[Archaea]

is fascinating for me, but it appears people don't even try to comprehend it.

Who are the major players?

The Homeowners.

The Sevicers, previously thought to be lenders,

The Investors.

The Regulator.

Loans for residential property are really generated through investors, not bank loans. Banks are really only servicers who collect monies to pay to investment pools.


As we know the Mortgage Investment Scam popped in 2007, collapsing the economy and setting some regions back decades. That's not hyperbole or overstatement. In some regions where the boom economy did not exist, it isn't felt as much.

The servicers who also often acted as originators were sloppy and shoddy in their documentation and in how they alienated the "loans". They engage the company MERS created to act as a veil of forgetfulness regarding ownership and to ease transfers of the mortgages. However, the system was flawed in its methodology.

So here's the rub, homeowners challenge the foreclosures due to the flaws, investors demand the services buy back the toxic assets and the Fed, the Regulator attacks the Servicers as well. It could become an even greater mess as we move on.

The elimination of the inventory seems paramount to improving the economy but we could be entering greater gridlock on this issue. Stay tuned. A highly technical issue might actually affect you more than you believe.