mkd said:The investors are relying on the representations and warranties laid out in the GSE Guidelines which are proffered to congress in exchange for the government guarantee of the MBSs.
If that pool had a bunch of bad mortgages in them and it was pr oven to be the case, couldn't the homeowner claim the same? Seems like it would have to be fraud all the way around, not just for the investor.
Congress in their duty to protect their constituents (both borrowers and investors as well as the taxpayers) by insisting on this boilerplate language to protect the safety and soundness issues inherent in the mischievous conduct by the various players in the GSE Business Model.
Suggest that MKD write his congresspeople and remind them that what is good for the goose is good for the gander. This is not a free house, rather, a GSE Business Model contractor performing according to contract, the language of which and the protections therein was proffered to congress to protect non parties like taxpayers and borrowers, including MKD and others similarly situated.