Mortgage-Backed Securities: “It Is The Rare Ordinary Human Being Who Understands Them”

Does 11 USC § 548(e) have any effect when loans were not timely assigned to the securitized trusts (by the closing dates), clouding the title for the homeowners, depriving investors of standing and/or in some states a loss of proprietary land record placement; and/or when loans were sold multiple times (FCIC, pg. 407)?

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In re Lehman Bros. Holdings Inc., 513 B.R. 624 (Bankr. S.D.N.Y. 2014)

A purchaser of residential mortgage-backed securities filed proofs of claim based on alleged misrepresentations by the debtors in offering materials distributed in connection with sale of the securities. The debtors objected and sought to subordinate the claims as claims arising from securities “of” the debtors.

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