During the real estate bubble, people were buying and selling mortgages and mortgage packages. I do not understand why mortgages are not covered under the laws regarding secured transactions. (Buying and selling stocks is legally defined as buying and selling securities also called secured transactions.)
You can NOT advertise that you are selling secured transactions unless the secured transaction has been qualified for sale by your state and/or the Securities and Exchange Commission. Penalties for breaking these laws can be both civil and criminal.
Bringing mortgages under the laws regarding secured transactions would seem to put a damper on the continuing practice of selling mortgages without any oversight. It is possible that no laws or regulations would have to be changed. I am not a specialist in secured transactions, so I do not know why mortgages do not seem to be covered by the laws that protect us against stock fraud.
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