From my reading, this moritorium is not just about foreclosures and who actually owns the title on the house but, the sloppiness that occured in the foreclosure process, is also comming into question in the loan origination process(don’t know the proper terms becasue I’m not a realtor/loan person)
Investors in MBS are questiong the underwriters(?) and loan insurance companies(?) saying they ‘machine’ stamped the loan approvals. Not properly verifying income, appraisals, comps, etc., resulting in fraudulent loans. These fraudulent loans were packaged into MBS’s and misrepresented as AAA rated. Now the buyers of the MBSs are wanting the banks to take them back.
Interesting times. If only I could figure out how to make money off of this…
