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Flow Chart: One Mortgage's Path to 'Securitization'

A flow chart that appeared online this week is creating a lot of buzz about just how complicated the process of mortgage-backed securitization can be.

The chart, entitled “Dan & Teri Securities Transaction Process Reverse Engineered 4.1,” traces the complex and convoluted path that one mortgage took on the path to securitization. It first appeared on financial blog Zero Hedge.

Dan Edstrom — who performs securitization audits for a company called DTC-Systems — spent more than a year reverse-engineering his own family mortgage in order to produce the chart.