that the new allonge had not been attached or otherwise affixed to the note.She testified further that it was customary for Countrywide to maintain possession of the original note and related loan documents.This is significant for two reasons: first, it points to pattern and practice, and not a mere isolatedlapse. Second, Countrywide, the largest subprime originator, reported in SEC filings that itsecuritized 96% of the loans it originated. So this activity cannot be defended by arguing thatCountrywide retained notes because it was not on-selling them; the overwhelming majority of itsmortgage notes clearly were intended to go to RMBS trusts, but it appears industry participantscame to see it as too much bother to adhere to the commitments in their contracts.“Whenever we’ve gotten into situations on the short side, no matter how bad we think it is, italways proven to be worse.” The mortgage securitization mess looks to be adhering to this script.
Adam J. Levitin
Associate Professor of Law
Written Testimony of Adam J. LevitinAssociate Professor of LawGeorgetown University Law Center
Before theHouse Financial Services CommitteeSubcommittee on Housing and Community Opportunity“Robo-Singing, Chain of Title, Loss Mitigation, and Other Issues in Mortgage Servicing” November 18, 201010:00 am
Witness Background StatementAdam J. Levitin
in an Associate Professor of Law at the Georgetown University LawCenter, in Washington, D.C., and Robert Zinman Scholar in Residence at the AmericanBankruptcy Institute. He also serves as Special Counsel to the Congressional Oversight Paneland has been the Robert Zinman Scholar in Residence at the American Bankruptcy Institute.Before joining the Georgetown faculty, Professor Levitin practiced in the BusinessFinance & Restructuring Department of Weil, Gotshal & Manges, LLP in New York, and servedas law clerk to the Honorable Jane R. Roth on the United States Court of Appeals for the ThirdCircuit.Professor Levitin holds a J.D. from Harvard Law School, an M.Phil and an A.M. fromColumbia University, and an A.B. from Harvard College.Professor Levitin has not received any Federal grants nor has he received anycompensation in connection with his testimony. The views expressed in Professor Levitin’stestimony are his own and do not represent the positions of the Congressional Oversight Panel.