Fraud.

[westerebus]

I don't think this has been brought up yet, but there exists a very real possibility that there were many MBS's on houses that did not exist. What we have all looked at so far is missing paper work, not missing houses.

Wait till that shoe hits the floor.

As it is the duty of every citizen to support our elected officials, I would caution them to obey the law, as the only thing between us and them, is the law.

There is no need for accommodation in this matter.

We are watching you.

[dixiegrrrrl]

1. Wow...where did that idea come from?

Makes perfect sense, they have lied about everything else.

Can we expect more info soon on this?

[westerebus]

3. I just got a glimmer of it myself.

If I hear more I'll let you know.

[Sonoman]

2. One heck of a reason for "missing" documentation.

That is a really interesting theory.

Sonoman

[Po_d Mainiac]

4. ...........

:spray:

I hope the imaginary residents of those non-existent domiciles remember to vote

[ironrooster]

5. I'm no expert in securitizations - but

I would think under normal circumstances within a single security there would be only (one) instance
of (each) property for each (loan) - so for example, property A' has a single mortgage, so
it is listed once in a particular security that has many other listings as well - ad infinitum.

Property B' however, has a second mortgage and is listed once in one security and once in another.

What if however, the bundlers of these securities listed the same house again and again
in various instruments? NOT for a partial interest, but putatively for the entirety of the value. OOPS.

Is this possible - anybody??

[Po_d Mainiac]

6. Not only possible, perhaps commonplace..link below

http://market-ticker.org/akcs-www?post=170340

[Po_d Mainiac]

7. more

http://www.washingtonsblog.com/2010/10/professors-black-and-wray-confirm-that.html

[ironrooster]

8. The linked article is very disturbing.

The article mentions Bear Stearns as selling the same mortgage several times. I wonder if this was
an industry-wide practice, or confined to the worst actors? Sadly, we won't know without massive
investigations requiring an army of accountants - which we all know isn't going to happen because
the banks are so well insulated from the outrage of the little people.
The top-heavy over financialization of our economy has wrought this. Too much money -
and few people of morals to withstand the temptation of easy money. It's foundational rot.
It's very tempting to give into apathy.

[Po_d Mainiac]

10. Disturbing? VERY!

And these two guys (Black and Wray) are the smartest guys in the room.

[dixiegrrrrl]

11. Industry wide practice.

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=114x83171

[blue97keet]

9. Synthetic CDS's betting on nothing?

That was mentioned in a mortgage hearing on C-Span this morning.

[dixiegrrrrl]

12. Yeah..to the tune of trillions.

and betting on BOTH sides of the "nothing".

[westerebus]

13. Where did the nothing come from?

FEMA Current Housing Unit Damage Estimates. Feb,12,2006. Included Hurricanes Katrina, Rita and Wilma all occurred in 2005.

Major damage estimate 179,378
Severe/destroyed est 125,731

Total 305,109

This figure does not include vacant units, summer homes, second homes on the gulf coast.

The difference here is being under-water and being under water.

As were tax records. As were deeds. As were county records. Not all, but enough.