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Banker Derangement Syndrome: Part 1

Ahem, this is noteworthy by being 180 degrees wrong. Exactly how many things has the securitization industry done that runs afoul of the law? They violated the representations and warranties in securitizations by stuffing too many bad bonds into the deals (a teeny weeny bit at premium yields would actually have been kosher). They failed to convey the notes to the trusts as stipulated. Servicers and trustees then provided inaccurate certifications multiple times and they continue to do so in periodic SEC filings on these deals. They violated REMIC rules by failing to convey the notes to the trusts in the stipulated time frame. They violated REMIC again by trying to convey defaulted loans into trusts as a fix (only “performing” assets can be placed in a REMIC trust). Servicers have charged fees to borrowers in violation of the mortgage agreements and RESPA. They’ve impermissibly foreclosed on active duty servicemen. They’ve attempted to impose a national mortgage registry and designed and operated it so poorly that it has run afoul of the laws of some states and its records are of questionable accuracy. They’ve engaged in widespread frauds on courts, via robosigning and document fabrications. And this is only a partial list.

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