Just what would happen if Americans finally woke up and realized that the federal government was effectively the biggest plaintiff in foreclosure cases all across America? The banksters don’t really own anything, it’s all Fannie/Freddie…and Fannie/Freddie are in big trouble. The entire American financial system, and especially real estate finance, is a shell game played atop a rickety old card table.
As detailed in the new book Reckle$$ Endangerment, the troubles for Fannie really hit turbocharge under Bush I, when they moved to radically expand homeownership….that meant dramatically reducing all lending standards….(while at the same time destroying our economic base) and that’s why we are where we are today….
Fannie Mae is at all times the owner of the mortgage note, whether the note is in Fannie Mae’s portfolio or whether owned as trustee, for example, as trustee for an MBS trust. In addition, Fannie Mae at all times has possession of and is the holder of the mortgage note, except in the limited circumstances expressly described below. Fannie Mae may have direct possession of the note or a custodian may have custody of the note. If Fannie Mae possesses the note through a document custodian, the document custodian has custody of the note for Fannie Mae’s exclusive use and benefit.
