Man I just love it when the banks eat their own!
It’s even better when they start using MY arguments to do it. The very same arguments I’ve used to defend my clients.
The essential problem is this, securitized trusts, the ones your homes were bought and sold into, weren’t always mortgage-backed!
I’ve long had questions about the validity of these REMICs, and now the banks are making my case for me! Thanks guys!
HSH Nordbank AG is now suing Barclays N.Y. after they bought $46 million in residential mortgage-backed securities from them.
Investigators for HSH Nordbank claim that none of the 2,000 mortgage loans they sampled had actually been assigned into the trusts when they were sold.
So if they tried to foreclose on some of these properties, it made it very difficult for them to do so, the lawsuit alleges.
Had they realized the mortgages weren’t properly assigned, they never would have bought the securities in the first place, HSH Nordbank’s lawyers say.
As I’ve always said, it goes back to making the banks prove who owns your mortgage. HSH Nordbank basically is admitting that they couldn’t do exactly that! Now this isn’t exactly a new phenomenon.
I blogged about a similar lawsuit involving AIG and Bank of America last year. But the banks, it seems have, clearly have not learned their lesson.
According to the lawsuit, Barclays overstated the value of these loans in order to sell them off. It’s being alleged that these loans did not meet the underwriting standards of the mortgage securities that HSH Nordbank was buying into.