Editor's Note: A repost necessitated by today's Massachusetts decision.
Oct. 18, 2010 -- Bloomberg -- Christopher Whalen Video
Forced mortgage repurchase.
Aired yesterday. Very, very good clip. MBS investors might just own unsecured paper, contrary to what they were told by the trusts. And in most cases they have no recourse. 7 minutes.
From Chris' most recent article:
The reading of our prior note, without an understanding of the importance of "blank name" to the mortgage origination to securitization process, has led to a series of stories suggesting that we are of the view that issuers are at risk and that we will have a Lehman weekend crisis, this is not our view. It is our belief that, given the black box nature of the process and the former white-hot origination market, that documentation of transfer may not have been properly effected. If not properly effected, the "true sale" of mortgages to the trusts that issued mortgage backed securities would be in question. If this proves to be the case then, as we stated in the October 12 note: "the Trustee, who has responsibility to make sure all loans were properly assigned to the trust, may have liability".
Why "In Blank Name" Matters and Trustee Obligations
Graham, Fisher & Co.
October 14, 2010
Who’s Who in the Foreclosure Scandal: A Primer on the Players
Cook County (Chicago) Sheriff Refuses to Execute Foreclosures on Behalf of Banks That Suspended Foreclosure
PIMCO, NY Fed Pressuring BofA to Repurchase Dud Mortgages (Empty Threats Edition)
Fed's Dudley: 3 million excess vacant housing units
Recently from Whalen: