Politics: 17 October 2010

Lizz Winstead on The Ed Show

Lizz Winstead—co-creator of The Daily Show—was on The Ed Show. I don’t usually find her that funny, but she had something very funny to say about “Coons v. Crazy Lady.”

Illegal Foreclosure

In Friday’s column, Paul Krugman discusses the foreclosure mess that has seen at least one man’s house foreclosed on when he didn’t even have a mortgage—to anyone. But the problem is much bigger than this. Krugman writes:

In many cases, the documentation doesn’t exist. In the frenzy of the bubble, much home lending was undertaken by fly-by-night companies trying to generate as much volume as possible. These loans were sold off to mortgage “trusts,” which, in turn, sliced and diced them into mortgage-backed securities. The trusts were legally required to obtain and hold the mortgage notes that specified the borrowers’ obligations. But it’s now apparent that such niceties were frequently neglected. And this means that many of the foreclosures now taking place are, in fact, illegal.

This raises the question: does any particular entity own enough of one of these mortgages to make it worth foreclosing? I’m used to being this disorganized, but I always thought bankers were very organized. In fact, I thought that was all they were.

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About Frank Moraes

Frank Moraes is a freelance writer and editor online and in print. He is educated as a scientist with a PhD in Atmospheric Physics. He has worked in climate science, remote sensing, throughout the computer industry, and as a college physics instructor. Find out more at About Frank Moraes.

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