And when the responisble homeowners actually do pay off their mortagages, they will be in for an unpleasant surprise, when they find the bank that bought their bundled mortgage can't produce the note.
No they won't.
“when they find the bank that bought their bundled mortgage can't produce the note”
All they need to worry about is having a satisfaction of mortgage produced and recorded.
The note is not recorded, the mortgage (or deed of trust) is.
Again, much ado about nothing on this topic.