The group of videos below describe what is involved in the Mortgage Backed Security Process. Although a somewhat complicated subject, these videos provide a very good snapshot of the process in general.

Viewing this process, one can see that with all of the transfers of the original mortgage note that take place in the securitization of a mortgage, locating the original mortgage note can be a daunting task at best for the foreclosing lender . 

Additionally these videos vivdly point out how the possiblity of fraud could exist in this environment, and also the potential for subjectivity on the parts of the various parties involved in the mortgage securitization process.

Left unsaid however, is the fact that the homeowner is the pawn in this massive fradulent scheme.

While the securitization process in general, is a risky, but efficient investment model, the distinction in what is happening today is the fact that the mortgages procured from homeowners were purposely manipulated in order to appear to maximize return to the insitituional investors.

These institutional investors purchased mortgage backed securities from a specialized investment company called a Special Purpose Entity (SPE), which was set up as the subsidiary of an investment bank that purchased the right to payment from home purchasers, on mortgage notes from the original lender.

Therefore, if the mortgage servicer/lender cannot actually produce the original contractual right for payment from the mortgage (mortgage note), the mortgage servicer/lender should not have the right to foreclose on your home.

Videos

 Mortgage Backed Securities - Part I                  Mortgage Backed Securities - Part II

 
Mortgage Backed Securities - Part III                 Collateralized Debt Obligation  (CDO)

      



Credit Default Swaps                                            Credit Default Swaps - Part II

 

Wealth Destruction - Part I                                    Wealth Destruction - Part II