Here’s an excerpt:
No evidence that anyone has been wrongly evicted has yet been found. Servicers say they can have their paperwork straight in a few weeks. But this is about more than slipshod affidavits. The scramble to securitise mortgages in the boom led not only to iffy loan underwriting but also to questionable record-keeping, including the recording of title. When pressed, some lenders have struggled to produce documents showing they own loans. To allow mortgages to be traded without falling foul of local property laws, the industry created an electronic-processing firm, Mortgage Electronic Registration Systems (MERS). But its right to act as an agent for lenders in foreclosures is under attack.
There’s another good article on the entirety of the US housing market:
None of this will help America’s moribund housing market. Tying the process of repossession in yet more knots will make it harder for the market to clear and for house prices to find a floor. Ideally, politicians ought to speed up foreclosure, which in some states can take up to two years. Moving somebody out of his home quickly may sound heartless; but stretching the process out is a bad idea. Would you bother to look after a property you were due to be expelled from?
The Economist often does a better job than American journalists of objectively reporting on politically-charged subjects. It’s easier to see the whole race when you don’t place a bet on any particular horse. So it is with the housing mess, and particularly foreclosure-gate.