“BOGUS ASSIGNEE.”

“BOGUS ASSIGNEE.” I had speculated that there were paperwork problems with the mortgages underlying the CDO’s (collateralized debt obligations—that they were done too quickly and without attention to detail and posted here about legal challenges to attempts to foreclose on the underlying mortgages. The theory of the challenges was that the foreclosing bank could not produce the paperwork that proved it owned the mortgage (that it was the valid assignee of the mortgage pursuant to a valid assignment). The Wall Street Journal (April 3) had an article about a federal investigation into a company that “processes and sometimes produces documents needed by banks to prove they own the mortgages.” The company “has processed documents used in courts that incorrectly claimed an entity called ‘Bogus Assignee’ was the owner of the loan, according to documents reviewed by The Wall Street Journal.”