LivingLies: “So over half of all mortgage loans claimed to be “owned” by Fannie either in its own portfolio or as Master trustee of a private label REMIC trust are registered with MERS. And Fannie admits that virtually all of those loans have been transferred multiple times but disclosed and recorded much less than the number of transfers. Hmmm.

That is why fabricated, forged, backdated and robosigned documents became so ubiquitous. Lots of paper transfers of the loan took place without anyone buying the debt. And we all know that a transfer of the mortgage without the debt is no transfer at all.

So you might think “No harm no foul,” right? Right except for the fact that the last party on that paper train is the party who brings the foreclosure action and who (a) has not purchased the debt for value and (b) is relying upon unrecorded transfer documents pursuant to transactions (“for value received”) that never occurred.”

Source: Fannie Mae Admits Mortgage Transfers Without recording — Sees Substantial Liability