Confidence Fairies and Attorneys General
by David Atkins (“thereisnospoon”)
Attempting to follow the mortgage fraud foreclosure story is like going down Alice’s rabbit hole: the farther you go in, the weirder and more convoluted everything starts to become, the more confusing the details get, and the less you know what or whom to trust in terms of sources.
That is why context is so important. The essential details are basically that lenders transferred the deeds of ownership from one servicer to the next in order to create the mortgage-backed security bundles that crashed the entire economy. In so doing, they had shoddy or nonexistent documentation of the transfer of ownership of the mortgages. As any student of property rights knows, you can’t foreclose on a property for which you cannot prove ownership. We already know that