Defendants’ failure to ensure proper transfer of the notes and the mortgages to the trusts at closing has already resulted in damages to investors in securitizations underwritten by defendants. Trusts are unable to foreclose on loans because they cannot prove they own the mortgages, due to the fact that defendants never properly transferred title to the mortgages at the closing of the offerings. Moreover, investors are only now becoming aware that, while they thought they were purchasing “mortgaged-backed” securities, in fact they were purchasing non-mortgagedbacked securities.

http://stopforeclosurefraud.com/wp-content/uploads/2013/09/PHOENIX-LIGHT-SF-LIMITED-vs-THE-GOLDMAN-SACHS-GROUP-INC.pdf