“The major investment banks didn’t do the right thing, and they haven’t made up for it yet. They blew up this country and yet now they’re making more money than ever. Explain that to me.”
Talcott Franklin wants homeowners in distress to know they have more in common with the big institutional investors who hold their mortgages than they might imagine.
Both would benefit if the servicers who act as middlemen offered loan modifications, even forgiving principal, rather than foreclose.
And both would like to see the banks that created explosive mortgage-backed securities take more responsibility for their role in the housing collapse.
Franklin, a Dallas lawyer, represents a growing number of investors who are pushing for those goals.
In the past, these investors would have had little recourse. They didn’t own enough of the securitized package — the huge bundles of home loans they invested in — to push for payback. They also had no way to identify their co-investors. But last year Franklin, an expert in securitization and former partner at Patton Boggs, made this pitch: Hire me to pursue your collective interests.
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