This is the sense I'm getting of where this mortgage title debacle is headed.

If the right to foreclose is not vested in the agencies servicing the loans (and there's already case law to that effect) then those loans will cascade back down the title chain until so-called "wet ink" can be found. In most cases, that means the originator (if they still have the document).

However, those debts were sold when they were securitized, so does the originator still have the right to foreclose? How about the people who were sold those securities on the belief (it's right there in the prospectus) that they would hold title? I guess they'd want their money back, no?

Right now, lawyers across the nation are warming their suits. Likewise, AG's with political ambitions are licking chops at the career opportunity of a lifetime.

People are already blogging about a Mortgage Strike. Stop payment until you have proof the entity collecting payments holds the original note.

As for all the pension, insurance, municipal and foreign investors still holding this paper, what's their incentive to roll over? Better to be first in line, no? After all, it's going to be a very long line.

C, BAC, WFC all down hard in the last couple of days. Telling you something.

ebear