Banks Sold the Same Mortgage Over and Over to Investors
By: David Dayen
I mentioned this at the end of this post about investor lawsuits, but it deserves to be highlighted. This is a level of fraud that I probably should’ve seen coming, but didn’t. Apparently, Bank of America has admitted in a court filing that they sold the same mortgage loan in multiple pools to investors. In layman’s terms, say I own the FDL News Cupcake Food Truck and you come up to buy a cupcake. I sell it to you, and then I sell the same cupcake to the guy behind you, and the guy behind you. As you all wait for your order, you talk to each other and realize that you were all sold the same cupcake. So who actually owns it?