From Foreclosure Fraud:

When this entire Foreclosurefraud nonsense got going, and I started digging through documents from various parties, one of the striking findings I kept coming up with was that mortgages had not been timely transferred into the trusts that form the MBS in question.

REMIC law is extremely clear and has no exceptions or exclusions — you either get the actual documents into the trust on time or you can’t do it at all.  The reason is that these are pass-through instruments for tax purposes and widespread, indeed trivial fraud would be easy to commit if no such requirement was adhered to (you could substitute only “good” loans later on, you could stuff the trust with “bad” loans posthumeously to generate fake losses, etc.)

I had argued that given the apparent widespread failure to transfer mortgages into these trusts an attempt to later sue for foreclosure in the name of the trust (by the Servicer as a nominee or agent of the Trust, etc) was presumptively invalid because the alleged “owner” of the mortgage in fact was not the owner because they never took their ownership interest in a timely fashion and the law bars them from doing so at a later date.

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