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A comment on Richmond’s rules: Why one California town is keeping Wall Street up at night. Parent comment

Re:Richmond’s rules: Why one California town is keeping Wall... by JumpCrisscross on Sunday October 06, 2013 @06:06AM (#6503653)
Couldn't agree more - default is the proper way to do this. Others include Richmond (a) buying underwater mortgages off investors and tearing them up or (b) making mortgage payments for its residents (an ersatz bail-out to investors).
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Re:Richmond’s rules: Why one California town is keeping Wall... by toomuchtodo on Sunday October 06, 2013 @06:11AM (#6503659)
Agree. But! You're going to need to find a way to untangle which investor owns which mortgage (these are derivatives after all). I'd say you get 90 days as an investor to respond; after that, the city gets to take unilateral action.
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Re:Richmond’s rules: Why one California town is keeping Wall... by JumpCrisscross on Sunday October 06, 2013 @06:15AM (#6503666)
"But! You're going to need to find a way to untangle which investor owns which mortgage (these are derivatives after all)."

Mortgages are not derivatives, they are debts. Tracing the owner of a mortgage should not be challenging. In the event that it is, that becomes the mortgage servicer's fault, an issue between the investor and the servicer.

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