Monday, January 24, 2011

Non-securitized mortgage flow chart

Exploring the current foreclosure crisis

One of the major issues that will be in the spotlight moving forward will be the foreclosure of mortgages that were bundled and sold as REMIC's, mortgage backed securities (MBS), and collateralized mortgage obligations (CMO's). It is likely that for many of these mortgages that were sold and then resold, the paperwork for all of these assignments is not in order. This puts the ability of the lender to foreclose successfully in jeopardy.

What a non-securitized, non-MERS mortgage looks like

The flowchart is of a mortgage that was not securitized and not maintained in the MERS database. It shows the progression from loan origination to mortgage satisfaction. In the next article securitized mortgages will be examined.

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