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Securitization Fail Probe

posted by Adam Levitin

This story shouldn't surprise Credit Slips readers.  

Comments

"If the trusts did not comply with tax laws, for example, the beneficial treatment given to investors could be rescinded, causing taxes to be levied on the transactions."

In addition to the bogus foreclosures, to me this is where the real fraud may lie.

I am aware of at least on suit brought on behalf of certificateholders which alleges that the Trustee, the underwriters, the sellers, etc. are all liable for creating a MBS that lacks title to the underlying loans and therefore lacks enforcement rights against a defaulting borrower. In effect the suit is alleging allegthe security is not "mortgage backed." Dexia Holdings v. Countrywide.

Unfortunately, this particular investigation is a blind alley based upon a totally false paradigm.

Those who fail to perceive and actually understand the nature, character and origins of the foreclosure fraud scandal continue to propagate the false paradigm of securitization failure.

Hopefully, the investigation will have some mild utility in helping the investigators to understand the true nature and facts of securitization. But this will NOT prove securitization failure, but will support the proof of systemic forgery, perjury and evidence fabrication in foreclosure by the servicers, foreclosure mill law firms and their contract forgers and perjurers.

Unfortunately, by focusing on a false paradigm supported by false premises, the focus and energy of the probe is also being misdirected. It would be very unfortunate if this misdirection results in a dishonest declaration that the matter has been investigated and found to be without merit (which will be TRUE), allowing the AG to prematurely terminate the investigation without exploring the actual mischief.

Those without knowledge of the facts who send investogators on wild goose chases need to carefully assess whether their efforts are helpful are rather as pernicious as those who call in false fire alarms!

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