The banks loaned money to people that had no hope of paying it back.
Over and above the dismal economy which contributed significantly to the number of foreclosures, the banks played fast and loose with their rules and procedures.
They securitized the mortgages and entrusted the record keeping to MERS.
When they had gotten overwhelmed with foreclosures they turned to robo-signers who didn’t read the documents they signed.
When they couldn’t find the document they just recreated it.
When they neglected to file the proper paper with the court they filed a new one and back-dated it.
Because of these things Bank of America could be in some very serious trouble. Its very survival may be at stake.
Court testimony showed that Countrywide frequently did not transfer original documents and if that is the case the securitized paper may be shown to have never owned the assets in question. Then we can expect that the investors that bought the paper might demand their money be returned.
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