NOTE : IMHO - read your mortgage or deed of trust... nowhere does it say the servicer owns the loan... and so begins the way to explain why the poor homeowners have to swallow the fraud, lose their homes and give up for the good of the country. (it is my belief that is where this type of reporting about the economy is headed..... )
The simple question to me is not will the banks face harm... but will homeowners face harm. or the investor... if here it is the banks that are being portrayer as victim not those investors or homeowners that WERE FRAUDED. WAtch what you read carefully - this is all my opinion.....and what i believe might happen.
Mortgage Foreclosure: Watchdog Warns of 'Potential Crisis' From Fraud - ABC News: "While under a best-case scenario, the problems could prove 'overblown' -- the work of only 'a handful of employees' at mortgage servicers who failed to follow proper procedure -- the panel said there is a 'considerably grimmer' outcome.
Under a worst-case scenario, the servicers will not be able to prove that they own the mortgage loans they claim to own. Under such a scenario, the banks, the government and homeowners would all end up hurting, only two years after the 2008 meltdown.
The banks, for instance, could face 'significant harm' if the validity of 33 million loans is called into question. If an investor in a mortgage-backed security were to force a bank to repurchase a loan because the firm had misrepresented the quality of that loan, the problems could be severe. One such investor action, the panel said, could force Bank of America to repurchase and absorb partial losses on up to $47 billion in bad loans."