Federal Reserve: The Holder in Due Course?

Remember that $700 billion in TARP? It was dwarfed by other government programs including one from the Federal Reserve. The Federal Reserve went from a non-existent player in the mortgage backed security market a year ago to owning $904 billion of the mortgage backed securities today. But we don’t seem to be getting or seeing any reports of exactly what these deals look like or even who the parties were.

The question is where did this money go? To whom? For what? I’m not reading about deals made with investors who are the real creditors. If they are not getting the money at apparently 100 cents on the dollar, then who is? And if the investors were not bought out then who sold the certificates? How could anyone sell certificates they didn’t own?

And if the Fed has “bought” mortgage backed securities, how can a “trustee” with no trust assets be a creditor in foreclosure, bankruptcy or civil suit? How does the Fed feel about all these foreclosures? After all it supposedly is being done for the creditor, which according to these reports is the Federal Reserve System.

Tags: bailout, borrowers, Federal reserve, foreclosure defense, foreclosure offense, lenders, mortgage meltdown, quiet title, securitization
Posted in bubble, Corruption, Eviction, securities fraud |