at the hands of these banksters. Most consumers who were going through foreclosure used up all their savings, cashed in 401K savings and any other means by which to salvage their homes only to lose it all. So now we have investors in these bonds (who are more than likely never been touched by the foreclosure fraud) will now reap the same lashing that homeowners have taken over the last 7 years. Am I supposed to feel bad? Did they not read the ‘fine print’ in their offerings as the same retort was made to us as homeowners? Sorry, but I am all out of sympathy for the investors!

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