There is absolutely no reason why the Trustee should not have recorded their interest at the time of formation of that pool, assuming they were and are following the law on REMICs and that they actually have the notes.
We're talking about, on average, about $30 to record these things. On a pool of 1,000 mortgages - a $100 million pool, assuming an average $100,000 balance, this is $30,000 in one-time expense, or 0.03% of the loan balances. Too hard? Too expensive?
Doing so would have proved that the pool actually owns the note and has received it. It would also prevent selling the same note twice, or waiting until it defaults to "give" the bad debt to a "high risk" pool hile keeping the "good" ones for "favored" people. That is, it would have documented compliance with both IRS REMIC regulations and the PSA governing the trusts, along with the UCC and State Property Law.
The Trusts would have got all that for just $30 for each mortgage.
So why didn't they?
There are all sorts of "reports" flying around that in fact there are shenanigans like this - illegal shenanigans - going on with these things. There are multiple reports of foreclosures being filed by a servicer or in the name of "MERS" when the trust allegedly holding the paper can't document that it does - including cases where the note isn't on the remittance reports. How the hell do you argue you own something when you don't show the actual loan you claim you own on the remittance report for your alleged "trust"?
The purpose of property recordation laws in the States is to prohibit this sort of crap and keep titles clean and defensible. To make sure that when one does a title search one can determine who owns the land and who has a valid security interest on it - not that someone does, but exactly who does.
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