Tangle Of Loans Feeds Foreclosure Crisis

An article published last July in The Boston Globe describes the difficulty homeowners delinquent in their house payments (on a loan that's been bundled with others and securitized by Wall Street) have in figuring out exactly who to contact in attempting to arrange some type of a payment arrangement.

• But as foreclosures mount, the system is proving ill-suited to respond, analysts said. The reason: Spreading risk muddled responsibility. "It's perfect deniability," said Patricia McCoy, a University of Connecticut law professor who specializes in financial services. "When there's a problem, each person in line says, 'Don't talk to me, talk to the other person.' "

For more, see Tangle of loans feeds foreclosure crisis (Borrowers can't tell where to turn for change in terms).