The Problem with Mortgage Assignments

During the roaring 2000’s, banks were in such a hurry to create mortgages and sell them on in the secondary market that they were careless with their paperwork; particularly with mortgage assignments.  When foreclosures started coming in, many of the mortgage assignments could not be found.  Rather than facing the problem, banks hired another company to create new assignments to replace the missing ones and put in new dates.  If a mortgage assignment was dated & filed a year after the trust was sold on the open market, then it was ruled that the assignment was created solely to facilitate a foreclosure, and as such, constituted mortgage assignment fraud.