The “number of attorneys that signed off on” the policies used when Wall Street firms packaged mortgages into bonds means it’s likely that the trusts used to hold the debt will be able to prove they own the loans in almost all cases, said Philip Seares, a managing director at Citigroup Inc. who run its trading of whole loans.
The industry also has faith that loan assignments handled by the Mortgage Electronic Registration System, or MERS, can’t be broadly contested, Seares and Mortgage Bankers Association President John Courson said at the group’s annual conference. They were countering claims from homeowner lawyers and academics such as Katherine Porter, a visiting professor at Harvard Law School, who say large numbers of borrowers that haven’t paid their mortgages may be able to avoid ever being foreclosed on.
“Everybody wants to believe in this Robin Hood scenario, where everyone is going to get a free house,” Seares said yesterday during a panel discussion at the mortgage group’s conference in Atlanta. “That’s not really plausible.”Read it all