http://www.bloomberg.com/news/2010-09-23/mortgage-investors-target-banks-using-texas-lawyer-s-novel-clearing-house.html
Revenge of the wronged.
What an outstanding idea
Solidarity
Think about it.
This year, the former partner at lobbying firm Patton Boggs LLP also found a unique solution to an even bigger housing problem: getting money back for investors in residential mortgage-backed securities that went bad. Franklin created a clearing house where investors can pool claims and potentially create the necessary legal clout to force mortgage lenders to buy back improperly made loans at the heart of the securities.
Before Franklin’s innovation, investors in such securities had no way of knowing who other investors were. Franklin’s approach may cost banks such as Bank of America Corp. billions of dollars. Lenders can be required to buy back securitized mortgages if they misrepresented their quality.
“If we’re going to have a mortgage system in this country that’s not government controlled, this effort or an effort like it will have to succeed,” says Bill Frey, head of Greenwich, Connecticut-based securities firm Greenwich Financial Services LLC. If the investors “don’t act together, the deals are going to continue to take huge losses.”
In July, Franklin, 45, sent a letter to trustees for some non-government backed securities. He said institutional clients that hold about a third of the $1.5 trillion market for mortgage-backed securities are in his database.
Clearing House Members
