“What‘s happening now in the foreclosure world is that homeowners are starting to demand that the banks that foreclosing on them produce the housing-world version of a car title called the note.
They‘re simply saying, “OK, you want to kick me out of my house? You have to show that you legally own my mortgage.”
And guess what? In a lot of cases, the banks don‘t seem to have them.” Chris Hayes talks with Matt Taibbi about a growing problem in the banking industry that may rescue more than a few struggling homeowners.
First of all, this whole mortgage bubble was the result of a gigantic transnational fraud scheme where the banks – at least what they were doing is they were bundling hundreds and thousands of these subprime mortgages and fawning them off on unsuspecting third-party suckers like insurance companies, pension funds, German land banks, Dutch trade – trade unions.
They were buying this stuff as AAA-rated securities. And what the banks were doing – once they sold these mis-marked AAA securities, once they completed that fraud, they stopped doing their paperwork.
