business ethics

Who Owns Your Mortgage? Or Anybody’s For That Matter!

Dan Edstrom is a specialist. He performs securitization audits.

He decided to use his specialized training to discover who owned his mortgage.

The chart below is the result.

Do you know who owns your mortgage? Could you figure it out like he has?

From the article

The following flow chart reverse engineers the mortgage on the Ekstrom family residence. It took Dan over one year to take it this far and it clearly demonstrates what happens when there are too many lawyers being manufactured.

You can click on it and it gets bigger.

Do I need to point out to you that with what has been happening with mortgages over the last five years, it might be unwise to allow banks to have someone sign off that they understand the account?

James Pilant

3 replies »

  1. Dan’s flow chart is both masterful and scary at the same time. It makes you wonder whether anyone really knows who owns a mortgage. When one party sells it to another as a securitized asset, it transfers the risk to that party. Given that the original holder of the mortgage no longer bears the risk of default, it can make unsupportable mortgages to undeserving parties and not worry about the probability of repayment. Multiply that by the number of times a mortgage is sold and you have a chaotic system that encourages bad behavior.