« Still Not Working Abroad | Main | Debt Collector Pseudonyms »

Securitization Fail Probe

posted by Adam Levitin

This story shouldn't surprise Credit Slips readers.  


"If the trusts did not comply with tax laws, for example, the beneficial treatment given to investors could be rescinded, causing taxes to be levied on the transactions."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

The comments to this entry are closed.


Current Guests

Follow Us On Twitter

Like Us on Facebook

  • Like Us on Facebook

    By "Liking" us on Facebook, you will receive excerpts of our posts in your Facebook news feed. (If you change your mind, you can undo it later.) Note that this is different than "Liking" our Facebook page, although a "Like" in either place will get you Credit Slips post on your Facebook news feed.



  • As a public service, the University of Illinois College of Law operates Bankr-L, an e-mail list on which bankruptcy professionals can exchange information. Bankr-L is administered by one of the Credit Slips bloggers, Professor Robert M. Lawless of the University of Illinois. Although Bankr-L is a free service, membership is limited only to persons with a professional connection to the bankruptcy field (e.g., lawyer, accountant, academic, judge). To request a subscription on Bankr-L, click here to visit the page for the list and then click on the link for "Subscribe." After completing the information there, please also send an e-mail to Professor Lawless (rlawless@illinois.edu) with a short description of your professional connection to bankruptcy. A link to a URL with a professional bio or other identifying information would be great.