Wednesday, December 29, 2010
The Subprime Shakeout: MBIA Sampling Order Signals Shorter Path to RMBS Putbacks - A small percentage of cases will represent all the cases.
Interesting article above to learn a bit about securitization.
I am of the position that once there is a change in terms to the original mortgage note, the homeowner has to approve. So when these mortgage notes kept changing hands because of securitization, they were violating the homeowners rights by changing terms.
This seems like a big deal. Might it be possible for the almost one million parallel foreclosure victims to file a nationwide class action lawsuit and by using a reasonable percentage of cases, those cases could be used to represent everybody?
I am totally guessing here, but if a percentage of damages can be assessed, then all homeowners could get varying awards based on the percentage of damage. Actually, this may not work because some homeowners put down larger down payments, and other homeowners had significant equity.
Homeowners would have to be lumped into various groups, minus equity, zero equity, plus equity, plus how much of a down payment they made, before a percentage of damage could be calculated.