Mortgage Paperwork Mess The Next Housing Shock CBS 60 Minutes – April 3 2011

It’s happened in the U.S. and its happening here in Australia. This brilliant article by Scott Pelley from CBS News 60 Minutes was shown 3rd April 2011. In their rush to maximize profits, banks largely onward sold your mortgage on Wall Street into Securitization schemes, to cut cost — over 50% in the U.S. have loss or misplaced their original documents. Without them the bank CAN NOT claim ownership to the property or to the loan — or rather ‘drawdown facility’. When banks on-sell your mortgage they get two incomes, the lump payment from investors on Wall Street and your mortgage payments. EVERY Australian Bank has packaged home loans into Securitization schemes. Some have even borrowed directly from the U.S. Federal Reserve rather that the Reserve Bank of Australia in 2008!