{"id":10445,"date":"2009-11-30T20:02:00","date_gmt":"2009-12-01T03:02:00","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=10445"},"modified":"2009-11-30T14:39:56","modified_gmt":"2009-11-30T21:39:56","slug":"the-system-is-broke-humpty-dumpty","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/10445\/the-system-is-broke-humpty-dumpty\/","title":{"rendered":"The System is Broke?  Humpty Dumpty"},"content":{"rendered":"<p>I&#8217;m just quoting the conclusion of the article that was up on <a target=\"_blank\" href=\"http:\/\/calculatedriskblog.com\">Calculated Risk<\/a> over the weekend.&nbsp; It was about a lot of the technical aspects of mortgage servicing and the way that mortgages are sold and bundled.&nbsp;&nbsp;&nbsp; A couple of main comments and then read the conclusion below:<\/p>\n<ul>\n<li>Many of the problems in the mortgage world are because of the way that the mortgage world is structured.&nbsp;&nbsp; That means that it is going to take systematic and structural changes to get us back to a system that really works.<\/li>\n<li>When there is a lack of accountability, things won&#8217;t work the way they are planned.<\/li>\n<li>Do you think that this lack of accountability and lack of responsibility is part of the reason why short sales and foreclosures are so hard to get approved?&nbsp;&nbsp; There is no incentive for the servicer to make the decisions that need to be made.<\/li>\n<\/ul>\n<p>Check it out below&#8230;..<\/p>\n<p>Tom Vanderwell<\/p>\n<p><a href=\"http:\/\/www.calculatedriskblog.com\/2009\/11\/thanksgiving-weekend-mortgage.html?utm_source=feedburner&amp;utm_medium=feed&amp;utm_campaign=Feed%3A+CalculatedRisk+%28Calculated+Risk%29&amp;utm_content=Google+Reader\">Calculated Risk: Thanksgiving Weekend Mortgage Litigation Roundup<\/a><\/p>\n<blockquote><p>In other words, as many of you suspected all along, \u201choocoodanode?\u201d was officially part of the plan for creating mortgage backed securities. <b>Systematic and willful ignorance was incentivized. If Wall Street created a system where each bogus mortgage passed through the hands of a couple of intermediaries who had no ability to do any due diligence on the quality of the loan, then the end buyer of the loan would, legally speaking, be in a better position to collect than the original lender by virtue of BFP status.<\/b> Did the mortgage broker tell the borrower the loan was fixed rate when it really wasn\u2019t? Oh well, no way the mortgage pool trustee could have known about that after the loan passed through the hands of an originating lender, an unrelated depositor and a legally separate issuer.<br \/><b><br \/>Whether for better or for worse, this system is pretty clearly not playing out as intended<\/b>. BFP status does nothing to protect lenders from broke borrowers and half price houses, both of which were foreseen by knowledgeable people who were not willfully ignorant of details about loan origination. And even the limited protection of BFP status may not be available in <a href=\"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/10445\/the-system-is-broke-humpty-dumpty\/#more-10445\" class=\"more-link\">Read more<\/a><\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>I&#8217;m just quoting the conclusion of the article that was up on Calculated Risk over the weekend.&nbsp; It was about a lot of the technical aspects of mortgage servicing and the way that mortgages are sold and bundled.&nbsp;&nbsp;&nbsp; A couple of main comments and then read the conclusion below: Many of the problems in the [&hellip;]<\/p>\n","protected":false},"author":44,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[26],"tags":[426],"class_list":{"0":"post-10445","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-lending","7":"tag-humpty-dumpty","9":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":14880,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/14880\/defining-deals-debts-and-deficits\/","url_meta":{"origin":10445,"position":0},"title":"Defining Deals, Debts and Deficits","author":"Sean Purcell","date":"August 3, 2011","format":false,"excerpt":"'When I use a word,' Humpty Dumpty said, in rather a scornful tone, 'it means just what I choose it to mean \u2014 neither more nor less.'","rel":"","context":"In &quot;Big Mother&quot;","block_context":{"text":"Big Mother","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/big-mother\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-content\/uploads\/2011\/08\/spending-under-debt-deal-graph.jpg?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":10508,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/10508\/whats-in-a-name-that-which-we-call-a-job-summit-by-any-other-name\/","url_meta":{"origin":10445,"position":1},"title":"What&#8217;s in a name? That Which We Call a &#8220;Job&#8221; Summit, by Any Other Name&#8230;","author":"Sean Purcell","date":"December 7, 2009","format":false,"excerpt":"\"When I use a word,\" Humpty Dumpty said, in rather a scornful tone, \"it means just what I choose it to mean -- neither more nor less.\" \"The question is,\" said Alice, \"whether you can make words mean so many different things.\" \"The question is,\" said Humpty Dumpty, \"which is\u2026","rel":"","context":"In &quot;Big Mother&quot;","block_context":{"text":"Big Mother","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/big-mother\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":5326,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/5326\/the-fed-translated-2\/","url_meta":{"origin":10445,"position":2},"title":"The Fed Translated&#8230;.","author":"Tom Vanderwell","date":"October 29, 2008","format":false,"excerpt":"The Federal Open Market Committee decided today to lower its target for the federal funds rate 50 basis points to 1 percent.\u00a0\u00a0 That's the lowest that it's been since June of 2004.\u00a0 If you recall, former Fed Chairman Greenspan is being blamed, in part, for causing the credit crisis by\u2026","rel":"","context":"In &quot;Real Estate&quot;","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":3800,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/3800\/a-c-c-o-u-n-t-a-b-i-l-t-y-find-out-what-it-means-to-me\/","url_meta":{"origin":10445,"position":3},"title":"A-C-C-O-U-N-T-A-B-I-L-I-T-Y  Find Out What It Means To Me","author":"Thomas Hall","date":"August 6, 2008","format":false,"excerpt":"Honestly, I think Aretha got it right - stick to seven letters, melodically I think it just works better. Anyway - in my family I've been labeled \"you liberal\" - the second youngest of eight kids.\u00a0 Accountability, Responsibility, Discipline and Consequences were not just words, but codes of conduct -\u2026","rel":"","context":"In &quot;General&quot;","block_context":{"text":"General","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/general\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2716,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2716\/zillow-mortgage-zoriginators-delight-or-bane\/","url_meta":{"origin":10445,"position":4},"title":"Zillow Mortgage:  Zoriginators&#8217; Delight or Bane?","author":"Brian Brady","date":"March 7, 2008","format":false,"excerpt":"Greg Swann covered the big Zillow Mortgage announcement so I won't regurgitate the details here.\u00a0 I will weigh in my opinion and speculate about the consumer offering. I share Greg's enthusiasm for an independent originator database.\u00a0 The industry can't get it together and the Federal government may be violating the\u2026","rel":"","context":"In &quot;Lending&quot;","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":4789,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4789\/deregulation-is-the-new-regulation\/","url_meta":{"origin":10445,"position":5},"title":"Deregulation is the New Regulation","author":"Brian Brady","date":"October 2, 2008","format":false,"excerpt":"From the Wayback Vault in The New York Times Building: Fannie Mae, the nation's biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in\u2026","rel":"","context":"In &quot;Real Estate&quot;","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/10445","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/44"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=10445"}],"version-history":[{"count":2,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/10445\/revisions"}],"predecessor-version":[{"id":10464,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/10445\/revisions\/10464"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=10445"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=10445"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=10445"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}