People need to understand exactly what was going on before forming conclusions.The layers of the securization process go very deep. In simple terms:



1. Bank lends you the money

2. They sell the loan into securization

3. The loan is then bundled with many other similar loans

4, Then the whole bundle is divided into dozens if not hundreds of pieces and sold to investors.

5. The investors then hold, sell, trade, whatever is their fancy

6. Pieces of your loan go from party to party.

7. Folks also short the securization, which in effect creates double the amount of long holders on that piece of the loan, offset by those who are short your loan.

8. This process repeats itself and you have 5 times your loan held by investors offset by four times your loan being short. In effect your loan is being paid to five different investment pool parties and four other investment pool parties are also profferring up payments on your loan along with yours to even it all out. (possibly exaggerated)

9. All along, the legal requirements for transferring ownership of the loan are ignored. Thats because there is no true distinct owner of the loan. Since they didn't bother naming the true owner before hypothecating the loans, these loans are truly invalid under contact law.



The banks are just acting as agents of the trust when they foreclose. The trust is just a nominee and can't be an owner under the law. These means neither the bank nor the trust are able to truly prove ownership.



I said long ago the only solution was for the fed to buy these loans and refinance them at current market values. Banks could have continued servicing them to earn their money. A $100,000 loan modfied down to $70,000 still means a $135,000 total repayment at 5% interest. This could have allowed most people to keep their homes and also would set the ground for newly valid mortgage contracts. And the government could have even made a profit on it and saved the economy in one quick swoop. Proves they are not friends of the people.