David Dayen over at FiredogLake sums this up quite nicely…

The story from Housing Wire sounded pretty formal: the Federal Reserve Bank of New York was stepping up with a plan to fix the looming securitization and chain of title problems in housing, which could cost the big banks tens of billions, if not more, to fix. Given that the FRBNY is essentially controlled by Wall Street banks, the result of these meetings will undeniably be some kind of legal reverse engineering that will indemnify violations of the law and cure the system.

There’s only one problem with this. The Federal Reserve Bank of New York has about as much control over the legal issues in securitization as I do. They have no jurisdiction whatsoever over the process. State courts are the arbiter of these transactions and whether they were done legally.

I appreciate the FRBNY’s spunk in trying to legalize MERS, but they simply have no jurisdiction to do so.

You can check out the rest of his commentary here…

Fed Report below…




“A Foreclosure Crisis”