Man Makes Ridiculously Complicated Chart To Find Out Who Owns His Mortgage (CHART) - HuffPo

[WillyT]

Man Makes Ridiculously Complicated Chart To Find Out Who Owns His Mortgage (CHART)
The Huffington Post | William Alden First Posted: 11-16-10 01:53 PM | Updated: 11-16-10 05:18 PM

<snip>

We all know the mortgage securitization process is complicated.

But just how complicated? This chart from Zero Hedge shows the convoluted journey a mortgage takes as it morphs into a security. Dan Edstrom, of DTC Systems, who performs securitization audits, and who is giving a seminar in California next month, spent a year putting together a diagram that traces the path of his own house's mortgage. "Just When You Thought You Knew Something About Mortgage Securitizations," says Zero Hedge, you are presented with this almost hilariously complicated chart.

A controversy of allegedly shoddy paperwork has raised doubts about the legitimacy of foreclosures nationwide, eliciting complaints from homeowners and investors alike. The Congressional Oversight Panel, a bailout watchdog, released a statement Tuesday that says the scandal over alleged "robo-signers," foreclosure processors who approve documents without reading them, "may have concealed much deeper problems" in the mortgage industry, HuffPost's Shahien Nasiripour reports.

Regulators will have their hands full.

"Decide how long you think it will take for Barney Frank and Eric Holder to sort everything out," Zero Hedge says.



<snip>

Link: http://www.huffingtonpost.com/2010/11/16/mortgage-security-chart_n_784274.html

:kick:

[Ian David]

1. According to this chart, he is his own grandfather. n/t

[WillyT]

3. LOL !!! - My Grandfathers Used To Sing A Similar Song While Laughing Their Asses Off...

Must have been the Martinis.

I hope...

:shrug:

Are we related???

:evilgrin:

:hi:

[TexasObserver]

2. recommend

[flvegan]

4. Man Makes Ridiculously Complicated Chart To Find Out and Name Everyone Ever Involved

With His Loan and Every Step Taken from Start to Today.

Come on. Including the appraiser, the title insurance company...

An actual chart that followed just the Note would be far far far more simple. I'm not saying that the mortgage debacle isn't a convoluted mess, but lets keep it within the lines can we?

[Doremus]

7. Looks like that would only remove a handful of entries, no? n/t

[flvegan]

9. Not really.

Including every single entity that benefits from it? Who benefits from it has very little to do with who actually owns the Note.

[Canuckistanian]

8. I think my uncle once changed a tire on that 3rd broker's car

So his name should be on there.

[RKP5637]

5. I'm sure congress is absolutely able to figure all of this out in a snap. Child's play!

:sarcasm: :sarcasm: :sarcasm:

The guys in gov. are in so far over their heads this will go on forever. Just how much can they keep track of and understand. I'm sure if Palin gets in she will do it in a snap.

[joshcryer]

6. This is what Credit Unions are for.

Why on EARTH would you go with a corporation like this?

[dkf]

11. My credit union stopped holding mortgages.

They are now selling them like all the rest.

[joshcryer]

13. Why would your credit union do that and how could they do that?

A credit union cannot sell its mortgages without consent of the customers. They run at very tight margins.

What a bunch of stupid customers to allow their credit union to do that.

[dkf]

15. Once they did this their rates were better than the rest.

Prior the rates were set by monthly board meeting which was probably too slow.

[joshcryer]

19. My CU sets their rates through an external third party.

I imagine a lot of them do it this way, too. Note by "setting the rates" I mean that a service provider does all the crazy dirty math for us and then presents it to the CU, not that the external third party is doing any of the money holding, except for in the case of, I expect, the longer term mortgages (over 15 years?). I'm not sure, I will have to make sure, though. I cannot imagine allowing any future loans I make being handled by an external "investor." Fuck that.

[Hassin Bin Sober]

16. I don't know of any CUs that DON'T sell their long term fixed rates.

I will say I am in the mtg business. Admittedly, I am not an expert on the CU business but everyone I know that has worked for CUs says the same thing - short term stays in the portfolio and long term gets sold to the agencies.

Your CU may keep the servicing but they very likely sell the note to fannie/freddie.

CUs can't tie up depositors money for 30 years. CUs like auto loans, ARMs and home equity lines - the long fixed they will sell.

[joshcryer]

18. That's probably true in a lot cases, but there's no real need for a credit union to...

...do that. Credit unions consider loans as assets, which can easily make up more than half of a CU's portfolio. However, I did do a bit of searching to look for a connection between Fannie-Freddie, and it's certain that a lot of them were tainted by this practice, several big CU's were glad that Fannie-Freddie were being bailed out. What a crappy connection to be made aware of. I will have to see if my CU will assure me that my mortgage stays with the CU, in fact I will chose a shorter term loan if need be (in the end the payments actually work out close to one another, maybe $300-400 difference, have to look at the rate calculator).

In any event, had Fannie-Freddie not bought $80 some billion in sub-prime mortgages, they likely would not have needed bailing out when the crunch happened. If I recall correctly they bought the evil dirty mortgages only a few years before the bubble burst, too, which makes it all the more appalling. Back when Bush was trying to kill Fannie-Freddie by giving it to the Treasury.

[dkf]

20. Yeah my CU is keeping the 15 year mortgages and selling the 30

[chill_wind]

10. "Regulators have their hands full."

And if we think they will let this complete economic and criminal clusterf*#k sort its own way through the banks, courts, title companies-- one mortgage or home title at a time-- for years to come....

Not going to happen. There will be a "fix".

[Odin2005]

12. This shit needs to be stopped and all forclosures stopped till the shit is worked out

All fraudulent loans should be voided and the homeowners be given the houses outright.

[joshcryer]

14. People need to first and foremost boycott the banks.

The credit unions did not need bailing out because they were incapable of making these kinds of poor investments.

[UrbScotty]

17. Just found this via Jennifer Brunner's Twitter feed. Wow.

[earth mom]

21. Love it!

:thumbsup: