Tuesday, February 26, 2008

Scenes From the Mortgage Crisis, Part Two

Bloomberg reports that banks may lose as much as $2.1 trillion in mortgages, because they've lost or never received the paperwork that proves the mortgages belong to them. "'Loans were mass produced and short cuts were taken,' (assistant professor at Valparaiso University School of Law in Valparaiso, IN Alan) White said. ``A lot of the paperwork is done in the name of the original lender and a lot of the original lenders aren't around anymore.'
More than 100 mortgage companies stopped making loans, closed or were sold last year, according to Bloomberg data."
Judges in at least five states have stopped foreclosure proceedings due to missing paperwork.

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