NOT FINDING THE NOTE—UPDATE.

NOT FINDING THE NOTE—UPDATE. I posted here about my speculation that the haste to fashion toxic assets out of slices of mortgages had created backoffice problems, so that it could be hard for a lender to come up with the paperwork relating to a mortgage. This article describes a decision by a federal bankruptcy court in the Southern District of New York which expunged a mortgage debt of $461,263 because the paperwork was insufficient. (The case is continuing so there is no final decision, and there are title issues remaining.) The lawyer for the bank said at the hearing: “In the secondary market, there are many cases where assignment of mortgages, assignment of notes, don’t happen at the time they should. It was standard operating procedure for many years.” In other words, the paperwork wasn’t being done.