4 replies to this topic

[MaryAM]

I have tried to find the answer to a few questions regarding the FED's purchase of mortgage backed securities - namely

 

1.  are these MER's recorded

2.  How are the mortgages recorded on the land records once the FED purchases them

3.  How are the mortgages serviced - only owners of wet paper can collect the payments

4.  Who holds the wet paper and if it is owned by the fed - why are people not making mortgage payments directly to the FED

5.  Is the FED receiving a percentage of the interest paid on the mortgage - or the whole amount and how is this calculated?

6.  How did the FED come up with the money to buy these mortgages?  Is this new money?  How many billions were added to the economy through this program. 

7.  If new money was created to buy the mortgages didn't this action essentially pay off the mortgage?  Wasn't the real estate backed by the mortgage essentially confiscated then when it was paid off by the FED?

8.  Late taxes on the real estate can be sold by the towns to American Tax Funding.  They don't have to record the ownership of tax liens on the land records but delinquent taxes can be collected by them at 18% interest.  Scarry to say the least.

9.  Who has controlling interest on the real estate if the FED has purchased the mortgage and who really has taxing authority if the FED owns the property but is not recorded as the primary lien holder.  Shouldn't the taxes be held by the FED and payments made to the towns.

 

All these questions make me wonder if 2008 was not a  walk in the park.  I don't feel that this can end well and that all the FED is doing is once again juicing the real estate market and that loan institutions that are making mortgages can once again not be carefull to ensure that the borrowers are good.  Loan officers don't have to care - just like prior to 2008 - because there is no risk if the mortgage is immediately sold to the FED.

 

Help me out guys and gals

 

http://www.federalre.../reform_mbs.htm

 

http://nyapps.newyor...lastTwenty.html

 

[libertas]

Mortgage-backed securities are debt obligations secured by mortgages. The mortgages are not sold to the MBS purchaser, they are the collateral security which secures the payments of interest and principal. I suggest you read the Wikipedia article on MBS.

[MaryAM]

If it were that simple 2008 would not have happened.  There are way too many properties today from that mess that cannot get clear the title.  Too many fake foreclosures sitting in land records.  It seems the same thing is happening - just on a much larger scale.   I have read more than Wiki on MBS stuff.  MBS has taken all the security that an average homeowner has and made it into one more thing that central banks can use to screw the population with.  If a bank, or lending institution makes a loan, it should hold that loan to maturity.  Its not the FED's job to inflate real estate in the manner in which it is doing it.  Since it is not their job - I want all the dirty details of how its occurring.    

[Data]

I doubt MERS has any impact. The Fed is buying securities from government agencies who bought the mortgages. The banks created their own electronic real estate records database called MERS to handle transactions among themselves.  

 

Agency securities are like any other securities on the Fed balance sheet.  They are just buying new issues to replace the old ones as they mature.

[MaryAM]

I can't believe that with the volumes I am seeing.  In any case - this is not the job of the FED.  They are simply keeping the real estate market inflated at unrealistic values that the next generation (with all their college debt) can't afford.  Their efforts will fail when single family buyers at inflated prices can't be found.