Fannie And Freddie HAVE NO NOTES EITHER?


You have to be kidding me…..

The Federal Housing Finance Agency, which in July issued 64 subpoenas to issuers of mortgage securities, bank servicing companies and other entities, is working with Quinn Emanuel Urquhart & Sullivan LLP, a Los Angeles-based firm that specializes in business litigation, to coordinate its investigations.

Subpoenas….. why do you need to subpoena something you are supposed to already have – specifically, the original “wet signature” note, endorsed over and through to you for inclusion in the pools?

“There’s going to be much more incentive to negotiate seriously and quickly than if they had done this seven months ago, when people were blithely ignoring the fraud,” says William K. Black, a former federal bank regulator who is now an associate professor at the University of Missouri-Kansas City School of Law.

Oh darn, there’s that “F” word again.

Which fraud are we referring to this time?  Are we referring to tendering garbage loans in violation of representations and warranties (on purpose) or the larger issue – not tendering the notes at all, leaving MBS investors holding an empty box, a REMIC structure that cannot take in the paper later, and nobody with actual legal standing to foreclose?

The mortgage giants are sorting through their growing pile of delinquent loans to find sloppy or fraudulent loan underwriting that constitutes a violation of representations and warranties.

Oh, the former.

Still no comment on the latter issue, even though, once again, if you listen to the second link here at 8:25 in, you will hear two foreclosure defense lawyers tell you that they have never seen an actual properly-conveyed note.

Again – where is the damn paperwork that under State Law in about half the states, you must possess complete with all intervening endorsements, in order have an actual security interest in the property – that is, the right to foreclose?

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