Banks may have un secured their mortgages due to Out of time Assignments

Yves Smith of Naked Capitalism published this information here “Transferring non-performing loans into a trust or making an out-of-time assignment is a void act under New York trust law (and mortgage securization trusts are organized as New York trusts)."

This is regarding the issue of finalizing the paperwork to submit a mortgage to a trust within the 90 time period as stated by New York Trust Law.
The majority of evidence I can find on the out-of-time assignments seemed to be pointing to a solution that could leave banks insolvent. Christopher Peterson writes in his paper
“Demystifying MERS” that the only real solution according to the law is that the debt would become unsecured, leaving the banks with the ability to call the loan due but have no collateral to seize in lieu of default.
Big Con: Crackpot Economics and the Fleecing of America

The banks would immediately have potential losses in the billions. The unsecured debt is much more difficult to collect. In addition to collection issues, bankruptcy often will place unsecured debt in lower positions than secured debt, possibly being wiped out all together. They would then just be turned into a big credit card companies that have billions of dollars in bad debt. These mortgages would be worth pennies on the dollar and the most sensible thing would be for the banks to step up to the table and negotiate new loans based on current home values that are once again secured to the property.
The moral hazard argument does not fly here because this is not about just defaulted mortgages. It is about a vast majority of loans in the country that violated the New York Securitization Trust Laws. Any one in good standing or in default would have an unsecured loan.

There is a major incentive for the banks to step up to the table and make some deals with mortgagees. The government subsidy they have taken has only enhanced their arrogance and hubris. For some reason the banks are being allowed to game the system, the government and the tax payer with absolutely no consequences.

The banks continue to postpone, stall, and manufacture misplaced documents all in the name of doing what is right for the economy. It is not right for the economy to steam roll the laws of property ownership. The entire title system in the United States could be invalidated if the courts do not step in and put a stop to the Banks.