Here is an amazing foreclosure tale. The link is the actual lawsuit filing by Deutsche Bank against Bank of America, which was the Trustee for a $1.7B credit line for DB, and another $476MM for BNP Paribas. In the mix are Taylor Bean Whitacker (since suspended by FNMA and FHLMC,) Ocala Funding and Colonial Bank (which failed Aug 2009.) The lawsuit alleges complete failure of any controls for money flow and document management, particularly missing mortgage notes, mortgages and assignments. I found the case to be a perfect case study in what I would title “ How to Destroy Faith in the U.S. Mortgage Backed Security System.”
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