How Did the Banks Get Away With Pledging Mortgages to Multiple Buyers?
by George Washington
I’ve repeatedly documented that mortgages were pledged multiple times to different buyers. See this, this and this.
In response, some people (including one of the country’s top bankruptcy lawyers) have told me they don’t buy it.
Specifically, they ask such questions as:
•With a mortgage sold to two different entities, wouldn’t the income from the mortgage be shown on the books of both entities?
•Was the interest/principal payments that were made by the homeowner before they stopped being divided between both entities? If so, wouldn’t this have rung alarm bells immediately?
•If only one was getting it, why didn’t the other entity immediately try to foreclose?
•If there was one servicer involved, was the servicer covering the difference between what was collected and the payments actually made? If so, how did the servicer do this and still remain in business?
•If two servicers were involved, why didn’t this come out sooner or were both servicers hiding this fraud?