I run a tight, very organized and fairly lean organization. In these unfortunate economic times, I could grow fast and manage a large operation, but I want to do things correctly and be able to keep my eyes on everyone and my hands in all my files. Quite simply, I don’t want things to grow sloppy and out of control. A major reason for this crisis is the banks and institutions failed to accurately document and close massive transactions involving billions of dollars. Rather than do things slowly and carefully, things spun wildly out of control.
Have a long and detailed read of the document attached here that relates to a federal bankruptcy case. It provides a sobering and sickening look into document problems for trusts that (theoretically at least) own billions of dollars in loans. Now if I were closing billions of dollars in loans, you can be darn sure I’m going to work hard to prevent the types of errors like the ones reported in this report from occurring.
It’s very hard to digest, but read it carefully and consider the impact of all of this on the larger economy…..we’re all paying for this after all……
As of the most recent reports, there exist missing or defective loan file documents for several billion dollars in original principal amount of loans.
Repurchase Claims, the Trustee asserts that, based on its information and belief regarding the mortgage loan securitization market, such claims will exist with respect to 2% to 30% of the aggregate original principal balance of the loans in the Trusts (i.e. $908,468,758 to $13,627,031,372).
