What is happening is fraud to cover up fraud.
Alan Grayson is back with a vengeance and rips off a letter to the usual suspects including Geithner, Bernanke, Sheila Bair and the lovable Mary Schapiro of the Financial Stabillity Oversight Council (FSOC).
Alan notes a well documented wave of foreclosure fraud sweeping the country and asks FSOC to appoint an emergency task force on foreclosure fraud as a potential systemic risk. Mr. Grayson states the obvioius: origijnators and services didn't keep good records of who owed what to whom because the point was never about getting paid back.
There are now trillions of dollars of securitizations of these loans in the hands of investors. The trusts holding these loans are in a legal gray area, as mortgage titles were never officially transferred to the trusts. The result of this is foreclosure fraud on a massive scale, including foreclosures on people without mortgages or who are on time with their payments. Alan Grayson letter PDF