Legal actions against Bank of America are piling up, this time from Attorneys General in Nevada and Arizona, housing bubble ground zero.
Bank of America's Brian Moynihan has been spending some time in Washington recently lobbying begging for relief from the courts.
With the chain of documentation now in question, and trustee ownership in question, here is one legal scenario, according to Prof. Levitin:
The mortgage is still owed, but there's going to be a problem figuring out who actually holds the mortgage, and they would be the ones bringing the foreclosure. You have a trust that has been getting payments from borrowers for years that it has no right to receive. So you might see borrowers suing the trusts saying give me my money back, you're stealing my money. You're going to then have trusts that don't have any assets that have been issuing securities that say they're backed by a whole bunch of assets, and you're going to have investors suing the trustees for failing to inspect the collateral files, which the trustees say they're going to do, and you're going to have trustees suing the securitization sponsors for violating their representations and warrantees about what they were transferring.
Much more inside.
Updated on Jan 8, 2011 at 2:43 PM by DailyBail
Foreclosure Fraud & MERS In The Spotlight: Interview With CEO R.K. Arnold (Video, Links, Jamie Dimon Says 'No')
Editor's Note: From October when the MERS controversy began...
The former swindling, bonus-sucking CEO of Fannie Mae would be better served by staying out of sight. Quotes transcribed inside. From Squawk Box.
Maybe his best interview yet. Everything is explained.