Rehypothecation – Distorting Legal Principles By Risking Mortgage Loans – Nemo Dat!

By Sydney Sullivan and Kenneth Dost

rehypothecation hijackIT’S 3:00 p.m., DO YOU KNOW WHERE YOUR COLLATERAL IS? An enlightening paper every homeowner should read. Written by Christian A. Johnson, Assistant Professor of Law, Loyola University Chicago School of Law. B.A.; MPrA, Utah; J.D., Columbia, 1990

It was Saturday afternoon when a group of us were teleconferencing about foreclosure issues. The focus was on the late assignment of mortgages, when one person said, “…think about it, the Plaintiff Trust says it became the owner of the loan over 3 years after the trust closed… how could it sell certificates to investors for something it did not own?” Great question! Continue reading

The Free House Myth – or Reality?

The Free House Myth – or Reality?
July 20, 2011

Katie Porter posted an interesting viewpoint on the Credit Slips blog this week called the The Free House Myth.  A synopsis of the column points to the fact that the banks may
have bad paper now – but they’ll be back.  It almost sounded like Katie had been drinking  Kool-Aid with RCO when she stated in her closing line, “[T]he free house is political handwringing, not legal reality.”

Porter came under fire by no less than (my personal favorite) Adam J. Levitin, Professor of Law at Georgetown University.  Professor Levitin has provided significant testimony before Congress and has dissected the Wall Street securitization scheme that collapsed our economy.  Professor Levitin posted his comments to politely debunk Porter’s ‘no free house’ viewpoint…
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