The mortgage-ownership map (get a GPS)

You can’t take three from two,
Two is less than three,
So you look at the four in the tens place.
Now that’s really four tens,
So you make it three tens,
Regroup, and you change a ten to ten ones,
And you add them to the two and get twelve,
And you take away three, that’s nine.
Is that clear?

–Tom Lehrer, "New Math"


[UPDATE: Image replaced with full-size copy (click to see it).]

You probably know the basics of the whole mortgage-securitization thing. The bank you get your mortgage from sells it to someone else, who splits it up and mixes the pieces with lots of other mortgages.

The end result is that, while it’s easy to know who services the mortgage (hint: it’s the place you send your payment), it’s not so simple to figure out where the rest of it goes — and the whole MERS mess doesn’t help.

Well, along comes one Dan Edstrom. He audits the whole securitization trail (such as it is) for a living. At one point, for reasons I don’t know, he created a flow chart for a single mortgage.

It’s below; click for the full-size version. I don’t think any more needs to be said.


Originally from Zero Hedge.

And check out the Rolling Stone article on the subject.

About Andrew Kantor

Andrew is VAR's editor and information manager, and -- lessee now -- a former reporter for the Roanoke Times, former technology columnist for USA Today, and a former magazine editor for a bunch of places. He hails from New York with stops in Connecticut, New Jersey, Cincinnati, Columbus, and Roanoke.
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3 Responses to The mortgage-ownership map (get a GPS)

  1. Wow how is anyone suppose to figure out who really owns the note?

  2. To paraphrase “The Matrix”: There is no note.

    (But seriously, that’s part of the whole robo-signing fiasco — companies swearing to havehold the note when they really can’t be sure.)

  3. antalya says:

    Wow how is anyone suppose to figure out who really owns the note?

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