Obama on who owns the mortgage: Watch
Marcy Kaptur D- Ohio on who owns the mortgage: Watch
Geithner’s plan of buying up toxic assets assumes there is a value. There isn’t. The paper is all bad from one end to the other. The Certificates of Asset Backed Securities are bad, the mortgages are bad, the notes are bad, and the obligations are bad. The investors bought smoke and mirrors.
The valuations placed on the MBS and the homes could not and did not withstand the test of time. The investors cannot step up and claim the status of holder in due course because they would be assuming the liability of of every player down the securitization chain down to the borrower for all the deeds and misdeeds that were committed in procuring the borrower’s signature. The liabilities for damage claims, treble damages, refunds, rebates and interest along with attorney fees exceeds the par value of the mortgage funding.
That doesn’t legally allow intermediaries to collect money and property instead of the investors. Only the investors lost money on those mortgages and notes. Only the investors lost money on those credit card student loan, auto loan and other debts. Only the investors could make a claim as holder in due course and they won’t because the liabilities exceed the potential reward.
And in the meanwhile, the middlemen who were so handsomely paid during the run-up of the mortgage meltdown 2001-2008, are going to court and claiming that they are the lender. They are not the lender. They are not out any money. They never put up a dime to finance any of this debt and yet the courts are allowing them to collect property and money because the consumers are uninformed about their rights and defenses. These “pretender lenders” are faking it and succeeding, not only in the courts but in the court of public opinion. They have the public convinced that the blame lies with borrowers who signed deals knowing they were too good to be true. That is a lie. But it is a set of good lies for them because on top of getting all that profit they made they are getting taxpayer money in bailouts.
There is no value to the toxic assets. Belly up to the bar and admit it. And by the way, if the recession is all about the absence of wealth and spending power in the middle class, it is already cured without investing a penny. If there is nobody legally entitled to collect the money then there are no legal foreclosures and no legal collections on any debts that were securitized. The wealth is there — it just takes a courageous President to admit it and overrule the policies of failed players on Wall Street. Let the titans fall. There are 6,000+ financial insitutions who can easily pick up the pieces and start credit flowing again. It was just a small percentage of banks that securitized a lot of debt. The rest of the banks are healthy.
Filed under: CDO, CORRUPTION, Eviction, foreclosure, foreign relations, GTC | Honor, Investor, securities fraud Tagged: | bailout, borrower, disclosure, Eviction, Federal reserve, foreclosure, foreclosure defense, foreclosure offense, fraud, Lender Liability, lost note, mortgage meltdown, rescission, securitization, TILA audit