Mortgage Servicing Fraud
occurs post loan origination when mortgage servicers use false statements and book-keeping entries, fabricated assignments, forged signatures and utter counterfeit intangible Notes to take a homeowner's property and equity.
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http://cep.lse.ac.uk/seminarpapers/26-02-08-VIG.pdf

Did Securitization Lead to Lax Screening? Evidence
From Subprime Loans 2001-2006

 
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Abstract

Theories of financial intermediation suggest that securitization, the act of converting illiquid loans into liquid securities, could reduce the incentives of financial intermediaries to screen borrowers. We empirically examine this question using a unique dataset on securitized subprime mortgage loan contracts in the United States. We exploit a specific rule of thumb in the lending market to generate an instrument for ease of securitization and compare the composition and performance of lenders’ portfolios around the ad-hoc threshold. Conditional on being securitized, the portfolio that is more likely to be securitized defaults by around 20% more than a similar risk profile group with a lower probability of securitization. Crucially, these two portfolios have similar observable risk characteristics and loan terms. We use variation across lenders (banks vs. independents), state foreclosure laws, and the timing of passage of anti-predatory laws to rule out alternative explanations. Our results suggest that securitization does adversely affect the screening incentives of lenders.
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Mike wasn't it also the "Deregulation" of the Hedge funds and no over site by the SEC contribute to this also?

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For my part, securitization or loan pooling should be abolished ASAP.  In my opinion it serves no real benefit to the homeowner having your loan continuously sold to these ingrates.  All they do is skim money off the top of homeowners mortgage payments.

That's why $22,000 of mortgage payments are missing or have not been applied to my Principal loan balance.
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